Copy trading is a unique way to participate in the financial markets and can be a great system for new traders just getting started.
What is copy trading?
Copy trading is simply a service where one trader can copy the strategies of another, usually more experienced, trader. The strategy provider has a verifiable and proven track record of past performance, and followers have the ability to copy their preferred trading strategy. Copy trading platforms automate copying trades from the strategy provider account to the follower’s accounts.
The strategy provider benefits from charging a success fee, subscription fee or commission to the followers, while the followers benefit by following a potentially successful trading strategy.
Copy trading saves time
While brokers like tixee offer many great benefits, such as Trading Central analysis, live market reports and insights, the discipline of opening and closing positions can be time-consuming too. With copy trading, you can copy the trades of someone else, which can save you time for other things in life or for working on your own trading or investment strategy.
Trading instrument diversification
Suppose your trading strategy focuses on a few trading pairs that you’re comfortable with – this could mean you’re missing out on other opportunities. Therefore, copying other traders who trade different pairs exposes you to different products. To get the full picture, it might be wise to choose a copy trading broker offering several asset classes. For example, tixee offers CFDs on forex, stocks, indices, precious metals, energy products, commodities and cryptos.
Choosing the best broker for copy trading
While there is no guaranteed success in copy trading or any investment, choosing a broker with a variety of trading platforms, risk management tools, a wide range of trading instruments, competitive fees and a diverse community of strategy providers gives you the best potential chance of success.
Luckily, tixee ticks all those boxes.