Is copy trading profitable.

I am sure if you have been a trader for at least one year you have heard about copy trading either from traders or pop up adds from social media. It sounds enticing especially if you arent yet a profitable trader. But the question is should you really involve yourself copy trading. I mean what could go wrong？

There are two types of copy trading. Firstly there is taking signals from a particular trader. You usually see famous trading gurus giving signals for a price on their social media. They claim that for meeting certain conditions they can give you access to winning trades for a monthly subscription. One other conditions may be to sign under a certain broker for you to qualify for their signals. The second method of copy trading promoted by brokers is the automated copy trading. This is when you go through a broker and have an automated robot copying the trades of a broker certified trader so you do not even have to make the trades yourself, they are automatically made by the trader provided to by the broker. They both may seem legit, so what the catch？

First you have to understand the business models for both. Trading signals from gurus are not always successful. You see everyone has their own trading style and appetite for risk so you may not have the same understanding or trading balance to suit the trading style of such a trader. Another red flag is the request to sign up for a particular broker. These gurus may have a partnership with a broker where by they are given a cut from broker earning for each trader they sign up. They are depending on you to make a loss and stay making losses in the future to make money from you. It is a twisted game really. It is not to say that all gurus offering signals are bad people with bad intentions, it is to say that you must be careful and verify their trading claims if you want to make invest in signals.

Make sure that if a guru start suggesting broker that you first check if that broker is verified and regulated. The easiest way to do that is to look for the broker through WikiFx. This app shows you all the regulated brokers worldwide so that you know if the broker follows strict rules of conduct and wont turn around to commit shady actions under your account. They also show you which brokers have known and proven shady dealings so that you can avoid them. If a trading guru suggest such a broker you then know to stay far away from them

Copy trading offered by brokers themselves may also not be a good idea. You see brokers make money from losing traders. Why would they willingly advertise successful copy trading when they would be losing money？ It seems sketchy doesnt it？ I always say brokers are not your friends. It is mostly unregulated brokers who offer sketchy deals like this. I recommend you stay far away from such deals as surely there is something sketchy going on if you ask me. If you unsure whether to trust a broker or not it is best you research the broker using WikiFx. You will be able to see if the broker is regulated or not and if they have a history of bad reviews. This will give you a better picture of how this broker operates and if your money is safe in their hands. If they are not regulated and feature too many customer complaints, it is safe to say that you should stay far away from such a broker and save yourself a painful headache.