There are a number of factors to consider when choosing the best copy trading platform for your needs. The platforms should be regulated by top-tier institutions and provide investment protection for the customers. There should be a large community of experts and followers on the platform. Many platforms allow communication between traders. Whether the copy trading platform is easy to use or provides great support, the quality of its customer service should be a top priority.
eToro is the largest and most popular copy trading platform. Founded in 2007, it is regulated by top-tier authorities. Unlike other copy trading platforms, eToro offers zero commission real stocks and low trading fees. The minimum deposit amount varies according to country, however, and a demo account can be opened for as little as $50. eToro’s CopyTrader is available in over 32 languages.
Profitability: When using copy trading, the profitability of this method can be anywhere from 5 to 20%. The best copy trading platform will allow for a level of transparency in the selling signals made by professionals. With the right platform, beginners can mimic the investment strategy of professionals who are too busy to make their own trades. Moreover, using a copy trading platform can save you time compared to manually investing in the stock market.
Another popular copy trading platform is FXTM. This is a global ECN broker with a strong presence in African and Asian markets. Traders on FXTM are verified on broker platforms. Using a demo account, newbies can study the strategies and earn profits at the same time. They should also check if their copy trading software allows them to set stop-loss and take-profit limits. It’s also worth checking whether their copy trading platform supports multiple payment methods, including PayPal.
The eToro copy trading system enables you to copy the positions of another user. The copied user’s positions open at the same time, with a small loss that represents the spread between the Buy and Sell rates. During the copying process, the copied user will receive a notification suggesting that they add more funds to the copied user’s account. Copy trading continues until the copied user closes the copied position or closes it on their own.
Before deciding to copy a trader, be sure to look at his or her risk score, which varies from 1 to 10. A low risk score is considered low. You should keep a close eye on the copied trader’s performance, and monitor it periodically. In addition, you should read his or her profile, as you should not just copy the trades of others. Even if you trust your copy trader’s performance, you should still monitor it.
While eToro copy trading has been around for quite some time, many traders still have questions. The most common question is: how much money do I need to start copying someone? This depends on your risk tolerance and how much money you’re comfortable risking. A good rule of thumb is to aim for seven to ten percent returns, depending on your risk tolerance. You should only invest with money that you can afford to lose.