What is Copy Trading?
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. For more experienced traders, it can enable them to step away from their screens if they need to, as all trades are automated
We offer our traders an incredible copy trading app, which enables you to copy the trades of more experienced traders after checking out their results and stats.
Copy trading 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. This enables you to sit back and watch the action on your browser or mobile device using the copy trading app.
Advantages of Copy Trading
There are many advantages to copy trading, here we cover just a few:
- Traders can participate in the market, even when they are too busy, and not able to invest the time and research they should normally devote to trading.
- You can copy trades on a huge range of CFD instruments, including currencies, commodities, indices, stocks, and more.
- Form and take part in a community of traders, beginners and more experienced alike, where you can exchange ideas, strategies, and endeavour to improve your trades together.
Why Has Copy Trading Become So Popular?
Copy trading has become very popular with investors worldwide, mainly because many early adopters have had enormous success and were able to boost their trading skills and profitability. Copy trading enables investors to do just that.
Who Provides the Trading Signals?
With the 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.
Taking advantage of this trading strategy can be highly lucrative. In fact, many social traders, new and experienced, have had the opportunity to gain direct access to the top traders on the platform and have increased their trading success significantly.
Is copy trading too risky?
Yes, copy trading is risky. Copy traders trade in CFDs. CFDs are intended for investors who wish to make directional transactions and take advantage of short-term price movements on the underlying share and have the ability to sustain the risk of loss of their entire investment amount within a short period of time.
The prices of the underlying CFD may fluctuate significantly in a short period of time. If the change in price is against the direction chosen by the copy trader, then you can experience significant losses over a short period of time up to a maximum of the amount held as margin in the investor’s account.
That is to say, trading is inherently risky, and there is always the possibility that you will lose money. Also, it is important to note that the past performance of a trader is no guarantee of their future performance, so even if they have been profitable for three years running, they could have their first losing week right after you decide to follow them. As always, never invest more than you can afford to lose.
Those investors have knowledge of, or are experienced with, leveraged products and have a full understanding on how the prices of CFDs are derived as well as the key concepts of margin and leverage.
Do I need prior trading experience to engage in copy trading?
Yes, trading experience is required. You must use careful analysis when selecting a good trader to copy. In reality, it is often the traders with no experience who like to use copy trading. 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 new trading strategies. If you are new to copy trading, we recommend you try it with a demo account first before funding your account.
LEARN WHILE YOU TRADE
With Social trading, beginners can simultaneously earn while they learn in the financial markets by following more experienced traders through our platform. They can earn profits while replicating their trading strategy and positions, getting faster information about market movements.
Trades are completely automated, meaning users can reduce the time they spend in front of a screen. Additionally, copy traders will save time to learn as they are gaining knowledge from the decisions of more experienced traders.
Social trading helps to diversify an investment portfolio. Rather than focusing only on a specific instrument, social traders can reduce their risk by copying the trades of multiple traders that are trading other asset classes. All our products are available on our social trading platform.
BUILDING A COMMUNITY
Just like a social network, social trading is accessible to anyone with an Internet connection. Traders can share their ideas, information, and news while entering into a variety of potential collaborations with other traders across the globe.