Auto trade copier vs. forex bots, which one is better? Which one should you choose to take full advantage of earnings? What do they even indicate?
To put it simply, an auto trade copier is a piece of forex trading software application that enables you to directly copy the trading position taken by another trader. It’s right there in the name– trade copier. A forex bot, on the other hand, is a trading program that helps you with the technical analyses and repeated components that come with forex trading. It’s likewise called an FX robot or just bot’.
Both of these innovations are needed, especially in the contemporary world where 90% of forex trading is done by computers and algorithms. In fact, 1 in 3 investors strongly believe that automated trading simplifies the otherwise over-complex traditional forex market method. In addition, 1 in 4 traders were seriously thinking about social trading in 2020.
Because of this shift from traditional to tech-based forex trading, social trading platforms grew by 96% to simply under $50 billion ($ 47bn to be precise) in 2020. That number is projected to hit $83 billion in 2025 (growth of 48% per year). Long story short, auto trade copiers and forex bots are here to stay, and for good reason.
Are they needed?
The forex market is by far the largest and most liquid monetary market in the world. Let’s take a look at a couple of numbers that highlight simply how big the forex market is:
The global typical everyday trade in the FX market is well over $6.6 trillion. For contrast, NASDAQ– which is the greatest stock exchange in the world– has a trading volume of around $2.2 billion while the NYSE– the 2nd biggest– is valued at $2.09 billion.
Regardless of its substantial size, the global forex market is neither ending up being slow nor slowing down. Some forecasts forecast that it will grow by an average of 6% annually to $10.2 trillion by 2026.
Over 170 currencies are traded on the FX market.
Approximately 10 million individuals trade forex worldwide.
Approximately 41% of forex traders average anywhere from 9 to 20 trades monthly.
What the numbers show is that the forex market is substantial, challenging, intricate, and fierce competitive. Unless you’re an expert, you definitely can’t crunch the numbers to come up with a winning formula.
Besides, the forex market is extremely unstable. Sure, you can spend weeks and months coming up with a decent trading position. But because of the many, abrupt market relocations, your position can quickly and quickly turn from a winning to a losing one.
The option? Choose a forex bot to crunch the numbers for you. In that case, your only job will be identifying when to get in or leave a position. In fact, some FX bots will go an action even more and instantly set entry and exit points for you.
Even better, you can use an auto trade copier to mirror winning positions of seasoned traders. Think about it as forex trading for dummies, however with minimal danger because novices use the methods established by professional and knowledgeable traders. With that stated …
What’s an Auto Trade Copier and How Does It Work?
As the name recommends, an auto trade copier permits you to copy the trading positions taken by another trader. Simply put, it mirrors trading positions for you and puts you in a position where you can make a profit from someone else’s skill. You only need to decide the quantity you want to invest and after that copy whatever that the other trader is doing.
When that trader makes a trade, your account will make a comparable trade in real-time. If they earn a profit, so do you. The downside is that if they make a loss, you’ll also make a loss.
Which’s where things end up being a bit more interesting. When selecting a trader to copy, you’ll want to choose a skilled financier who earns a profit more times than he/she makes a loss. That way you’ll reduce the opportunities of entering a losing position.
Even better, you can spread out the threat by dividing your overall amount and allocating each part to a various strategy company. Let’s state you have $1000 to invest. You can choose 4 experienced traders and use an auto trade copier to copy their strategies.
If a couple of make a loss from their methods, then it indicates that the other 3 or two will have earned a profit. It likewise means that you will have gotten a winning position from those 3 or two who made a profit. That’s better than designating the full amount to one technique service provider and then losing it all.
There are two points here. To start with, your option of method service provider is really important. Second of all, it pays to spread out danger. Not exactly sure how to pick method companies or spread your danger? Use the allmarketstrading social copy trading platform to immediately choose the best forex traders on the market.
This software application thoroughly examines traders and chooses those whose techniques win more than lose. It then populates a list from which you can follow the best-performing traders and mirror their gaining techniques.
How does a trade copier work?
The best auto trade copiers provide a forex trading platform (MT4 or MT5) straight to your computer, mobile or tablet. Oftentimes they’ll offer you 3 copy trading choices:
Manual– you choose which traders to follow and whose techniques to copy. This is referred to as social trading.
Semi-automated– permits you to see all the positions of the trader you have picked. You can then choose which positions to immediately follow and which ones to copy and trade yourself.
Automated– you pick the traders to follow together with strategies that best match your risk profile. After that, subsequent positions and trading are instantly replicated.
Keep in mind that although auto trade copiers are similar in numerous methods, they likewise vary in other elements. The allmarketstrading copier, for example, lets you personally choose your financial investment quantity. It also gives you the liberty to enter and exit a position at will.
That’s what you want in an auto trade copier. Not one that forces you to invest (and thus risk) more money than you desire. And you definitely have no company using a forex trading platform that will stick you with a losing strategy or lock you out of a winning method– i.e., one that does not permit you to go into or leave a position.
