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• You can import strategies from other community sources using the EAs feature of MT4 or simply copy the trading strategies of others yourself directly.
• On the one hand, you have simple platforms like eToro – which offers everything in-house.
• It entails automatically copying the trades initiated by other traders.
• This guide should not be considered investment advice, and investing in gold CFDs is done at your own risk.
• However, all of these completely depend on your country that you are living in.

Copy-trading allows you to mirror the portfolio and ongoing trades of an experienced investor. This allows you to invest in a truly passive nature – as your chosen trader will determine which assets to buy and sell. Copy trading ties up your account with another trader in that their positions are automatically replicated in your account. Copy trading is more passive because the trader does all the work you are copying. Copy trading is not only for the inexperienced, as a lot of expert traders also use copy trading as a means of market research. It saves time and could be part of a new strategy that can be implemented and potentially profitable .

They investigated the concept of who chooses to become a copier and discovered that risk aversion is a deciding factor. The higher the subjects’ risk aversion, the more likely they are to imitate others. Those who have demonstrated a low risk tolerance are tempted to take more risk by copy trading.

Finding the best traders

While FXTM Invest is a type of copy trading program, another way to define it would be to call it a money management system. Is the trader who identifies the signals to be followed by the investor or follower/copier. Semi-Automated trading lets you view all the positions of your chosen trader.

In conclusion we can say that copy trading is certainly the user-friendlier option and leaves you with more discretion than mirror trading. On OKX, your trading experience is optimized thanks to our leading exchange orderbook, giving you deep liquidity and tight spreads. Here we have another US-friendly platform that is validated by US agencies.

eToro

Another key metric that we like when selecting a copy trader is that of the average trade duration. This is because you can assess the specific strategy that the trader takes. The only way to do this is to look at the trader’s historical performance. At eToro, you can specify two key metrics to find a top-rated trader that meets your goals – which are listed below. Additionally, robots and automated software programs need to be installed into a third-party platform like MT4, MT5, or cTrader.

Picking your trading platform is just as important as picking the correct trader to copy . The number one rule is to only deposit your money with a platform that is regulated in your jurisdiction. The first bullet point needs to be emphasized, as even copying the best trader will result in losses if risk-management principles aren’t being followed. Losses happen to every trader, no matter how good they are at finding winning trades. You’ll be pleased to hear that the copy trading process is remarkably simple. It involves allocating funds to automatically copy the actions of another good trader, which allows you to capitalise on their winning strategies and wealth of experience.

FP Markets

Once you have opened an account, you will then have access to tens of thousands of verified traders that have signed up for the copy trading program. To ensure you are able to find a suitable trader, eToro offers a useful filter system. For example, you can narrow your search results down by average annual gains, preferred asset class, average trade duration, and more. Copy trading is a way to automate your trading by copying the trades of other traders. It is often used by newbies that might not yet know how to trade, with the added benefit of helping to teach them on the way.

If your plan is only to follow and copy other traders, there is no experience required. However, it can be helpful in analyzing and selecting a good trader to copy and understand the basics of leveraged trading and how different market trends. If you’re a new trader and are worried about losing money with copy trading, you could always try it with a demo account first before funding your account.

If you want to spread out your risk, you can spread out your copy trading between 2-4 different traders, as many users do on the AvaSocial trading app. Now it’s time to open an account on an automated trading platform. This can be done from your browser or mobile device just by downloading AvaSocial app. Here at AvaTrade, we also offer other well-known copy trading options, like ZuluTrade and DupliTrade. With AvaSocial copy trading app, you can thoroughly research the statistics and success rates as well as portfolio allocations of the people you choose to copy. This allows you to understand the quality of the trader and then choose to copy their trades and benefit from their experience.

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If a trader has got a fast and high return, you should rather leave that one. We advise you to copy a trader who has shown a stable improvement over the course of at least six months. Give your investments time; this rule does not only apply to copy trading, but for any other form of investment you may use. This includes statistics on his success as well as his portfolio of invested trades. The same applies to accessing the book of commissions to check on a trade’s development.

Many people say that copy trading is a great way for beginners to get acquainted with the market. However, it requires skill to figure out which traders to copy, and which ones to ignore. Essentially, you already need to be a good trader yourself, before you would ever be able to really know which traders are solid, and which ones are not. Simply put, signals are indicators used by copiers to position their trades in the market correctly. Copy trading is also popular when it comes to trading cryptocurrencies, such as Bitcoin, Ethereum, and Litecoin.

Best Crypto Sign-Up Bonuses in 2023

As such, you can be rest assured that your chosen trader doesn‘t attempt to access the markets in a reckless manner – as their own money will be at risk. One of the most common questions we get asked here is how eToro copy traders actually make money. After all there must be a financial incentive of some sort – taking into account that investors are not required to pay a premium when using the copy trading feature. At the time of writing, Alnayef has just under 1,800 investors copying him.

https://xcritical.com/ is legal in most countries, as long as the broker itself is properly regulated. When investing in financial markets through a regulated broker, there are procedures in place during the account opening process that should ensure it is legal for you to trade . Using our forex brokers comparison tool, here’s a summary of the trading platforms offered by the best copy trading brokers.

Products

Subscription prices are fixed in the MT5 market place, and rapid data exchanges help to reduce execution delays making the platform ideal for copy trading. When a trade is copied into your account, it will normally be an exact copy of the trade performed in the master account . The trade will be replicated with the same stop loss and take profit as the original trade. The transaction price will be mirrored as exactly as the market conditions allow.

Being a financial instrument is obvious that the entire structure is developed on a financial market. This option is potentially more suited for those of you that wish to copy trade in a more controlled manner, as opposed to automating the entire process. The main concept here is that the robot will trade in a fully automated manner.

As such, it is inevitable that they are licensed and regulated to provide security. Besides checking the license and regulation, you should also check whether your chosen platform has a customer service in your required language and if there is any contact information provided. Copy trading could be the first step for one to become a proficient cryptocurrency investor.

We offer you a good choice of some of the most well-established copy trading services on our AvaSocial trading app. We also collaborate with third party products like DupliTrade and ZuluTrade to offer you a choice of automated trading packages. Novices are using other investors’ abilities and thus increasing their own success rates.

This copy trading platform also offers the FXTM Invest service for a minimum deposit of $100. ZuluTrade supports over 40 forex brokers, one of which being their integrated solution . It allows investors with existing brokerage accounts to link a new account via their existing broker easily. Naga is a copy trading platform that automatically copies your trade. It helps you to discover other investor’s stats on the leader board and select who to copy to get the highest profit in your trade. EToro isn’t the only platform in the online space that allows you to benefit from copy trading – but many argue that it is the best.