Frequently Asked Questions
Your go-to resource for answers to common questions.
Social trading is a form of online trading that allows individuals to observe, follow, and learn from the investment strategies of peers and experienced investors. It creates a collaborative and interactive trading environment where investors can exchange ideas, receive guidance, and benchmark themselves with peers.
We are a business-to-business (B2B) software-as-a-service (SaaS) company selling our social trading products (white label and APIs) to existing online banks and brokerages. Some of our existing customers include Avanza (Swedish online bank with 2M users), Comdirect (German online bank with 2.6M users), and interactive investor (leading UK online investment platform). We are not a brokerage and do not offer brokerage services.
Yes, we do! Our existing customers are based in Sweden, Germany, and the United Kingdom - and we are expanding into other countries outside of Europe. Rest assured, we can offer our social trading products globally, adhering to various regulations and compliance standards.
Adding social trading features to your brokerage can offer many benefits, from enhancing the overall user experience to attracting and retaining more clients. StockRepublic can help your business grow more quickly at a lower cost. Benefits for your brokerage include growing your customer base, increasing user engagement, increasing trading activity, differentiating from your competitors, and retaining customers while boosting NPS. Benefits for your users include improving financial literacy, having fun, and achieving higher returns. Read more about these benefits in the additional FAQ below.
Investors engage in social trading for several compelling reasons such as the following: 1) IMPROVE FINANCIAL LITERACY: Social trading helps individual investors get better access to financial resources and likeminded investors. Users can share their expertise, providing valuable insights for others on the platform. This knowledge-sharing is especially appealing to less experienced investors who are looking to learn from more seasoned individuals. 2) HAVE FUN: Social trading provides investors a fun, engaging way to learn about investing. The thrill arises from the dynamic interactions among investors, the sharing of diverse strategies, and the collective celebration of successes. It's not just about transactions – it's a journey where learning, collaboration, and competition converge. 3) ACHIEVE HIGHER RETURNS: Social trading enhances investor returns through collective intelligence. By tapping into the wisdom of a diverse community, investors access a mix of strategies, reducing risk and enhancing decision-making. Novice investors can replicate the success of seasoned traders, accelerating their learning curve. At StockRepublic, we’ve increased investor returns by +4pp.
Check out our Features page to learn more.
StockRepublic does not provide copy trading features. Copy trading is a specific feature within the broader framework of social trading that emphasizes the replication of trades from selected traders, offering a more hands-off approach. Social trading, on the other hand, involves a community where traders actively share information and insights, fostering a collaborative environment.
Benefits of Social Trading
Social trading attracts traders looking for a more collaborative and community-oriented trading experience. Additionally, social trading can improve SEO optimization, organic search, and referral traffic from user-generated content on the platform. This not only grows your customer base, but also decreases customer acquisition costs. After implementing our social trading features, our customer Nordnet achieved a +25% organic increase in new customers.
Social trading features create an interactive and engaging environment for your users. The ability to connect with other traders, share insights, and participate in discussions keeps users more actively involved with your platform. Average time spent on our app is 2X greater than the finance industry average. Plus, our social trading app boasts a 40% DAU/MAU ratio – that’s only 10 percentage points away from Facebook’s.
With social trading, users actively follow and engage with the strategies of others. The heightened activity contributes to higher transaction volumes on your platform by both increasing trading within existing active traders and also by activating passive investors. For one customer, we increased average investor trades per month from 1.8 to 2.2.
In a competitive market, offering unique and innovative features sets your brokerage apart from others and shows your commitment to staying at the forefront of industry needs.
Building a sense of community and providing additional tools for investors to succeed enhances customer loyalty. Traders who find value in the social aspects of your platform are more likely to stick around and continue trading with your brokerage. This also increases your overall NPS score – at StockRepublic, we’ve helped our customers achieve a 72% increase in NPS.
No – with social trading, contributing users discuss and give personal investment suggestions just like on any other public forum (e.g. Reddit). Social trading is about benchmarking and comparing investment strategies – not providing specific investment advice. Since StockRepublic and your business does not employ the users, there is clear separability and an “arm's length” from end-users' own investment decisions.
Yes, StockRepublic is designed to scale with your business. Whether you're a small neo broker or a large global online bank, our solutions can be customized to meet the specific requirements and growth stages of your business.
To integrate, we only require holdings and transaction history data, which we tag to a secret and anonymized user identifier provided by the bank. Users can choose to remain anonymous or select a personal pseudonym when they opt-in. Anonymized data ensures that we never know which customer owns what, and we only present holdings and transactions as percentages and VWAP. This ensures customer privacy and transparency without revealing monetary values, promoting a level playing field and focusing on investment strategies.
If you choose our white label app, we take on the content moderation. With our social trading API however, customers are responsible for moderation as social app users are your bank customers. You can always use our moderation tooling to help remove inappropriate posts, suspend accounts for breaking rules, and more.
We wrote a whole handbook on choosing whether to buy (white label) or to build (API) social trading applications for banks and brokers. Check it out under our Resources tab. Our team is also here to discuss the best solution for your business – reach out to us and we’ll help you!
Curious to know more? Click our “Get in touch” or “Book a demo” buttons below to learn more. We are happy to address any additional questions.
White label or API: what’s right for you?
Confused about choosing between white label or API solutions for integrating social trading functionalities into your financial institution? Our simple guide can help you make the right initial decision for your business.