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What Is Copy Trading?

What is copy trading?

Copy trading is an automated investment method that allows you to make trades based on another trader’s experience and expertise. All you have to do is to choose an investor to follow and make sure there is enough money in your trading account. Copy trading is ideal for beginners or those who don’t have the time to watch charts all day and learn how to read market conditions in order to place their own trades. 

If you think online trading could be the investment route for you but you don’t have the time or energy to learn how to make trades yourself, copy trading could be just what you’re looking for. 

I have set up Trade Wise to test and review copy trading products and services. I offer my personal opinion and reviews to recommend the most profitable and useful tools based on usability, reliability and performance based on my own use and experience. This means that even novice traders can begin trading with the comfort of knowing that they’re using tried and tested software like my top three recommended  services Yieldnodes, Elysium Capital and Protecting Wealth, alongside trading staples like Gorilla Trades and GPS Forex Robot. 


View full reviews for my Top 3 recommended services 


If you’re interested in finding out more about copy trading, read on for a more detailed overview and my personal recommendations on which platforms are the best to use to meet your investment goals. 


An Introduction To Copy Trading 

Copy trading is an automated investment methodology where you have the option to “copy” every action made by another trader. This allows you to mimic everything your chosen trader does within your own trading account. From the strategies they use, open positions, stop loss and take profit orders. Copy trades can be made automatically or manually and just like traditional trading, every move is made with the intention of making a return on your investment.

This style of trading is a great way for inexperienced traders to determine the right trades to follow and invest in. It is particularly beneficial for those that want to trade but don’t have a lot of spare time to dedicate to studying charts, market trends, and learning technical analysis techniques required by traditional online traders.

See my article “How to Copy Traders”


Choosing The Best Copy Trading Platform 

The best copy trading platforms

See my article “Is Copy Trading Profitable?

Although I’ve said copy trading is an easier option, you still have a decision to make on which trading platform to use – the options are endless! Your choice of trading platform will depend on the level of involvement you want when making copy trades. Do you want to choose a trader to follow, sit back and let the bots do the rest? Or would you prefer to manually check trade signals sent before making the trades and managing them yourself? 

There are three main styles of copy trading which will influence which platform you choose to use.

Social style trading 

Social style trading platforms such as Zulutrade and eToro allow you to pick who to follow from a huge list of traders. Knowing who to follow can be tricky because not every trader knows what they’re doing!

Trading signals and newsletters

If you prefer to have a little more control over your trades you can sign up to receive trade signals from various trading services and newsletters. These signals are essentially an alert system where professional traders tell you the trades they are making so you can then choose to execute the same trades in your own account. 

BOTS or EA’s

Again, this route requires little or no experience, so is a popular option for the complete novice trader. Bots will automatically trade based on predefined rules within them. There are plenty of bots to choose from but i’ve only ever enjoyed consistent profit from one. Subscribe to my mailing list to discover the bot that I use myself. 

Looking For A Recommendation? 

As I’m personally invested in all of the services that I refer to on my site, I only include those that I genuinely believe in and that have worked well for me, such as Elysium Capital. You should however always do your own research and learn as much about your trading products before making an investment. Remember you should only invest cash that you are prepared to lose as there are no guarantees in trading. 

Elysium Capital is a copy trading service (MAM) offering a diversified portfolio of strategies and a strong track record.I have had excellent returns so far and the service is reliable and easy to use. The platform is suitable for Forex, commodities and Crypto, plus it’s FREE and in my experience Elysium Capital offers a 5 star service.

Top benefits of Elysium Capital 

  • Completely Automated (set and forget)
  • Instant Access To Funds
  • Regulated Broker
  • Strong Track Record
  • Different Strategies Available
  • No Upfront Or Monthly Fees
  • Refer Friends For Excellent Rewards (build a residual income)

Find Out More: Read my full and honest review of Elysium Capital here


Related Questions 

Can You Make Money From Copy Trading? 

It is certainly possible to make money from copy trading but just like regular trading, there are no guarantees and you still have to make good decisions. You should always do your research on the traders to copy and which trading platforms to use in order to give yourself the best chance of making money from your investment.


Summary 

I hope this article has given you a basic overview of copy trading and the services that can be used if you think that copy trading is the right investing method for you. 

  1. Copy trading is a great way to start trading without learning how to read markets, charts and needing to know how to make trades yourself 
  2. You can choose the style of copy trading that is right for you based on the level of involvement you want in making your trades. Consider signals, bots or following other traders.
  3. Pay attention to tips and reviews from experienced copy traders but ultimately you should always do your own research before investing your money anywhere. 
  4. Check out my top 3 services for more in-depth analysis HERE

Contact me here at Trade Wise or subscribe to my mailing list for news on trading, EAs and bots. I regularly send out updates about what I feel works well and what doesn’t as my experience of working with individual trading platforms evolves.

Jon Platts runs Trade Wise and has been testing trading products and services for over ten years. He shares his knowledge of what works and what doesn’t with new traders looking to enter the exciting but often baffling world of investing and copy trading. He hopes that by sharing his experience and reviews, investors can easily find trusted platforms where high returns can be achieved without making the same costly mistakes that he did when starting out!

I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.

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