Copy trading is a popular means of investing. It implies copying trades of experienced traders on one’s trading account.
Copy trading implies the interaction of the two sides: the trader and the investor. The trader opens a trading account in the CopyFX system and trades, demonstrating certain results. The investor, in its turn, chooses the most successful traders in the rating by the results they demonstrate and the subscription conditions and starts copying the trader’s (or the traders’) trades.
The CopyFX platform features a multi-language support service. A simple and clear interface, and a balanced complex of conditions for successful trading and investing. You can use expert advisors and a large number of payment systems for depositing/withdrawing money. The platform also features cent accounts, which allow traders to check their abilities without losing their money.
Functions of CopyFX
The CopyFX platform, being up-to-date, allows normal trading on your account and simultaneously sharing your experience with other people for additional income.
Trading conditions and types of accounts
The trader works on the popular MetaTRader4 terminal; they can create several accounts with different strategies. The investor can copy trades on any MT4 account, apart from the trader’s or the affiliate account. You can choose any type of account that suits you: cent, standard, ECN, Prime, Affiliate. To subscribe to a trader or set up the subscription, your account must be deposited for 100 USD (or the equivalent sum in your currency).
The trade is copied at the moment the trader makes it; in the situation of strong movements, slight fluctuations in the price of execution might occur. The RoboMarkets/RoboForex Group does not charge any additional commission fees for using CopyFX.
Rating of traders
For the investors to make good choices of traders, there is a special instrument called the rating of traders. In the rating, the following parameters of the traders’ work are represented:
- Term of trading
- Maximal drawdown
- Current capital
- Investors subscribed
- The number of trades
For a trading account to get in the rating, its balance should be no less than 50% of the limits for the subscription conditions. The accounts with the profitability below 90% during 10 days are automatically withdrawn from the rating. Also, the account will not appear on the list if you have chosen the “At application” option in the subscription settings and have not activated the “Show in the rating” option.
Each trader has their participant card that can be accessed from the rating or directly. In the card, all the history of the trader’s active accounts, including the story of subscriptions and trading, is stored.
With the investor calculator, you can collect a balanced portfolio of several traders. The traders are rated by the income level and divided into three groups: low risk, medium risk, high risk. Specifying the sum of investment, its term in the calculator and allocating the risk between the three groups, you will see the estimated of your investment based on the current statistics, the trader’s fee not included.
Cross-copying is a special system, created for the users of the CopyFX system to extend the partnership. The system allows for connecting different types of accounts of a trader and an investor. For different account types, the conditions also differ, such as the size of the average spread, the broker commission fee, the maximal leverage, the available instruments.
Types of copying and fees
There are 5 types of copying on the platform:
- Test mode copies the traders of a trader with the same minimal lot, allowing to test the trader’s strategy with minimal risks.
- Flexible mode copies the trades within the set percentage from 10% to 90%. It is handy when the investor has a smaller capital than the trader.
- Standard mode copies the trades with the very same volume as the trader makes them. Suitable when the trader’s and the investor’s deposits are the same size.
- Risky mode allows copying with increased volume. This one is used when the investor’s capital is larger significantly than the trader’s.
- Proportional mode copies the trades automatically at the rate of the investor’s deposit and the trader’s one.
In their turn, there are three ways to reward the trader:
- By profit – the trader receives a fixed percentage of the investor’s profit.
- By commission – the trader receives a fixed sum for each profitable trade of the investor.
- Without commission – the trader receives nothing. This mode helps beginner traders show themselves and attract investors.
Trader’s affiliate program
On the CopyFX platform, the trader’s affiliate program works. The trader can set the conditions of affiliate reward on their account and attract even more investors. Anyone can become a partner and attract additional investors, increasing the trader’s income and receiving a commission fee.
To my mind, CopyFX is a useful service that allows traders not only do their job but receive additional income from their subscribers (investors) without much effort. The investor, in their turn, can choose the most successful traders from the rating.
The key point here is to set up copying properly. For example, if you subscribe to several traders, your deposit must withstand their aggregate drawdown. Also, you must take into account the difference in the trade balances, the currencies, the leverage. In the subsequent articles, we will discuss how to become a trader and an investor step by step.