Forex Copy Trading in Singapore – Why is it so popular?
Forex Copy trading in Singapore allows traders to copy the trades placed by an Expert trader automatically. The traders can decide the amount they want to invest and copy all trades of professional traders automatically in their account in real-time. If the trader you are copying places a trade, the same trade appears in your account at a predefined lot size. That’s the reason Forex Copy Trading is popular among traders in Singapore.
Why should traders use Copy Trading?
The trader doesn’t have to trade manually anymore, and he gets similar profits on each trade as the expert trader he is following.
Copy trading is one of the easiest ways to benefit from a professional trader’s knowledge. It does not restrict you from controlling your account, you can still close trades and open new ones if you want. But interfering with the trades while trading on the Copy Trading Platform is not recommended.
Any Forex trader in Singapore can copy an expert trader and can potentially make a profit based on the expert trader’s skills.
In fact, Forex Copy Trading in Singapore doesn’t require active involvement and advanced knowledge of the financial market and it helps people with less or no knowledge of Forex take advantage of Forex trading as the professional traders do.
We have reviewed the Copy trading feature of FXTM, ZuluTrade, eToro, and InstaForex here.
History of copy trading
The history of copy trading goes back to 2005 when traders felt the requirement of copying specific trades that were generated by using advanced trading algorithm. The advanced trading algorithm must be protected, only the trades must be shared. Forex Brokers realized the requirement of having systems where a trader can copy the professional trader’s trades without getting direct access to his valuable trading algorithm. There is no need to follow Email trading signals, SMS signals, or trading ‘chat’ rooms to follow the expert’s or the professional’s trades.
With the above idea of Copy Trading, some platforms like Zulutrade and eToro came up, who made it possible for the expert traders to connect their trading accounts to their copy trading platform. The professional traders no longer had to share their proprietary trading algorithms, they can only submit their trades for copying by others automatically. The concept of Forex copy trading has become popular after that as it helps new traders to increase their success rate and learn the market while copying expert’s trades.
According to one of a recent survey on Forex Copy Trading –
- One third of the Forex traders say that a traditional Forex trading approach is complicated and it can be simplified by Forex Copy Trading.
- 25% of new investors in Forex trading said that they were considering to use Forex Copy Trading or Social trading.
- Social trading platforms has the potential to grow exponentially in the coming years.
Best Copy Trading Brokers in Singapore 2023
- Excellent collection of traders
- The stringent ranking system for traders
- You get the best traders to follow
- Built-in risk management tools
- No profit-sharing – fees adjusted in spread
- Select your own Forex broker
- Follow as many as traders you like
- FXTM Invest allows copy trading
- In house Copy trading and ranking system
- Low-performance fees
- Start Copy Trading with $100
- Best selection of strategy managers
- Negative balance protection
- Regulated in multiple jurisdictions
- Recommended for Forex Copy Trading in Singapore
- eToro copy trading is Free to join
- No account management fees
- Stringent ranking system of traders
- eToro copy trading is easy to use
- Select from best performing copy portfolio
- Safety and security of funds and privacy protection
Warning: 62% of retail investors lose money
Forex Copy Trading platforms
Different Copy Trading Platforms offer a different level of control and customization. Some of the platforms offer advanced control to allow following multiple traders in one account with custom lot sizes. Some copy trading platforms have a simple interface just to follow only one strategy provider with a specific lot size. Depending on the way of working Copy Trading can be – fully automatic and manual.
Manual copy trading is almost similar to ‘normal’ trading where the trader trades himself and copies the trades manually in his account. They get the trading signal from their expert trader through the Facebook group, or email, SMS, or from telegram message. Many traders prefer this approach of copy trading as they don’t have to pay any share from their profit as a fee. In Automatic Forex copy trading, you choose the expert traders and copy his trades automatically. All trades from the selected Expert Trader gets replicated in your account in real-time.
FXTM Invest is one of the leading Forex Copy Trading programs which is available to traders in Singapore. The FXTM Invest Copy trading feature is available to FXTM traders. You have to open an account with ForexTime.com and select a strategy manager from the list of best-performing strategy providers. The strategy providers charge from 10% to 50% of the profit they make in your account.
FXTM Invest has the finest collection of Strategy Managers with several months of consistent performance. The traders following them have made decent profits. You can start Copy Trading by opening an account with ForexTime.com. FXTM Invest begins with a deposit of just $100. However, an amount of a minimum of $1000 is better.
How to start Forex Copy Trading in Singapore with FXTM Invest?
The image below shows the step by step guide to starting Forex Copy Trading in Singapore with FXTM Invest.
How does Forex copy trading work?
