Learn How Copy Trading Works, Types of Copy Trading and How to Choose a Broker

Learn How Copy Trading Works, Types of Copy Trading and How to Choose a Broker

Copy trading is a new way to make online trading very interesting and challenging. I will be writing this post on copy trading and how it can be easier to succeed. Copy trading is basically an online platform that allows traders looking for success in the forex market, stock market, commodities etc. to choose experienced traders, who have already proven their success, and follow their trades step by step.

 

What is copy trading?

Copy trade is a form of trading that allows people to copy the trades of successful traders. There are several copy trading forums on the internet, where traders can share their ideas, opinions, and strategies. The copy trader is also encouraged to perform due diligence in order to maintain membership on the forum. It is always recommended to learn how to trade by yourself. The information you get from forums depends on the quality of content submitted by users, there can be no assurance regarding accuracy or completeness of said information. For this reason it is risky to provide financial systems based mainly on online recommendations.

 

How Copy Trading Works

If you are not familiar with the concept of copy trading, it might seem a little bit confusing. Well, copy trading is quite a new and innovative product, but it has been present for about ten years now in financial markets. Copy trading is nothing more than mimicking the trades of another investor or trader. This trader (the original one who creates or originates the trades) acts as a source and the traders following their trades act as the receivers of these mysterious assets’ movements. This idea may seem odd to those who are not used to dealing with this type of transactions, but it works pretty well and has enabled many people all around the globe to become good and successful traders who already made thousands of dollars even before they realized what kind of career they were embarking on.

 

The types of copy trading

Copy trading refers to executing the same trades as a successful trader and profiting from their business expertise and investment strategies. Investing in this way yields both the benefits and disadvantages of trading on your own. A copy trading broker allows you to invest copied from a successful trader. The copy trader receives real-time account and position updates and profits or losses based upon the trades executed by the original trader. In essence, the copy trader is the success of the original trader investing on behalf of the copy trader, often with 500:1 leverage provided by their broker, who manages the investments and other details of this type of account.

 

Comparing the Best Copy Trading Platforms

Have you ever considered copy trading as a way to make money from the stock market? If so, you definitely aren’t alone. Copy trading allows you to automatically trade stocks based on how other investors are trading them. The concept isn’t just an exciting one but it’s also been proven to outperform the majority of individual traders out there. If you want to learn more about it, keep reading! The main aim of this article is to first explain what copy trading is and break down different types of copy trading second help you choose the best website for your needs third help you understand how copy trading works and fourth compare some of the best websites available today.

 

The Benefits of Copy Trading Forex and CFDs

Copy trading is a type of trading where you can copy the trades made by another trader, known as the “master trader”. This allows you to make money without having to do any research or analysis yourself.

To use copy trading, first you need to choose a broker that offers this service. Copy trading is available on most forex and CFD brokers and is typically offered at no cost. The main benefit of copy trading forex and CFDs is that it allows you to profit from other traders’ strategies without having to learn anything about them or follow them yourself.

 

How to choose a broker that suits your needs

Copy trading is a relatively new feature of the forex market. However, with support from a growing number of brokers, it is quickly becoming one of the most efficient ways to trade the financial markets. The process is simple: the trader invests his money in an account managed by a professional trader (the broker). Through an online platform, the trader follows all actions taken by the manager and benefits from their performance without having to take part in any actual trading activity. In this sense, copy trading is not much different from investing in an ETF or other index fund where a professional manager performs all trading operations for you. Nevertheless, copy trading also has some disadvantages which will be discussed later in this article. Given that this type of forex trading requires no experience whatsoever on the part of the investor, it could be suitable for beginners. However, before deciding on whether or not to use a broker, there are several factors to consider before choosing one.

Most people who trade forex on the retail side believe that broker is not a subject worth discussing. They think that it’s much more important to find out all the details about the broker’s minimum deposit, trade execution, leverage and spreads. While these factors are indeed crucial when making your choice let’s take a look at how to choose a forex broker looking at some other important points like; customer support, security, copy trading availability and so forth.

 

Copy trading is a great way to increase your profits and make money in the financial markets.

