copy trading

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Copy Trading

Table Of Contents

What is Copy Trading

Copy trading enables traders, experienced and new alike, to take part in the financial markets, by having their trades executed by experienced and seasoned traders with proven track records.

This form of trading offers a unique solution for people who wish to trade and invest money with the aim of increasing their initial capital, however lack the time or experience to invest by themselves.

For this reason brokers offer the possibility of copy trading. There are multiple platforms which offer copy trading, and while some are manual, other are automated or semi-automated, and all offer different variations of copy trading. Ultimately, traders should choose what’s best for them.

Open your Copy Trading account at AvaTrade today!

Copy investing, or mirror trading became very popular with investors worldwide, mainly because many early adopters have had enormous success and were able to boost their trading skills and profitability with zero effort. Copy trading enables novice investors to do just that. They don’t need to know how to analyse the markets or how to interpret forex signals or indicators.

Novices are using other investors’ abilities and thus increasing their own success rates. Also, copy trading can be used by experienced traders too, as a way of learning new trading strategies from others, and by that, increasing their success in the online trading market.

If you would like to start investing in the stock market but do not have a lot of experience, or you are a seasoned pro who would like to gain insight into the analysis of others, using copy investing / mirror trading could be an excellent place for you to begin.

The Rise of Copy Trading

To begin we need to establish that there are two main types of traders, those who attend seminars, attempt to compile strategies, follow all market trends, and enjoy ‘expert-trading-fees’. Then you have the other group that want to make money with as little input and effort as possible. For the latter, mirror or copy trading was created and has suited many as the perfect solution.

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The growth in the past 5 years of copy trading has been exponential, for its main reason is that many traders ‘trust’ this system, and have a comforting feeling that they are not trading alone. AvaTrade offers you popular signal providers that are the best in the business.

Copy trading is not only for the unexperienced, a lot of expert traders use copy trading as a means of market research, it saves time and could be part of a new strategy that could be implemented and profitable.

Advantages of Copy Trading

There are many advantages to copy trading, and as such it has earned its place amongst traders:

  • Allows first time traders to familiarize themselves with the financial markets and gain confidence to trade.
  • Enables experienced traders to take part in the market even when they are too busy, and cannot invest the valuable time and research needed in order for them to trade.
  • Copy trading can be employed on various instruments, including forex trading pairs, stocks trading, commodities and much more
  • Creates a community of traders, beginners and experienced alike, who can exchange ideas, strategies and improve their trades together

Open a copy trading account with AvaTrade and join the success of experienced traders!

Who Provides the Trading Signals?

AvaTrade uses top quality sources for its copy trading. These parties include hedge funds, expert brokers, and money managers. This means that if you use copy or mirror trading with AvaTrade, you are essentially gaining valuable access to seasoned traders, allowing you to copy their trades and benefit from their experience.

Taking advantage of this trading strategy can be highly lucrative. In fact, many social traders, new and experienced, have had the opportunity to gain direct access to the top traders on the platform and have increased their trading success significantly.

How to Successfully Copy Trade

There are a few steps one should take in order to successfully copy trade.

Find the Right Broker
Look no further – selecting a trusted and regulated broker, with which the funds and client’s details are completely safe, is imperative. AvaTrade ensures that the funds of our clients are kept in segregated accounts within international banks. In additions, the more regulated the broker, the better. AvaTrade holds 6 regulations across 5 continents, which provides extra security in your trading.

Select a Suitable Account
It is time to open an account on an automated trading platform. We have the ZuluTrade copy trading platform which is readily available to all traders that wish to take part in automated trading.

Pick your Signal Providers
After the account is active, the platform generates a list of signal providers, from which the trader can choose the best one for them. When following these steps, a few guidelines are important to remember. During each step one can choose from a large variety – there are many brokers, multiple platforms and plenty of signal providers. It is important to narrow down the choices of each to the ones that are suitable to the trader and his needs. Subjects such as the goals the trader wants to achieve, the instruments he wishes to trade, the amount of capital he can invest, to name a few – should all be figured out before commencing to trade, and once done choosing the broker, the platform and the signal provider trading should be much easier.

