Copytrading is a new proprietary service that allows both Forex noobies and experts to profit through cooperation. It's a one-of-a-kind program that’s transforming the way people trade in the Forex market.
Essentially, copytrading is like a having cheat code that levels up your experience from noob to master with one click of your mouse.
Not a believer? What Is Copytrading and How Does It Work?
For beginners, the name of the game is simple, where should you begin? For professionals, you might be wondering what benefit is in there for you.
Well, fortunately for you we cover both sides of the coin, but first, let’s take a look at the beginner’s point of view.
Let’s start with the beginners. Your first step is to begin by browsing reputable forex brokers who offer a copytrading service.
As an example, let’s take a look at forex-awards.com’s top Copytrading platform in 2018, OctaFX.
They provide an in-depth “Master Traders” list. You can check their activity, history, results, and trading strategy.
Advantages and disadvantages of Copytrading
Pros for Beginners
- Crafted for new traders with little market knowledge
- Easy to get started
- Limits profit loss
- Manage risk more effectively
- Passive investment strategy
Cons for Beginners
- Accessibility can be regionally locked
- Technical risks
- A wide selection of brokers with different requirements
Pros for Professionals
- Receive a commission from copiers
- Unlimited amount of copiers
- No paid commission to (some) brokers, like OctaFXEasy to get started
- Create a customizable strategy to attract potential copiers
Cons for Professionals
- Your trade capital is at stake
- Requires advanced skill
Of course, it’s also crucial that you have an open mind. A lot of new traders get caught up in the idea of feeling or appearing inferior by “getting help.” This sort of cavalier mindset could prove costly. Leave your ego at the door!
What About Volume and Leverage Differences?
Of course, it’s understood that everyone is not going to have the same type of bankroll. You’ll have the flexibility in choosing to trade proportionally based on your account balance or a 1 to 1 ratio. Let’s take a look at the difference in volume and leverage to understand more.
OctaFX Copytrading uses the following calculation:
- Volume (copied trade) = Equity (Copier)/Equity (Master Trader) × Leverage (Copier)/Leverage (Master Trader) × Volume(Master Trader).
Let’s take a look at an example.
- For instance, if the Master Account’s equity is $500, and the leverage is 1:200, the Copier account equity is $200, and the leverage is 1:100.
- 1-lot trade is opened on the Master Trader’s Account.
- The volume of the copied trade will be 200/500 × 100/200 × 1 = 0.2 lot.
Did you get all of that? Basically, the calculation is done proportionally to that of the Master traders.
Okay, I’m Ready! But Which Master Trader Should I Choose?
OctaFX Copytrading is highly detailed. You’ll be able to view the Master Trader’s statistics.
For instance, their profit and how often they trade. Additionally, it will tell you exactly how many people are currently copying the Master Trader’s orders and what their commission is, so you can trade with confidence.
OctaFX Copytrading removes the fuss and complexity out of Forex trading. We think that’s pretty cool.
What else should I know?
That’s it. As a copier, you don’t need to worry about the several hundred possible variables that can impact the price of gold versus the dollar. You sit back, relax, grab a pina colada, or use your newfound free time to begin learning the ins and outs of Forex trading en route to becoming an expert.
You can choose to monitor the trades, though they will open and close in real-time, keep in mind the time zone of the expert you’re copying!. The best part is you can stop copying a Master Trader at any time with a simple click of the button.
How Do I Go from Beginner to Master Trader?
Everyone has to start somewhere. They say Rome wasn’t built in a day and neither are Forex trading masters. However, it doesn’t have to be a complicated process.
There are many training programs found on the web. Some offer detailed video instructions and testing which allow you to go from zero to hero.
