Forex copy trading allows you to follow the trades of a person or a company that uses a forex robot or signal provider and make the same trades automatically on your account.
The reason why most find it advantageous to engage Forex copy trading, even if they will never resort to it themselves, is that Forex brokers who offer this service charge significantly less commission than what they usually would.
This allows you to compete against some of the big players while keeping your position sizes smaller and allowing you do not go broke while trying.
Copy trading makes it possible, too, because it’s not only easier to add money on further trades but also because Forex markets are not zero-sum games like poker; I don’t need to outwit everyone else by winning their money. I only need to win more than the market as a whole
Should you engage in Forex copy trading services yourself?
The question now is whether you should engage Forex copy trading services yourself or turn over that responsibility to someone else. Most of these brokers offer their employees this service for free, perhaps because they want to boost morale and because it would be harder to trust an outside person’s trades if they can’t see what kind of strategies they are using to generate returns.
Other things that play into this decision are; do you think you have enough time in your day to scout out other traders, analyze their performance, and then make all your decisions accordingly? Learning how to trade well takes time and effort while engaging in Forex copy trading doesn’t take nearly as much mental acuity.
Thus, if you have a family or a full-time job that leaves little time for trading, then it’s best to shelve this idea and save yourself all the trouble.
The most profitable traders are often those who copy trade since they’re not bogged down studying the market all day or sitting in front of their PC’s during trading hours; they can enjoy life while someone else is doing the hard work for them.
Should you use a broker?
If you want to start Forex copy trading, it may be best, to begin with, to us a broker in Hong Kong, given that they offer their services for free and that they don’t require any deposit from users. Choosing an experienced trader with good reviews is recommended. It’s also advisable to find traders who use one of the many free software such as eaBinary or Zulander, which often come free when you join them through brokers like AVA Trade and Pepperstone.
A broker will compare all major platforms and connect you directly via their servers to the traders so you can follow them automatically.
You have to keep in mind that copy trading doesn’t work exactly like the Forex robot because what you see is only the result of the user’s actions and not an actual performance report. This means that if a trader makes 100 pips but loses 60 due to slippage, then your account will only show 40 pips for that trade entry.
When you choose a signal provider or trader who uses AVA Trade or Pepperstone as they are very reputable brokers with an easy interface, for beginners in Hong Kong, it’s best to try out free Forex copy trading services first before depositing money with any broker or trader.
Social media sites and apps
Forex is easily accessible thanks to numerous social media sites and apps that allow you to access it on the move or at home. This gives a trader the ability to trade 24 hours a day, making Forex copy trading a flexible way of making money.
Summary
Forex copy trading is a convenient and straightforward way of making money in an increasingly competitive market which has seen many investors lose out due to poor judgement and inexperience. Beginner traders interested in forex trading are advised to use a reliable and reputable online broker from Saxo Bank.
