Mirror (Copy) trading is a part of social trading. The trading strategies of experienced traders can be viewed and copied. In this way, ideas, strategies and techniques are used collectively. Those who practice the system have the advantage of not having to actively take care of trading.
Investors can decide for themselves whether they want to follow the entire strategy of a signal provider or whether they only use it in part and combine it with the strategies of other signal providers. It makes sense to use strategies from different signal generators because this ensures the necessary diversification, which is known to be important in all forms of stock trading.
This article will take an in-depth look at mirror trading. Here are the topics covered:
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Risk warning: Trading Forex / CFDs and other derivatives is highly speculative and carries a high risk for your capital. CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The Best Brokers for Mirror Trading in Comparison
- Rating – 100 / 100
- Minimum Deposit – $ 200.00
- Deposit Insurance – $ 20,000.00
- Trading Costs – From 0.09%
- Mini Contracts – Yes
- Rating – 96/ 100
- Minimum Deposit – € 100.00
- Deposit Insurance – € 20,000.00
- Trading Costs –
- Mini Contracts – Yes
- Rating – 94/ 100
- Minimum Deposit – € 10.00
- Deposit Insurance – € 20,000.00
- Trading Costs –
- Mini Contracts – No
- Rating – 91/ 100
- Minimum Deposit – € 100.00
- Deposit Insurance – £ 85,000.00
- Trading Costs – From € 0.99
- Mini Contracts – Yes
- Rating – 87/ 100
- Minimum Deposit – € 200.00
- Deposit Insurance – € 20,000.00
- Trading Costs – From 2.00 € + 0.20%
- Mini Contracts – Yes
- Rating – 81/ 100
- Minimum Deposit – € 250.00
- Deposit Insurance – € 50,000.00
- Trading Costs – From 0.13%
- Mini Contracts – Yes
- Rating – 77/ 100
- Minimum Deposit – $ 200.00
- Deposit Insurance – £ 85,000.00
- Trading Costs – From € 6.50
- Mini Contracts – No
To compare cutting edge copy trading providers with an easy-to-use interface, fill in your details in our enquiry form, and we will get back at you with up to 4 FREE quotes for you to assess and review
READ ALSO: What is Copy Trading?
Forex Mirror Service Providers Under the Magnifying Glass – How Do You Find the Best?
A disadvantage of mirror trading is that the actions are delayed, so your own orders may be placed under different conditions than those of the signal provider. If you want to participate in it, you need a suitable platform because not all providers offer this form of trading.
Most of the providers who also offer it were originally forex or CFD brokers. Here it is especially important to pay attention to the prices of the providers, because they are sometimes not regulated by the stock exchange, but rather determine their prices themselves.
A provider is only reputable if he has built up reserves. Caution is advised with the so-called additional payment obligation, which states that traders have to cover losses that exceed the paid-in capital themselves.
A forex mirror trading provider should always have optimally protected his customer deposits. Furthermore, it is important that customer service can be reached promptly, that the broker provides sufficient information on its website and that its customers have a demo account to practice with. Unfortunately, it is still common for many providers that customer service is partly or entirely in English.
Is There a Mirror Trading Forum?
There is no special forum. However, the topic is dealt with in certain areas within general trading forums such as Forex Factory. Many providers also make mirror trading experiences available in the forum within their trading platform, where users can exchange their experiences.
The Dangers
The greatest dangers are the risk of losing money, the risk that a copied strategy will not be successful or that a signal provider will not be as successful as it claims to be. So traders should ask themselves whether they will be able to accept or offset any losses.
Furthermore, it is advisable not to rely on just one signal transmitter, but rather to rely on different ones. As with other trading strategies, the principle of diversification applies here. Investors should be careful when choosing their signaller and check them again and again to minimise the risks with regard to possible losses.
How Does a Platform Work?
To access a platform, registration is necessary, as is the case with other brokers. A platform is structured similarly to the usual web traders but has additional functions. It is possible to see the actions of thousands of traders, watch their trades and replicate them.
Positions can be viewed live, the course of the trade can be followed precisely. The platforms provide filters that can be used to select the signal generators. It can be filtered according to criteria such as high returns, certain trading strategies or even low risk. The platforms offer a high level of transparency. They show all of the signaller’s performances and trades.
