Online trading has changed the rules of the game when it comes to investing in the market, especially the currency exchange market. Now anyone can buy or sell foreign currency from the comfort of their own homes at whatever time they prefer to trade.
How is this possible? Well, online brokers have been working on developing apps and tools that make trading not only easier but also more accessible. An example is this impressive list of best forex signal app.
If you are interested in forex trading and want to experiment with the most popular trends nowadays, as copy trading is, just find the right broker for you and put your money in the market. Why? To make more money!
We will walk you through the ins and outs of copy trading and why it may be a good option for you if you are just starting to invest in forex or cryptocurrencies.
Finally, we will list our favorite brokers offering copy trading tools and foreign currency exchange.
What is copy trading?
IN a few words, copy trading is an investing strategy that allows traders to copy the trades executed by other more experienced traders.
There are those all for, and those against. While there are other strategies, like mirror trading and social trading, copy trading has been the most popular among beginners.
Copy trading doesn’t go into details, and while traders still have control over what to copy and when to stop, some criticize that it has the risk of making traders lazy as it doesn’t push them to figure out the market by themselves.
Forex trading and copy trading, how does it work?
While copy trading can be used for the stocks market, traders tend to focus on the forex market, and mostly on short investments.
Copy-trading seems to be more effective in highly volatile markets, like forex, or cryptocurrencies.
Traders looking to start with copy trading must find a portfolio they like, and then the process is rather automatic. In fact, it can be quite an effective solution for those that do not have the time to follow the market constantly.
We cannot deny that there are quite a few advantages to copy trading. An obvious one is that allows traders to diversify their portfolio, accessing more markets and assets, even if they are not familiar with the particularities of that market.
Last but not least, we cannot fail to mention that copying another trader’s movements does not guarantee to obtain the same results. In fact, the risk innate to any transaction in the forex market is still there. Traders should fall for the false idea that there is no risk involved in copy trading.
Best Forex Brokers 2021
The following are the best brokers offering copy trading tools and the possibility of investing in the forex market.
eToro. This broker has positioned itself as the best option for those interested in copy trading in many different countries around the globe.
While their spreads are higher than average, the tools they offer to beginners and new traders are the best. They have also made a name of coy trading and social trading offering great tools.
FXTM. This broker has built a strong reputation among investors in Africa and Asia. Their initial deposit of 100 dollars makes it an attractive option. Plus they have an interesting diversity of possible accounts.
ZuluTrade. This is one of the most famous copy trading brokers in the world. They also work with other companies and are linked with many forex brokers.
They are also well-known for the quality of their customer service and the many different tools they offer their traders.