Copy Trade with AvaTrade

AvaTrade offers you a variety of direct and indirect copy trading opportunities, and collaborates with leading signal providers to ensure that you can opt to follow traders from around the world.

With AvaTrade you can trade on leading platforms for copy trading:

  • ZuluTrade – With a large variety of signal providers to choose from
  • Duplitrade – Easily and conveniently copy trades from multiple signal providers

The combination of AvaTrade’s global reputation with the best signal providers, gives traders the security in knowing that their trades are in the safe hands of some of the best traders.

Open your copy trading account with AvaTrade today and enjoy the benefits!

We recommend you to visit our trading for beginners section for more articles on how to trade Forex and CFDs.

Copy trading

You still have trades opened with this Master. Their floating profit is: 0.00 .
Close them all now or go to your Copier Area and close them manually.

This investment has a bonus applied. It amounts $ . If you stop copying, the bonus will be cancelled and you will not be able to reapply it.

If you stop copying the Master Trader now, you won’t be able to take the free trial with this Master Trader again.

You’ve stopped copying this Master’s trades. 0.00 returned to your Wallet


Do you want to abort copying this order and close it at its current price?

What is Copy Trading? Complete eToro Copy Trading Guide

eToro offers its clients a wide range of trading tools, including copy trading. If you are looking for a safer way to enter the world of leveraged trading, copy trading could be a good fit.

There are numerous ways to trade the financial markets. Most people that use high amounts of leverage in their trading lose money. Platforms that allow the use of high leverage generally have very few clients that actually make money over time.

Copy trading is an innovation that allows traders to look through the track record of other traders, and emulate traders who have a trading style or trading history that makes sense to them. In practice, this kind of strategy has mixed results.

Copy traders who diversify across a few successful traders tend to avoid catastrophic losses, which can help to offset the risk that is inherent to leveraged trading. The copy trading platform at eToro is advanced. eToro has worked to make their copy trading tools fit the needs of both new and experienced traders alike.

eToro Risk Warning: 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

Copy Trading Brokers

There are a number of Brokers who offer copy trading functionality and more and more are starting to offer this feature. Here are our top picks, taken from our Top Brokers guide.

Broker Regulation Asset Coverage Leverage Trading Platforms
  • CySEC (Cyprus)
  • CFDs
  • ETFs
  • Forex
  • Cryptocurrency
  • Shares
  • Commodities
  • Indices

  • 20:1
  • Proprietary Web
  • Mobile Apps
  • ASIC (Australia)
  • FCA (UK)
  • Forex
  • Indices
  • Precious Metals
  • Energy
  • Commodities
  • Cryptocurrencies
  • 30:1 Retail
  • 500:1 Professional
  • Web Trader
  • MetaTrader 4
  • Meta Trader 5
  • cTrader
  • cAlgo
  • cMirror
  • FCA (UK)
  • CySec (Cyprus)
  • Forex
  • Indices
  • Commodities
  • Spot Metals
  • Shares
  • Cryptocurrencies
  • 30:1 Retail
  • Up to 1000:1 Professional
  • MetaTrader 4
  • MetaTrader 5

Copy Trading at eToro: How it Works

Anyone who joins eToro’s social trading network could become a “Popular Investor”. The results that a trader or investor creates play a big role in building up their popularity.

In order to join eToro’s social trading network, all you have to do is have an eToro account. Once you have successfully opened an eToro account, just opt into the social trading network.

If you want to become “verified” on the social trading network, you will have to display your real name and have personal information checked by the eToro staff.

eToro allows traders to sift through Popular Investors by using a range of tools like Gain Percentage, Assets Traded, Profitable Weeks, Geographic Location, and others.

There is no one right way to choose a Popular Investor to follow. Your money will be traded by the Popular Investors you choose, on a totally passive basis. Popular Investors are paid $350 per month once they gain at least 50 followers, and also may receive a discount on their brokerage fees.

One drawback to the platform is that the account value of Popular Investors isn’t disclosed. If you want to trade with an investor who has a lot of money in their account, there is no way to rank Popular Investors based on the size of their holdings.

