Best Copy Trading Platforms in the US 2023- Investing com
This allows you to automate your trading endeavors based specifically on your desired strategy. For example, you might come across a strategy that focuses on scalping. This will see the copy trading tool place dozens of low-risk buy and sell positions throughout the day when an asset is https://www.xcritical.com/blog/what-is-a-copy-trading-platform-and-how-it-work/ stuck in a tight pricing range. Although ZuluTrade claims to be transparent with its fee structure – we had to do a bit of digging to locate the respective commission rate. For example, if you invest $1,000 and your chosen trader makes 50% in month 1 – this amounts to gains of $500.
Top-rated platforms enable master traders to impose different commissions (for subscription, successful trades, net profit, and more). Rewards are automated; this is why your interests are protected enough. You can do copy trading on your own or through a copy trading platform. Also, make sure there’s enough money in your trading account to cover trade activity.
AvaSocial Copy Trading
You can ‘copy’ another retail trader, OR, you can let your portfolio ‘autotrade’ allowing the professionals to do the trading for you. An example of one of the first automatic trading systems for copy trading was called Mirror Trader. Mirror trader enabled connecting your own trading account to the software to automate the trading fully. The fact that traders needed to execute all trades manually created a large barrier to entry for traders who wanted to use these services.
Here’s what copy trading is, how it works and what you can expect from it. If you’re not sure what investments you should make then consider working with a financial advisor who can manage your investments to match your long-term goals. This makes many people favour mirror trading over copy trading, as all human error is removed from the equation.
HF Markets
The platform will start trading for you as soon as you have chosen a trader to follow and allocated funds to copy that trader automatically. Copy trading is a type of trading where you copy the trades performed by another, more experienced https://www.xcritical.com/ trader. Joey Shadeck is the Content Strategist and Research Analyst for ForexBrokers.com. He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years.
MoonXBT is known for its incredible speed of execution, according to its team. Is the understanding of all news including economic and political to forecast future price movement. Often means charts which a trader uses to interpret historic price action and behaviour for future direction. Most software will have the option of three types of copy trading functionality – automated, semi-automated and manual.
#2: Avoid unnecessary mental time travel
Of course, not all trades like the example above will result in financial gain. The key point here is that everything that the trader does is mirrored like-for-like in your own portfolio. If the same trader then decides to short-sell Facebook stocks, again, you will do the same. The main concept here is that you can actively trade without needing to do any of the legwork. This is because your chosen copy trader will make all investment decisions.
On the other hand, a more aggressive investor may choose a strategy that has higher volatility, which means a higher risk for losses — but also higher relative potential profits. Always consider the time horizon (or, expected duration) of your investment when copying another trader. Choosing a well-regulated, properly licensed forex broker can help copy traders avoid scam forex brokers. My educational series about financial scams has helpful tips for identifying common copy trading forex scams. AvaTrade is a trusted global brand best known for offering traders an extensive selection of trading platform options. As soon as you start using this type of platform, you’ll be able to easily filter through trading results from experienced traders.