Categoria: FinTech

Copy Trading vs Mirror Trading Which Is Right For You?

Essentially, it allows traders to profit from changes in an asset’s value without owning it. CFDs are heavily regulated in the US so American traders may have problems finding a broker that will offer them. Another type of mirror trading involves a bot, known as an Expert Advisor , that executes trades on your behalf based on algorithmic logic. When market data shows that a pattern or trend is forming, the EA will make the trade. Most platforms offer the opportunity to download an EA to your account.


Investing time into your research can save you from second guessing yourself later on down the road. By taking time to understand what these strategies entail, you can better learn and improve as a trader. Mirror trading is a great way to diversify your investments without having to learn everything there is about that field. You should take advantage of this by following the best strategy in each specific market. Automatic Trades – Have an automated trading service execute the best algorithmic strategies for you.

Benefits Of Mirror Trading

What helps drive these investors to seek their investment independence is the emergence of 0% commission trading options, such as mirror trading. Once you’ve finished this setup, your account will automatically duplicate or “mirror” the timing of the selected trading professional’s buying and selling activities. This is usually achieved through an algorithm that automatically processes trades in real time. Your account’s resulting performance will “mirror” the professional trader’s trading performance. Mirror trading was a method first used in Forex, but now goes on in stocks, futures and options too. In fact, mirror trading has opened up other forms of trading such as social trading or copy trading.

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  • Based out of Greece, Zulu Trading offers copy trading services to its users around the world – even those residing inside America’s borders.
  • There are many scam platforms around so it can be hard to know which mirror trading platform to choose.
  • Collective2 is a trading platform that takes advantage of the latest technology to create an all-inclusive, easy-to-use experience foxcriticals.
  • It’s important not to get cold feet and start doubting your method.
  • Mirror trading removes this element and allows traders who have other commitments to focus on these.

Includes a trade by trade history, current open positions, summary of the pips by months, strategy description and more. Mirror trading is a popular way to get started with trading as a beginner. However, as well as having many benefits, this method of trading also has a few drawbacks. Traders who are technically-inclined and understand how trading algorithms work. You don’t need to spend time watching graphs or researching trading. Mirror Trading Inc, adheres to strict security protocols and has made security one of the fundamental components of its incredible automated software.

Mirror Trading Vs Copy Trading: What’s The Difference?

Mirror trading might suit those who have little time to investigate trades and investment options. In contrast, copy trading might suit those who have time to review trades and perform a bit of research. It’s going to be a lot harder to find a strategy to use when the market is trading in a range.

With xcritical you have complete control over your trading experience – choose between manual trading, auto-mirroring and semi-mirroring – you decide how you want to trade. While mirror investing is sometimes referred to as “copycat investing,” there are important distinctions between the two. Copycat investing attempts to duplicate the investing ideas of reputed investment managers, without the actual physical link between accounts.

They will be able to decide on their own when to open and close, manually, similar to any other forex platform. In order to try out mirror trading with software you have to get into Forex trading. Copy trading is legal, however, it’s gained a bit of a bad reputation in the stock market industry. There is a fine line between following a trader that is getting in and out of highly liquid and reputable companies and a penny stock trader that’s pumping and dumping low float stocks. Mirror trading determines all entries, exits and any amendments to the trade. When the developer of the strategy executes a trade, the trade is duplicated in your account using software.

Even if you’re on an upswing, it’s important to recognise when the trading strategy isn’t working out as planned. You can streamline your strategy by setting a predetermined drawdown level. In this way you objectively know when it is time to walk away from the trade. There are a variety of social features that help you engage with traders and like-minded investors. For example, the “feeds” section of the platform is designed to allow users to keep up with traders, just like they would on Twitter or Facebook.

When even the majority of professional investors and mutual fund managers are unable to beat the market on a consistent basis, what are the chances anyone else can? In the decade preceding the Russian mirror-trading scheme, Deutsche Bank was informed of substantial and widespread compliance concerns. The offsetting trades in this instance lacked economic purpose and could have been used to facilitate money laundering or other illegal activity. On January 30, 2017, the NYSDFS fined Deutsche Bank $425 million for violating New York’s anti-money laundering laws.

Differences from Copy Trading and Program Trading

If you’re looking to learn about trading, copy trading is a great place to start. It allows you to learn from more established traders whilst also having your own input into your investments. Whilst it requires a low time commitment, it also allows you the freedom to pick and choose which trading actions you follow and which you want to ignore.