Forex Copy trading in Singapore has become an interesting way to automated trading. The traders can access a few highly advanced Forex Copy Trading platforms in Singapore. Here’s a simple step-by-step guide to start Fx Copy Trading:
- Select the best strategy provider that matches your requirements. You can use the tools provided on the platform to filter the available strategy providers or expert traders. Find the right strategy provider for you by analyzing the risk level, profitability, the total amount of money they manage, and their ROI. In reality, it’s entirely up to you to select the right strategy provider or Expert trader.
- Finalize the investment amount and the distribution ratio if you want to select multiple strategy managers. It is better to copy more than one trader for a balanced risk while copying trades, and not putting all your eggs in one basket.
- The Forex copy trading platform will automatically copy the selected Expert trader’s trades into your trading account.
- You may add more funds if you like for a trader who performs better. Or, reduce your investment with one particular trader whose performance is not satisfactory. Keep your portfolio diversified by not investing all your investment with a single trader. You can replace your strategy providers at any time you want. You will need a separate account for each trader you decide to follow with most of the copy trading providers, except for ZuluTrade. ZuluTrade offers you to follow multiple strategy providers in a single account. You can define how to follow each trader, and determine lot size and risk level for each provider.
- The brokers don’t charge any additional fees for using the copy trading feature. You have to pay the Copy Trading fees to the Strategy Manager when they make a profit for you. The brokerage that apply to any regular Forex trading account will apply to copy trading accounts too.
What markets are better for Forex copy trading?
The copy trading platform offers you access to the Financial markets, which include: Forex, indices, stocks, and Commodities.
You can find out strategy providers of your choice depending on whether you want to trade Stock CFD, Indexes or Forex. Use the filter option on the strategy providers page to find the best strategy provider to follow.
The advantages and disadvantages of Forex copy trading in Singapore?
There are many advantages of Forex copy trading. It relieves the trading stress from the investor. The investor can keep himself busy in his day to day life without worrying about studying the market and keeping an eye on trading.
What is the responsibility of a Forex copy trader in Singapore? The most important task of the Copy Trader is to find expert traders who have a consistently successful track record and safer trading style.
The investor can distribute the risk by selecting to copy more than one strategy provider or expert trader. It will help you to diversify and be on a safer side to face the ups and downs in markets.
The Forex copy trading accessible to both big and small investors and it offers an easy approach to Forex trading. The advances in social networking and the wide reach of the internet technology have made Forex copy trading available to many traders.
Learn while Copy Trading
Forex copy trading allows traders to copy the trading activity of experienced traders. These experienced traders have several years of experience, and consistently making money. You can learn trading from them by watching and replicating their trades and slowly developing your trading skills.
There are a number of copy trading platforms and different strategies on offer. You can diversify your portfolio by trading with multiple providers with different trading strategy. By distributing your portfolio among several professional traders, you can minimize losses if one trader performs badly. This will help you make money in different types of market conditions.
Trade in any Financial Sector you like
Do you want some exposure to commodities like Oil and Gas or Metals like Gold and Silver? You can follow the Copy trading provider who has specialization in a particular field. You can decide and get whatever type of assets you want to trade by selecting an expert trader trading in that sector.
You get Free time
You can invest in the Forex market and have the strategy manager you have chosen continuously monitoring them. This helps you spend quality time with your family and friends, and on your full time job.
Risks of Copy trading
Forex trading involves risk and nobody can ever eliminate it. Copy trading also comes with such risks of losing your capital. There may be a lower risk in Copy Trading compared to the new traders trading on their own. Forex Trading by its nature is a high risk, high reward financial instrument.
Strategy providers’ background
Finding a reliable long-term expert trader may be a difficult task. You must do your own homework while selecting the traders, and make sure that you understand your chosen traders. Sometimes, the results can be misleading in the short term. It is better to follow a consistently performing low-profit trader having a track record of more than a year, than a highly profitable trader with just a few months of trading record. If a trader is giving too high return, it is likely to have a high DrawDown also.
Risk of Trade Execution
Similar to any other financial trading assets, there is a risk due to the liquidity limitation of the asset. Your trades may not execute at the same price as the trader you are following. The spreads involved may be different. These conditions affect the profitability of your account.
Many traders lose money due to a lack of experience and knowledge. It is not an easy task to master the Forex market just in a few days or months. You can’t just rely on a few Indicators or Auto-Trading system as most of the time they fail to perform. Hence the traders prefer Forex Copy Trading and Forex Account management feature.
You can go for either Forex Copy Trading or Managed Forex Accounts. These systems help you manage your trading activity through a professional trader with a proven track record and has consistent, safe, and profitable trading records. Your chances of success in the Forex market is better while you are following high rated Forex Copy Trading and Forex Account Management service.