Know all about copy trading UK and the top 5 platforms that can help you
Copy trading has been quite famous in the past few years and the growing market enables many investors and trader to get their hands on the platforms to follow specific patterns of investing. Although many might confuse the term with mirror trading, copy trading is a significant part of social trading. Copy trading may not always be successful but the chances of profits are much higher than mirror trading.
The mirror method allows the traders to select a strategy for trading in the Forex or Stock market where the platforms automatically ‘mirror’ the trade pattern. Traders can opt for specific strategies that match their trading preferences and adhere to factors like risk tolerance and profits. After the strategy is selected, the platforms send related signals which are automatically applied to the brokerage account of a particular client.
But in case of copy trading UK, the traders are allowed to automatically copy the positions in the financial market which is usually in the context of the social trading network. The social trading network is similar to what you can devise from the social media platforms. It is considered to be the easiest way to invest because you will not be the only fish in the sea. Social trading is a procedural event where online traders make their own trades, which is quite natural. But, what distinguishes it from the conventional trading game is that the online traders can make their trading strategies based on the data which were previously generated by other users from different trading platforms.
How copy trading UK operates?
Copy trading UK generally is an automated format to copy the trade positions based on the data generated from trading of previous investors. The trade positions are copied from one trading account to another and the operation is very easy. With the help of technology and internet, the operation has become easier. The whole process can be done with three simple steps.
1.Add the investment amount through an account.
2.Select a trader whose strategy you wish to follow.
3.Copy the trading position on the platform.
Now, the trading platform replicates the selected trader's position into the opted client brokerage account. This is a major benefit that one can derive from the use of this platform. Moreover, you do not have to log in to the stock board to change your strategies because one of the major investors is already doing it and the trading selections are copied to your account. But, risk is always involved due to the higher technicalities and usage of strategy that might result in some flawed results.
This is why the Copy trading UKplatforms are available with three control features which are automated, semi-automated, and manual.
Automated Copy trading
The automated copy trading feature allows you to select online traders whose strategy you wish to follow and is concurrent with your desired trading preferences. Once you have selected the trader, the positions will be replicated automatically into your trading account and the daily highs and lows will be reflected in your trading book. Since the process is automatic, no human intervention is required.
Semi-automated copy trading
If you have particular reservations in the strategies that the selected trader will perform, this semi-automated feature allows you to reconsider the investments. There are many traders who like to take risks while trading and this is purely their gut feeling. If you are not much of a risk-taker, then this semi-automated copy trading allows you to have access on the trading book. You can select certain specific positions that you wish to copy and the platform will replicate that for you.
Manual Copy trading
This is a lot similar to the normal trading but the added benefit that you will have is the detailed data of the knowledge and strategies of the experienced traders. You can access the strategies of the traders and get an insight into the factors that prompted their decisions. Now, based on your knowledge and the data set in front of you, you can ‘manually' decide if you wish to copy the trading pattern of a particular trader.
The top 5 copy trading platforms in 2019
ZuluTrade is a platform that has caught our attention since last year with its quality platform that provides ergonomic visualizations and trade-related services. There are different features of this platform that makes it grab the top position in our list. These include the advanced system of Signal providers and customization preferences which is a great tool for beginners.
In the universe of social trading, eTORO grabs the top spot but in our listings, it comes to second in terms of Copy trading UK system. It is very beneficial to the beginners to learn the trends and patterns of the trade and understand the strategies of the selected investors with simple usability functions.
Darwinex is the most recent platform that has found its establishment in the financial market with just a twisted concept. Although the functionalities are same, Darwinex allows the user to buy synthetic assets that shows the performance and price variation of different stocks. There are small packets known as Darwin which show dynamic pricing based on the trader’s performance.
Ayondo is a German company which is a logo for excellence. This is a pure copy trading platform with eased-out growth and usability. Ayondo follows top traders remuneration system that indices the traders based on the low-risk profile. You will be able to see the profits and copy their strategies. The platform is very practical and easy to use but limited which plunges it down the list.
Staying at the last spot of this list, Tradency is still better than most of the copy trading UK platforms available in the market recently. However, this platform is more like a mirror trading platform which sends signals from a computer program known as the expert advisor.
Be a successful copy trader
With all this information and the technology to support, you can now become a successful copy trader which will reflect back in your client brokerage account if you do the first step right. Hence, it is important for you to have an ample knowledge of the financial market and the current traders’ performances to operate efficiently and effectively.