There are over 1,000 assets available to trade on, which means you’ll have plenty of options and be able to diversify yourself. Although this is a US friendly platform, US citizens can only mimic trades placed on cryptocurrency assets. They offer an ultra competitive spread through their Raw ECN account to ensure traders are getting the best possible deal on trades.

People who take part in this strategy don’t necessarily need a lot of investment knowledge since they rely on peers or experts. Some popular social trading platforms and apps include Spiking, Trading View and eToro. Mirror trading is popular with traders across the world, particularly those who are just starting out in trading or who don’t have the time to commit to traditional trading. It can be a safe way to make a profit if a reliable mirror trading platform is chosen and a successful algorithm is chosen. Mirror Trading is a trading strategy that allows less experienced traders to copy the trades of experienced ones. It is quite beneficial foxcriticals who are new to the business and have not been able to establish strategies of their own.

All the stress of trading is gone because you’re not in charge of the trade. Our cloud-based analytics engine takes advantage of every fluctuation in the market to make successful predictions for the future. You can view the past performance of all strategies – and their relative risk factor – to help your decisions. Global Banking & Finance Review (FGF studies in small business and entrepreneurship ed.). Gordon Scott has been an active investor and technical analyst of securities, futures, forex, and penny stocks for 20+ years.

Tradenet’s Live Trading Room

Sometimes you’ll make gains whilst other times you may make losses. The most important thing to do is to make an educated decision about the type of trading that you do and the platform that you choose to use. You first need to closely examine the historical data and particulars of different available trading strategies by using a forex trading platform. Hosted in the cloud 24/7 without the hassle of a VPS, allowing you to copy trades to any amount of trading accounts and much more. Social Trader Tools allows you to manage an unlimited amount of MT4 accounts from any MT4 broker, all from one platform. You are generally locked in to the particular trading style of a selected professional for the term of your mirror trading account.

You can use the MQL5 Signal Service for automated trading, or API Trading if that’s more your style. Duplitrade is their newest tool, with which you will be able to mirror trade in an easy way. Mirror trading acts as an easy solution because not only does it allow novice investors to get their feet wet, but it also gives an advantage to traders of all experience levels. The exact steps to take depend on the broker you go with, but you’ll be thrilled to know that the mirror trading process is surprisingly simple. Since 2005 the xcritical platform has gained popularity with tens of leading financial institutions.

Also, mirror trading helps new traders to trade less-effect by emotions of fear and greed, and to grow professionally by learning from the experience of others. Interactive Brokers acquired another firm that was rooted in mirror trading in 2015. Like Tradency, Covestor claimed to be a pioneer in bringing separately managed accounts online in a transparent marketplace. It billed itself as a forum for discovering exceptional portfolio managers, who collectively covered a complete range of strategies, sectors and risk levels. Covestor enabled its clients to save money through low trading costs and automated software which replicated portfolio managers’ trades in mirror accounts.

Although there are several trustworthy mirror trading platforms on the market, there are also many scam platforms around. It can be hard to separate the scams from the genuine investment opportunities, making it difficult to choose a mirror trading platform. Mirror trading is an automated form of trading, so there’s no option to deviate from the algorithm scammed by xcritical if you disagree with a trade. You can’t pick and choose which trades you follow – you’re committed to following the algorithm. Whilst many people enjoy this hands-off way of trading, some people prefer to have more control of their investments. Even though at first glance mirror trading may appear attractive, it does have a few cons as well.

Advanced charting package with real-time & historical data

Make sure Bob really knows about investments and isn’t a wannabe trader who considers himself an expert because he regularly scans the business news and online investment portals. Select a broker – Firstly, you’ll need to register with a broker that offers mirror trading. We’d recommend finding a provider with strong customer support, fast withdrawals, 2FA security and positive customer reviews. Mirror trading is automatic and therefore emotion is removed from the equation. Traders may spot a trend forming in the data, but if they’ve been burned by the forex pair in the past, they may be overly cautious and miss the opportunity. Similarly, if the trader has profited from stock in the past, they may be eager to invest again without proper analysis.

The EA or Mastexcritical will complete the leg work, whilst the investor watches. Mirror trading is a practice that is regulated by relevant authorities across the globe. Mirror trading allows traders or investors to mimic others by implementing the same trades that others do in the trader’s own account. It’s important not to get cold feet and start doubting your method.

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