In Nigeria, Forex trading is booming. Advanced software connects local traders to the largest global markets. Users can automate decisions and even delegate to pros. Known as copy trading, the system is in high demand. Here is how to find a reliable trader who will puff up your balance.
The Concept of Copy Trading
As the term suggests, the scheme is based on replication. First, you choose an expert using detailed rankings compiled by the brokerage. Then, your accounts are connected, and the copying begins. In essence, this is a way to trade by proxy. Whatever the manager does, this happens with your funds, too. As a rule, brokers allow you to delegate a portion of the balance only.
Why Use Copy Trading
Sometimes, making decisions on Forex gets stressful. When you are pushed for time, mistakes are particularly common. Delegation is popular with beginners and pros. Newbies learn by watching the experts, while other users save time. Thoughtful analysis is not easy. When there is no opportunity to scrutinize the charts, let a strategy manager do the job for you.
The Setup Process
The connection is easy to establish. The most difficult part is picking the best candidate from the list. Brokers evaluate managers based on performance, win/loss ratio, risk tolerance, and other objective criteria. Choose a person whose style matches your own.
The next step is signing up for the service. With Forextime Invest, it is quick and easy. Next, top up your balance if necessary, and the connection will be established. That’s all! Find out more about what is copy trading on the
Now, all the expert’s open positions are reflected in your account. The same applies to any subsequent actions. Importantly, you never relinquish control of your balance. A trader copying an expert may cancel separate moves or
terminate the entire connection. There are no contracts — keep following as long as you are happy with the results.
How Much Does It Cost?
For experienced traders, this is an opportunity to share knowledge for a fee. If their strategy brings profit, they are entitled to a fee. For example, if your strategy manager makes a profit of $500, their commission may constitute
10% — $50 in this case. Meanwhile, the rest ($450) lands in your account. As you can see, managers are incentivized to work hard. Still, you should not interpret this as a way to make a passive profit. Here is why.
Forex Trading and Risk
Whatever the strategy, trading always entails risk. After all, this is the largest financial market where banks, hedge funds, and individuals buy and sell trillions. Currency rates are affected by a multitude of factors, both political
Even the most experienced user does not hit the bull’s eye all the time. Due to the number of variables, nobody is infallible. Even strategy managers are wrong sometimes. Still, only experienced traders become strategy managers. They are less likely to make impulsive decisions and deviate from strategy investment. Besides, the financial reward motivates them to succeed. Still, you should keep an eye on their performance. If any trade seems doubtful, you may cancel it immediately.
How Can I Access Copy Trading?
This service is offered by regulated brokers in Nigeria. However, be very careful, as fraud is quite common. The country is yet to see any coherent legal framework. Today, it is advisable to choose International brands with licenses from different jurisdictions, such as South Africa (the FSCA), the UK (the FCA), or Cyprus (the CySEC). Copy trading is possible on popular terminals like MetaTrader 4 and MetaTrader 5. These systems allow you to monitor your manager’s
performance easily. They also come with a VPS that keeps your data safe.
● Copy trading is a system that allows you to delegate decisions in the Forex market.
● Copied traders or strategy managers are experienced, and their performance is closely monitored by brokers.
● You can choose an expert from the ranking on your broker’s site.
● As a rule, you may only delegate investment of a portion of your funds.
● While strategy managers are experienced, this does not eliminate typical trading risks.
● The system allows you to cancel separate trades or disconnect whenever you like.
● Choose only regulated brokers licensed by reputable monitoring organizations like the FSCA.