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Copy Trading in Forex

What is copy trading?

Copy-trading, often known as social trading, is a method of automating your trading by
following other traders' trades. This type of trading is often used by new entrants who have
no knowledge. It also has the extra benefit of teaching them along the road. For more
experienced traders, it can enable them to step away from their screens if they need to, as all
trades are automated. The goal of copy trading, like regular trading, is to open positions on
various financial markets. Although, much like trading for yourself, here you can also incur
losses too.
All you have to know is how to assess the investor’s performance and profile, to determine
whether you should or not follow him/her. Usually, and obviously, these investors that allow
others to copy them, get a return. It can either be a profit-sharing, fixed monthly fee, or other
fee types. However, this is HARD! There are probably good traders to copy on all these
platforms, but it takes some time and skills to find them.
For individuals who don't have the time or experience to invest on their own, this could be a
viable choice. As a result, several brokers provide the option of copy trading. There are a
number of platforms that provide copy trade services. Some of which are manual and others
that are entirely automated. This allows you to relax and enjoy the show.

Comprehensive Forex Trading History - How Forex Trading Works?

Advantages of copy trading

  • Individual users with little market experience can benefit from the knowledge
    accumulated by more experienced traders over years and decades.
  • It does not take a long time. Especially if you're copying traders that use medium-
    term methods.
  • Allows for a wide range of diversification by emulating traders from other
    marketplaces and tactics.
  • Mastering copy trading can help you have a better grasp of the markets while also
    allowing you to earn a profit and build your own fan base if that is something you are
    interested in.
    Disadvantages of copy trading

Many inexperienced traders

  • Traders that employ "black-hat" tactics. Because they have a large number of
    followers, not all merchants are safe and trustworthy. Some of them simply sought
    ways to improve their ranks by performing dubious actions such as manually
    imitating the behavior of other successful traders or opening multiple accounts and
    sticking with the one that, by chance, performed the best.
  • Users' and investors' unrealistic expectations, as well as a lack of education,
    contribute to poor judgments and investments.
  • You won't get wealthy overnight, just like with any other investment. Even when
    following and/or copying or duplicating top performing traders, copy trading has
    risks, including the loss of capital.

Best Forex Brokers for Copy Trading

Based on over 105 different variables, here are the best forex brokers for copy trading.

  • eToro – Best overall platform for copy trading
  • AvaTrade – MetaTrader suite, ZuluTrade and DupliTrade
  • Pepperstone – MetaTrader and cTrader platform suites
  •  Vantage FX – MetaTrader, ZuluTrade, DupliTrade, and Myfxbook
  • IC Markets – MetaTrader, cTrader, Myfxbook, and ZuluTrade
  • OctaFX – MetaTrader and cTrader platform suites
  • XM Group – MetaTrader with custom indicators

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