Comparison of Providers
The leading providers of forex mirror trading are Earnex Exchange, eToro, ZuluTrade, Copyop and Wikifolio. Although all providers show similar conditions in comparison, Earnex still achieved first place in the overall rating. The broker offers a demo account and the minimum deposit is only 100 euros.
In addition, Earnex is regulated, has the largest selection of tradable products and is one of the cheapest providers in social trading with fees of 3 pips.
Second place goes to eToro. There is also a demo account here, but the minimum deposit is 200 euros, the tradable products are slightly less than with ayono and also slightly more expensive. However, the difference to ayono is not very big.
Can You Do Forex Mirror Trading in Other Languages?
Social trading is still a relatively new offer, but mirror trading can be called in many languages from almost all providers. So trading can also take place in many languages, which is certainly a relief for many traders.
With some brokers, the home page takes you to the English page at first, but the language can be changed using a small icon with a flag. After that, it works perfectly in all languages.
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Mirror Trading at Roboforex
Roboforex is a broker that offers trading in financial products on the international markets. The company is based in Cyprus and offers mirror trading, among other things. First of all, you have to register with the broker, which is done online and confirmed by e-mail.
Registration is easy because only a few details have to be provided. After the account has been created, traders can start at Roboforex right away. Verification is not required at first, but it becomes important when money is to be paid out. It usually works by submitting an identification document and a few extra papers.
A separate account must be created with Roboforex for each type of application. However, the accounts are free and only serve to provide a better overview.
A new account can be set up using the “Live Account” menu item. After funds have been deposited into the account, it can be linked to another trader to follow their trading operations. Under the menu item “Fund Management”, the CopyFX account created must be selected as the target to deposit money.
To be able to operate at Roboforex, it must be set up via CopyFX and coupled with the signal generator. It is important to select “Proportional” for this process and to enter 1.0 for the ratio. “Round down the copied volume value” should also be selected with a tick.
Mirror Trading Put to the Test
Forex mirror trading is so popular because it saves time and is highly transparent, and at the same time brings good returns that cannot be achieved with conventional financial products. Investors can benefit from the experience of others and take advantage of their strategies.
Both experienced private investors and professional traders can serve as signal generators. However, tests show that you should take a good look at the signal generators and check them from time to time to make sure that they are trading profitably.
Mirror trading offers a good chance of returns and saves time because less experienced investors benefit from the know-how of professional investors.
Social trading is also more transparent than many other forms of investment. It is also playful, which increases the fun factor. Those who know their way around better over time also have the opportunity to become a signaller and thus secure a profit-sharing scheme.
It is up to each trader to decide whether he is just resting on the laurels of others when it comes to mirror trading or whether he takes the signal generator as a role model and thereby develops his own knowledge and skills.
The possibility of being pulled along by other traders can therefore be seen as an advantage or a disadvantage because if you don’t have to learn anything about trading, you won’t expand your know-how any further. Come in addition,
To consider forex mirror trading in the test, it is also important to select the right broker and to find the best signal provider that best suits your personal circumstances.
The signaller’s profile provides information about the strategy of the signalling device, which, however, has to be filled out with different levels of detail for different providers.
When choosing a signalling device, one should not only be impressed by the short-term development of its performance, as this can always be a momentary impression. In addition, securities account positions that have not yet been closed and are therefore not meaningful at all can also be shown.
Good social trading platforms make the so-called drawdown available, which helps traders to assess a signaller’s willingness to take risks. The account history must also be visible since only traders should be considered as signal providers who have already been successful over a longer period of time.
It is possible to select many different signal generators with different weightings and thus achieve a wide range. With the help of the loss limits, you can automatically separate your own portfolio from the signalling portfolio and thus limit your risk.
In times of low interest rates, ever-advancing digitisation and an increasing lack of trust in established structures, new concepts such as mirror trading can become successful as instruments for asset accumulation. Younger traders in particular can get enthusiastic about the trading form and help it advance even further in the future.
The Test Winner
The current test winner is Earnex Exchange. The broker achieved marks in the 1 range in the overall evaluation. It provides numerous professional traders as signal generators that investors can follow. As far as the clarity and the logical structure of its platform are concerned, the mirror trading provider was rated “good”.
