Looking for more freedom from your trading or a way in which you can make money from the Forex market without needing to dedicate many hours of your day to looking at charts. Well, there is a way, it is called copy trading introduced around 7 to 8 years ago this form of trading has become more and more popular. How it works is similar to normal trading however letting a professional trader do it for you, all one has to do as a copy trader is simply find, select good traders allocate some money for your copy and when they do trades so will you.. Plus as even more good news is that because it has become more popular most good brokers that allow copying also allow you to do it for FREE..
So, if this sounds good to you then let me give you some details. Say you copy a good trader who on average gets around 20% gain per month. What this means is if you allocated $1000 dollars to him as a copier that your potential investment return and gain or earnings per month would be around 20% per month or an easy 200 to 300 dollars to put it in money terms.
Screenshot above shows potential of gains like this. This means that if one copied a trader like this one would make around 180 dollars last month from a $1,000 dollar allocation or if you copied with 10,000 you would of had a return of around $1800 a month. Not a bad return or side income.
Be aware this is an example of potential, there are many different types of traders on Etoro in which one can copy, to see the full list click here.
Pros – Pros of Etoro are that it is easy for beginners and there trader list is massive. The social aspect of Etoro is valuable as well. Another pro is that they offer no rollover fees which means less thinking on holding position costs.
Cons – The web trader on Etoro can lag a little from time to time, however they have improved much over the years and this happens rarely. Another con could be no MT4. Also, a lot of traders on Etoro tend to hold positions a lot so choosing the right type of guru to copy is important.
Another option for copying is a program called Zulutrade which provides signal providers. The good news about this provider is that they are very strict on ranking of quality traders in the top 100. They do not like high risk trading or any trader that hold positions beyond a certain point. Overall they are looking for the low drawdown and high gain traders. This is great news for copiers of there trading because it means less work looking for great traders. One such great example of a good trader at the moment is SwissRunner which has brought his account consistently up to just over $64,000. ( Now that is what i call a great trader. )
Above – Example of some stats – Flyingfx
Above – Example of some stats – SteadyCapture
( These are historical examples, please bare that in mind, so you get an idea. )
To check out the complete list of professional traders from the top 100 on Zulutrade or to sign up for a Free Account with them click here.
Pros – Zulutrade has so many benefits however what could be improved is the social aspect. This is not needed but could give better experience for the copier. Another pro is that it works through many brokers and also there ranking system is awesome making it easy to find good efficient traders.
Cons – Ummm.. This is a hard one, slippage does happen through some brokers through them, so I recommend choosing only the better brokers to use, the broker that I recommend to use through Zulutrade as number one is AAAFX. The reason being is AAAFX and Zulutrade are the same company so the feed for copying is very fast with them and no commissions.
Overall copy trading is a tool or a way of diversifying your portfolio. It allows an investor to allocate some of there extra investment money to others that know proficiently how to trade and make money for you while you are still living a busy lifestyle. If done right it can bring in massive rewards, however like anything be cautious who you copy and do your research. The above examples of traders, being either from Etoro or Zulutrade are what I see as exceptional traders at that time due to what I look for in a trader however everyone has there preferences and results from these traders in future may change.
Copying Traders Disclaimer: Like all trading and investing, copying other traders, even experienced traders with great past performance does still involve risk so only ever risk money you can afford to lose. Because of these reasons also applying and practicing good risk management is recommended, when investing in anyway.