Forex Copy Trading | Best Copy Trading Platforms

Forex copy trading has gained significant momentum as one of the fastest ways of generating income, especially during the past decade. That said, the FX industry as a whole is not everyone’s cup of tea, in that only a few dedicated traders manage to become successful while others fail.

In the face of this ever-evolving financial landscape, various innovative technologies, e.g., Copy Trading, emerge to help traders become more successful in this field. So, what is copy trading, and should we use it in our next trading endeavor?

What is Copy Trading?

The idea of copy trading is to “copy” the trades of more experienced and successful traders in real time. Within a copy trading network, pro traders can showcase their trades and strategies, so others can copy, and therefore, conduct the same trades.

Think of a class full of students at different levels. In a scenario like that, you would prefer to have a straight-A student by your side as opposed to classmates who can barely pass the course.
In copy trading, traders can choose one of the following roles:

👌 Provider - traders whose trades can be copied
👌 Copier - traders who copy the said trades

Each broker may refer to these roles differently, but they are the same.

Since copy trading is beneficial for both Providers and Copiers alike, it is very popular, especially among new traders. This trading service can help them boost their trading skills and profitability with minimum effort.

Best Forex Copy Trading Platforms

Exness Broker

1. Exness Forex Broker is currently offering a trading program called Copy Trading to all of its new as well as experienced clients. Using this program, new traders can join the FX market almost immediately and reap its many benefits through qualified forex traders. Pro traders can also use this very attractive program to showcase their proven strategies to attract investors and make more money.

2. The key difference between the Exness Copy Trading service and similar copy trading programs is the fact that it enables traders (investors) to have complete control over their funds as well as their Copy trading account. In this way, investors get to dictate what happens to their money even after copying a pro trader’s strategies.

3. Exness clients can opt for this program either as an Investor or a Strategy Provider by taking into account their trading goals, capital levels, and of course levels of experience. Each trader knows his own preferences better than anybody else, so take your time and choose the role that fits you the best.

4. Those who opt for the Investor role need to invest in the program to be able to copy their preferred strategies offered by pro traders. To do that, they need to open a live trading account, fully verify it, and make the required amount of deposit. Afterward, they should head to the strategies page to browse and find suitable strategies. After finding and copying said strategies, all they need to do is monitor their ongoing copied trades and let the pros do their work. They can also choose multiple providers at a time to diversify their portfolios.

5. As for strategy providers, they also need to open a live trading account with the broker and fully verify it to be able to join the program. As soon as the initial procedures are taken care of, they can create and showcase their strategies to attract investors and earn a substantial sum of commission (up to 50%). Moreover, details such as past trading history, performances, and strategies will be posted on the Strategies Page and available to the potential investors.

6. Exness forex broker makes every effort to make this trading program as secure as possible. To that end, only you will have complete control of your money as well as your trading account. Additionally, Exness makes certain that strategy providers are fully verified before being able to share their strategies with their potential investors. On top of that, you can read details, such as past performance, trade results, and trading history of your strategy provider to make an informed decision.

7. to access this program, clients can use iOS & Android devices as well as the web, whichever is more convenient for them. In your Personal Area, in the Copy trading section, you’ll have access to 3 important tabs, namely All Strategies, My Investments, and My Strategies to see all the info you need. The “All Strategies” tab is self-explanatory since it gives you access to all the available strategies in addition to details, including currency, most copied, and return with moderate risk. The “My Investment” tab is where the investors can review their account balance and copied strategies. Last but not least, the “My Strategies” tab is for the strategy providers.

8. To copy a strategy as an investor go to your Personal Area, open the “All Strategies” tab, search for suitable strategies, and check out details, such as total return, risk level, leverage, commission rate, and number of investors, and click “Start Copying.” Once you choose your payment method and investment amount you can begin copying said strategy and get on with your trading journey.

9. To create a strategy as a Strategy provider, you also need to head to your Personal Area, the Copy trading page, and then open the “My Strategies” tab. Afterward, fill out the required info to create your new strategies with details, such as the strategy name, description, and password. Once you’re done click “Continue.” after choosing your account type (Social Standard or Social Pro), set your leverage, currency, and commission rate (up to 50%). When these steps are completed, investors will have access to your new strategies and can choose to copy them.

10. The Exness Copy Trading program can have a multitude of benefits for investors and strategy providers. Investors, especially new traders, get to reap all the advantages of the FX market through their strategy providers without wasting any time learning the initial steps. And strategy providers, get to earn more than before by attracting investors to copy their proposed strategies. Additionally, they can experiment with new strategies now that they have access to more money.

Trade Forex, Metals, Energies, Stocks, CFDs, Cryptocurrencies

Deposit and withdrawal via Bank wire, Credit Cards, PerfectMoney, Skrill, Neteller, Bitcoin, Tether

Licenses: CySEC, FSCA, FCA, FSA
Country: Cyprus
Year Founded: 2008

Open Exness Copy Trading Account

Exness Broker Review

How does Copy Trading work?

