Copy trading is a practice in financial trading where trading algorithms and platforms enable traders to copy the performance of successful traders automatically. It involves mirroring the trades made by a pre-selected trader, which is often referred to as a signal provider. Trades are mirrored in real-time and with great accuracy. Trading size is calculated in relation to the trading capital.
Benefits of copy trading
There are various benefits that come with copying successful trades. However, there are also some disadvantages. Let’s discuss the main points below.
- Malaysia FX copy trading allows traders with limited knowledge and experience to participate in financial markets.
- It saves a lot of time. Trading profitably requires extensive research, analysis and monitoring of the markets. Copy trading saves time as investors can rely on the decisions of more seasoned traders instead of contributing their own research. Copy trading especially benefits individuals with 9 to 5 jobs.
- Copy trading enables traders to diversify their investments by following multiple signal providers. Diversification is actively used by investors to spread risks.
- Copying successful traders helps beginners learn how professionals trade by observing and analyzing each trade.
- Emotions often cloud judgment and lead to increased losses. Copy trading removes emotions from the conversation.
- Automated FX trading Malaysia is a highly convenient way to increase wealth. Manual order placement is eliminated by modern trading platforms. This convenience allows investors to participate in the markets without closely watching the price charts.
- Copy trading has a good potential for bringing investors profits. It should be mentioned that profits depend on many factors, including the experience of the signal provider. However, on average, signal providers have a better chance at increasing trading accounts.
On the other hand, it should be mentioned that copy trading comes with certain downsides. Traders become dependent on the signal provider and there’s a good chance that the goals of the investor and trader will not always be aligned. In addition, copy trading can help beginner traders observe how professionals trade, however, they miss out on the opportunity to make trading decisions themselves and get valuable experience.
How copy trading works in Malaysia
Copy trading is conducted through trading platforms and algorithms such as Expert Advisors. In order to copy trade successfully, it’s important to take a few steps.
- Select a broker properly: make sure your broker offers a copy trading feature and supports FX social trading Malaysia. It’s crucial your broker to be authorized and regulated by a reputable broker. In addition, make sure your broker has a large customer base. This will make it easier for you to pick the best signal provider to copy.
- Select a signal provider: make sure that the trader you are copying has large enough experience. Ideally a couple of years. The best trader is the one who manages drawdown periods smoothly. It’s better to increase a trading balance step by step than it is to take huge risks and achieve impressive results. To copy trade Forex Malaysia clients can find international signal providers as well as local traders.
- Allocate funds to your trading account. However, it should be mentioned that, while professional traders are good at risk management, profits are not guaranteed. And therefore, you should not invest the amount you cannot afford to lose. Trading using loans is also a bad idea.
- Keep monitoring your trades. If you are a beginner, copy trading can help you learn how to trade professionally. Seasoned traders plan their trades and trade their plans.
FX copy trading platforms Malaysia
There are a couple reputable copy trading platforms available in the market. Here are a few popular ones:
- ZuluTrade: ZuluTrade is a well known copy trading platform that connects signal providers with investors. The platform helps traders with social trading Malaysia markets automatically.
- MetaTrader 4 and MetaTrader 5 are super popular trading platforms offered by the vast majority of CFD (Contracts for Difference) brokers. Traders can subscribe to signals from successful traders and have their trades automatically executed in their own accounts.
- Myfxbook AutoTrade: Myfxbook trading platform was designed primarily for forex trading. It offers the AutoTrade feature, allowing users to copy the trades of verified signal providers. Myfxbook provides comprehensive performance, statistics and analysis tools to help traders make informed decisions.
- NAGA Trader: NAGA Traderis a social trading platform that combines copy trading with a social network of traders. It offers access to a wide range of signal providers, along with sleek design and user-friendly interface. NAGA Trader platform supports various asset classes, including currency pairs, cryptocurrencies, and stocks.
- DupliTrade: DupliTrade is a copy trading platform that connects investors with signal providers. The software allows traders to customize their risk settings, when copying from a successful trader.
Social trading involves communicating with fellow traders via various channels such as webinars, social media and gatherings. Social trading helps beginner traders learn faster and generate better trading ideas. Here are a few benefits of social trading;
- Helps traders share their knowledge, exchange ideas, market analysis, and trading strategies with a community of like-minded individuals. It facilitates the sharing of knowledge, experience, and insights, helping novice traders to expand their understanding of the markets.
- Social trading platforms have user-friendly interfaces that make trading accessible to a wider audience. It allows individuals with limited knowledge or experience to participate in trading.
- Social trading can become your source of income. Signal providers charge traders for their services. If you are planning to remain in the trading business for the long run, you can turn copy trading into additional income.
There are various ways to make money copy trading in Malaysia, however, it should be mentioned that there are some alternatives to copy trading. Some signal providers send trading signals via social media or over the email and traders place orders manually. This method requires traders to actively participate in the trading process. On the bright side, traders get a better chance to learn how professionals analyze the markets and get live trading experience.
FAQs on copy trading in Malaysia
What are benefits of using copy trading in Malaysia?
Copy trading offers several potential benefits for investors and traders, such as access to expertise, time-saving, diversification, learning opportunity, convenience and trading automation, and potential for profit. Copy trading profits Malaysia can vary depending on your account size and the performance of the trader that you copy.
What are best copy trading tools in Malaysia?
Most trading platforms offer copy trading capabilities to their users. On MetaTrader 4 and MetaTrader 5 copy trading is done using Expert Advisors (EAs), ZuluTrade trading platform is built for copy trading. Another great copy trading platform is DupliTrade. It should be mentioned that while MetaTrader platforms are the most popular, ZuluTrade and DupliTrade are offered by a limited number of brokers.
Is copy trading profitable in Malaysia?
Copy trading profitability in Malaysia depends on various factors, such as the experience and skills of the trader that you copy, and the size of your trading balance. Trading software replicates the trades made by the signal provider automatically and proportionately.