Copy Trading Forex Brokers, are fx brokers that offer their clients the ability to copy and follow the trades of other successful traders in order to make profit. When new traders start forex trading, they are usually overwhelmed with all the data and information available in the market. Copy trading is a method that provides an easy way for new traders to adapt faster, by following and copying successful trading signals from experienced traders.
What is Copy Trading?
Copy trading is a forex trading method that enables traders in the financial markets, to automatically copy the trades of a selected trader of their choice through a social trading network. This method differs from mirror trading, as it allows traders to copy specified traders and not trading strategies. Also, when copy trading, copy traders usually get charged a small fee for using the service.
Thus, any trading action made by the copied investor once confirmed, such as opening and closing a position or even assigning stop loss and take profit orders, are also executed in the copying trader’s account.Nevertheless, the copying trader always retains the ability to disengage with copied trades and manage them himself.
Eventually, the concept of copy trading has led to the development of a new type of investment portfolio, called People Based Portfolios or Signal Portfolios. People based portfolios main difference from traditional investment portfolios in that investors invest in other investors, instead of the traditional market based instruments and products.
How to Choose the Right Copy Trading Platform?
Copy trading has developed into an extremely popular product, with both new and experienced traders. As traders psychology and sentiment dictates, new traders need the ability to observe the experts and verify their trading strategy and decisions. On the other hand, experienced traders love to share and brag about their successful ideas and trades. By doing so they get to increase their followers and investors base, which leads to more profits by every copied trade.
When choosing a copy trading platform, you need to make sure that the platform is well known and has a strong user base. A good platform will offer you the opportunity to copy as many traders as you like, charging a reasonable fee. It is also important to check the performance of the traders involved with the platform, the advice they offer, and the risk exposure of their trades. After all, copy trading is all about the people involved in it.
If you do not feel entirely confident following other traders strategies, visit our simple guide to learn forex trading and improve your forex market knowledge.
Copy Trading Forex Brokers List
MAS, JFSA, DIFC