What is copy trading? Opportunity to make easy money when participating in Copy Trading

Stepping into the financial market, have you ever thought about how to invest without experience, knowledge and time but still earn profits in a stable and safe way? The following article will introduce you to a simple but sustainable method of making money in the financial market that is Copy trade. Let's look forward to seeing you!

Introduction to Copy trading
What is copy trading?
Copy trading is a form of copying trades of top traders. The investor's account will copy all the orders of the Trader that the investor has selected Copy trading according to the account ratio. Thus, when the trader loses, the investor also loses and when there is a profit, the investor will also earn certain profits.

Any trading action performed by Pro Trader such as opening order, Stoploss, closing order is executed in the copier's account according to the ratio between the two accounts.

If the trader opens a trading position, then with the form of copying also opens a similar position. Therefore, if you choose the right reputable, quality trader to copy the signal, in the long run, making a profit is absolutely high. On the contrary, you choose to copy signals from poor traders that will leave you vulnerable to failure and loss of money.

The great benefits of copy trading
Copy trade brings benefits to all 3 objects: investors (Copyers – Followers), successful traders (Leader or Master) and forex brokers (Broken Forex).

Follower
The benefits that investors get here is the opportunity to find potential profits from the Forex market without having to spend too much effort, time, knowledge or experience.

Master
In addition to the profits Master receives from successful trades, the Master also has the opportunity to receive remuneration from brokers. This profit may include a small transaction fee from those who copied their trades

Broken Forex
The amount that the exchange collects is mainly the commission cost on which the transactions are made. Thus, when more traders participate in the system, there will be more transactions done and the Forex platform will collect more fees. This cost will be divided into several sources. A part of the fee will go to successful traders to encourage them to make more trades. For Master, the more successful transactions are made, the more followers will follow, resulting in more transactions being made, and the exchange will have an additional source of income.

Evaluate Copy trade compared to automatic trading
When you are a self-executing investor, you have to perform a lot of steps for a new order, that is: determining the trading product, entry point, stop loss, take profit, open position Hedging, etc. Meanwhile, the Copy trade, they just need to choose a good trader, allocate capital appropriately, they can earn profits from forex.
When traders trade on their own, profits may not be stable. However, when you choose a good copy trading account, you will easily get a passive income source.
When you make your own trades, you will "consume" a lot of time, money, and effort to do research as well as test strategies, technical indicators, price patterns, etc. It will take a long time for you to find a suitable and truly effective method. Meanwhile, the Copy trade form is more optimal, traders only need to test the Master accounts. After a short period of experimentation, you were able to pick out good accounts to form an effective portfolio.
For self-trading investors, they must constantly hone their trading knowledge. Because the development and upgrading of the academic and technological industries are more and more outstanding. Therefore, traders will be left behind if they do not spread their knowledge in time. With Copy trade, investors only need to follow good traders in the market, evaluate their performance and analyze reasonable capital allocation.
The simple way to become a copy trader
Although Copy trade is a form of passive trading with a lot of potential and is popular in the market, not everyone knows how to make easy profits from this form. One of the difficulties of this form of trading is choosing a good copy trade account and the ability to allocate capital in the right direction. Here are 3 simple steps to success with copy trading.

Step 1: Choose a quality and safe Forex Broker
This is the first step of an investor when participating in the forex market, not just the copy trade that needs to be paid attention. Conditions for evaluating a good, reputable Broker lie in competitive trading conditions, providing a copy trade form. With this quality, the Broker will become a good launching pad for investors to succeed in the Forex market.

Today, reputable Forex exchanges that support Copy trade for investors are quite diverse, you can choose names such as: eToro, FXTM, Exness, ...

Step 2: Consider and choose a good Copy trade account
When one owns a good copy trade account, it will bring a lot of benefits in the execution of trades, it contributes to a fertile source of profit. Therefore, this second step is equally important in determining success in this type of trading.

Most of the Forex brokers that offer Copy trade, the account records of successful traders will be made public so that traders can base their assessment of each person's ability. From here to choose the best Master to be able to copy.

Step 3: Allocate appropriate capital
The allocation of capital will determine up to 30% of the success rate of Copy trade. Specifically in the following two cases:

If you participate in the forex market by copying trade, you should only invest about 10-15% of the total available capital. With the remaining capital, you can use it to invest in other markets to diversify your portfolio.
If you have both made a trade and copied a trade, you can make the following allocation: about 5-10% for manual trading, the remaining 5-10% for Copy trade.

In some Forex brokers that offer Copy trade, they often allow traders to customize the trading volume. You should customize by the volume of the Master account or balance them. When starting to copy trading, traders should trade small volumes. Therefore, when the investor's capital is larger than the Master account's capital, you should choose equal volume, otherwise, choose proportionately.

Besides, you should set the copy stop rate. This means that when the trade loses a certain percentage of the invested capital, the Copy trade order will automatically close. Thus, traders will limit the risk very high. When traders regularly monitor profits and losses on copy orders, it will help you evaluate the effectiveness of the Master account you copy. As a result, you can reallocate capital more rationally.

Above is all the information about Copy trading. Thereby, we realize that the investment will be profitable at times and cannot avoid risks. Hopefully with these shares, you have more knowledge to make the right choice before participating in the Copy trade form.

WARNING: This is an information sharing article, not a call to invest, you must be responsible for your own decisions. Investing in financial products always involves a lot of risks, so you need to consider carefully before making a final decision. Wish you wise and sober to make the right investment decisions!

FAQs about Copy trading
What are the criteria for choosing a Master account?
Number of traders follow
Account active period: at least 1 year
Stable trading results
Choose investors firmly in transactions
Based on the trading strategy of the Copy trade account that the Masters use
Rate of successful transactions
Investor's trading time.
Is there a fee for copying trade?
Copy trading is completely free. You can easily get profits when copying trades without having to spend time researching the market or devising methods, strategies, capital management, etc.

Is copy trading a scam?
Copy trading is not a scam. This is simply understood as how you copy orders of Pro Traders. However, there are many fraudulent elements that exploit the greed of the less knowledgeable. Therefore, before participating in Copy trade, you should learn and participate in reputable exchanges with reputable traders. Because here, you can evaluate traders by their trading statistics over time.

Who can participate in the Copy trade?
Some argue that participating in Copy trade does not require knowledge, experience and time to still make a profit. However, with Copy trade brings quite a lot of risks for investors. Moreover, with the outstanding development of the 4.0 market today, participating in Copy trade also requires knowledge, calculation and careful consideration to achieve a high success rate.

Reputable Copy Trade Platforms
Reputable copy trading platforms that can be referred to are:

eToro
FXTM
Exness
FBS
OctaFX