Copying Forex, Cryptocurrency and Stock market transactions

What is copying the transactions of successful traders in the Forex market: how it works, what is needed, how to copy correctly, a list of the best services.

How signal copying works

This term literally means the transfer of provider transactions (supplier or master, you can meet any of the names) to subscribers’ accounts. The scheme looks like this:

From the accounts of signal providers, information about the concluded transactions is sent to the intermediary platform. It automatically provides the transfer of entry points to brokers with whom a partnership agreement has been concluded.

Subscribers of the transaction provider may not trade independently at all. In the copy settings, the option of automatically transferring positions to the subscriber’s account is selected.

When the terminal is turned off, the transfer of transactions is not performed. This is not a PAMM in which the manager manages the investor’s funds. In our case, the market is entered from the investor’s terminal, the only difference is that this happens without your participation.

If you decide to invest in copying transactions, MT4 can be installed on a VPS. The terminal will operate in 24×5 mode. In this case, choose the cheapest tariff offered, the high power of the remote server is not needed, only the trading platform will be installed on it.

This technique is resorted to for:

• passive earnings;
• “reproduction” of signals of a paid adviser. Suppose you bought a robot linked to an account, but you want to broadcast its entry points to other accounts as well;
• save time. Sometimes, in order to reduce risk, traders open accounts with several brokers at once, and transactions need to be transferred between them promptly. Instead of manually entering the market
• on each account, a trader can only trade on one of them, and transactions will be automatically transferred to other accounts.

So copying entry points is not always done only in order to shift the responsibility for finding the moments to enter the market to more experienced traders.

Copying Forex Trades — how does it work?

Copying Forex transactions to form your own trading strategy is a cooperation beneficial to both parties. The investor receives reliable market signals, and the trader receives a percentage of his profit or a fixed subscription rate.

The transfer of the supplier’s transactions to the subscriber’s account occurs only when the terminal is turned on. From the provider’s account, information is sent to the intermediary platform, which distributes information between brokers participating in the affiliate program. Subscribers can fully automate the process without participating in the operations themselves.

Trading is conducted on the investor’s account: funds are not transferred to the managing account. At the same time, the trader does not manage the subscribers’ deposit and does not guarantee absolute success. But on the other hand, he can trade freely based on the size of his capital, which allows timely and flexible response to changes in the market situation.

The difference in the amount of deposits is an obstacle in accurately copying the transactions of successful traders for a number of subscribers. In this case, scaling is used: most services offer this feature.

If a trader has several accounts open, you can only trade on one, and set up automatic broadcast of transactions for the rest.

A quick look – the best brokers with the eToro transaction copying service.

• HotForex.
• VantagFX.
• PepperStone.

What is copying transactions?

Copying trades is when you follow the trades of another trader and repeat them in your terminal. When a trader buys, you buy. When a trader sells, you sell. When a trader adjusts his stop loss, you also adjust it.

There are 2 types of traders in mirror trading:

1. A master is a person who makes trading decisions.
2. A follower is a person who copies the master’s transactions.
3. In addition, masters and followers use a special trading platform that facilitates copy trading.

As I wrote, this type of trading has its pitfalls. Firstly, you never know who you are copying your trades from. Of course, you can find out a brief biography of the trader, see how he trades, etc. But how can you trust someone else’s trading strategy if you haven’t tested it yourself?

Because when the drawdown comes (and it will definitely come), you will have thoughts like: “What’s going on?” “The trading strategy has stopped working?” “Should I still copy trades after 5 losses?”

These questions cannot be answered because you have not developed a trading strategy. Instead, you copy trades from another trader, and this makes you dependent on other people’s results.

Copying Forex trades – what is it?

Copying trades is an algorithm for automatically opening a trade based on a signal from another trader. In simple words, you copy the transaction of another trader in your terminal. Theoretically, this is the easiest way to make a profit on the currency markets for people unfamiliar with them.

Learn more about the operation of transaction copying services

Many brokers have similar services, the principle of operation remains the same, only the functionality is slightly different. We will analyze the operation of the transaction copying service using the example of Share4you.

Today, copy trading services are offered by almost all leading brokers. The most popular are the following:

Copy service Forex4you

The broker boasts a list of more than 200 successful traders whose trades can be copied for a small commission. The investor’s funds remain under his full control: he can close the transaction at any time, change the size of the deposit or adjust the vehicle for himself.

Copy-Forexcopy service

Due to the full automation of signal transmission, copying takes place even in the absence of a trading terminal. There are many traders in the database who have transparent statistics, and you can subscribe to several suppliers at once. The minimum entry threshold is $10.

