Jenna Arnold has always been fascinated by the stock market and the world of trading. Having dabbled as a part-time trader while at university studying English Language, she leveraged her insights into this world into a full-time career as a writer specialising in trading and broker reviews. Jenna joined TradersBest.com last year and now heads all of our trading content, working remotely from her home in Massachusetts.
As the name suggests, copy trading simply refers to copying the trades of expert traders. If you’re someone who wants to grow your investments fast and profitably, copy trading might be the right pathway for you.
Other than copy trading, following automated signals sent by expert signal providers is also quite beneficial. Continue reading this guide to discover more about copy trading, who it’s suitable for, and how you can begin your investment journey with the help of an effective copy trading system.
Copy trading 101 – Understanding how copy trading works
Do you wish you could trade like a pro without having to go through the learning and practising phases? Luckily, copy trading allows copy traders to automate their investment strategy and skip the research required to identify trading opportunities.
Copy trading is pretty much what it sounds like; you choose an expert trader and then follow their trades either manually or automatically. For instance, if an expert trader invests 1000$ in EUR/USD, you will simply do the same. Then, whenever the expert trader makes their next move/s, you will continue to follow them and earn just as much as they do.
Several copy trading platforms allow you to copy calculated trades for a specific cost or sometimes for free. However, it’s essential to find one who suits your investment style. For example, if you prefer trading with higher risk and higher potential profit, you should find a pro trader who shares the same preference while trading. On the contrary, if you prefer trading conservatively, your priority should be hunting down a trader with a conservative lean.
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What is automated trading? – Less hassle & more profits
Automated trading is the future of investments. Imagine investing profitably without having to worry about hunting down opportunities, tracking your trades, or keeping in touch with market trends. It sounds like a deal maker, doesn’t it? Automated copy trading systems allow traders to copy trade experts in the market automatically.
All you have to do is enter the amount you’re willing to invest, and the rest will be taken care of. In simpler words, you won’t have to deal with the hassle of buying and selling instruments – instead, it will be done through an underlying system or program. Most auto trading software uses systematic algorithms that analyse the market trends to detect trading signals or opportunities.
AtoZ Markets is a signal provider that offers automated trading for Forex traders. They also offer their users FX signals with over 70% accuracy. Their signals are based on an algorithm that was designed with the help of market experts. You can visit AtoZ Markets to receive free Forex signals daily, or you can subscribe to receive up to 15 signals along with additional services such as auto trading.
Can you automate copy trading and signal trading?
Yes, if you’re interested in copy trading, you can automate the entire process and let your investments manage themselves. Just as the investment pro will buy or sell an asset, the copy trading software will repeat its action on your trading account as well. Similarly, you can automate your investments through signals. Whenever the signal software detects a trading opportunity, it’ll automatically apply to your trading account as well. Both of these trading methods have gained immense popularity amongst traders.
However, make sure that the automated trading software is reliable and has good online reviews. Some people use fake automated software to scam investors, and this can easily be avoided. Just ensure that you thoroughly research any platform you join and test the platform before investing all of your capital.
If you want to signal trade through a reliable platform, sign up with AtoZ Markets, and you can experience automated trading through their excellent software. That’ll give you an idea of whether automated trading suits you or not. You can also follow their signals to manage your investments profitably without doing any homework.
Pros of copy trading
If implemented wisely, copy trading & trading signals can boost any traders investments and offer excellent potential returns. Building an exceptional trading portfolio with the right signal provider or automated trading software shouldn’t be a problem either. Here is a list of other benefits copy trading offers:
Suppose you’re new to the market and lack the knowledge and expertise to begin investing. In that case, copy trading will help you kickstart your investment career and learn effective trading strategies along the way.
Since copy trading is usually done with the help of market experts, it reduces potential losses. So if you’re not ready to face loss of any sort or don’t want to risk your capital too much, copy trading is the right path to take.
For those who don’t have the time to study the market and identify potential opportunities, copy trading will do your homework for you.
Copy trading is a great way to build a passive income stream. You’ll be earning through investments without having to manage your investments.
Those who carefully monitor their copy trading journey get to learn a lot from expert traders. For instance, what strategies work well and how to manage an investment profitably.
Cons of copy trading
No trade can be made without risk. In order to copy & paste someone else’s trades onto your account, you must have a strong level of confidence in that trader/s as well as the auto trading system that you choose.
You don’t have control over your investments and at times, this can be frustrating.
Although not necessary, more times than not, copy trading involves a fee. If you’re entrusting the right platform or trader, the investment will be worth it. However, if your investments don’t go well, it’ll seem like an added expense.
Copy trading for long periods at once can make you dependent on other traders to maximise your investments.
Copy trading vs social trading – What’s the difference?
Many people confuse social trading and copy trading as the same thing. However, social trading is a broader term, and copy trading is simply a type of social trading. When you’re copy trading, your investments become automated, and there is no input or decision-making required from your end.
