Learn How To Copy Trade Forex
Copy Trading Survival Guide

What Is Forex Copy Trading?

Forex trading is an attractive and lucrative way to engage in the global markets. The rise of this form of trading has intersected with social media in what is now being called copy trading. Copy trading is an umbrella term referring to several different forms of social trading.

The Rise Of Forex Copy Trading

Forex, or foreign exchange, has been around for thousands of years. Spot forex is something that has come around more recently with the advent of computer technology.

Now traders can profit, or lose, based on minute shifts in underlying currency values with the click of a button. This ease of access plus the potential profits has attracted thousands to the spot forex world. The unfortunate thing is that profiting from forex is not as easy as trading it.

Copy Trading

Putting the Forex Copy Trading Puzzle together

Forex Copy trading is the practice of copying someone else's trades. This can as simple as taking a tip from a newsletter or blog or as complex as actively trading on the advice of a signal service provider. In between these two extremes lie what is being referred to as social trading or copy trading.

Social trading is a community based way of entering the market. Through the use of profiles, chat rooms, forums and private messages copy trading platforms help traders of all levels interact with each other.

New traders can learn from more experienced ones, intermediate traders can pose theories and get advice while expert traders can post trades for others to follow. Some social trading platforms even support automated trade execution based on traders you may be following.

There are several different types of Forex copy trading to be aware of. They all have advantages and disadvantages so it is a good idea to have an idea of what each one is.

Different Types Of Forex Copy Trading

There are several different types of Forex copy trading to be aware of. They all have advantages and disadvantages so it is a good idea to have an idea of what each one is.

  • Forums – This is the most basic form of Forex copy trading and one that comes at no cost. Forums provide a way for traders to talk to each other, share knowledge and learn about the markets. AS a member you can post advice or tips for others to follow or choose to follow the advice of others. Forums do not typically support automated forex copy trading but may be incorporated into a larger copy trading platform.
  • SSP's – Signal Service Providers are the original form of forex copy trading. These guys were around even before the rise of electronic trading. SSP's provide signals that traders can follow by newsletter, email, text or phone calls. These signals can sometimes by automated but usually require you to actively review each tip and then execute.
  • Platforms – You would think that the forex trading brokers and platforms would be scrambling to get on board with social trading. Unfortunately that is not the case. Some are and some are not. The one's that do are often limited to forums and other forms of social media interaction but there are a couple of them out there that support automated forex copy trading as well.

Leaderboards – Leaderboards are websites like Etoro, Zulutrade and Instaforex. These are full service forex copy trading websites whose intention is to educate traders and provide copy trading services. Leaderboards support all the forums and social media aspects of other types of forex copy trading but also support automated trading. In fact, these platforms are created specifically for automated trading.

Traders are ranked by their success rates and trading styles, you can choose to follow one or more traders and have their trades execute in your account or demo account. Some, but not all, of the leader board type copy trading services are also brokers so you don't have to have two accounts to use them.

I am sure it is easy to see the advantages of forex copy trading. I am also sure it is easy to understand that not all forex copy trading is the same. There are a lot of websites, brokers and platforms to choose from. One way to learn how to pick the diamonds from the turds is to join us at learn Copy Trading Forex. We have made it our mission to help traders fully understand the ups and downs of forex copy trading.

 

 

 

RISK DISCLOSURE:
Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. The high degree of leverage available can magnify profits and as well as loses. You can lose more than your initial deposit. Before trading, please carefully consider the risks and inherent costs and seek independent advice as required.

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Comments

  • Martyn-K
    February 12, 2017

    Hi Brett. Thanks for the tips you post. Very helpful. From your expert advise, which are the safest/more profitable learner boards I can join and which best broker can I open account with to execute leader boards?
    I want to do investment for the long haul. It I need to know that my monies are safe. Please advise on the diamonds out of the turds. Thanks

  • May 31, 2017

    This article all information is really amazing. Thanks for this information. I am really glad to see this blog. Thanks a lot.

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