Top 5 Forex Copy Trading Groups
There are a lot of forex trading groups out there, and there are a lot of copy trading groups out there… but what exactly is forex copy trading? What what makes one group better than the rest? In this article, we'll review what exactly is copy trading and how it works with forex trading, and then we'll share our ranking of the top 5 forex copy trading groups.
What is copy trading?
Copy trading allows you to execute an order from another trader when trading the financial markets. It helps you take over positions that other traders have opened and are managing.
Trades executed by the copied trader are also executed in the copying trader's account.
In order to maximize profitability and risk efficiency, these positions are generally executed in accordance with the ratio between the copied trader's portfolio and the copying trader's portfolio.
In short, copy trading allows professional traders to share their own trades with you, so that you can benefit from their expertise.
How does copy trading work?
Copy trading is usually encouraged for traders who are starting their trading journey, traders seeking to learn how to trade the market profitably, and traders who just want to have a side hustle but don't have the time required to be successful on their own.
The copied trader could either be another trader's brokerage account – whose trade’s profitability has been monitored over a certain period – or a broker offering copy trading.
The copied traders are also called signal providers and they get a periodic subscription fee for any trader who seeks to copy their trades. Which makes sense… expert traders share their knowledge, which you pay a small fee to receive, and then you make more than that back as a result of their accurate and lucrative signals. Everybody wins.
Why is copy trading so popular among investors?
Initially, copy trading was used primarily on the forex market due to the high liquidity, but it later spread to several other markets, including the crypto market, metals, indices, and oil.
This is of great benefit to less experienced or new traders because they now enjoy the same returns on investment as experienced traders whose trade they copy.
Copy trading is also employed by most traders because it saves them time spent on researching the market, its movements, strategies, etc. and it guarantees maximum profits with little or no stress.
Which makes it a huge selling point for investors looking to profit with little to no stress.
History of copy trading
Copy trading dates back to 2005 when experienced traders were able to share their trading history for the benefit of other users.
The idea was to develop an auto trading system where a trader could display his or her trading strategy with a record of their performance.
From this, their activities on the platform were recorded and made available to other traders or users of the platform.
The method gained popularity over the years and entered mainstream in 2010 when most online trading brokers started allowing less experienced traders to benefit from the trading activity of more experienced traders.
In addition, they also had the option to select which trader to copy. Hence, the term COPY TRADING was coined.
So before choosing a broker or trader to copy-trade, you must look at their track record. How profitable has it been over a specific period?
You must also make sure you have good knowledge about the market you’re putting your money in. This is a basic rule of finance.
Advantages and disadvantages of copy trading
While copy trading has made trading in various markets very easy over the years, it has also brought its own problems. But before then, let's take a closer look at i's advantages.
- You can conveniently make an order in an entirely new market with a guaranteed percentage of profit with little or no research done.
- It saves time spent on decision making as you can easily link your account to a signal provider with a proven track record.
- It helps you diversify your portfolio which also helps in hedging your risks.
- Over time, once you’ve developed a profitable strategy, you could also become a signal provider and even charge a fee.
- Copy trading discourages individual research of the market you’re trading.
- When there’s no research being done on the market you’re trading, you’ll have no trading strategy.
What to know about forex copy trading before getting started
By now you should have a good sense of copy trading, what it is, and why it's such a popular investment strategy. Forex copy trading can be an especially great opportunity… if you invest in copy trade signals from a professional trader with a proven history of success.
Given the profitability of selling signals, many individuals claim to be professional forex copy traders, but few are truly experts. We've taken the time to evaluate and review the top 5 forex copy trading signals groups on telegrams so that you can be sure that you are getting the very best signals out there.
Top 5 Forex Copy Trading Groups
In this section of the article, we describe the top five forex copy trading groups you should follow.
1. MYC Signals Forex & Commodities (@mycforexsignals)
Trading the financial market requires a certain degree of experience, since different market conditions are approached or treated according to their history.
But how do you gain experience without exposing yourself to a lot of risk? This is where MycForexSignals trading group comes in.
MycForexSignals trading group puts you in an environment where you gain experience trading and monitoring your activities in these markets.
Boasting an excellent win rate with minimal drawdown, they are one of the best signal providers out there. They also provide free signals on cryptocurrencies, forex currency pairs, crypto weekly market updates, and many more.
Best part? It’s available for FREE!
