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You decided to start trading currencies online. You read about several platforms and know you can mirror trade. But what about Copy Trading which is the newest and simplest method to online trading, have you thought of trying it?
This article will present the differences between the two concepts of Mirror Trading against eToro’s Copy Trading.
Mirror Trading has been around since the early 2000s in the foreign exchange and this is the concept of copying somebody else’s trades, which is becoming increasingly popular with the smaller sized businesses in the online concurrency trading arena. How simpler can it be to have the best traders in the world handle your trades into your account to make your trading completely Autopilot. The client requires no intervention as all the account activity is controlled by the platform. All you will need to do is login once a week to see your balance accumulate and to withdraw funds, it’s that simple!
How this is achieved is that some Mirror trading companies accumulate and keep accumulating the top of traders from various parts of the world. They provide them free accounts to trade so that their performance histories are shaped for audit and testing parameters. In parallel, these mirror-trading companies keep displaying these trader’s performance records and up dating them regularly on their websites. The best performances clearly begin from the top.
Built in to their program, these companies have a agreement with several brokers who would allow these companies to operate as their Introducing brokers and give them the facility to auto-configure ‘many accounts’ into one single ‘master account’. “Numerous accounts’ are held with the broker and the ‘master account’ with the company. The company awards the master account to the top performers who put their trades in these accounts to be mirrored to the other connected accounts.
Once the client chooses a trader to operate his/her account, the client is advised to open an account with the recommended broker for this master account. After this account is opened, it is auto-configured to the master account of the selected trader and now whatever the trader does in his own account is automatically replicated/mirrored in the client account also. The client is free to select his own risk-management parameters so that the occasional aggression or the failure of the chosen trader does not reflect in the account.
Now bearing in mind what you have just read above, lets see how eToro has revolutionized this Mirror trading concept and turned it into a Social Trading feel and made trading so much simpler!
eToro has recently launched its totally new feature, which enables you to automatically copy trades of your chosen moneymakers into your own accounts. Simply put it’s investing into the financial markets by having the top performing investors round the world trading on your behalf.
Now lets take a look at the eToro OpenBook features that have revolutionized online trading!
On the eToro OpenBook homepage and to the left of the screen you can see the basis for eToro OpenBook trading. See what other traders are doing live in real time, follow the top performers and copy the trade and traders you like.
What you also can see are live trading feeds of all the traders executing in eToro. We also can immediately notice that this trading platform does not look like any other in online currency trading today. Discount those complicated charts and formulas, if anything it resembles an online social trading network. Only here you can click “Follow” which will integrate this trader to your watch list. Which is a live trading feed of the people you choose to follow. The last feed is the “Top 100” which is made out of the current rankings of the top 100 traders in the eToro weekly challenge.
It only gets better as we have an even more effortless way for you to invest your funds in the biggest moneymakers Copy Trader. This tool allows you to automatically copy successful traders and open the same positions as they do; basically you are building your own Real People-Based Portfolio Many of you would like to earn some money on the markets but just don’t have the time to invest or the devotion to start learning financials and putting effort into it! You would just want to follow the best traders and benefit from their years of knowledge in the foreign exchange.
Firstly we pick our chosen Popular Investor and the best place to start is by going to the rankings. It’s that simple and these traders are amazing! We have rankings for the latest month, quarter, six months and even the whole year!
These traders are segmented by their percentages of gains and winning ratio, which is how many of all positions opened or closed with profits. Once you see the numbers from the top trader you will want to join on the bandwagon of their successes. If we see someone we want to “Copy” we click on his or her profile and instantly see the club level starting date, chats and then click on stats we can see the entire trading behavior, performance stretch, success ratio and risk appetite. So now we have decided that this is the top trader we want to “Copy”. All we need to do is click Copy Trader” and decide the amount you want to dedicate to following him or her out of the entire equity in your account and no more than 20% per Copy Trader. All execution is done proportionally meaning that if you don’t dedicate $1000 copy a trader who has an account of $10,000 then if he will open a $1000 position you will do the same with a $100 position. This enables you not only to copy the direction but also the applied investment strategy. Also remember that one of the most important things you need to know is to wisely diversify your investments and risks over a wide range, with Copy Trader” your investment are fully risk diversified as you inherently copy every investment strategy in invested instrument in your “People Based Portfolio” This is what we call Responsible Trading.
If you don’t have an eToro account, now is the opportunity to try Copy Trader for FREE using a virtual trading account?
We truly believe that Copy Trader will revolutionize the way you invest your money, which is why we offer you a first time deposit eToro Credits if you open a real trading account with us! This way you can benefit from a larger money account when you start investing in Online Trading with eToro.