Read These First before Finding the Best Copy Trading Platforms 2021

Are you looking for the ‘best copy trading platforms for 2021? You have probably wondered how and where to find the platforms that will really give you what you need. The existence of copy trading has been ongoing for more than ten years now. So, there’s a chance that you’ve come across hundreds of options on the net. But before picking the first one you meet on the internet, you will want to cover the basics first so that you can make an informative decision later.

Let’s start by defining the copy trading first

What is copy trading?

Defining the copy trading is simple and straightforward.In forex, copy trading means the utilization of the software to copy the real-time forex signals or trades of other traders that are followed by the users. So, you simply copy other person trades to achieve the same things as them. Using a particular platform and brokerage account, you will be able to copy the particular person’s trades and make enormous profit without having to open trades on your own.

The legality of copy trading

“is it legal and safe to copy trading?”

That could be the very first question that you’d want to ask before proceeding. The good thing here is that copy trading activity is legal and safe in most countries. In fact, you can even find the regulated brokers who operate in your country.

Just like other financial services, you will need to be cautious when choosing the best copy trading platforms in 2021. Make sure to pick the regulated broker. Depending on the country you are living in, there’s an entity who facilitates the protection for the copy trading users and regulates the brokerages from top to bottom.

How copy trading really works ?

As mentioned, it was easy and simple to define the copy trading activity. First things first, there will be three parties involved in this activity.

1) Trader (signal provider)

2) Users-YOU (trader who uses the copy trading)

3) Brokerage (the platform that facilitates copy trading activity)

In the copy trading, Brokerage offers the best copytrading platforms 2021 to bridge the users and the signal providers. In this case, the signal providers will share their real-time trades with the other traders or users.

By using the features provided in the copy trading platform, the users will automatically copy the trades from the signal providers.

Depending on which brokerage you join with, each provider has unique protocols to protect the investors and traders. For instance, you can copy the trades of the signal provider,but can customize the amount of money you are using to trade. So, essentially,  you can copy their trades but you have the freedom to spend how much money you want.

The potential of copy trading

Keep in mind that forex trading is a high risk investment.The copy trading is just the same. Like many other investment types, you can make or lose your money from the copy trading. But as long as you hit the right signal provider,you can gain more than you lose.

What happens in copy trading is that you will get the access to profit opportunity of the signal providers. When you choose to follow a particular signal provider in the best copy trading platforms of 2021, you can earn money if they earn money. And you can lose your money if they lose.

It is also crucial to understand that the past performance is not the absolute sign for the future results. Copy trading has its own risks. But you can learn the system to help you mitigate the risks. Don’t put all eggs in one basket. Also, only invest your money that you are ready to lose.

If copy trading is still new for you, it does not hurt to do thorough research before you proceed to the next level.

Why Copy Trading ?

Not only copying the positions of another trader, you will have more perks than doing the trading by yourself. So, why copy trading? Why is it worth your time and money? Here are the reasons to make yourself convinced:

Flexible time: It does not require hours to research, trial, errors, analyze, and implement your strategy. All is done by your signal provider. You can do it in your leisure time, while working or studying, or anytime you like.

Beginner friendly: You don’t have to be a pro to make the trade. In fact, you can also learn more trading strategies from your signal providers. Some platforms even have forums where you can ask questions and read why some strategies are implemented.

Exposure to global markets: You don’t have to limit yourself in particular markets. There are many copy trading platforms that give you the opportunity to follow global markets.Increase your opportunities there and you will gain more.

Diversify your portfolio: We’ve mentioned the “eggs in different baskets” proverb before. If you want to mitigate the risks of your investment, you will need to diversify your portfolio. Well, it is all possible when you are using a copy trading platform. You can copy trades from different signal providers. We’re sure that there is no single same trader who uses the exact same strategies with others. Doing copy trading will give you a chance to put different eggs in different baskets.So, when an egg in particular basket is broken, you will still have other fresh eggs in other baskets.

How to choose best copy trading platforms 2021

It is true that finding the best copy trading platforms2021 can be a daunting task. But to make sure that you choose the right one, you can consider the important factors below:

The platform reputation

If the particular platforms or brokerages have been there for a while, it will be easy to find the reviews, feedback, and other crucial information about them. Sticking to the best copy trading platforms 2021 that received more positive reviews can be a great way to start.

How they secure your account and protect your privacy

There is no use to get money from unsafe providers. You will want to make sure that there is an official entity that regulates the provider. By then, you can be sure that they are supervised by the particular institution. Then you will want to make sure that they provide the protection for your investment as well.

The availability of the signal providers

Seeking the best signal providers will be the key to get you on the right track. There is no exact same trader in the community. So, when you are looking at different platforms options, you will want to look at the number of signal providers and strategies they are using.

Take the information that you need

To make an informative decision, you will need to get all the crucial information. That includes the details about the trades you copied such as the style, track records, strategies. But all in all, the transparency of the information will save you from hassles.

Conclusion

Considering all of the factors above is a staple thing to do before joining with particular best copy trading platforms 2021. Since the whole process is fully automated, your choice will determine whether you are successful or not.

 

2 Best Forex Brokers for Social Copy Trading

• IC Markets – MetaTrader, cTrader, Myfxbook, and ZuluTrade
• OctaFX – MetaTrader and cTrader platform suites