copy trading with safenet trading

Copy trading is one of the techniques that an online trader can adopt to refine his strategy and increase his chances of success in the world of the online stock market. The principle is simple: take inspiration from and copy the best traders in the world in order to obtain excellent results.

What is the best site for copy trading?

 

The copy trading is an approach to investing in stock market seems to be a sort of panacea, especially for novice traders. However, trading online with this investment strategy is not without risk. It is first of all essential to choose the broker or the copy trading app with which the trader will manage his transactions. Commercial offers are more and more numerous, with a variable level of reliability.

Choosing the right copy trading broker is therefore an essential step to avoid certain disappointments and reduce the risk of losing money by opening positions. Our opinion on copy trading and the choice of a relevant broker is based on 5 main criteria:

  • It may seem obvious but, for French speaking users, it is more than wise to open an account with a broker that offers copy trading. Investing in the stock market is already sufficiently complex, without adding a risk of misunderstanding because of an uncontrolled foreign language.

 

  • It is interesting to make sure that the trading platform performs well in terms of turnaround time. The use of a demo account can be very useful to realise in real conditions the efficiency of execution of the forex / CFD broker. Copying positions should be immediate, or almost immediate, which is why favouring a copy trading broker with an execution of less than a second is more reasonable.

 

  • The copy trading platform or app should provide traders with as much information as possible about the trader to be copied. Investment strategies, based on the decisions of a third party, must be based on detailed statistical elements. The more we know about the trading signal provider, the more we reduce the risk of jeopardising our capital and losing money.

 

  • The catalog of financial instruments available for copy trading is also very important. The success of a trader depends on the diversification of his portfolio. It is preferable to have access to a large choice of instruments: copy trading of actions, copy trading of crypto (Bitcoin type), forex or even indices.

 

  • The presence of a professional customer service and available over wide hours is an element, in our opinion, central in the choice of your copy trading broker. This gives investors the answers to their questions when they really need them.

copy trading on etoro

Copy trading on eToro: the best broker to invest?

 

We can mention that eToro is the first to have offered tools dedicated to this investment technique. For all these years, the social trading broker eToro has developed a social trading platform with better performance that meets the real expectations of users:

eToro is the forerunner and the undisputed leader in copy trading, via its social trading platform. It is one of the strong signals put forward by the CFD broker to stand out from the competition. But what is the eToro trading site worth for copy trading?

copy trading on etoro

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

  • The CopyTrader tools to copy the positions of a referring trader, and CopyPortfolio to copy an entire portfolio of assets automatically, at the heart of intuitive platforms.

 

  • Reduced fees and many payment methods for deposits and withdrawals: Paypal, Skrill, Neteller, credit cards or wire transfer.

 

  • The list of Popular Investors, updated regularly, to offer as many options as possible to traders: ranking, popularity, success rate, level of risk, type of strategies, quality of trading signals, etc. The choice of a referent trader becomes simpler and guarantees great adaptability vis-à-vis his financial objectives.

 

  • Full access to all stock exchange markets, via CFDs, for maximum diversification of the portfolio of instruments, including copy trading on the crypto market - Bitcoin at the head of popularity.

 

  • A highly developed social network platform that allows quality exchange between users to improve their skills, while consolidating their capital and earning money;

 

  • eToro is one of the best regulated trading platforms on the market with licenses from CySEC, FCA, AMF and ASIC.

 

eToro: the best copy trading app?

 

eToro is still making the difference thanks to its copy trading application. It is directly integrated into the mobile application, easily downloadable on iOS and Android. Users can find all the features offered around social trading, including copy trading, on their smartphones and tablets. The eToro copy trading application is regularly praised for its high efficiency in terms of execution and its very pleasant ergonomics on the different platforms.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Tutorial: how to succeed in copy trading?

 

Copy trading is often summarised as the simplest activity to start on the stock market, because it can be applied without having real experience in Finance. However, you don't have to go blind to be successful in copy trading.

Before deciding to copy a particular trader, it is a good idea to find out about the health of the financial markets. The social network can be a good source of information and an excellent means of exchange on current trends. The strategies and decisions taken by the referring traders are additional relevant information, since they give more or less strong signals of the trend on a particular asset.

For users with the least experience, and those with little time to devote to the stock market, it may make sense to choose to trade online through an automated trade copy activity. They do not miss any good opportunity since they follow the strategies of one or more investors step by step.

Copy trading should also be considered as a good method to learn and consolidate your experience, drawing inspiration from practical cases managed by more experienced traders.

Copying a third party nevertheless involves staying on the lookout for certain signals in order to reduce the risk of losing capital, and increase your chances of making money:

  • The type of strategy or risk management: defensive or aggressive;

  • The type of financial assets: stock market, forex, crypto (Bitcoin), etc;

  • The performance statistics of the referring trader.

copy trading on etoro

How much does it earn?

