![Is Copy Trading Profitable? [Reality Vs Facts]](https://fxtradinger.com/wp-content/uploads/2021/04/Muscle-Gains-1200-x-600-px-1200x385.jpeg)
How can I earn money in forex If I don’t know how to trade?
Can I trade like experts? How to trade If you don’t have enough time? How to learn to trade an expert’s style? Don’t worry traders, this financial market is full of opportunities.
If you don’t have time and skills, you can avail the option of Copy Trading. But before doing this, let me tell you: Is Copy Trading Profitable?
Copy trading is not a quick profit-making scheme. It can be profitable if you choose the right platform and expert trade leader. You must have full knowledge of this methodology and the risk factor involved in it.
In this process, the trader invests money to copy the trade leader. He chooses to copy the trading platform and trade leaders to follow on. In most cases, traders fail to find a good trade leader to follow.
What Is Copy Trading, Does It Actually Work?
As the name itself suggest, copy trading means copying the position of another expert trader.
You will invest the money as you wish. The automated platform will simply do the same thing that real traders will be doing at that time. Your account will trade automatically when the trader will trade.
It’s not as simple as it seemed to be. You need the right platform, expert trader to copy and invest. The profit margin is low as compared to other trading platforms.
After paying broker fees, trade leader fees, you may be left with little money. But it’s good for learning purposes. Most of the people lose when copying other traders. They should realize that the forex market is risky for leader traders also.
How Much Profit Can You Make from Copy Trading?
It’s important to know how much money you would make from copy trading? Your profit may depend on the following factor:
- Broker Rules
- Trading Platform
- Trade Leaders status
- Trader Investment
- Signal fees
For example, you chose XYZ trader to follow on with a good record of delivering 36.35% of the return.
- If you copied 200$ with a top trade leader, you will get a $72 profit over 12 months
- If you copied the trader with 1000$, you will get a $363 profit
- If you copy the trader with 5000$, you will get $1817 profit over 12 months.
These are rough estimations, not exact figures. You can use this data to guess how much you can earn. But again, it’s a rough estimation not exact!
Can You Make Money From Copy Trading
It is true that you can make money in copy trading. But when you share your reward, you also share your risk with the trade leader.
It’s not just a blissful way to win-win and only win. Its share of both profit and loss.
Traders who believe that they will only win in this trading type, mostly encounter problems.
Your win and lose are not in your hands. You will have to accept your failure without reason or with reason in the end.
Your lead trader is human like you. If you can do mistakes, why can’t he? He can also forget to use stop-loss; He can also set high leverage. It’s true that you choose an expert.
But in this market emotions can take over the experts of experts at any time. So, it’s unpredictable that you will make consistent money from copy trading. But it’s possible that you can make money. Consistent money is not guaranteed!
Is Copy Trading Worth It?
YES, it does worth it if you use your knowledge and risk management skills properly.
However, copy trading with Forex and CFDs is highly risky. Unless you fully understand the broker’s terms and conditions set for trade leader.
Many traders complain that they lose too much in search of a good trade leader. That’s the main issue!
It depends on which type of trading platform you are using. Who is your broker? Below are our top picks of 5 copy trading brokers that you can choose.
5 Best Copy Trading Platforms
| Name | Minimum Deposit | Demo Account |
| Etoro | $200 | Yes |
| FXTM | $10 | Yes |
| Zulu Trader | $200 | Yes |
| Ava TRader | $100 | Yes |
| Meta Trader 5 | $100 | Yes |
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Is OctaFX Copy Trading Profitable
Yes, the Octafx copy trading system helps you to generate a decent profit. You can start trading here as a master with top trade leaders. Let’s see what OctaFX offers as a copy trading broker to its customers:
- OctaFX offers an unlimited number of masters to copy
- Here you can monitor your account at any time
- You can modify or stop trade at any given time
- You can view detailed trading statistics any time
- You can make a stable income for a diversified portfolio
- Easy entrance for newbies in the forex market
- Choose your master and click the start button
- You will have to pay the master‘s commission only and no other additional charges.
Is Copy Trading in Etoro Profitable
Yes, it’s possible to make a profit by copying master traders on eToro.However, it’s not a quick-rich scheme. Like other trading activities, it is not risk-free.
To get the profit you need to educate yourself about the possibilities of making a profitable trade.
You need to understand the eToro platform first. This platform basically connects traders who trade individually to traders who want to save their investment through a win-win model. It offers services such as:
- Signal providers that connect the investors who permit others to copy them.
- Etoro pays those investors who allow others to copy them.
- Etoro earns through spread and commission fees of both investors and trader master.
- You can open your account here with a minimum deposit of 200$. Choose your master and start trading as a master.
Advantages and Disadvantages of Copy Trading
Is copy trading good or bad? To check out the positive and negative aspects of this trading form, consider the factors below:
- Check whether your trader is a “free” trade leader? If YES, stay away from it. It’s bad for you and may not worth copying!
- Check out who will pay you the trade leader or broker? If it’s a broker, it may not worth your profit. So, consider your broker’s payment rules.
- Check out broker’s service charges, commission fees, signal/EA charges. After paying all you may not have enough as a profit. That’s the real drawback!
- Check out the regulatory status of your trade leader. If he is genuine, he may not try shortcuts. He will advise you according to your investment portfolio.
- Unregulated trade leaders are making copy trading distrustful. There are many stories in which traders fail to find honest trade leaders to follow.
The pros and cons of copy trading are dependent on your broker’s rule and your ability to find the right trade leader.
Can You Make a Living From Copy Trading
The quick answer to this is NO, resounding NO. To make living you need consistent profit, which is not easy to achieve in copy trading but you can live off forex trading on your own.
Below are the main reasons why it is impossible to make living on copy trading:
- There is a big conflict of interest. Most of the times investor has to stop trade as he wants to go against his trade leader.
- Another major reason is widespread from the broker’s end. On copy trading platforms spread is always wider as compared to other platforms. Maybe brokers want to earn more from both parties That make this trading form a big failure.
- It’s good for learning perspectives but not as good for investment perspectives. For newbies, it’s no less than a blessing.
Frequently Asked Questions (FAQs)
Is Copy Trading Legal
Yes, It’s legal in most countries with few restrictions. Your broker must be regulated for this providing this type of services. When you invest in the financial market with a legal broker, your copy trading is legal.
What is the most profitable form of trading
Day Trading stock is the most profitable form of trade. It means opening and closing positions with a single trading session.
It is profitable as it helps to generate a consistent profit. You can open as many trades as you can in the timeframe of the market opening to close.
Is it possible to get rich by copying the trade of other traders
No, not at all, it’s not a quick-rich scheme. It’s possible to make a profit here but no one can guarantee this profit will be a consistent profit.
It depends on your trade leader mainly. Traders with the highest ROIs fail most of the time.
Last Thoughts
This post comprises a clear picture of the topic: Is copy trading profitable? Searching for an ideal forex partner is not an easy job.
Even you find an expert trader, but the system may have some drawbacks. If you fail to understand the methodology of this automated system, you will end up in lose.
There are very few people who claim that they earned more from this trading type. The ratio of those who fail to make a consistent profit is always higher.
So, I would advise you to always try the expert trader with your demo account before moving to real money.
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