Earnex Exchange offers good social trading with risk limitation, as well as a free demo account. The clarity of the commissions, however, could be improved.
Etoro is also one of the test winners. The modern broker offers a free demo account and small amounts can be traded. The wide range of products is convincing and the costs are also low. There are no other fees besides the spreads. However, the deposit protection at eToro is quite a bit lower than the 100,000 euros required in the UK. eToro only provides coverage up to 20,000 euros. The broker is also not regulated in Europe and the customer service is only available in English.
The broker Avatrade also scores with a free demo account and a deposit bonus for new customers of up to 20%. Customer service is available 24 hours a day, but often not in other languages. The broker is also not regulated and supervised in Europe but in Ireland. A good plus of Avatrade, however, is its very diverse range of webinars and e-books.
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Forex Mirror Trading Return From Others
Mirror trading is a sub-form of social trading and makes it possible to mirror the investment strategies of other members and to participate in them. In this way, returns can be made in mirror trading, for which one would have needed a lot of know-how and a lot of time to build up personal knowledge.
The investors whose strategies can be copied and followed are called signallers. To generate a return that is worthwhile, it is above all important to choose the right platform, to find the right signaller and to diversify the portfolio appropriately.
Testimonials
Testimonials from customers show that it is true that mirror trading is much easier for beginners than other forms of trading and that know-how can be acquired by observing the actions of the signal generator. Trading is simplified because analyses are no longer necessary, the market no longer needs to be observed and because less background knowledge is required.
Building up background knowledge is always time-consuming because trading stocks is a broad field and its details can be very complex. Testimonials do not allow any conclusions to be drawn as to which is the best forex mirror trader Broker, which is probably because it always depends on personal needs and taste which broker is best suited. Find a broker right for you here – acorn2oak-fx.com/forex-brokers.html.
How Popular is It in Europe?
It is the new trend and it is growing in popularity around the world. More than 4.5 million customers are now investing in social trading platforms.
Therefore, mirror trading is gradually becoming more and more popular in Europe. But this trend is also controversial. Not everyone believes in the seriousness of the providers, although it can be proven that they are serious before the law. Brokers are often accused of tempting them to gamble.
But of course, that is always a matter of the personal disposition of each trader himself. Whoever decides to mirror trade should always be aware of the risk of these transactions and proceed calmly and prudently set limits and goals and not deviate from them.
Which Providers Offer a Demo Account?
Most providers provide a demo account. This is especially important for newbies, but it can also help experienced traders review their strategies. A free mirror trading demo account is available at eToro, for example. The demo account can be used indefinitely and can also be used in parallel with the live account.
Ayondo also has a free demo account. It can also be used in parallel with the live account. As in most cases, the demo account contains 100,000 euros as fictitious capital. All functions that are also in the live account are available and can be tested.
At ZuluTrade, there is both a demo account and an assistant to get you started quickly. Opening the demo account is particularly easy and can even be done via Facebook. Unfortunately, the practice account at ZuluTrade can only be used for one month.
Mirror Day Trading
Mirror trading can make a lot of sense, especially when it comes to day trading. With day trading, high returns are possible and of course high losses. This also applies to mirror day trading.
Day trading is, so to speak, the premier class of stock market trading, for which you need the most know-how and invest a lot of time, both in advance when learning day trading, as well as during day trading.
Because this type of trading is not so easy to learn, it makes particular sense here to orientate yourself in mirror trading to an experienced day trader. Not only to get a good return but maybe also to improve your own day trading skills with another, experienced trader.
Mirror day trading brings the investor all the advantages of day trading but minimises the disadvantages.
To compare cutting edge copy trading providers with an easy-to-use interface, fill in your details in our enquiry form, and we will get back at you with up to 4 FREE quotes for you to assess and review
Related Articles
You may also find the following articles useful:
Forex Copy Trading – A Simple Overview
How to Evaluate Forex Copy Trading Performance
The Future of Forex Copy Trading
Advantages and Disadvantages of Copy Trading
Setting Up a Copy Trading Account
The Best Forex Copy Trading Platforms
