Copy trading in forex is simply a way of making currency trades without the need for extensive experience as a trader yourself. The idea behind copy trading is that you utilise other traders’ experience and expertise in order to copy the positions taken and make the same trades that they do. Trading currency in this way is often seen as an ideal way for novice investors to get trading in forex markets quickly without having to learn how to read market conditions and watch charts all day themselves.
LIke the idea of trading forex but don’t know where to start? Copy trading lets you dive into online trading by observing other investors instead of complicated market graphs. This means you can choose the most successful traders to follow and profit from their experience when investing your own cash.
You can make trades by choosing a trader or multiple traders to mimic manually, use automated bots to make trades based on the moves of others or pre-defined rules, or receive trade signals from experienced traders as they actively enter and leave the market so that you can do the same thing.
Whichever method of copy trading you choose, you must be able to make sound, informed decisions on which investors to follow in the first place and which trading platforms that you want to use. These seemingly simple decisions can prove to be a bit of a nightmare and costly to get right for those new to the trading arena – which is where Trade Wise comes in.
How Can Trade Wise Help You?
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 copy trading in Forex 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.
If you’re interested in finding out more about copy trading in forex read on for a more detailed overview and my personal recommendations to get you trading successfully in forex.
What Is Forex?
Forex is the abbreviation used to describe the ‘Foreign Exchange Market’, which is a global marketplace for trading currencies against each other. Just like you can trade shares in companies on the stock market with the intention of making a profit, forex traders work by trading one currency for another when speculating the direction the value of currency is likely to take next. Currencies are traded in pairs and you can see an overview of popular currency pairs below.
|Great Britain||GBP||New Zealand||NZD|
Table Source: Forex.com
The forex market is one of the largest trading arenas in the world with over $5 trillion of cash being exchanged every single day. Unlike other financial markets, currencies trade in whatever market is open at the time such as London, New York, Hong Kong and Sydney. This means forex trading can take place 24 hours a day, 5 days a week by banks, institutions and individual traders worldwide.
Copy Trading In Forex Markets
The process of copy trading is that same whichever market you’re investing in, it’s just the investment vehicle that changes.
By piggybacking the actions of other forex traders, you become their investing shadow and can easily make money based on their skills – providing they know what they’re doing of course. If they open a new trade, so do you. If they close, you close and if they win, you win! Don’t forget though that if they lose, you will lose too. Just because you’re connected via trading profiles in this way you still have the ability to close trades and open new ones at any time so you can ultimately have control of your investment outcomes.
Copy trading forex is a great way for inexperienced traders to determine the right traders to follow and the right trades to make. It is particularly beneficial for those who don’t have a lot of spare time to dedicate to studying charts, market trends, and learning technical analysis techniques required by more experienced investors that make studying the markets their day job.
Choosing The Best Forex Copy Trading Platform
When it comes to copy trading, your choice of investors to follow and trading platforms to use are important factors in determining how successful you are.
There are hundreds of trading platforms to choose from so it can be hard to know where to start. This was the position that I also found myself in when I began trading over 15 years ago, and as a result made plenty of mistakes and lost cash along the way. Now that I am successfully trading and making regular profits, I hope that by sharing my personal experience and honest reviews on some of the best platforms available to copy trade, that you can have a quicker route to trading success!
I hope this article has given you a basic overview of copy trading in forex and an idea of which platforms to use for the best chance of trading success.
- Copy trading in forex is a great way to start trading the fast moving forex markets without having to understand the intricacies of technical market analysis yourself
- Forex is the marketplace for trading currency and is open 24/7
- 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.
- Pay attention to tips and reviews from experienced copy traders but ultimately you should always do your own research before investing your money and only invest what you’re prepared to lose.
If you’re looking for regular updates on what major copy trading platforms are doing, what works well and what doesn’t work so well, then please do subscribe to my mailing list. I keep my subscribers up to date on everything copy trading, EAs and bots as my personal experience of using the platforms I invest in 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.