Having a successful forex trading career is not impossible to do. However, it is not simple to achieve. It takes a lot of time, experience, and patience. Luckily, there is a feature where you can just copy the trades of a specific trader. This is also ideal for those who want to enter the market but doesn’t have enough time to track or study the market.
How It Works
Copy trading is popular in most financial markets like stocks and currencies. It is important to look for a trader that you trust and with a good trade history. You may check a trader’s rating on the broker’s site which is usually based on reviews by clients and performance. When you copy trade, your account will be linked and all the trades of the expert will be copied in your account. It’s like shadowing whatever the expert is doing.
2 parties involved in copy trading:
The broker provides access to the financial trading world and registers your account. Some brokers also act as a platform for copy trading.
Expert or Strategy Manager
This is the expert trader that you wish to copy which you may choose based on his ratings online.
Popular platforms such as MetaTrader 4 and MetaTrader 5 have copy trading features. It also allows you to cancel or close trades that you don’t like. It is also possible to stop copy trading whenever you want to.
In addition, your account is just linked but there will be no transfer of funds from your account to the expert. The expert or manager will only get paid for every successful trade which means that the trader wants the best for both of you. The rate of the expert varies but is usually 10% of the profit you made.
As previously mentioned, you need to choose an expert to copy from a list that is available from the broker’s site. The next step is to make sure that your account has a sufficient balance. After this, the actual forex trading process is all automated.
It is true that copy trading can improve your overall trading success. However, it is important to keep in mind that this is not a guaranteed win. An expert trader also losses some trades too but they have extensive experience when it comes to handling their trades like when to enter and exit a trade. In addition, if you feel that it doesn’t meet your expectation, you can always unlink your account from the strategy manager at any time.