What is Copy Trading? The Ultimate Guide

The comments and opinions posted are of traders who may or may not be experienced. The comments are not reviewed or researched by Myfxbook.com or its affiliates. If you choose to make decisions or place trades based upon the comments, you are doing so at your own risk. Myfxbook and its affiliates are not responsible for any losses incurred due to the use of the content provided. If you’re a trader, be it of stocks, forex, cryptocurrencies or one of the other many assets out there, you may have heard about trading bots. You might have researched them a little bit or even have a good understanding of what they are.

Unlike mirror trading, a method that allows traders to copy specific strategies, copy trading links a portion of the copying trader’s funds to the account of the copied investor. MetaTrader 5 offers desktop, web, and mobile versions of the platform. This one of the best social trading platforms uses the MQL5 language, the automated trading software that mostly encyclopedia of chart patterns runs on your computer and trades for you. AvaTrade is one of the best forex copy trading platform based in Ireland and regulated in Europe by the Central Bank of Ireland. They are one of only a few top forex brokers to offer fixed spread forex trading. Avatrade provides an extensive range of copy trading and social platforms for you to choose from.

copiar trader forex

It helps Professional traders to monetize their skills by allowing others to copy their strategies. Your copy trading profits depend on the performance of the traders you follow. However, past results are not indicative of future performance. As you may notice, trading signals offer more flexibility than automated copy trading.

People will be looking for a place to go and that place is going to be Trality. And Leeat Yariv and John Duffy demonstrate in the context of social learning studies that a significant portion of subjects have a strong desire to follow others, even when there is no performance data. Other researches also indicated that lack of trust is one of the most significant barriers inhibiting online trade, and that trust signals play important roles in overcoming these barriers. Members of communities who proactively signal their trustworthiness online have a powerful influence over the behavior of other members. So that, the credibility of online community members is crucial in the setting of online and copy trading, as in other online communities such trust-based decision making is uncommon. BingX is a copy trading platform with over 1 million users within 100+ regions, BingX provides over 100 cryptos ranging from Bitcoin, Ethereum, Dogecoin, Safemoon to Solana, etc.

This best forex copy trade service provider uses the MQL5 language, the automated trading software that runs on your computer and trades on behalf of you. This copy trading platform allows you to open 100 currency or stock charts at a time, and the 21 timeframes enable comprehensive and detailed analysis of even minor price movements. Copy trading with PrimeXBT is quick, easy, and requires no prior trading experience. All you have to do is open a live account, choose a profitable trader, and you’re ready to go. There is also a powerful filter option that shows the total profit of each trader, the total AUM, and the number of followers, which helps narrow your search for successful traders. There may be a large group of traders behind an automated trading strategy.

How to copy trade

It all started in 2005 when the trading service Tradency first offered automated trading but skyrocketed in popularity with eToro and its CopyTrader service. Today, many brokers offer copy trading with a variety of features. If you take the time to identify good traders to copy you aren’t taking any more risk than when trading your own account. That is to say trading is inherently risky, and there is always the possibility that you will lose money. Some platforms also enable traders to place Stop Loss orders on the entire copy trading relationship, allowing traders to control the risk of their copy trading activity based on the individual copied investors.

copiar trader forex

Allows margin trading of cryptocurrencies and traditional assets. Following is a handpicked list of copy trading apps and platforms with their popular features and website links. Last but not least, systematic market risk is a major one that can negatively impact your trades. Systematic risk is inherent to the entire market, which means it can’t be reduced through diversification.

A trading signal provider can consist of one individual trader or a group of traders who distribute their signals to their followers, who then have to manually open the trades in their trading platforms. Trading with NAGA Trader by following and/or copying or replicating the trades of other traders involves high levels of risks, even when following and/or copying or replicating the top-performing traders. Before making an investment decision, you should rely on your own assessment of the person making the trading decisions and the terms of all the legal documentation. But Trality, a Vienna-based fintech, changes the rules of the game and democratizes the space by creating a range of tools that put that same power and potential in the hands of everyone.

AvaTrade offers you popular signal providers that are the best in the business. Although, much like trading for yourself, here you can also incur losses too. Signal Start is a professional one stop shop Forex signals service for signal followers and signal providers. On the subject of new users, we are currently only for crypto traders, but we have so many interested would-be users coming from forex or stocks.

What are trading signals?

If they make a bad trade, that bad trade will also appear in your trading account. Copy trading sounds fantastic – you automatically replicate the trades of professional traders without much work and get to enjoy the trading results. However, most of the time, there is no free lunch in the markets.

