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Copy trading is the technical term for the practice in which Forex traders copy the trades of other traders directly into their trading platform. In most cases, this copying is done via a social trading platform through which traders can assess the strategies and performance of the ‘top trade leaders’ and make informed decisions about which traders to copy. Copy trading differs from “mirror trading” because mirror trading generally allows traders to copy specific trade strategies, rather than specific traders. The difference is subtle, but important: when using a copy trader, traders can get the advantage of having a personal touch to include a stop loss or to manually adjust the trade to enhance the results or mitigate risk. With a mirror trader, a technical system is set to execute the trade if the parameters are triggered, and there is little or no human oversight.
Copy trading is extremely popular with both new and experienced traders. New traders appreciate the ability to watch the experts and to have a sounding-board for their own ideas. Experienced traders like to share their ideas and to recruit followers for which they are compensated by the broker. When choosing a copy trade system, look not only for the right trade leaders (yes, you can copy more than one trade leader), but also for which broker is properly regulated and offers the best trading conditions. You may also want to place a few test trades on a demo account before starting. After all, with so many Forex copy trade systems to choose from, why not make sure you’re getting the perfect one for your needs?
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