How CopyTrading Works
CopyTrading lets you automatically mirror the trades of experienced traders. This page explains the process, benefits, risks, fees and how to get started.
Overview
CopyTrading connects your account to a chosen trader (a **"strategy provider"**). When the provider opens, modifies or closes positions, your account can perform the same actions automatically in proportion to the funds you allocate.
The Details: A Closer Look
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🚀 Step-by-step: The Copying Process
- **Create an account** — register, complete verification (if required) and deposit funds to your trading wallet.
- **Find a trader** — review trader profiles, performance metrics, historical returns, drawdowns, trading style and risk score.
- **Allocate funds** — choose how much of your balance will copy the trader. Allocation can be a fixed amount or a percentage.
- **Set risk controls** — configure settings such as maximum allocation, stop-loss, take-profit, and minimum order sizes to fit your risk tolerance.
- **Start copying** — activate copy mode. The system listens to the provider's executed orders and replicates them in your account according to your allocation and settings.
- **Monitor & manage** — watch performance, pause or stop copying at any time, and adjust allocation or protections as needed.
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🔗 How Trades Are Matched
When the provider executes an order, the platform creates a corresponding order for your account. Matching considers:
- **Proportional sizing** based on your allocated amount vs provider's capital.
- **Instrument availability** and minimum order sizes in your account.
- **Slippage, spreads and execution latency** — results may differ slightly from the provider's feed.
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🛡️ Risk Controls & Settings
- **Allocation limit:** maximum amount or percentage used for copying.
- **Stop-loss:** automatically stop copying if losses exceed a threshold.
- **Take-profit:** lock profits by stopping copy when gains reach a target.
- **Max open trades:** limit the number of simultaneous copied positions.
- **Manual overrides:** you can close or modify individual copied trades anytime without affecting the provider.
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💸 Fees & Costs
Fees vary by platform and trader. Common fee types:
- **Performance fees:** a share of profits paid to the provider (often only on net gains).
- **Subscription fees:** fixed monthly fee to follow a trader.
- **Trading costs:** spreads, commissions and financing/overnight fees applied by the broker.
Always review the fee structure before allocating funds.
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✅ Benefits of CopyTrading
- Access professional traders without needing to trade actively.
- **Diversification** by following multiple strategies.
- Fast setup — start copying in minutes once you choose a provider.
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⚠️ Risks to Consider
- Past performance is **not a guarantee** of future returns.
- Provider mistakes or large market moves can produce losses.
- Execution issues like slippage and latency can affect outcomes.
- Fees and financing costs can reduce net returns.
Only allocate funds you can afford to lose and use available risk controls.
- 💡 Getting Started — Checklist & FAQ
Your Action Plan:
- Open and fund your account.
- Browse verified traders and compare metrics (return, drawdown, trade history).
- Run a small test allocation to understand real-world results.
- Set stop-loss and allocation limits before scaling up.
- Review performance regularly and adjust or stop copying if needed.
Frequently Asked Questions:
- Can I stop copying at any time?
- Yes. Stopping copying does not close already-open trades unless you choose to close them manually.
- Will my trades be identical to the provider's?
- Not always. Differences in account size, market access, slippage and execution speed can cause variations.
- Are my funds held with the provider?
- No. Your funds remain in your account; the platform issues trades in your name based on provider signals.