The primary driving factor for investors to imitate a previous investor’s financial decisions is their level of risk aversion. The lower the risk tolerance, the greater the likelihood of copying. The information provided does not constitute, in any way, a solicitation or inducement to buy or sell cryptocurrencies, derivatives, foreign exchange products, CFDs, securities, and similar products.

  • Other users could then decide to mirror-copy on their account all the transactions generated from that strategy.
  • The risk of liquidity is often a neglected one in copy trading.
  • It comes with a state-of-the-art Python API, sandboxed strategies and many more helpful tools to assist our users in developing the best algorithms possible.

For that reason, the competition between top Creators will be fierce, ensuring a consistently high-quality source of bots. You can and should look into using bots and we’re the place for anyone to do it. We focus on highly intricate tools that allow people to explore their creativity and put together the best algorithms possible. We have tools for coders, non-coders, with more tools coming soon.

Become an Investoron the Forex market

Instead look for traders who have at least 1-year trading history and a return somewhere between 10% and 30%. The trader should also be active enough that they are placing a minimum of one trade per week. This ensures that they are trying to grow their trading base rather than just locking your money in a single trade.

copiar trader forex

Big firms and funds, on the other hand, are leveraging the power of trading bots and accumulating the profits. If you’re like most traders, you’re investing time and hard-earned money in the markets. You shouldn’t have to lose either of those to a “trial and error” approach. Initially, some traders conveyed their intention to open or close specific operations at certain levels to their followers through newsletters.


We invite you to join our active community on Discord to talk about it with those who are actually doing it. It can be challenging to find accurate results and reliable providers. We believe verifying performance and executing trades should be easy. Get real-time insight into profit and loss statistics and pick top channels. CopyFX is a copy trading investment platform owned by RoboForex group. Forex trading may lead to loss of full or partial investments.

This could be a good option for those who lack the time or experience to invest by themselves. For this reason many brokers offer the facility of copy trading. There are a variety of platforms offering copy trading services, and while some are manual, others are fully automated. We here at Trality see a future in which trading without leverage everything is automated by bots, whether it’s your coffee machine, your car, or your living room, so why should it be any different when it comes to investing? There are already throngs of big companies leveraging this technology to their advantage, so it seems to be just a matter of time before it becomes mainstream.

It can be a good way to begin growing an account, and if you take the time to analyse the trades being made by those you follow it can also be a very good way to learn about trading too. 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. Chris and I met at university, where we were both already highly involved and interested in the world of crypto trading and all the things that go with it. One thing we noticed was that algorithmic trading was only really accessible to big banks and hedge funds. In fact, we were shocked to read that over 80% of private traders are losing money trading manually against machines that are better traders in every way. Traders of all experience levels are welcome to build their bots and rent them out to eager Followers for copy trading so everyone can profit from this technology.

Liquidity risk usually arises when trading with illiquid instruments, such as exotic Forex pairs, exotic cryptocurrencies, or low-cap stocks. In addition, trading immediately after the market open or before market close can lead to liquidity risks as the number of market participants is still low. Every live trade is inevitably impacted by a variety of market forces that ultimately determine its outcome. In copy trading, market risk is the risk of changing prices in Forex, stocks, interest rates, and other assets that can negatively impact your copied trades. To bypass this major drawback, copy trading platforms allow you to set how much you want to allocate to any single trader, and to pre-determine how much you want to lose on any single trade.

We sat down for a Q&A with Trality co-founder Moritz Putzhammer to discuss the future of automated trading. The biggest drawback of this trading method is that you need to constantly monitor the market’s flow and decide on individual trade trends. Provides access to a wide range of markets and offers 100+ trading instruments all in one platform. PrimeXBT Trading Services LLC is incorporated in St. Vincent and the Grenadines as an operating subsidiary within the PrimeXBT group of companies.

This is one of the best copy trading platform, which helps you filter brokers based on minimum Deposit to start forex trading, mobile support, etc. ZuluTrade also allows login via Facebook, forex4you review convenient for those who regularly log in to check their account. PrimeXBT is a copy trading platform that allows traders of all experience levels; from experienced to novices alike.

Although they require you to manually enter the trade in your trading platform, they also offer the flexibility to change the entry and exit prices, or even not to take a trade altogether. 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, and in most cases, the process is entirely automated. To begin we need to establish that there are two main types of traders, those who attend seminars, attempt to compile strategies, follow all market trends, and enjoy ‘expert-trading-fees’.



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