The growth of the financial brokerage industry and the rise of digitalised platforms helped find new investing systems. Some trading tactics have been around for a while but have evolved massively using the internet.
Social trading and copy trading have grown significantly with online brokerage platforms, allowing investment firms to seamlessly adopt ready-to-use solutions that enable investors to follow the investment strategy of popular traders.
Let’s explain this investing strategy and highlight the best copy trading platforms.
Copy Trading Explained
As the name suggests, copy trading entails choosing and following the investment system of successful traders. This approach involves the trading history, markets, securities and order type.
This makes it easier for new traders to execute successful investing strategies that have been tested over time. The increasing number of online investors who want to make a secondary source of income has led to an increase in demand for copy trading.
Therefore, finding and integrating a copy trading solution for your brokerage firm can massively boost your platform’s performance and returns.
Copy trading flattens the learning curve, as excelling in financial markets requires years of trial and error practice and hands-on experience to understand the dynamics and price movements.
Advantages and Disadvantages of Copy Trading
Adding a copy trading solution enables you to attract more professional investors who want to automate their financial activities and beginner traders who want to use proven strategies to make money. However, there are pros and cons to relying on copy trading that your clients must know about.
Pros
- Lowering entering barriers for new traders.
- Flexibility in choosing a suitable trading system in various markets.
- Faster learning curve, allowing investors to learn and trade simultaneously.
Cons
- Over-reliance on copy trading makes it more challenging for traders to make independent decisions.
- Incorrectly programmed trade copiers can lead to misleading results, exposing traders to increasing risks.
Best Copy Trading Solutions
Copy trading is becoming increasingly popular, and a huge number of service providers offer integrations to add a solution that allows your investors to view, choose and adjust their copied trading system.
B2COPY
A powerful copy/social trading platform by the popular technology and liquidity provider, B2BROKER. B2COPY integrates PAMM and MAM accounts in top-notch trading software like cTrader and MetaTrader.
B2COPY integrated branded back-office CRM systems, interactive UI, and advanced customised features that focus on convenience and personalised experience. You can add B2COPY as a separate solution or a part of your brokerage system.
AvaTrade
AvaTrade is a renowned brokerage platform that supports a huge selection of tradeable securities and markets. AvaTrade copy trading solution provides advanced risk management tools and real-time market tracking. This solution has low investment requirements and offers a selected range of ready-to-use strategies.
eToro
eToro is a well-known crypto exchange and CFD brokerage platform. It offers one-way copy trading across 1,000+ financial instruments in stocks, indices, ETFs, cryptocurrencies, Forex and commodities.
It is a highly regulated platform operating in multiple jurisdictions and complying with regional and global financial frameworks.
Conclusion
Copy trading is lowering the barriers for new traders to enter the market and execute tested and proven trading strategies. These investment systems are created by professional investors with years of experience.
Adding a copy trading solution to your brokerage platform will help you improve your client acquisition rates and financial status.