Copy trading consists of Copiers and Providers. The following diagram depicts a better picture:

First, the Copier chooses his preferred Provider(s) from a list of available pro traders by studying their strategies as well as past performance statistics. The statistics include detailed information, such as monthly returns, total returns, number of followers, maximum drawdowns, graphs, and risk levels. There is also information regarding the commission rate, strategy used, and trading instruments. This helps the Copier decide which traders to follow.

After choosing the Provider(s), the Copier can decide on the investment amount and allocate a specific percentage of his funds for copy trading. Once set, that portion of the capital will be used to copy the activities of the chosen Provider(s) automatically. These activities include but are not limited to buy, sell, stop loss, and take profit.
Then, the Provider shares his trades to be automatically copied into the Copiers’ accounts. When the chosen Provider executes a trade, the same trade will be executed in your account simultaneously.

If the trades are successful, the Copier will receive profits without doing anything and the Provider will get a percentage of the profits as a commission. However, if the trades fail, the Copier will lose his investment and the Provider will not get a commission.

The following example will help you understand better how copy trading works.

You choose to subscribe to Trader X’s strategy. Trader X has 2,000 USD, while you have a total of 500 USD in your account, and you have allocated a 100 USD investment. Then, Trader X uses 10% of his fund (200 USD) to open several trading positions. Simultaneously, your account will also open the same positions using 10% of your allocated investment, i.e., 10% x 100 USD = 10 USD. The profits and losses are then calculated based on the same percentages.

Important things you should know about Copy Trading

Even though copy trading sounds like an easy way to earn profits from trading, the following factors should be considered:

✅ Choose your copy trading platform wisely

Not all Forex brokers are a good choice for copy trading. Before registering a copy trading account, you should research and compare different platforms to make sure your broker aligns with your trading styles and objectives. You should also learn about their commission calculation process.

✅ Choose your Strategy Providers carefully

Picking the right traders to follow is not always cut and dried. Their past performances and results may seem promising, but you still need to do your own research concerning criteria, such as their maximum drawdown and level of experience. Alternatively, you can try with a smaller amount first, and after making sure that the traders’ styles suit yours, you can gradually add more funds to minimize your risks and losses.

✅ Make sure to choose the right type of copy trading

Two types of copy trading are usually offered by Forex brokers. One is copy trading in which trades are copied automatically, meaning you cannot choose or modify which trades to open. The other one is social trading, which is semi-automatic. In other words, it allows you to choose, copy, and modify the trades you want to some extent.

✅ Copy trading is still risky

Even though no prior trading experience is necessary for copy trading, you should still understand how copy trading works and familiarize yourself with important terminologies. That is to say, you must at least have an adequate understanding of forex trading in general. You do not want to step into the risky world of Forex trading and invest your money without any preparations.

✅ Always monitor your trades

Even though you can leave your trades in the hands of experienced traders, you should always keep an eye on your trades to track their performance and ensure that there is enough margin in your account. Bear in mind that not even a perfect past performance can guarantee any future success. With that in mind, you have full control of your trades and you can adjust the risk parameters according to your preferences.

✅ Pay attention to commission rates and minimum deposits

Different traders usually have their own minimum deposits and commission rates. You can check these details before subscribing or following the traders. Make sure to consider these factors before copying a pro trader’s strategies.

What are the benefits of Copy Trading?

As a popular trading service, copy trading comes with various benefits for both new and professional traders. Here are some of them:

👍 A great way to start

Beginners often feel insecure about starting their trading journey. If you are one of them, then copy trading can be a good option for you to use pro traders’ expertise.

You can follow and observe the trading activities of pro traders to learn the ins and outs of the business. After feeling more confident about your skills, you can gradually start to develop your own strategies to take your trading knowledge to the next level.

👍 An efficient way to trade

Not all traders can dedicate hours and hours to learning how to trade, read the markets, develop strategies, and monitor trades.

Copy trading is a solution that streamlines the trading process. This will enable you to earn money from trading with the help of top traders. However, make sure to set up your risk parameters and monitor the trades properly to avoid any unexpected losses.

👍 Portfolio diversification

We know that Forex trading carries a high level of risk. So, you’d be remiss to put all your eggs in one basket. Copy trading helps you manage your risks and mitigate potential losses by diversifying your portfolio.

By using copy trading, you can choose to follow different strategies, such as swing trading, day trading, scalping, and other short-term trading methods. You can also trade in different trading instruments or choose to follow different traders to increase your potential profits.

👍 A chance to earn more money

Experienced traders can also benefit from the copy trading service. They can register as a Provider and share their strategies with other traders to earn commissions from their successful trades.

By managing a larger capital as a provider, your potential income increases significantly as well. It also gives you a chance to find out how good your trading skills are. You should know that the bigger the challenge is the bigger the risk will be, so do your due diligence before jumping into the deep end.