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What Is A Copy Trading Platform And How Does It Work?

This makes it simple to find the best fit for your trading style and risk tolerance. There are many factors that combine to differentiate between signal providers. FXTM provides excellent educational resources for new traders, including live webinars, local seminars and videos, tutorials, and a demo account — all free of charge. FXTM offers clients the MetaTrader 4/5 (MT4&5) platform support. This gives traders a familiar, sophisticated trading interface they can use immediately.

What Is a Copy Trading Platform and How It Work

Top-rated platforms enable master traders to impose different commissions . Rewards are automated; this is why your interests are protected enough. Platforms built the ranking of master accounts to let investors know which traders are the most successful.

What Are The Benefits Of Copy Trading?

This happens only when the broker acts as an intermediary, such as ZuluTrade, and not when it has an in-built system like eToro. These are questions that the expert InvestinGoal team endeavors to answer through this detailed guide. Here we examine the key points of copy trading including the process, risks involved, key stakeholders, and how to get started. Before engaging in any type of financial investment, you should clearly define your financial goals.

Trading cryptocurrencies is not supervised by any EU regulatory framework. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. In copy trading, the investor has the option to automatically “copy” every operation executed by another trader to their own personal account. This does not involve an investor giving funds directly to a fund manager.

In 2014, eToro became the first trading platform to support cryptocurrencies when it added bitcoin support. After you start your investment, you will have the same traders in your portfolio as the trader that you just copied. After deciding on the trader you want to copy, simply click on the “Copy” button. You will have to set the details for the traders before the platform can start copy trading. Copy trading is a special type of trading activity that involves copying trades from other traders.

Since the professional trader directs investment decisions, diversification and risk management can also be done. Many brokers now offer automated copy trading, along with many other features. When choosing to copy the trades of other traders on the platform, you may filter those traders. They will have useful stats and insights about each investor, their profit/loss ratio for the last year, and their investment strategy. Copy trading platforms can also adapt the operations of signal providers to their followers.


Bybit is registered in the British Virgin Islands and has its headquarters in Singapore. You can close this investment and stop copying their traders at any time. The main advantage of using copy trading is that it allows you to take advantage of another person’s investment experience and knowledge.

  • In our example, we will assume the buy order was performed on EUR/USD at 1.3000, because for the trader’s broker that was the best price at that moment.
  • Replicate the trading activities of financial experts and earn a passive income without spending time researching every investment you make.
  • As a new investor looking to use the copy trading system, you should decide on your goal.
  • Today the most popular copy trading brokers provide Social Trading services as well.
  • BingX is an innovative crypto exchange that allows users to follow top traders.
  • Top-rated platforms enable master traders to impose different commissions .

Top-rated copy trading solutions are compatible with in-demand trading platforms . He has 15 years of experience in the financial sector and forex in particular. He started his career as a forex trader in 2005 and then became interested in the whole fintech and crypto sector. Another fundamental element is the trading platform, which is usually offered by copy trading brokers. All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.

This makes Bybit one of the top trading platforms and the best copy trading for beginners if you’re focusing entirely on the crypto market. After you become the Follower of a Principal Trader, the copying and execution of trades are automatic. All Principal Traders go through a strict audit to ensure outstanding performance and stable earnings. AvaTrade was tested and found to be excellent for copy trading, competitive on mobile, and in line with industry standards for pricing and research.

Copy Trading Can Boost Crypto Portfolios

Copy trading is one of the best ways to automate your investment strategy. This eliminates the guesswork and the lack of experience that’s needed when choosing how to invest your hard-earned money. Of course, the copy trading strategy might not be the best strategy for all investors, but copy trading systems have worked for many retail investors. AvaTrade is a trusted global brand that is well-known for its extensive asset range for crypto, Forex, and CFD traders. As for master accounts, investments get extended statistics about every professional trader to get the whole picture. Experienced players of the Forex markets are not volunteers – they expect to get rewards.

There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. The copy trader program has a low entry barrier, as you only need to make your first deposit. Any other currency will have to be converted and, therefore, will incur a conversion fee. Slippage can be in favor of the trader if the executed price is better, but against the trader if the executed price is worse.

The best platforms for copy trading are eToro, AvaTrade, Bybit, and BingX. Each investor should carefully research the offerings of the available platforms, as some may offer support for other cryptos. Furthermore, each platform has slightly different terms and conditions, such as fees, spreads, and worldwide availability. Established in 2018, Bybit is a fast-growing and innovative cryptocurrency derivatives exchange. The Bybit founders are a team of professionals with expertise in the Forex and investment banking industries.

There are also exciting forex contests and trade-enhancing bonuses. EToro is one of the best copy trading platforms, and it offers a wide range of assets . The platform is based in Tel Aviv, and it was launched in 2007 by Ronen Assia , David Ring, and Yoni Assia. The copy trading feature was added in 2010, and it established itself as the world’s leading social trading network.

Step 2 Select One Trader To Apply The Copy Trading Strategy

There are different types of copy trading platforms, each with its own pros and cons. BingX is a leader in the industry with no deposit fees and the lowest fees. It offers all these features of a regular crypto exchange and seamless crypto derivatives trading.

What Is a Copy Trading Platform and How It Work

Others face losses and leave the path being entirely frustrated. Forex is not the synonym for gambling, and luck doesn’t matter that much. Traders’ success is mainly based on experience, constant progress, and tons of information explored.

Yes, even new investors can use copy trading because it is a passive system. This means that you can leave the difficult work of selecting investments to others. It’s possible to earn returns on your portfolio without spending hours researching the market.

Copy Trading: A Definitive Guide For Beginners

When a trader’s strategy goes contrary to an investor’s views, he is able to stop following a chosen trader immediately. The Forex market is an industry with daily volumes of over $7 trillion in trades. With such giant volumes, the industry makes crowds of traders interested in entering the market. With InvestinGoal, Filippo’s goal is to bring as much clarity as possible to help users navigate the world of online trading, forex, and cryptocurrencies.

Investment Account: Don’t Miss Your Chance To Capitalize On Forex

Over this time, he has developed an almost scientific approach to the analysis of brokers, their services, and offerings. In addition, he is an expert in Compliance and Security Policies for consumers protection in this sector. In our example, we will assume the buy order was performed on EUR/USD at 1.3000, because for the trader’s broker that was the best price at that moment. Even though the order was made at that price, the best price available at that moment, once the order execution occurs, may be slightly different. Simultaneously, the broker then executes the order on the trader’s personal account and notifies the copy trading service of the order.

Yes, copy trading is legal, but each country may impose its own regulations. Note that not all trading platforms are available for all regions. Brokerage platforms are submitted to much stricter regulations than crypto exchanges, offering crypto trading features. Four years later, in 2018, the platform added support for ether and ripple .

Since then, the number of cryptocurrencies supported by the platform has continued to grow. EToro strives to improve its crypto trading services and also offers What Is a Copy Trading Platform and How It Work a crypto wallet to traders that wish to own the underlying asset. The copy trading strategy is only useful for beginner traders – that is a widespread myth.

The Main Players Of Copy Trading

A copy trading platform is a financial trading platform that offers retail investors the option to follow and automatically copy the trades of more experienced traders. Meaning, that they will offer a social component to the trader community, where they can communicate and share investment ideas and strategies. The platform offers over 150 crypto assets, has over 3 million global users, and is one of the few derivatives platforms that offer an automatic copy trading system. New crypto investors can easily follow and copy the trading strategies of successful traders. Copy trading is a great way to create a cryptocurrency portfolio.

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