Thanks to the ever-growing technology, forex trading is now an open gate for anyone interested to trade currency pairs in the digital marketplace. If you are a novice trader stepping into the world of forex trade and unable to formulate a profitable trading strategy, copy-trading is the answer to your prayers. Experienced or not, with the advent of auto copy trading and its endless popularity, you can now easily copy-trade via various services. You can also manage more than one MetaTrader 4 account.
What is Copy Trading?
To understand forex trade copying, it is essential to know what a signal source is in forex. To copy and paste forex trade, a Trader, allows copying their trades by the consumer. The consumer can be referred to as an Investor and the trader is also known as a signal source.
As we established earlier, expert traders have effective trading strategies that can take years for a novice trader to build. Copy trading relies on the actions of the traders you are copying to, such that his trades are directly copied to your accounts.
How It Works
It begins by selecting a trader available by the platform whose stats looks promising. This could be their followers, profitability, risk level, or their return or investment. Most importantly, spreading your eggs in multiple baskets is best practice.. This way, they hatch at different time intervals and provide a better turnover. Similarly, you can choose more than one trader if you have decided to copy-trade; it could minimize the losing margin.
Once you have selected the trader(s), you have to pick an investment amount. Link this to the trader’s portfolio. In some cases, it cannot exceed 20% of your portfolio. For instance, your account balance is USD 1000, and you choose to invest a sum of USD 100 (10% of your balance) to the trader’s account. Given that the open trader’s account also has USD 1000, it means your invested sum of USD 100 is going to be 10% of his portfolio.
Making the Trade
Now, whatever trade the trader is going to make, it will automatically replicate to your account according to your invested percentage, after a complex mathematical calculation that. For newbie traders who do not have any open trades, investing a small amount is always the choice to test the waters first. Add more funds to increase your copied turnover if you are beginning to enjoy your earnings.
Between a trader and an investor, a broker is a service that provides both the parties with the platform and the software to make use of copy-trading. The MT4 trade copier as a service provides an automated copy-trading from an expert trader’s MT4 account to yours. All this without you needing to lift a finger. Moreover, Expert Advisors or forex auto copiers enable copying trades to not one but multiple MT4 accounts directly from the traders’.
Therefore with a forex auto copier, you can have as many MT4 accounts as you wish, copied to as many trader MT4 accounts as you want.
What is the Forex Trade Copier Service?
Typically, a trade copier is confused with a trade copier service. There are distinctive difference between the two. The former is software built around MetaTrader 4 accounts to copy trades from one account to another. A trade manager or trade copier service executes the trade copy on the software. The Forex EA can also execute this.
A trade copier service is done via a forex signal copier service that will copy from A-Z; receiving trades from the trade copier software, and automatically directing it to your MT4 account. The automated copy-trading feature is a popularly-used service that outweighs the risks involved.
Speaking of which, let us go over the benefits of automated copy trading and the risks that may come along.
Benefits of Using a Forex Trading Auto Copier Service
- Of course, you can perform forex trading and make money without even analyzing the market or comparing prices. The work will be reduced to zero. (Except if you choose to initiate a deal on your own, which you always can)
- When a beginner enters into the marketplace, they spend a substantial amount of time gaining experience, planning approach, etc. During that period, you are making a profit.
- You can diversify your investments, which allow you to share profits from various expert traders.
- You can independently set your copy parameters based on the copy-trading performance.
- Add or delete your funds from the copy trader’s account. Then, select only the one whose trading goals match yours.
- Eliminate the burden of wrong decisions and the emotional turmoil that follows.
- You gain practical experience with minimal losses.
- Forex trade copying services demand a nominal fee, and in return, relieve you of the hard labor.
Ready to use a MT4 trade copier for your trading spree? You may also consider the following pitfalls to weigh your options.
What are the Risks of Auto Copy Trading?
- No guarantee of the effectiveness of the trading strategy.
- It is a paid service, and a commission deducts at the beginning of each trading day.
Forex auto copy trading service is the perfect means to slip into the forex marketplace. Get some money rolling in until you learn and work out your trading strategy to open independent deals. To conclude, get your hands on the best forex trade copier service to begin your venture.