Copy Trading is quite useful for beginner forex traders. It allows them to streamline their trading process by replicating the position taken by another trader on a particular forex market.
How is it useful?
People who are not experienced in the market or who are just starting with Forex trading can often face losses because of their lack of Knowledge in the trading domain.
By copying the trading routine of another trader, you can minimize the risks associated with trading in any forex market.
Let’s take a deeper look and Forex Copy Trading and how it can be useful for forex traders.
What is Forex Social Copy Trading?
The Forex Social Copy Trading is about copying the position of another trader’s account for a particular trade. You follow the same approach for being open or closed as another investor. You can either do copy trading manually or you can use software for that.
There are many Forex Copy Trading software solutions out there that automatically copy the trading positions for you. This software copy trades across different accounts to minimize the risk on the trade for you.
How Does it Work?
Copy Trading software allows you to connect your trading routine to someone else’s. The way they manage their trades gets copied for your portfolio.
The way this works is, you allocate funds to a trader through the copy trading software that you are using. When the trader makes a trade, the software verifies the account balance and takes it out from your allocated funds to do the same trade for you. This is the primary idea about Forex Social Copy Trading.
Does Forex Copy Trading Work?
Although Forex Copy Trading has certain risks associated with it, it can prove to be quite useful for beginner traders or people who don’t have a lot of time to research a particular forex market.
Forex Copy Trading allows you to build on the expertise of another trader so there is very little risk associated with trading in this way. Still, it is recommended that you learn a little bit about the forex market you are trading so that you always stay on top of the game.
Copy-trading software and tools like SEOToolsCentre btc price counter can prove to be quite useful for traders in the long run for gaining massive profits.
Best Copy Trading Forex Brokers in 2021
There are a lot of Copy Trading Forex Brokers out there that you can check out in 2021. Here are the most recommended choices that you can go for
- IC Markets
- XM Group
Is Copy Trading Legal?
Yes, copy trading is legal. Still, the copy trading services provider needs to have proper licensing to share this kind of information with their users.
Copy Trading is legal, but its effectiveness has always been an issue for debate. Some experienced traders suggest that you shouldn’t trust the automated way of trading because it ruins the learning experience for new traders.
What is the Best Social Trading Platform?
There is no right answer to this question. There are a lot of social trading platforms out there, you can choose the one that works the best for you.
You need to choose a social trading platform that makes it easier for you to participate in trading. Platforms like MQL5 & eToro are some of the best most social trading platforms that you can find out there. You can look for more market options if you prefer to do thorough research.
Copy Trading is great for beginner traders and it will enable them to stay on top of things in the forex market. But there is a downside to it.
By copying the trading position of other traders, you get to learn very little about the market. You solely rely on the actions of another individual which can create a massive blind spot for you in case a good trading opportunity comes up because you fail to notice it.
Still, copy trading is a time saver. And if you are willing to put in the time and learn about the forex trading market, copy trading can prove extremely valuable for you.