Copy trading is extremely popular these days, especially with all the copy trade platforms popping up.
While copy trading is best for beginners, both new and experienced traders can benefit from this trading option.
Newbies can watch experienced traders in action and learn from them. At the same time, they can profit from winning trades they copy.
Advanced traders, on the other hand, get to share their ideas and expertise and receive compensation for recruiting followers. In addition to the profit from the trades they make, signal providers definitely have it good.
To get maximum returns, however, a copy trader needs to choose the best trading platform to help them achieve this. What do you need to know then?
What the best copy trading platform must have
1. Reliable execution
All copy trading platforms work the same way--you replicate a trader's strategy and gain or lose a profit, depending on the outcome of a trade.
What you need to check is the reliability of execution. That is, there's little to no execution slippage because trade is made at the best price.
Slippage refers to the difference between the price you expect and the price executed. If you end up paying for the worse price, an execution slippage is triggered.
This is not usually a problem in Forex, especially during normal trading. The currency market is also the most liquid in the world, so it's not a question of low liquidity vs. high-volume orders.
However, if you trade minor or thin currency pairs, slippage could occur. Trading the NOK/JPY pair, for example, won't have the same volume as USD/CAD, which is one of the major and most actively traded pairs.
To avoid or minimise slippage, choose a copy trade platform or Forex broker that is in partnership with several liquidity providers so the trades are executed quickly even when there's a high volume of them.
Fullerton Markets, for example, works with tier-one banks and Equinix, the largest data centre and colocation provider in the world. Connected to ultra-high-speed servers, low latency connectivity is ensured. This enables us to execute trades with lightning speed, reducing the possibility of slippage.
Find out more about the Fullerton Edge that traders, old and new, can benefit from.
You can further protect your trade by placing a stop-loss order.
2. Detailed information on signal providers
Since copy trading works by replicating trades made by signal providers, you need to choose the best trader to follow. Remember that you make money copy trading when the signal/strategy provider you follow executes a winning trade.
And this is what really matters.
Forget about a trading platform's features and focus on the details you can use to identify a gооd ѕіgnаl рrоvіdеr for сору trаdеrѕ like you.
Make sure you have access to a proven track record over the last 12 months or more, and statistics on trade win percentage, maximum drawdown, risk level, and other pertinent factors.
Here's a detailed list of criteria to consider in choosing the best trader to copy.
If a copy trading platform doesn't provide all the details, move on to the next one.
3. Customer support
Support for new traders must come from both the Forex broker and the strategy provider.
A copy trading platform that will take care of you even with a minimal deposit will likely be more helpful when you have a large deposit.
A signal provider who frequently communicates with copy traders and regularly provides updates on market views and their strategies have more potential to protect their trades and followers. After all, they have the knowledge to react and adjust their strategy according to market conditions.
Before you follow a signal provider, do your due diligence. Chat with their followers to get first-hand information about their experience with a specific trader.
Can you make money copy trading?
Of course.
As long as you choose the best copy trading platform and strategy provider, you have the potential to make a profit trading Forex. Doing so is also one way to manage the risks that come with currency trading.
So choose wisely.
Can I trade Forex with USD100?
This is all you need to open an account with Fullerton Markets and become a strategy follower on our copy trading platform, CopyPip. Make money on autopilot and start building passive income with a minimum deposit.
The performances of strategy providers are easily accessible, so you can have a good idea of which trader to follow even before you sign up.
We strongly believe anyone can be a Forex trader and copy trading is one way to go about it. You just need to know how to choose the best platform and strategy provider.
Ready to grow your wealth in the world's largest financial market? No better place to start than right here with us! Begin trading with Fullerton Markets today by opening an account:
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