Top 5 Ways to Make Money on Financial Markets (Part 5)

5. Copy-trading - earnings on copying trades of experienced traders

Copy-trading is a way to earn on Forex, without knowledge, skills, and experience in trading. This way of trading works: you have to register on the service of copying trades, make a deposit and subscribe to the professional trader, whose trades will be automatically copied to your account in real-time. The decisions will be made by a professional, and the profit will be yours.

Copy services work with different instruments: from currency pairs to commodities and stocks. Different trading strategies are also allowed, so when choosing a trader you should pay attention to what strategy the professional uses, profitability, drawdowns, number of subscribers, etc. Also, pay attention to the amount of commission and terms of service.

Advantages of Earnings from Copy Trading

The use of copy services is becoming more and more popular because this way of earning has many advantages. For example:

• Knowledge and experience are not needed. It is enough to open a trading account and to subscribe to a professional trader, his trade is your earnings.
• Suitable for beginners and experienced. It is suitable for newbies to earn without any experience, and for professionals - to receive passive income.
• Automation. The user does not have to participate in the process or copy orders independently, according to the signals - deals will be copied automatically. If necessary, you can regulate trading: limit the number of transactions, set a deposit limit, and close transactions that seem unprofitable.
• Security. Money is stored on the user's account, only the user can control it.
• Risk control. Users can subscribe to different traders in order to minimize financial risks and cancel subscriptions if trade copying is not successful.

Disadvantages of copy-trading

This method is simple and close to a universal one, but it still has some disadvantages:

• Commission. Professionals charge a fixed commission on income for copying trades, copying services are not always free, and you have to pay for the subscription.
• Risks are not excluded. Professionals also make mistakes and trades can make profits as well as losses.

Who is suitable for earning from copy trading:

The use of copy trading is suitable for both beginners and professionals. Experienced participants of the market can consider it as a way of passive earning, while beginners can make earnings online without having any skills in trading. Also, copy-trading for beginners is a great opportunity to observe the work of professional traders and to get the basic knowledge about trading in order to use it later, when making deals by yourself.

Follow our updates for more information. You can also visit our previous article for a better understanding of this topic.