Forex Copy (also known as Copy Trade) is a function where traders can copy another people’s trades automatically. This feature has gained more popularity in the recent years as more people develop interest in forex as an investor, not as a trader. The forex copy feature offers an easy way to do that by copying trades of a successful trader.
Riding on this trend, several brokers offer in-house copy trade system in which their clients can either act as a master (the one who trade) or follower (the one who copy the trade) . The common traits of these features are:
- It works internally within 1 broker. It’s impossible to have master and follower at different brokers
- Many masters are available and the would-be followers can check the masters trade statistics before deciding who to follow
- The master gain some kind of compensation based on the number of followers he made
- Follower can adjust the copy feature according to his/her risk appetite. This can be done by reducing/increasing trade size based on various parameters.
Forex Brokers that Provide In-House Copy Trade:
eToro is one of the copy trade pioneers, they call it “Social Trading”. The function is offered in both of their companies: eToro (Europe) Ltd (CySEC) and eToro (UK) Ltd (FCA UK). More information can be check at eToro Social Trading.
The Switzerland broker and bank offers copy trade function to members of their Dukascopy Community, they call it “Social Signal Trading”. This feature offered from Dukascopy Bank SA. More info can be checked at Dukascopy Social Signal Trading.
HotForex copy trade function is branded as HFcopy and it is quite new compared to the other big names. This feature is offered on both their companies: HF Markets (Europe) Ltd (CySEC) and HF Markets (SV) Ltd (not regulated by the St Vincent & the Grenadines FSA). Find out more about the feature at HotForex St Vincent website and HotForex Europe website.
- RoboForex (RoboMarkets)
RoboForex opt to offer their copy trade function on a separate website and call it CopyFX. It has the general function of copy trade and even have affiliate program attached for those who are interested. The feature is offered by both of their companies: RoboForex Ltd (IFSC Belize) and RoboMarkets Ltd (CySEC).
- InstaForex / ForexMart
InstaForex has been offering copy trade for a while and they call it ForexCopy. Later in the expansion effort of the company, it also offers the same feature at their brand for Europe: ForexMart. Currently the feature is offered at InstaForex.com (regulation/company unknown) and Instant Trading EU Ltd (CySEC and FCA UK). Details can be found at InstaForex.com, InstaForex.eu, and ForexMart.
FBS is a new player among brokers that provide built-in copy trade system and currently they only provide mobile version. At the moment the feature is available only at FBS.com (regulation/company unknown) and not at their EU site (fbs.eu). More details about the feature can be found here.
Pros and Cons of In-House Forex Copy
Built-in forex copy (copy trade) feature has its benefits and drawbacks. Here are the pros and cons.
- Does not need additional tools because the broker takes care of all process
- Possibility to do profit sharing automatically because the broker have access to both master and follower accounts.
- Followers locked at the broker that the master use, there is no freedom to choose their own preferred broker. This also means that the option will be limited to brokers that provide built-in copy trade and if a follower want to follow a different master at different broker, he will have to change broker as well.
- On the safety side, accounts and trades are more susceptible to broker’s intervention because it has access to both master and follower’s accounts.
*SmoothGain offers an alternative of in-house copy trade function where followers are free to choose any broker they want regardless of where the master trade. Read more at automated copy trading.