Copy Trading is the ideal trading method if you have less experience or knowledge of trading but want to trade actively anyway. It enables you to passively buy and sell assets based on the trading decisions of an experienced trader on your behalf. In India, awareness regarding copy trading can be comparable to that of online trading in general, which is relatively low. There are various ways to access Copy Trading from India, but you need to understand the concept before venturing further with it.
What is Copy Trading?
With copy trading, you can automatically or manually copy the position of another trader when it’s opened or closed. Professional traders can communicate their positions using social networks, forums or signals, allowing their followers to copy their methods. You can copy signals for many markets, including CFDs, stocks, options, forex and others. Some copy trading platforms will even allow you to copy trades in the cryptocurrency market as well.
How does it work?
With copy trading, you are essentially connecting a part of your portfolio with another trader’. This means that all open trades and actions that the other traders take will be automatically copied to your trading account. As a follower, you need to decide how much your initial investment will be. Copy-trading can involve some risk, so you should always conduct your own research before committing your capital.
Before going ahead and selecting a particular trader’s strategies to copy, you must ensure that your own trading strategy matches that of the expert trader. You can consider the following factors while making that judgement.
- Leverage: When using leverage in copy trading, bear in mind that it has the potential to both amplify your profits as well as losses. Leverage rates can vary depending on the nation you are based in. For example, brokers regulated by CySEC cannot legally offer more leverage than 1:30. You can check out some of the leverage limitations around the world by visiting leverageforex.net.
- Trust: Some copy traders do not conduct enough research into the backgrounds of the brokers they choose. It is thus important to always research the providers before signing up and committing capital. Once your capital is invested, regularly monitor your trading performance and be vigilant of any discrepancies.
- Control of Capital: Decide the level of control you would want over your capital. Go for an open and flexible system if you want the most control over your capital. If not, then fixed and fully automated copy systems will suffice as they allow limited control while copying and executing trades.
- Markets: Lastly, always look at the markets offered by the copy trading platform. This will dictate how well you will diversify your portfolio with instruments spread across Forex, stocks, indices, commodities and cryptocurrencies.
- Regulated: Always work with social trading/copy trading platforms that come under the jurisdiction of at least one major regulatory body. This ensures that you will be protected from financial loss if something goes wrong.
Indian citizens have a lot of options when it comes to copy trading, which largely remains an untapped market. In the interest of traders looking for copy trading platforms, here is a list that will help you decide which is the best copy trading app in India.
AvaTrade
AvaTrade is a reputed name in the copy trading space, founded back in 2006. With offices in Ireland, Australia, Japan and the British Virgin Islands, it has carved up a reputation for itself as being one of the largest and most respected online brokerage services currently operating. To cater to clients of different regions, AvaTrade accepts funding in a variety of currencies. Some of the features of AvaTrade include the following:
- AvaTrade offers three trading platforms: MetaTrader 4, MetaTrader 5 and AvaTradeAct which is its proprietary platform.
- The broker also offers several automated trading software such as Duplitrade, API Trading, MQL5 Signal Service, Mirror Trader and RoboX.
- AvaTrade only offers a standard account, which can be opened with a minimum of $100 and a free demo account.
- AvaTrade’s social trading platform called AvaSocial allows you to either manually trade or follow market signals.
- You can deposit using E-Wallets such as Paypal, Skrill, NETELLER and WebMoney or via credit cards and bank wire transfers.
LiteForex
LiteForex Investments Limited is an established CFD and forex broker which also provides copy trading services. You can trade using MT4 and MT5 platforms on any device including Mac, PC or mobile. Instruments offered at LiteForex include Currencies, global stock indexes, cryptocurrencies and commodities. Some of the features of LiteForex include the following.
- LiteForex offers two types of accounts: An ECN Account and a classic account.
- Copy traders can open a separate Liteforex Copytrading account.
- It comes under the jurisdiction of the Marshall Islands Business Corporation Act.
- The broker offers customer support via a live chat feature or through email and phone.
- The maximum offered leverage is 500:1 for countries outside of the EU.
Vantage FX
Based out of Australia, Vantage FX is a reputed broker that offers award-winning customer care coupled with a seamless trading experience. The broker provides the MetaTrader software as well as Webtrader and Market trader. Social trading services are offered via Zulutrade and MyFxBook auto trade. VantageFX offers trading in 38 currency pairs, 24 CFDs and several options for commodities and indices trading. Some of the features present in this broker include the following.
- VantageFX offers three types of accounts: The standard STP account, the Pro ECN account and the commission-based RAW ECN account.
- The broker offers more than 300 CFDs on share and energies from countries like the US and the UK.
- VantageFX offers auto trading via DupliTrade, Myfxbook and ZuluTrade.
- The broker does not charge any fees for internal depositing or withdrawing.
- Deposit options at VantageFX include Bpay, Credit Card, Cryptocurrencies, FasaPay, Moneybookers, Neteller, PayPal, Poli, Skrill, Wire Transfer.
- The broker is regulated by Cayman Islands’ monetary authority.
eToro
Israel based eToro is another name in the copy trading space which has gained quite a reputation for its successful offering. Founded by Yoni Assia (current CEO), Ronen Assia and David Ring around 2007, the broker has now grown to become one of the largest social investment networks in the world. eToro offers you access to over 2000 trading instruments including shares, cryptocurrencies, commodities and forex. Their intuitive copy trading platform has won several accolades around the world. Some of the features of this broker include the following.
- eToro offers several different types of accounts to their users including a professional account, corporate account, live account, islamic account, and a free demo account.
- The minimum deposit for Indian citizens is $1000.
- eToro comes under the regulation of the Cyprus Securities and Exchange Commission, the Australian Securities and Investments Commission and the Financial Conduct Authority (UK).
- The broker offers customer service via a live chat support system, with phone services only extended to clients in Australia.
- You can withdraw from eToro using Credit Cards, PayPal and Bank transfer.
- The minimum withdrawal fee for eToro is $5 while the minimum withdrawal amount is $30.
Final Verdict
Due to the overall lack of awareness regarding online trading, coupled with very rigid rules enforced by Indian regulatory authorities, copy trading isn’t as popular in India as in other countries. However, it provides the perfect vehicle that novice traders can use to make profits off the market. By relying on the expertise of professional traders, you are in essence following their footsteps in the hopes of increasing your profits per trade. Depending on what you want from the platform and your risk tolerance, your copy trading platform can lead you to trading success.