The Copy Trading platform from AximTrade provides the opportunity for the professional forex trader to become a Money Manager and start offering trading ideas for followers to copy. Each Money Manager profile will provide trading activities and performance charts for followers to compare and select.
Understanding the Copy Trading
Copy trading is a strategy through which a trader can copy a professional trader’s positions, either automatically or manually. This trading technique allows for following professional traders who have a track record that other traders would like to emulate.
The copy trading platform allows traders to monitor and learn from the strategies of successful traders. This technique best suits traders who don’t have time to keep up with the market or still lack the experience to trade profitably on their own.
Forex copy trading is a popular strategy among traders. A forex trader simply copies another trader’s positions rather than researching and analyzing independently. It is a way to automate your trading strategy. Knowing the risks and rewards will essentially help you decide whether it is a strategy you should adopt.
It is important to choose an expert trader to follow, then copy the trading positions. The key aspect is choosing an experienced trader whose strategies and plans align mostly with yours. You can copy trades on your own or use a copy trading platform that allows you to select a specific trading activity to mimic.
This strategy uses social networks and social trading systems to copy trades from professional and experienced traders. When one trader opens a position, it’s up to traders to decide whether they want to open the same position or not. By using automated trading systems, the trades will be copied without additional input from the trader.
There are multiple ways to copy trade with another investor. One of them is copying the trade entirely including entry, stop loss, and profit levels. Another one is to copy the trade while modifying it according to personal preferences and risk ratio, for instance. Both can be done directly through the trading account on any trading platform.
Copy trading offers a good opportunity for traders to diversify their portfolios. This is through trading multiple positions on different tools in the markets.
One way to further diversify your portfolio is by copying various traders using different financial instruments. It also helps traders to explore different trading strategies. If you use copy trading, you may consider copying multiple investors.
Main Elements of Copy Trading
- Money Manager – The Provider: the trader whose trading activity is being copied. Usually referred to as the signal provider.
- Follower – The Copier: the trader who is following and copying the trades of another investor. Often referred to as the subscriber.
Pros and Cons of Copy Trading
- Good for beginners: It’s good for new traders to learn trading techniques and strategies, and also great for those who don’t have the time to commit to full-time day trading.
- Available on demo accounts: Some brokers offer demo copy accounts. Demo accounts are free of charge, risk-free, and often provide access to useful research tools.
- Exploring new techniques: copy trading gets traders exposed to new trading techniques, ideas, and strategies they may never hear of anywhere.
- Risky: the risks can be high even if you choose an experienced trader to copy. Make sure to examine the trader you wish to copy very carefully.
- Fees: Some brokers apply to commission and some money managers have high-performance fees that are not suitable for traders with small investments.
What is a Money Manager?
AximTrade’s Money Managers are a selective list of top and professional traders with rich trading history. Each Money Manager (MM) or Service Provider has an individual trading profile with a distinctive strategy and preferred trading instruments. There are no limits to the number of strategies a money manager can adopt.
Who Can Become a Money Manager?
Any trader can become a money manager. There are no specific requirements for minimum balance or experience level. However, every new Money Manager has to display 30 days of trading history on the trading accounts and the request needs to be verified by the risk department. This procedure can take up to 48 hours.
Before applying for Money Manager, make sure that all the trades on your trading account are closed and you have at least 30 days of trading history. The application will be reviewed within 48 business hours and will either approve be approved, or our team will get back to you with additional requests.
A Money Manager may also double up as a Follower at the same time. However, there are risks of looping strategies when a Money Manager has Followers and being a Follower himself.
How to Become a Money Manager with AximTrade?
Follow the following basic steps to open your money manager profile with AximTrade:
- Login to your Member Area and click the “CopyTrade” tab.
2. On the Money Manager list, click the “Become Money Manager” button. This is the option to become a Money Manager and transmit automated trading signals to followers.
3. You will be redirected to a page where you will create and set up the strategy as a Money Manager. This is where you will customize all the parameters (Strategy Name, MT4 Account to extract trading history from, Minimum Investments, Performance Fee, Agent Reward, and Strategy description) for your future followers and describe your strategy.
4. Once all the parameters are set and all filled up, you should press the “Create Strategy” button, which immediately brings the confirmation message. This is the notification that Aximtrade is not liable for any losses which the Money Manager incurs on Follower accounts due to bad trading performance or any other issues associated with the investment process. The Money Manager agrees to trade in such a manner that delivers the best possible trading results to his/her followers.
Note: By pressing the “Yes, I agree” button, Money Manager agrees to trade in such a manner to deliver Followers the best possible trading results.
5. Once the Money Manager trading strategy was created, there is a confirmation green box that will pop up in the upper part of the screen. The request has been successfully submitted, however, it needs to be reviewed and verified by the Risk team of the Company within the following 48 hours, to be found and added to the List of Money Managers.
6. Once you become a Money Manager, (your strategy and history were reviewed and approved by the risk team), then the new section “Money Managers” appears in the left-side general menu of your Member Area. The Money Manager tab contains information about active strategies and the option to add new strategies.
As a money manager, you have the incredible opportunity to make passive income while trading clients’ funds and customizing your portfolio based on risk tolerance and objectives. Copy trading even offers the thrilling advantage of leveraging professional traders’ knowledge without incurring hefty costs for analysis software or devoting all your time to learning about markets. With forex investing, the benefits are immense!
Money managers not only require the capability to effectively utilize trading platforms and cultivate marketing proficiency for their portfolio strategy but also must ensure that clients understand all of the dangers connected with investments before making trades. Additionally, monitoring customer feedback allows managers to make necessary adjustments in order to remain profitable while continuing on their path toward success.
In summary, Copy trading is the ideal option for investors who lack the time and expertise to create their own strategies. Investors can start with a low-cost investment and then steadily increase their participation as they gain more trust in the markets. In short, copy trading provides an outstanding way to diversify investments while remaining informed about them at all times. However, without the right money manager to follow it is hard for these investors to unlock their full potential.
Eventually, as investors are always searching for the best money managers to follow, the money managers are actively looking for the right tips and hack to improve their trading account and to market it. If you managed to become a money manager, you will always need to learn how to improve and compete with other successful and highly profitable money managers.