Copying trades (copy trading) is a popular way of investing in Forex to make money. This is useful even for those who do not have the relevant trading experience, allowing you to earn with minimal effort and knowledge. Thanks to copy trading, beginners can copy the actions of experienced traders and make a profit from each successful transaction.
It is worth considering in detail the pros and cons of copying transactions and which brokers provide the best tools for this. For best results you should use the best providers of copy-trading software and get the most out of copy trading.
What is copy trading software
Copy trading is one of the most profitable investment methods as traders can copy the entire trade history of the top trader. Copy traders pay the main trader a commission for copying their strategy.
To deal with copying transactions, you need to use the appropriate software. Many brokers provide this as part of their platform service.
Platforms for copying trades (autotrading) solve several problems for newbies at once. Firstly, they allow you to start earning in the financial markets without a solid baggage of experience and knowledge. Secondly, in the process of copying other people’s transactions, there is a great opportunity to learn from the clear examples of specialists.
According to experts, the emergence of software for social trading has changed the rules in the Forex market. If traders used to play against each other, now they have joined forces to oppose the market. If earlier beginners mostly lost money, now they have the opportunity to earn returns at the level of professional traders.
Best Software Providers
Today, there are many platforms where users can take advantage of the copytrading features. Here are the brokers that offer the best copy trading platform.
Capital.com It is considered to be one of the most popular AI CFD platforms.
DotBig. This broker gives you access to a wide range of features and offers favorable trading conditions. The copytrading options aim to improve your trading skills through a training program. Investors provide profitable strategies and traders get access to them and the ability to use it.
Etoro. One of the best social trading platforms out there.The copytrading platform is named eToro CopyTrade. It’s worth noting that eToro has over 2000 assets. Forex, Stocks, ETFs, Cryptocurrencies, Commodities, CFDs
Bitget is a cryptocurrency copy trading exchange that provides the ability to copy the best deals.
Binance is one of the best crypto exchanges for trading through the API.
how to choose a trading signal provider for copying?
Traders’ trades can technically be copied in two ways:
automatically with the help of special services (MQL signals, PAMM accounts, etc.);
manually — the trader gives trading signals (trade parameters), and the recipient follows them on his own account.
When choosing a broker that supplies software for copying trades, several important parameters should be taken into account, namely:
Reliability and regulation assessment. Many brokers offer copy trading platforms, but among them there are those providers who have a very dubious reputation. Experts recommend paying attention to platforms whose activities are regulated by governing bodies.
Trading conditions. Of course, the issue of commissions, the variety of trading instruments and the quality of execution of transactions is a top priority in copy trading. Some brokers have a margin in the spread when providing such a service, which can significantly affect the result. You always need to find out all the nuances in advance.
Studying the scale of the network. When it comes to social trading, the larger the network, the better opportunities participants get.
Transparency. It is important that all important data on the statistics of managers are in the public domain and available for independent verification.
Platform technology. The best platforms offer extensive options for trader choice and risk management parameters, which can significantly increase the chances of success.
What is difficult for a beginner?
It is worth noting that there is no way to earn money without labor in the field of exchange trading, and copy trading is no exception. Like any business, it has its benefits and risks.
The advantages of this method include the following:
Saves time: there is no need to test a trading strategy, analyze the market.
Allows you to use someone else’s experience: the results of applying all the knowledge and skills that the signal provider has spent years acquiring, the investor receives for a small fee or a percentage of the profit.
Creates a source of passive income, especially if deals are copied automatically.
The only downside is that you can choose an unsuccessful trading platform and start cooperation with an unreliable investor.
Is it worth doing copy trading?
Copy trading in financial markets is a profitable and highly profitable activity, but in order to make money in this area, you must understand this market and be able to analyze it. Not everyone is willing to learn and gain experience. However, sometimes experienced traders are ready to share information about their transactions for a fee. This can be an excellent strategy for both the provider and the copy trader..
At the same time, it is worth understanding the risks of copy trading, that you will not always come across an honest investor, whose transactions you are going to copy. And if you are looking for copy trading software, DotBig LTD is recommended.
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