If you’ve ever considered how to get started with copy trading and are curious about what it’s like, we hope that our overview above will help you to get a better feel for the benefits of this type of trading. Don’t be afraid to dive in and see how copy trading works for yourself. It’s a great way to learn more about the financial markets and potentially make some money.

 

IC Markets & Tickmill

BROKER: REVIEW: ADVANTAGES: FREE ACCOUNT:
1. IC Markets
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets
2. Tickmill
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets

Pepperstone & Capital.com

BROKER: REVIEW: ADVANTAGES: FREE ACCOUNT:
1. PEPPERSTONE
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets
2. Capital.com
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets

Top FX & HFM

BROKER: REVIEW: ADVANTAGES: FREE ACCOUNT:
1. TOP FX
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets
2.HFM
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets

AMarkets & FXTM

BROKER: REVIEW: ADVANTAGES: FREE ACCOUNT:
1. AMARKETS
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets
2.FXTM
(5 / 5)
Read the review
# Spreads from 0.0 pips
# No commissions
# Best platform for beginners
# No hidden fees
# More than 6,000 markets

 

wdt_ID # Broker Website Forex Broker Year Regulation
1 1 Open an Account FBS 2.009 IFSC, CySEC, ASIC, FSCA
2 2 Open an Account EXNESS 2.008 CySEC, FCA
3 3 Open an Account OCTA FX 2.008 SVG
4 4 Open an Account INSTA FOREX 2.007 VI FSC, CySec
5 5 Open an Account FX OPEN 2.008 CySEC, FCA
6 6 Open an Account AXI 2.008 CySEC, FCA
7 7 Open an Account FX PRIMUS 2.008 CySEC, FCA
8 8 Open an Account HFM 2.010 CySEC, FSC, FSB, FCA, BaFin, DFSA
9 9 Open an Account FXTM 2.011 CySEC, FCA, IFSC
10 10 Open an Account JUST FOREX 2.012 IFSC
11 11 Open an Account CAPITAL.COM 2.016 FCA, FSA, ASIC, and CySec
12 12 Open an Account TASTY WORKS 2.017 CySEC, FCA
13 13 Open an Account MOOMOO 2.018 FINRA & SEC, SFC, MAS, ASIC
14 14 Open an Account AVATRADE 2.006 MiFiD, CBI, FSA, ASIC, SFB, BVI, ADGM, FSRA, CySEC
15 15 Open an Account EASY MARKETS 2.001 CySEC, MiFID, ASIC
16 16 Open an Account EIGHT CAP 2.009 ASIC, VFSC
17 17 Open an Account FP MARKETS 2.007 CySEC, ASIC, FSA
18 18 Open an Account HYCM 1.977 CySEC, FCA, MiFID, DFSA, SFC
19 19 Open an Account ICMARKETS 2.007 CySEC, ASIC, FSA
20 20 Open an Account IRON FX 2.010 FCA, ASIC, FSCA, CySEC
21 21 Open an Account LITE FINANCE 2.007 CySEC
22 22 Open an Account REVOLUT 2.015 CySEC
23 23 Open an Account IG 1.974 ASIC, JFSA, MAS, FINMA, FCA, FMA, CFTC
24 24 Open an Account MONETA MARKETS 2.009 ASIC, FCA
25 25 Open an Account AMARKETS 2.007 The Financial Commission
26 26 Open an Account PEPPERSTONE 2.010 CYSEC, BAFIN, CMA, SCB, DFSA, ASIC, FCA
27 27 Open an Account PLUS 500 2.008 CySEC, ASIC, FMA, FSCA
28 28 Open an Account TICKMILL 2.014 FCA UK, CySEC, FSA Seychelles
29 29 Open an Account TMGM 2.013 ASIC, FMA
30 30 Open an Account TOP FX 2.010 FCA
31 31 Open an Account TRADE NATION 2.014 FCA
32 32 Open an Account TRADE 360 2.013 CySEC
33 33 Open an Account VANTAGE 2.009 CIMA, SIBL
34 34 Open an Account VT MARKETS 2.015 ASIC, CIMA
35 35 Open an Account XM 2.009 ASIC, CySEC, IFSC
# Broker Website Forex Broker Year Regulation