Click here to join the group and start copy trading.
How To Enter A Trade
The first thing to understand about copy trading is that money management is key. Set your take profit and stop loss based only on the market you're trading.
Most trade analysis on the mycforexsignals appear on TradingView, however, the group is a partner of a forex trading bot called CORNIX BOT.
The Cornix Bot automatically trades for you based on the signals sent from the telegram channels you are a member of.
Before Cornix bot can execute trades on your behalf, it will need access to your trading account.
Your exchange account is linked to the Cornix bot through a client. Once you’ve created a client, auto-trading is only possible if the telegram signal channel you subscribed to is supported by Cornix bot.
Five percent of your exchange account is used to place a trade by default, this can be changed manually on the trading configuration.
You can also disconnect from clients in the auto-trading configuration when you feel it’s no longer profitable.
Each message sent by your telegram signal group is read by the Cornix bot, when a signal is detected, a trade is placed by the Cornix bot with auto-trading.
Alternatively, you could use the configuration provided by your signal provider, if none is provided.
2. E -Toro
The famous e-Toro, one of the pioneers of incorporating copy trading. In 2012, eToro received a trademark for their CopyTrader system.
e-Toro is a multi regulated Broker. Securities traded on the e-Toro platform include forex currencies, stocks, commodities, cryptocurrencies, indexes, CFDs.
e-Toro boasts of a 24 hours customer support, an 83.7% average yearly profit of their 50 most copied traders for 2020.
You can copy trades in two ways on e-Toro:
- Copy Trading – where you can choose to copy the orders in an account of a single trader. e-Toro trader.
- Copy Portfolio – where you can choose to copy an account that contains a portfolio of products. e-Toro designs some of this portfolio while some are designed by Third parties.
Before you dive into the copy trade on the e-Toro platform, you will need to allocate the amount of money you would like to put towards that copy trade.
Such amount shall be allocated in transactions at the same proportion as it is allocated in the copied account. Then your order will automatically be executed for you.
There are a number of restrictions on e-toro, including the minimum and maximum amount that can be invested in any portfolio you copy, the minimum amount on any single copy trade, and the maximum number of traders you can copy.
3. Ava Trade
Ava Trade partners with Zulu trade, one of the top 3 social trading platforms providers. The minimum investment on Ava Trade is $100 with no Commission for copying.
Their trading platform is MT4 and they have about 100 signal providers. That gives you a basket full of successful traders you can pick.
Ava Trade lets you copy a trader in full or in part. You can also choose your preferences by filling out a questionnaire.
One thing you should always look out for is the maximum drawdown of the signal provider of your choice. It shouldn't be more than 20%, anything more than that will be too risky.
Amongst all this, do note that the Ava Trade copy trading service has only been launched recently and still requires some improvement.
4. AZ CAPITAL
This is a financial institution that provides services such as cryptocurrencies, stock and forex markets. Information is available via their telegram group such as technical analysis, educational content, trade setups for stock, forex and commodities.
It’s also an e-commerce platform where you can sell your products with no listing fee but a five percent purchase fee after sales.
There’s also an Algo Trading program which is a trading algorithm for TradingView at very cheap prices. These are AZ Capital PRO, Capital Lite & Capital Lite 2.0.
5. Vantage FX
Vantage FX is a regulated broker on CFDs for Forex, Shares, Crypto, Commodities, and Indices offering clients access to over 250 technical instruments on various platforms.
Moneta Markets offers over 100 tradable assets on its web platform. Trading cryptocurrencies are available through CFDs.
There are 45 currency pairs, 16 commodities with four precious metals included, 17 indices are made available, and 53 Share CFDs cutting across various countries.
They also have a Copy-trading platform called Duplitrade which is a social (copy/auto) trading platform that can be used on Vintage FX to diversify or complement clients’ existing strategies as stated by the broker’s Founder. This requires a minimum account of $2,000.
The broker also offers free VPS hosting for clients with a trading account of $500 or more with HokoCloud as its partner.
Copy trading is becoming increasingly popular among the elite with the advent of new, improved and more sophisticated technology dedicated to this purpose.
Even though some of these platforms offering copy trading still need some tweaking, once you've figured it out, you can always stick with it and this article gives you an idea of where you should start.
MYC signals on Telegram offers automated trading with Cornix bot and is our preferred way of automating signals.