What is Copy Trading and How to Copy a Trade?

Instead, you can focus on following successful investors, which can save both your energy and time. 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.

In the vast world of trading, there is a system that traders use called copy trading. We’re here to explain what copy trading actually is and break down whether it’s the right platform to help you diversify your money. Copy trading can also be an excellent way for a beginner to learn more about trading. Some brokers offers Islamic (swap-free) live accounts, which comply with Sharia law. You can get in touch with your broker to find out if this type of trading is supported in your account. Social trading focuses more on gaining ideas and insights from different websites and services in order to develop new strategies, share tips and invest in tools.

Trading is a great option to invest money for the future and short-term financial goals. Copy trading enables individuals in the financial markets to automatically copy positions opened and managed by other selected individuals. You choose an expert trader to follow, then copy their trading movements. Say trader you’re following buys 100 shares of a particular stock.

What is the minimum amount required to copy a trade?

However, you should always keep an eye on your account, not only to track the performance but also to ensure that you always have enough margin in your account. In terms of the profitability, Marco is just under 11% in the green for the year – with no losing months in 2020 to date. If for whatever reason you don’t fancy using eToro for your copy trading endeavours – a number of other options are on the table. Here’s a snapshot overview of why eToro leads the way in the copy trading phenomenon. The signal says to buy Bitcoin at $44.750 with a take-profit of $46.500 and a stop-loss of $44.250.

  • We’re here to explain what copy trading actually is and break down whether it’s the right platform to help you diversify your money.
  • While there are many benefits of the copy trading phenomenon, the process does not come risk-free.
  • If for whatever reason you don’t fancy using eToro for your copy trading endeavours – a number of other options are on the table.

But if you did your homework, you would be at ease, waiting for the next trending move to show up.

It can be used to trade crypto, Forex, stocks, commodities, metals, and other financial markets. EToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading customer success software request for proposal rfptemplate CFDs. The most important thing to remember is that eToro copy traders actually utilise their own capital at the platform. In fact, this is a minimum requirement to be eligible for the program.

Deposit Money to Your Account

Note that some signal providers specify a minimum investment amount to ensure the trades will be going through for the copier. Mirror trading and copy trading are similar, but there are some key differences. With mirror trading, you are copying whatever the master trader does, including the same position size they place on their trades. As obvious in the names, copy trading is a platform that allows you to enter the world of investment easily and seamlessly.

Is copy trading legal?

As soon as your deposit has been credited – you can proceed to make an investment. In order to do this, you will first need to spend some time researching a copy trader that meets wall street bound is opening diversity doors in investing your long-term financial goals. Fahad Alhajri is one of the most successful forex traders at eToro. This self proclaimed currency expert originally joined the platform in 2016.

Example 2: Short-Term Forex Trading Portfolio

This eliminates the guesswork and the lack of experience that’s needed when choosing how to invest your hard-earned money. Of course, the strategy might not be the best strategy for all investors, but these systems have worked for many retail investors. The online broker is home to over 13 million traders and is in possession of three tier-one licenses. You can easily find a trader that suits your financial goals by reviewing the individual’s key metrics – such as preferred asset, average trade duration, and shotrical ROI.


“Our investment platform does not look like an investment platform, it looks more like a social site. We’re a little bit more accessible,” says Dan Moczulski, UK managing director at eToro. “It encourages education, it encourages learning about assets,” Moczulski adds. As a regulated trading platform, tixee allows traders to copy trades onto their accounts directly.

He also noted that the exchange’s employees are prohibited from futures trading, eliminating the possibility that traders could mimic employee strategies. The signal replication process starts with the signal providers, these are the traders who can be followed. Let’s suppose the signal provider decides to go long on EUR/USD for one standard lot. Often confused with social trading and mirror trading, copy trading consists of copying the performance of other traders using automation. With copy trading, you are following the same trading strategy and the exact trades the signal provider is taking, but crucially you can adjust position sizes. This means that if you are not fully confident in all the trades of the master trader, you can reduce the size of your position on certain trades you follow.

Here we examine the key points of copy trading including the process, risks involved, key stakeholders, and how to get started. Understand why money management is important to trading and critical in order for traders to preserve their capital. You can sign up to be a signal provider so that others can copy your trades. Note that you may have to complete some additional documentation before you can start providing signals and charging copiers. As soon as you login into the Axi copy trading app, you will be presented with the “Discover” tab where you can browse through the various signal providers.

This is typically used by copy trading platforms to copy the trades of crypto trader bots, asset management firms, or professional portfolio managers. By using a read-only API configuration, the copy trading app can replicate the trades of the professional trader without having the ability to place or cancel orders in the xcritical overview investor’s account. It is a distinctive investment strategy gaining popularity because of its unique blend of education and potential profitability. By aligning with a chosen trader’s investment style and strategic goals, investors can copy selected or all trades, thereby leveraging the expertise of seasoned traders.

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