Is Copy Trading the Future? Here’s Why Traders Are Adopting It
The growth of copy trading in the financial markets has benefitted traders, specifically in the foreign exchange markets (forex). This occurrence has left many traders and pundits asking this simple question: Why are traders adopting copy trading, and does it have a future? Let’s look at this in further detail.
Introducing The Key Differences Between Social Trading and Copy Trading
Copy trading is a subset of social trading and requires a copy trading platform to trade. Unlike social trading which is a combination of trading and social media, where traders can converse with one another.
Here’s are the key differences to consider:
- Social Trading: Traders can share their knowledge, trading strategies, and motivations in an open forum, similar to a community. In short, you get to see what trades other successful traders are making in real-time, learn from more seasoned investors, and ultimately, receive education and potential profits by following the moves of other traders.
- Copy Trading: The concept of copy trading is that by using copy trading platforms such as QuoMarkets, the copier can profit from the experienced traders methods and expertise without conducting any analysis themselves. Experienced traders can potentially increase their income by allowing another trader to copy their transactions.
Discover 4 Advantages of Copy Trading
The world of trading is a tough market to enter to build a portfolio. Let’s look 4 major advantages of copy trading:
- Passive Income Potential: Beginners can earn returns by copying successful traders in the market. The successful traders can generate additional income through incentives or commissions when others copy their trading strategies.
- Easy Access: To interpret chart patterns or learning how to use technical indicators can take months or even years to learn how they work. Copy trading provides the opportunity to start trading immediately without the need to master intricate trading strategies.
- Low Capital Requirements: To begin trading, it can be a very expensive endeavor. Copy trading has extremely low capital requirements because of the minimum deposit requirements from brokers such as QuoMarkets.
- Time Saving: Since copy trading is automated and trades are executed automatically, you won’t have to monitor the markets frequently.
How Do Copy Trading Platforms Help Beginners?
Copy trading platforms like QuoMarkets help beginners hone trading strategies by:
- Customization and Control: Set risk parameters around specific assets and tailor your copy trading journey. Adjust your portfolio according to your risk tolerance.
- Training and Development: By watching successful traders profit, it teaches you new methods of how to develop your skills.
- Fewer Emotional Decisions: Misinformation, high volatility, and market-changing events can cause emotional stress. By copy trading, and following a successful trader, it requires little to no involvement from you.
How QuoMarkets Makes It Easy to Copy Trade
While copy trading is growing in popularity, accessing successful traders to copy can pose to be a challenge. Here is how QuoMarkets steps in to simplify the process with its innovative platform:
- Transparency: Receive updates on the trades you are copying in real-time. QuoMarkets shows you how your portfolio is performing and makes it simple to adjust so you can plan ahead.
- Trading Experts: Watch your portfolio grow. Choose from a broad range of the most successful traders to copy while using QuoMarkets.
- Global Network: See trades happening from all around the world on QuoMarkets and learn new trading strategies that fit your trading appetite.
- Risk Management: Diversify your portfolio and spread capital across multiple providers to minimize risk.
In Conclusion
At QuoMarkets, we focus on making trading easier and more accessible for our clients. Our copy trading platform is only one part of our dedication. When you trade with us, you’re not only getting to copy successful traders, but you’re working with a regulated, true no mark up broker that puts your needs first.
However, it is important to remember that trading involves risk. While copying top traders can potentially lead to wins, there is also the possibility of losses, as not all trades by experienced traders are successful. Always trade responsibly and understand the risks before investing.
Want to take the guesswork out of trading and make profit as a beginner? Sign up with QuoMarkets now and see how copy trading can help you develop skills in your trading journey.