 

This activity can earn money, as long as you follow all the advice given during our copy trading review. How much is a more thorny question. This will depend on the choices made by the copy trader: his regularity on his trading platform, the type of investor to copy, the capital invested in this strategy and the level of risk tolerated. It is also to take into account the costs inherent to the broker and the copy of trades. These can weigh several hundred euros a year on the rate of return.

Copy trading: for whom?

 

This method is open to all user profiles. Despite everything, we have a more precise opinion about it. Indeed, copying trades is a tool that better meets the needs of investors, who have little experience in the functioning of the Stock Exchange. It can be a rewarding step before embarking on manual trading, when the trader feels ready to manage his own transactions, in all ranges of instruments: stocks, forex, Bitcoin, etc.

Ideally, this frees up time to focus on other markets or to do something else entirely. In addition to an independently managed portfolio, copy trading can be a source of passive profits.

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

Copy trading review

The best assets for copy trading?

 

Crypto

 

It is of course a question of copy trading on the crypto market in the form of CFDs. The vast majority of CFD forex brokers offer underlying assets, which allow you to speculate on the rise or fall in the price of bitcoin or an altcoin, without becoming the owner. With copy trading, it is a good way to make money by taking advantage of micro variations in price.

 

Stocks and indices

 

We are also talking here about stocks and indices in the form of CFDs to boost the profitability of a copy trading strategy for an intraday trader. Like crypto copy trading, it is then possible to consolidate your capital easily and quickly. The liquidity and volatility of indices, in each market, are such that making money becomes possible without much effort .

The dangers and risks of copy trading

 

We said this in the introduction to our opinion on copy trading. This investment strategy is not the miracle solution to investing capital in the stock market. It presents dangers and risks that must be carefully considered:

  • The past results of a referral trader do not guarantee his future results;

  • Locking in a type of asset with a dangerous lack of diversification;

  • The broker can orient the signals to his advantage, for reasons external to the trader's objectives;

  • Lack of responsiveness to major economic news;

  • Dependence on the decisions of the referent trader, who can change strategy without warning with all the risk of loss that this entails;

  • Dependence on technology and its potentially costly dysfunctions.

Who to follow in copy trading?

 

With copy trading, the trader makes sure to follow a quality trader and draw inspiration from his techniques. More precisely, it will follow the “trading signals” which will be provided to it. The provider of this information is considered a "guru". It is therefore in his best interest to select a talented investor. It will have to meet different criteria. On a trading site like eToro, you can see all the profiles and criteria of traders on this platform. As a first step, it is necessary to make sure that this one has experience (at least 12 months).

The more years of experience he can prove, the more trustworthy he is and the more we can rely on his analyses. In addition, you can better estimate your skills in all possible market conditions (upward or downward trend, no trend, etc.).

copy trading etoro

The right criteria to choose the trader to follow

 

In addition to experience, there is still a fairly long list of essential criteria that must have the trader that we are going to follow and from which we will copy the strategies. First, the return on investment (or ROI) must be stable over a long period.

Next, the trader must have an interesting strategy: to take into account not only the graphical and technical analyses while basing himself on the key economic news. Then, it is interesting to check the trader's way of proceeding knowing that some share their tactics on their profile.

To select the trader to copy, it is also wise to analyse the way he takes risks: is he being daring? Does he use safety nets? How to control the risks?

 

 

 

Another important criterion is the trader's success rate: it is worthy of interest only if it shows a high percentage of gains rather than a loss. A rate exceeding 80% is quite correct. In general, an interesting trader manages risk well while managing to limit possible losses thanks to a diversified portfolio.

At the same time, it is essential to observe the history of trades to see how transactions are carried out, at what frequencies and especially for what successes. In addition to analysing successes, it is also necessary to take a close look at negative experiences and losses and identify the strategy to be avoided.

Finally, a good trader generally enjoys good popularity. If it is very followed, it is an excellent sign. At the same time, it is preferable to systematically move away from traders who seem to have "slipped", in terms of their strategy or their trading psychology. If they get scattered, it is better to leave them aside.

etoro social trading with etoro

67% of retail investor accounts lose money when trading CFDs with this provider. You have to ask yourself if you can afford to take the high risk of losing your money.

For the more adventurous, it is also possible to follow the advice - not of a human - but of a machine. The robo advisors can manage money for certain individuals and achieve excellent results. This is a solution that should not be underestimated.

I hope you enjoyed our trading platform comparison. We hope we've selected relevant trading platform for beginners with some of our trading platform fee comparison on show.