How to use the copy trades service for trading in South Africa today

By: Chime Amara

What is copy trades service

Copy trades service is a special feature provided by forex brokers which enable traders using their platforms to copy each other's trades automatically and earn the same return with each. The cost for copying each other's trades is usually set by the signal provider whose trades is copied by others.

How to use the copy trades service: a guide for South African traders

The copy trades service is usually accessed on the social trading platform provided by the broker which is linked to their server. To use the copy trades services, the trader using their platform will need to create his profile on this social trading platform. Here professional traders will have to register their accounts as “Signal providers” which will make their accounts visible for others to study their past performance and decide whether to copy them. Beginners on their part will have to register “Copy trades” this will give them access to copy trades from the approved signal providers registered on the platform. To copy the trades of a particular signal provider, the trader will have to click on the signal provider's profile and click on the copy trade button attached to it.

Next, he will need to set his preferred lotsize for copying the signal provider's trade. Traders here need to select the option for “fixed lotsize” which enables them to choose the lotsize due to their accounts. They can further indicate the number of trades they which to copy and their preferred maximum drawdown limit to protect their accounts from excessive loss.

Advantages of copy trades service

· Makes it easy for beginners to copy professional traders and earn the same returns with them.

· Suitable for investors with no time for trading.

· Offers beginners an opportunity to learn the strategies used by professionals.

· Offers extra income to the signal providers.

Disadvantages of copy trades service

· There is no guarantee for profits.

· There is none to hold responsible should losses occur.

· Commissions are charged by the signal providers for copying their trades.