CopyFX Copy service

This is a Roboforex broker service. Unlike others, it offers the opportunity to use the services of two types of traders. The former receive a profit, and the latter receive a commission. The first option is perfect for long-term trading, and the second for intraday trading. The broker provides the services of an online calculator that allows you to calculate the risks from a particular vehicle and choose a suitable supplier.

ZuluTrade Copy service

In this case, all users registered on the platform have the opportunity to subscribe to copy transactions of any other registered trader. Transactions can be copied both manually and automatically. At the same time, the broker is an intermediary, so third-party services are not needed for auto-connection. Therefore, there is no need for the subscriber to be constantly in the terminal.

Copy service of MQL5

The MQL5 community offers a huge variety of signals from well-established vendors. You can get access to MQL5 through the MT4 and MT5 platforms. Copying takes place both manually and automatically. Here you can also purchase various kinds of applications and robots, and the cloud architecture allows you to achieve a high speed of order execution.

WhoTrades Copy service

WhoTrades is a kind of social network where subscribers can track the transactions of leading traders using a special service. You can choose a signal provider based on the profitability of the trading system or popularity. At any time, the subscriber can change the provider, or copy the signals completely.

Copy service Just2trade

The service offers a wide network of experts and a reliable rating system, on the basis of which an investor can choose a suitable signal provider. The entry threshold is quite low, and the broker also offers extensive analytics. You can unsubscribe at any time, so the investor retains full control over his funds. The choice of strategies is very large.

Copy trading Exness

The Exness broker does not have its own service, so third-party resources (MQL5, etc.) are used for copying. The company provides its clients with round-the-clock support and offers advanced analytics.

RAMM-a service for copying transactions

RAMM is an autonomous platform for copy trading, which has a number of advantages for both the manager and the investor, if compared with all the above-mentioned systems. The advantages include the following points:

• trading takes place on a separate platform, and not in an application for MT4/MT5;
• the investor’s money remains in his account;
• flexible money management settings;
• high accuracy of copying transactions.

Ways to copy Forex trades

The principle of operation (transferring positions from the master account to subscribers) remains, but the method of implementation changes. The following options are possible:

1. a service developed by the creators of the MetaTrader. The most popular option, the number of providers is in the thousands. Copying transactions of successful traders is performed even if the subscriber and provider are on different servers;
2. using third-party sites;
3. the service is developed by the broker himself. This method is characterized by minimal delays since the accounts are located on the same server.

We will focus on the first and last methods in more detail.

Beware of transaction costs and fees

Copying deals is a business. If you are not charged an advance payment, then you usually still pay for the spread and commission.

For most forex brokers, the EUR/USD spread is 1 point. But on the platform for copying transactions, you can pay 2-3 points more. What do we have in the end?

If you are a trader who has trades copied, then keep in mind that your trading strategy will not work because you pay much more for the spread.

If you are copying another trader, it is better to keep an eye on traders who trade infrequently so that the spread does not eat up a huge part of your profits.

Spread is not your only cost, because you still need to take into account the commission for transferring a position overnight (if you hold positions for longer than a day). This fee is calculated based on the Libor + X% rate. Libor means the interbank offered rate. This is the interest rate that banks charge other banks for borrowing money.

What is X? This is a mark-up that is determined by the copy copying platform, and you will need to check with them for the exact amount. The good news is that you don’t have to worry about calculations, just because the trading platform will do it for you.

Advantages and disadvantages of copy trading

Advantages of copying other traders’ signals:

• Profit without knowledge. You profit from trades regardless of skill level. Professional traders will do everything for you.
• Trading style. You choose the signal provider whose trading style suits you.
• More free time. You no longer spend a lot of time monitoring the market.
• Multitrade. You choose as many signal providers as you want. This is how you diversify risks. That is, reduce possible losses and definitely not lose everything at once. The loss on one signal will be compensated by the profit on the other. The total profit may decrease in this case, but risk control is worth it.

There are only three disadvantages of copy tradin

• High risks. Forex is ambiguous and changeable. Despite good indicators and profitable trades, a trader may make a mistake at some point and go into negative territory. Therefore, you should be aware of the riskiness of copy trading.
• Professional degradation. When you copy someone else’s deals, you lose your own flair. You do not follow the market so carefully, do not learn from mistakes, do not apply technical and fundamental analysis. The brain relaxes without new knowledge, like muscles without training.
• 24/5. The trading platform/terminal must be permanently enabled.

How to choose a signal source?

