Most forex traders don’t have the ability to manage their own trading and fine forex trading difficult to handle. Forex Copy trading enables currency traders in the forex markets to automatically copy positions opened and managed by a specific investor. Copy trading is also referred to as a social trading platform. Copy trading allows traders to copy unique strategies, trading links which is a portion of the copying trader’s finance to the account of the copied investor. So, any trading action that will be made by the copied investor like opening a position, stop loss and take profit orders, or closing a position, are also made in the copying trader’s account. The copying trader has the ability to disconnect copied trades and manage them by themselves. They can also close the copy relationship as a whole.
Copy forex trading or social trading has led to the creation of a new type of investment portfolio, which is called “people-based” portfolios. This portfolio is totally different from traditional investment portfolios in that the funds are invested in other investors, rather than traditional market-based investors.
TYPES OF COPY FOREX TRADING BEING USED
They are different types of copy forex trading platforms and they employ different copy trading logics. These trading logics usually vary with respect to the minimum copy forex trading amounts, the minimum amount for a particular copied trade, and the way money undergoes an in/out operations on behalf of the copied trader are shown in the proportions between the copied-copying accounts.
Some copy forex trading platforms also enable forex traders to place stop loss orders on the entire copy forex trading , allowing traders to have the ability to control risk of their copy forex trading activity based on the individual copied investors.
BEST COPY FOREX TRADING PLATFORM KNOWN
Since 2010, copy forex trading has become an increasingly popular platform among online forex trade brokers as a way to aid less experienced traders to benefit from the trading decisions of investors whom they term successful. Prominent copy trading providers include Tradeo and many more but the best copy forex trading platform in the market currently is eToro. It is a broker that allows social trading and it is a multi asset brokerage company that has offices registered in Cyprus, Israel and the United Kingdom. This eToro copy forex trading is available on mobile and personal computers.
ISSUES ENCOUNTERED WILL USING COPY FOREX TRADING SYSTEM
The United Kingdom the Financial Conduct Authority (FCA) has raised major concerns regarding copy Forex traders because they allow the firms to offer copy trading to effectively unregulated investment managers. Because of this, the FCA has sent notes to those that provide copy forex trading services notifying them of their intention to classify them as investment managers.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.