Copy trading forex is trendy for many reasons. This forex trading is more comfortable to invest without any previous experience. The copy trading forex platforms provide copy trading apps that make this medium a super faster and user friendly. Copy trading fbs is indeed a social trading evolution. People from all over the world are investing to draw more profits in copy trading forex, whether using the right platforms from their PC or the lucrative and unique user-friendly copy trading apps. The popularity of copy trading in South Africa is also on the rise.
This article aims to provide all the necessary information regarding copy trading forex. You will also get a clear picture of how you can invest by copy trading. We also aim to present to you the best forex brokers for social copy trading, the best forex copy trading platform, how this platform works. There are many advantages of copy trading forex. However, always keep in mind, every coin has two sides. After reading this article, we believe that your concept will be clear on how to choose the best copy trading forex system and how successfully you can trade, even from South Africa.
Besides, this article is a complete guide to the readers who are interested in copy trading in South Africa or from any part of the world. Indeed, the development of science and technology provides a dynamic speed in this social copy trading forex system, where you can avail all the opportunities of copy trading app and copy trading fbs.
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What Is Copy Trading
Copy trading forex is the fact of being able to copy the positions of a trader you have selected automatically. In recent years, copy trading has become a real fashion phenomenon due to the unique facilities of copy trading fbs and copy trading apps. All brokers associated with the site at the start, then little by little, brokers launched their copy trading platform. Copy trading South Africa is also on the high peak due to its being smooth and straightforward.
The target is beginner traders. Copy trading is straightforward: Come and copy the best traders rather than losing your money with manual trading. Only here, almost all of the registrants end up losing all their capital. The problem with copy trading is not the principle itself, and it is the fact that there is currently no regulation from the regulatory authorities.
Best Forex Brokers For Social Copy Trading
Many sites provide the best service of social copy trading forex. They also offer copy trading fbs and copy trading apps. Here are the best forex brokers for social copy trading forex:
- eToro
- Pepperstone
- FXCM
- Darwinex
- AvaTrade
- HotForex
- FxPro
Special Note: You can use these platforms from any part of the world. Besides, these platforms are also popular in copy trading in South Africa.
Copy Trading History
To start investing copy trading forex, it is indeed necessary to know about the historical background of this fantastic investing platform. Copy Trading, known as algorithmic trading around 2005, developed from the automated trading concept. It was a computerized system, where the dealers used to keep their history so that others can track.
In 2005, Tradency was the first one who proposes such an auto trade system. A trader could have their own exchanging procedure on the frameworks with the exchanging records indicating the presence of that system. Different clients could then choose to reflect duplicate for them all the exchanges produced from that technique.
It was before long followed in specific conditions that permitted dealers to associate their own exchanging account legitimately in the stage. From that second, everyone of their activity was recorded and made accessible to the clients without the requirement for presenting the exchanging technique. Since 2010, it has become a necessarily well-known element among all online trading platforms. It indeed became as an approach to empowering less experienced merchants to profit by the exchanging choices of speculators whom they esteem effectively.
Best Copy Trading Platforms
Many sites provide the best service of s copy trading forex. They also provide copy trading fbs and copy trading apps. Here are the best copy trading platforms:
- Zulu Trade
- eToro
- NAGA Trader
- Darwinex
- Ava Trade
- FBS
- HotForex
- FXTM
- OctaFX
- Trandency
- Robotforex
- Tele Trade
Special Notes: These platforms are trendy among all the traders around the world and even with the copy trading South Africa.
How Does Copy Trading Work?
We have already mentioned that copy trading is prevalent, along with copy trading in South Africa. To make it more clear here is a simple step-by-step guide on how Copy trading forex work:
Select A Trader That Best Fits Your Goals To Follow
Use the tools provided by the Invest platform to filter out available traders. What is important to you? Perhaps it is their number of followers, or their profitability, their level of risk, the total amount of funds they manage, or their return on investment. You can choose a combination of these – it depends entirely on you, depending on what you think is essential, and you can also use their copy trading app and copy trading fbs.
Decide On The Amount Of Your Investment
Decide on the amount of your investment how you will share it between the different managers. Be balanced and don’t put all your eggs in one basket. So choose the amount to allocate to each chosen trader if you have selected several people to copy.
Automated Replicate
The copy trading platform will then automatically replicate all the positions of the selected trader in your trading account. Thus, even copy trading from South Africa may bring a fruitful result for you.
Add More Funds
if you like the trader’s performance. Or, reduce your exposure to a single trader and maintain your diversified portfolio by not investing too much in an individual trader. You can replace it at any time, but remember that you will need a separate investment account for each trader you decide to follow.
No Hidden Fees
There are no hidden or separate fees for using the copy trading feature, except those that you pay to the Strategy Director each time he makes a profit. Broker fees are only applicable to typical transactions of copy trading.
Is Copy Trading Legal?