You need to choose a signal generator thoroughly – after all, it’s only your money, and you don’t have insurance against other people’s mistakes. To do this, trading platforms with a copy service maintain up-to-date statistics on active traders, as well as ratings of sources to which you can subscribe. Through the filter system, you can select a trader by several parameters – the maximum profit or a series of profitable options.

It is advantageous to subscribe to different sources for the same asset, for example, for EUR/ USD and trade only situations when the entry points coincide. There will be fewer trades, but the probability of a failed option will be lower.

Before trading, you need to study the tactics of each potential trader, and on different assets, timeframes, strategies, and their successful experience should be relevant – at least the last 4-6 months in profit. The conditions for providing information should be transparent – you should clearly understand what exactly is the trader’s interest and benefit for you. It goes without saying that it is impossible to copy turbo options (expiration period up to 1 minute). While the terminal (or you) react, the entry point will lose relevance.

Copy services developed by brokers

Metaquotes, ZuluTrade and Autotrade copiers can be found at many forex dealers. But several companies have developed unique services.

Everyone has one serious drawback — the investor is limited in choosing a trader – he can work with clients of only one broker. But there are also advantages.

eToro

The eToro broker is primarily aimed at social trading. The approach was appreciated by more than 6 million customers. eToro is one of the largest dealers, so there will be no problems with choosing a manager.

Advantages and disadvantages of copy trading. Like any investment system, copy trading has its advantages and disadvantages.

The advantages and disadvantages of copy trading

The opportunity to profit from trading on the market without having extensive knowledge or experience. Maintaining full control over your funds. The investor can independently choose the volume of copying transactions, disable copying at any time and change the settings for himself. The ability to diversify risks by choosing several suppliers with different profitability and trading style.

The disadvantages of copy trading include mistakes that are inevitable even for experienced traders. Moreover, for them, unlike the investor, losses may be insignificant due to the difference in the amount of the deposit. In addition, copying the trades of others, you will never be able to learn how to trade independently, while your terminal often needs to be turned on to copy trades, which is not always possible.

RAMM accounts as a kind of copy trading

The latest innovation in copy trading is the so-called RAMM accounts. This service works very simply. When opening a RAMM account, the investor gets access to a list of strategies that he can use to copy trades. The strategy is chosen based on indicators such as the life of the deposit, monthly profitability and the nature of the strategy. By choosing a vehicle, the investor copies the trading signals, and the trader receives a reward for each successful transaction. The percentage of remuneration is set by each trader personally. Considering that the amount of remuneration depends on the number of successful trades, the trader strives to make his strategy as profitable as possible.

RAMM copy trading has a number of important advantages over other types of copy trading:

• The signals are copied automatically, which excludes the opening of trades manually;
• There is no need to use special software for copying. Copying takes place on an online platform or a mobile application;
• Part of the investor’s funds always remains inviolable;
• The money remains in the investor’s account, and he can stop copying forex transactions at any time and withdraw funds;

Transactions are copied even when the investor’s terminal is turned off.

In addition to earning money, the RAMM account allows the trader to learn, as he watches the transactions of experienced traders and the course of trading. This service can be called ideal for beginners, it minimizes possible risks and at the same time leaves a wide scope for choosing a trading strategy.

To study this type of investment, it is enough to open an account with a broker with this investment service. For example, you can consider the company AMarkets, which has been in business for more than 13 years, and which recently launched a RAMM service. Here, in the rating of strategies, you can find one that will bring more than 40% profit per month, and this is already taking into account the manager’s remuneration. I.e., you can receive more than $ 400 from the invested $1000 every month. In addition, the broker will soon launch the AMarkets Copy Trading mobile application, which means that it will become much more convenient to invest and monitor investments.

Services for copying transactions

So, in order to copy traders’ signals, you need to register on a special platform or service designed for copy trading. There are many similar sites, the most popular are the following

• MQL5 signals;
• ZuluTrade;
• Mirror Trader;
• Signal Trader;
• eTorro;
• xSocial.

Each site has its own copying conditions, advantages and disadvantages. We will talk about them in a series of articles on copy trading services. Copy the signals and earn! Successful bidding for you.

Start using the transaction copy functions

If you have just started trading Forex and you are not doing well, do not despair. You can connect to the services of copying transactions of successful traders.

Remember that copying transactions is not a quick way to get rich. It is necessary to choose a suitable broker and understand the rules of the game.

To begin with, you need to open a demo with one of the brokers. In this case, you will not risk your money and will take your first steps.

Thus, you will be able to practice copying trades and learn how to make a choice between experts.