On the contrary, social trading is more than that. In social trading, you’re not necessarily bound to copying another trader’s investment moves. Instead, you can take inspiration from expert traders and then based on their trading moves, decide how and when to trade. If you value your independence while investing your funds, then you should simply go for social trading. On the other hand, if you want to enjoy the luxury of sitting back and letting the experts manage your investments, then copy trading would suit you better. Choosing between these two depends on the investor’s priorities and nature.
Some investors enjoy having more control over their investments and portfolio, whereas others enjoy sitting back and watching the show run itself. Before deciding which of these options suit you better, carefully analyse them both and give them a trial run on a demo trading account.
Copy trading vs mirror trading
Mirror trading refers to automatically mirroring or copying trading strategies while investing in financial markets. If you know what strategy suits you best, you can analyse and select a strategy and apply it to your trades. Once you select the strategy, your investment decisions will be made based on algorithms that study the trading patterns of successful traders. The benefit of mirror trading is that the investor doesn’t lose control over their account, yet they get to diversify their investment strategies.
While mirror trading is more effective for investors with some prior experience, copy trading is most suitable for beginners. In order to copy trade, an investor simply needs capital. However, while mirror trading, you should have a decent level of knowledge regarding trading strategies & an eye for effective strategies. Plus, having decision-making skills while investing is a huge plus if you’re going for mirror trading.
Top copy trading brokers in the UK
Etoro
Known for being one of the safest brokers for social copy trading and crypto trading, EToro offers excellent copy trading services. You can simply sign up for an account through their website, look up the top social traders and choose the trader you would like to copy. Then you can choose the number of funds you’re willing to invest and begin your copy trading journey with ease.
Pepperstone
Pepperstone is a renowned broker that provides traders access to several financial instruments, including Forex, index, shares, commodities and crypto CFDs. However, the broker offers limited financial assets, they’re known for providing reliable services. They also offer an extensive range of copy trading services to their users. They also offer a feature called DupliTrade that is a marketplace for signals that can be traded on your MT4 Traders account.
AvaTrade
One of the best platforms for algorithmic and social trading is AvaTrade. Not only is the brokerage firm known for being the top Forex & CFD broker, but they also offer multiple copy trading platforms. Their social trading solution is ideal as traders get to connect with one another and choose whoever they want to copy trade or social trade with.
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Trade forex through the best automated trading system – AtoZ Markets
Automated algorithmic trading is highly effective while trading Forex. One of the top automated trading platforms is AtoZ Markets, which allows traders to invest in the forex market with the help of effective FX signals.
On top of that, you can opt for auto-trading and enjoy the benefits of algorithmic trading with minimal effort required. All you have to do is set aside an investment budget and let the system handle your trades. Luckily, AtoZ Markets’s signals have an accuracy of over 70%, which makes them a reliable signal provider.
So, if you’re looking for the support and tools to lead a successful investment career in the FX market, we’d highly recommend AtoZ Markets as a suitable option for you.
Final thoughts
Leading a successful investment journey can take years of hard work. You need the time, motivation and patience to learn more about investment strategies in order to spot the right opportunities and manage them efficiently. Luckily, you can now skip the learning and practising phase and jump straight to the earning phase.
Copy trading and automated trading systems have revolutionized online trading. Traders can now copy the trades of pro investors and make just as much profit with minimal effort. On top of that, an automated trading system lets you sit back and relax while your investments are made automatically. This is a great way to build a passive income and an outstanding trading portfolio. Of course, if you find the right traders for copying trades and the perfect auto trading software.
If you’re interested in making profitable investments in the forex market, you can access quality forex signals through AtoZ Markets. They also offer automated Forex trading for forex traders, with a high level of potential for profits.
Copy Trading – FAQ
✅ How to avoid copy trading scams?
Copy trading is a highly popular and effective way of investing, but it can also be risky. The key is to find an expert trader who’ll help you make money and has a great trading portfolio to show. Also, they should have good online reviews and should match your trading priorities. You can find the best copy trading system or expert trader through online research and trial runs. Trial and error is always the best way to ensure you find the best available options. Since there are many scammers out there, you have to take extra precautions when choosing a copy trading platform or to copy an expert trader. Especially if you opt for auto trading, since tracking automatic trades isn’t always possible.
😎 Can copy trading make you rich?
Every investor has the same goal – to make money. Although, becoming rich through investments isn’t a piece of cake. You have to risk your funds and take chances before you have a portfolio to showcase and a bank balance worth showing off. A few effective ways to kickstart your investment journey could be signal trading, social trading, copy trading or mirror trading. All of these methods are helpful, especially for beginners who need guidance when investing. Please read our guide to learn more about copy trading and how effective it is.
🔥 Is automated trading worth it?
As the name suggests, auto trading refers to trading that is done automatically with the help of software and algorithms. Many experts suggest that automated trading systems are the future of investments. However, some people prefer manual trading because it offers more control over your investments. The choice to go for auto trading or manual trading completely depends on the investor’s nature and preference. Some investors prefer the ease that auto trading brings to the table, whereas others feel as though it takes away decision making and makes you dependent. Visit our website to learn more about auto trading and whether it’s worth it or not.