Copy trading forex is legal. Copy trading in South Africa is also permitted. However, there are always risks with trading and investing. On one side, it is very lucrative. But on the other hand, it may be disheartening since profits assurance is not there. Trading brokerages who offer copy trading facility, they must have a license. They follow the regulatory entities. The central regulatory authorities who govern copy trading brokerages are:
- United Kingdom’s Financial Conduct Authority (FCA)
- Cyprus Securities and Exchange Commission (CySEC)
- The United States Securities and Exchange Commission (SEC)
- S. Commodity Futures Trading Commission (CFTC)
How To Choose The Best Trading System To Copy Trade
Copy trading forex is one of the techniques a trader can adopt to refine his strategy and increase his chances of success in the world of online trading.
The principle is simple: take inspiration from the technique of a renowned trader to optimize your transactions. So how do you select the trader to follow via this technique?
There is still a relatively long list of essential criteria that the trader must follow who we will track and whose strategies they will copy. The people who are involved in copy trading South Africa, they also need to develop these strategies to initiate copy trading forex.
- The return on investment(or ROI) must be stable over a long period.
- The trader must have a new strategy. Take into account not only the graphical and technical analyzes while basing himself on the important economic news. Then, it is interesting to check how to proceed with the trader, knowing that some share their tactics on their profile.
- To select the trader that you are going to copy, it is also wise to analyze the way he takes risks with the following questions:
Does he show himself daring? Does he use safety nets? How to control the risks?
- Another important criterion is the trader’s success rate. It is worthy of interest only if it displays a high percentage of gains rather than loss. A rate exceeding 80% is entirely correct. In general, an attractive trader manages risk well while managing to limit possible damages thanks to a diversified portfolio. These success rates are always present in copy trading apps.
- At the same time, it is essential to observe the history of the trades to see how the transactions are carried out, at what frequencies, and especially for what successes. In addition to analyzing successes, we must also take a close look at negative experiences and losses and identify the strategy to avoid.
- Finally, a good trader generally enjoys good popularity. If it is widely followed, it is an excellent sign. At the same time, it is preferable to systematically move away from traders who seem to have “slipped” in terms of their strategy or their trading psychology. If they are scattered, it is better to leave them aside. Be sure that you will get all these facilities in copy trading fbs.
Advantages Of Copy Trading
There are indeed many advantages of copy trading forex around the world and even in South Africa. However, there are also some disadvantages to this system. The people who are interested in copy trading from South Africa and any parts of the world have a look at the advantages of this system.
- Using a copy-trading strategy allows you to profit from the markets without having real knowledge.
- Copy-trading strategy enables you to trade without having time to devote to trading.
- Using a copy-trading strategy generally allows you to trade 24 hours a day.
- It is effortless to achieve success since there is a way to track other traders’ graphs and adopt the same strategy.
- Inexperience traders gain knowledge and may become experienced traders.
- The copy trading forex apps are user friendly.
- The copy trading fbs provides all the necessary graphs and charts with complete information.
How to Successfully Copy Trade
To improve your decision-making process in copy trading forex, it is essential to take into consideration what other traders are doing. This will give you an overview of what is happening in the markets.
Social trading and social media can help you understand what the financial community is thinking. You will, therefore, be able to have a glimpse of the psychology of investors before entering into position. It will give you an idea of what most traders think and do. Besides, this will make it easier to determine the direction and power of a movement, volatility, or even potential trend reversals. This is indeed how you will be able to adjust your trading decisions. If you don’t want to trade directly, you can use a copy-trading strategy. If you are a beginner or don’t have a lot of time to devote to trading, automated trading via a copy-trading plan will allow you to duplicate a proven investment strategy. Copy trading apps and copy trading fbs are the media that make these facilities user friendly.
Copy-trading can also allow you to take advantage of your free time for your favorite activities or to learn more about trading while earning money. Besides, an automated trading strategy can help you trade markets that are not in your time zone.
With copy-trading, you don’t have to deal with the stress of trading or sitting at your desk to watch the markets for hours. When using copy-trading, you don’t have to deal with your own emotions, which can have a negative impact on your trading performance, especially if you have trouble controlling them or are not used to it to trade.
Since with copy-trading, your trading account copies the positions of a profitable main account that you are going to preselect, one of the most important steps is to select the trader that you are going to copy carefully.
It is not only a question of watching its performance. You need to look at a lot of other information to be sure that this trader is suitable for your trading capital and the level of risk you are willing to take.
The people who want to start copy trading forex successfully from any part of the world or South Africa, remember to check:
- investment style,
- traded financial instruments,
- risk management,
- associated performance costs, and
- other statistics like average loss, average gain, exposure level, profit factor, or max drawdown, for example.
Bottom Line
We believe this article will help you to understand the full concept of copy trading forex. This trading indeed earns popularity since it is an effortless way to invest and reap like in deriv. The copy trading fbs and the copy trading apps’ popularity indeed makes this system on the high rise. So, we hope you all from any country from the world or South Africa will take our guidelines to start your investment and draw profit. We also believe that the people from copy trading South Africa will also be benefited from this article.
