Do you desire to follow the trades of seasoned traders wherever you go via your mobile device? Then this beginner’s guide to copy trading is for you.
This article will cover how to start copy trade by choosing which traders to copy, and some other crucial issues like the price and the starting balance needed. To begin copy trading, however, you must first choose which markets you want to duplicate your transactions from.
On which markets can I begin copy trading?
You can duplicate trade on any financial market, including for single stock CFDs, commodities, cryptocurrencies, index trading, and currency.
The ability to immediately profit from changes in one market is made possible by having various trading products. Still, it also presents a potentially good chance for diversification.
For instance, if you primarily trade FX, you can gain from emulating a trader specializing in stocks or crypto CFDs. It is impossible to monitor all relevant markets continuously, but copy trading can help fill in the gaps.
It’s crucial to remember that, regardless of the market being traded, you maintain total control over your account and are free to combine any manually entered deals with those made by the master trader. You can also decide to change or close current positions that the master trader has opened at any moment, or you can change your risk preferences. However, remember that excessive manual intervention can undermine copy trading’s objectives and make it challenging to monitor the master trade’s success. Copy traders on eToro does not have additional charges just automatically cuts proportional percentage of your allocated funds.
Before using the software, if you need to learn more about copy trading, see our practice explanation.
How much money is needed as a minimum to duplicate a trader?
To begin copy trading, no minimum investment is needed. Even if you can start with just $100, you could discover that that amount of money constrains your options.
If you start small, you might want to stick with just one signal source; otherwise, you would quickly use up your margin. It should be noted that certain signal providers set a minimum investment requirement to guarantee that the trades will be executed for the copier.
What is the cost of copy trading for me?
The Axi Copy Trading platform is free to use and offers the same benefits of extremely low spreads and speedy execution as standard MT4 trading. While some signal providers might offer their services for free, others can require a monthly fee. From one supplier to another, this varies.
But remember that you still have to pay the broker’s spread and commission even if a signal source doesn’t charge you anything (depending on your account type). If you are interested in copy traders on eToro you can find the list of best traders on Traders union.
Could other traders imitate me?
Absolutely! To enable others to mimic your trades, you can register to become a signal provider. Before you can start sending out signals and charging copiers, you might need to finish some additional paperwork.
See our article on how to become a signal provider for additional information.
Does copy trading require previous trading experience?
One of the most significant advantages of copy trading is that no prior trading knowledge is necessary, yet it is advised first to master the fundamentals of trading.
You’ll see why copy trading is alluring to beginners after opening an account and linking it to the copy trading platform.
Before following someone’s trades, you should make an effort to keep yourself informed about the markets, understand the dangers involved, and be aware of the many risk parameters that may be changed.
Trading terms for copies
You can encounter new terminology as a newcomer in the copy trade industry. The standard terms you will see below have been highlighted:
Fixed Size: “fixed size” refers to the total size of the trade you’re about to perform while cloning an account. Therefore, even if you are copying the position of the signal, you may not be copying its magnitude. You get to choose your own instead.