The Copy Trade 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 the trading activities and performance charts for followers to compare and select.
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 trade 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 trade 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 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, 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 get traders exposed to new trading techniques, ideas and strategies they may never heard 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 comission and some money managers have a high performance fees which is 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 have 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 this “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 the 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.