If you want to learn how to trade on the Forex market with a copy trading system, you need to choose the right copy trading platform. The right platform allows you to trade on multiple currencies without having to do the work yourself. A good copy trading platform should provide all the necessary tools and information to make your investment successful.
Best Copy Trading Platform
A good copy trading platform is designed to give you access to other traders’ strategies and trades. It has a reputation for providing a stable and secure environment for your funds. The customer service of a copy trading platform is another important aspect to look for. Make sure that the company you select offers training and customer support, as well as the ability to upgrade your account and cancel if necessary.
The best copy trading platform should also be easy to use. It should offer multiple search filters that can make it easier to find suitable traders to copy. These filters can include risk level, profits, and the number of followers. Moreover, it should let you select the traders you want to copy and allocate your funds to them accordingly.
A good copy trading platform will provide you with a number of tools for analysis and risk management. However, be aware that there may be biases in the database, including recency bias. In some cases, the platform will follow the best performing trader and ignore others. In addition, strategy drift can lead to unexpected results. For this reason, it is vital to do a thorough research and monitor the performance of your account. You may want to intervene if your copy trading strategy is not working out.
Using the Copy Stop-Loss Feature on eToro
The Copy Stop-Loss feature on eToro is a risk management system that works across all copy relationships. When a copy relationship reaches 60% of its invested copy value, the system terminates the trade and returns the remaining funds to the fund balance. You can also set a higher percentage limit on your stop-loss order.
If you are a novice trader, eToro copy trading can be a great way to enter the market. But it’s important to remember that this strategy is not suitable for everyone. First, you should understand how to set up Stop-Loss and Take Profit orders, and learn about when to sell. Secondly, you need to learn how to make trade decisions on eToro.
Copy trading allows you to mimic the trades of a more experienced trader. It is an investment strategy that is growing in popularity. Moreover, it doubles as a social networking site. To make it easier for you to copy your trader, eToro allows you to follow their trading strategies, and react to their performance.
Final Words
Another advantage of eToro copy trading is that it has a free subscription system where you can copy several traders and instruments. It only requires a minimum of $500 to invest, but you can opt for as much as $5,000. Moreover, you can test all the features of the system with a free demo account.
