What is Copy Trading?

In today's blog, we discuss a method of forex trading known as copy trading. This popular investment tool allows you to automatically copy the forex trades of successful traders. We will discuss how it works and explain how you can make money with it.

What is copy trading?

Copy trading allows you to replicate positions directly by another trader of your choice. This means that you link your portfolio to another trader and copy all of that trader's current positions as well as future movements. 

If this trader opens a new trade, you do too; If you closed a deal, so would you. Similarly, if the copied trader executes a Stop Loss or Take Profit order, your portfolio will make the same movement. 

If the copied trader makes a winning trade, so do you; Conversely, if the trade ended in a loss then your trade was also a loss.

In copy trading, more here - https://copy-trades.weebly.com/earnex-exchange.html your account uses the same percentage of the allotted cap as the copied trader. 

For example, if a trader used 1% of the account balance to buy GBP/USD, the follower would then make a similar transaction, buying GBP/USD with 1% of the funds you allocated to that trader. 

Basically, when you participate, you are “investing in an investor”. You can review the profiles of thousands of traders and choose one or more of those traders that you feel will offer you the best chance of making a winning trade.

How does copy trading work?

Many forex brokers provide copy trading platforms, which are also called automated trading platforms. If you are looking for a broker and are interested in this form of trading, make sure that the broker offers a platform. 

A word of advice – a trader who is just starting out in forex should always practice on a demo account before trading in real-time. Likewise, if you are new to it, be sure to try out a demo account before going live. 

You can use the demo account to duplicate forex signals or even complete strategies for another trader. Once you feel comfortable working with the demo account, you can then proceed with the live trades.

When you decide to copy a trade, whenever the copied trader makes a trade, your account will make the same trade in real-time. You decide what part of the funds to allocate to it. 

Many brokers will allow a maximum of 20% of your portfolio to be used to trade, protecting your capital in the event that copied trades lead to losses. 

When you choose this system, you still retain some control. You decide which part of your investment you want to allocate to it, and you can separate your portfolio from the copied trader instantly, at the touch of a button.

You may have said to yourself, “it sounds great, but is it legal?” The answer is yes, it is a legitimate way to trade forex. Copied traders are usually paid directly by the broker, who will pass the costs on to the client in one way or another.

There are hundreds of forex brokers looking for your business, so you will need to do your research to choose a broker that you feel offers the best platform. 

In our opinion, Earnex Exchange offers one of the best forex copy trading services in the forex industry. The popular trading platforms Meta Trader 4 and Meta Trader 5 provide traders with extensive access to live forex signals, which are recommendations for making a trade in the forex market. 

The platform allows you to subscribe to a trading signals provider and automatically reproduce their trades in your own account. Many reputable forex brokers offer it; A simple Google search for “best forex copy trading” will bring up a list of brokers that you can search for.