There are other metrics that you can use to evaluate Popular Investors. You are given a 1-year risk score table that is based on a formula that eToro created, as well as a graph with the number of eToro copiers over time. You can also find the total amount of trades and profit ratio made by Popular Investors, and their 3 most traded instruments.

You will also be able to see their current open trades and portfolio distribution, which can help you decide if you like the markets they trade.

Putting Your Money to Work

Once you decide on a few Popular Investors that you want to copy, it is extremely simple to invest your money alongside them. Just allocate the amount of your holdings you want to copy trade with via the social trading platform, and your money will trade with the Popular Investors of your choice.

There are no special fees to use the eToro social trading platform, but any brokerage fees that would apply to a normal trade will be applied to copy trades. If you want to see how the trader you are interested in copying has performed in a graphic, there is a charting feature that could help.

eToro allows you to chart the past performance of Popular Investors over a range of time periods. You can also compare their performance against major indices and stocks you like. There is a minimum investment of $100 per trader, and you can only dedicate 40% of your holdings to a single trader.

Tips for Using Copy Trading

  • Choose Multiple Traders to copy
  • Research their trades and strategies
  • Diversify Traders – Choose traders in different industries
  • Choose traders with long track records
  • Reinvest any profits to benefit from the compound effect

The Copyportfolios

Copyportfolios are another eToro innovation. Instead of investing your money by copying a trader directly, eToro Copyportfolios allow you to either invest in a fund, called a ‘Market Copyportfolio’, or a ‘Top Trader Copyportfolio’.

The Market Copyportfolios are something along the lines of an ETF and are created to take advantage of a specific investment thesis. There are numerous Market Copyportfolios to choose from, and it would be a good idea to do some backtesting before jumping into a Market Copyportfolio.

The Top Trader Copyportfolio puts your money to work with the best performing traders on eToro’s social trading platform. This is a good way to spread your money across a range of skilled traders, and reduce the risk of catastrophic losses.

Strategic Considerations With Leverage and CFDs

No matter how you decide to gain exposure to leverage, it is important to understand the amount of risk that is involved.

Leverage will amplify your gains, but it will also create much larger losses if the market moves against your position. When you copy trade, the amount of risk taken is decided by the Popular Investor you choose to copy, which takes one of the most important aspects of risk management out of your control.

Making sure that the Popular Investors you copy trade have a solid track record is important, but it is also vital to diversify your investment money across a number of traders or assets.

A trend-following trader could look amazing when they are backtested, but when their trend reverses, they could lose their entire position rapidly. Leveraged trading can create amazing gains in the right market, but it can also wipe out your investment capital virtually overnight.

Read our guide to CFDs here to find out more about “Contracts for Difference”.

eToro Offers Access to a Wide Range of Markets

eToro has the advantage of offering its clients numerous trading instruments, in addition to its social trading network that makes copy trading possible.

For traders that want to ability to actively speculate on the macro markets, and also have managed trades by established investors, eToro could be a good choice. It is very simple to trade in and out of numerous markets, and also drop capital into copy trade accounts that are in essence passive investments.

There are no minimum investments to make with eToro, once the minimum deposit has been made to an account. The broker also offers high leverage on many of the major markets, which could be attractive for some traders.

Read our complete review of eToro here if you’d like to know more about this broker.

Is Copy Trading Good Fit for You?

Copy trading is an interesting innovation and eToro has created a solid platform that just about anyone can use.

Even though it is possible to backtest a trader’s performance, it is still a very good idea to be cautious when investing in leveraged products. There is no what to know when a trader is going to have a bad run, and your money would be going along for the ride if you chose to copy their trades.

Copy trading could be a good way to add risk to your portfolio, especially as a way to hedge larger, passive equity positions that would likely get caught up in a market sell-off.

Like anything in the world of investments, diversification will help to avoid big losses, so keep that in mind whenever you are allocating your investment capital into the markets. Copy trading at eToro could be a good way to work with leveraged positions, without having to do all the research and trading yourself.

eToro Risk Warning: 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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