When it comes to investing in the Forex exchange market, copy trading is a very popular strategy that can help newer traders and beginners to get started. But how to choose the best forex copy trading service?
The ideal Forex broker has to tick certain requirements. First of all, you have to make sure they abide by the international regulations that ensure the safety of traders and their money.
Then you want to ensure that the broker of your choice offers the possibility to deal in the currency pairs that you’re interested in. Also, make sure their platform offers all the features you will be needed to invest in the currency exchange market. Among these, do they let you do copy trading?
Let’s see which is the best copy trading service for Forex?
What is copy trading?
Copy trading is a type of social trading. It means that traders can copy the movements and deals other traders are broadcasting. This process can be completely automatic or manual, depending on the style of the trader copying.
It’s important that the traders copying others carry out thorough research since copy trading doesn’t necessarily eliminate risk, and what is more, not always the trader they are copying may be as experienced or successful.
Advantages and disadvantages of copy trading
There are many advantages and also a few disadvantages to copy trading.
Among the advantages, we should mention the attractive opportunity that it represents to those looking into diversifying their presence in the market. Sometimes traders may be unfamiliar with certain markets, like for example the Forex market. So, using copy trading allows them to get started in a market without a lot of knowledge.
Also, copy trading can prove very educational for those interested in learning how the market functions and reacts. And especially when talking about Forex, which is a very active and quickly-changing market, having a broker that can show live information and allows users to operate in real-time, is very important.
But, is copy trading reliable?
The numbers show that people copying other traders’ portfolios have a 10% higher chance of success in making a profit in the forex exchange market.
And while copy trading is popular nowadays, we need to remind newer traders that opting for this strategy does not guarantee a profit and does not eliminate risk when investing.
Among the disadvantages, we should mention as well that some traders may get lazy when using coy trading. It seems to eliminate the need to research deeply the market, and traders may not be motivated enough to experiment by themselves in the market.
Best copy trading service for Forex
The following is our selection of the best Forex copy trading brokers. All of them abide by international regulations, making sure they are serious and reliable.
This broker has a very strong reputation and it’s considered the best copy trading platform overall. This means their services and features, as well as security, makes it a very trusted platform.
Pepperstone has a strong presence in the Forex market and it’s well-known for its reliability. They offer a variety of coy trading platforms.
They are recognized for their lower prices and excellent customer service.
FXCM is a great platform for all types of traders and it’s famous for its features dedicated to automated trading.
Darwinex offers a unique set of social trading tools. This broker is also a very interesting option for traders interested in other markets and not only Forex.
Another interesting option for those looking for a dedicated platform for copy trading. However, their customer service has set them behind compared to other brokers.