Copy trading, also referred to as social trading, has been on the rise for more than a decade and is sometimes referred to as “mirror trading” or “auto trading.”
With the help of social media and an ever-expanding web, news and market analyses are disseminated quickly, making it possible to instantly follow other successful traders.
Social copy trading systems are made possible by investors who provide trading signals and join the market with fresh positions that others desire to duplicate, as well as by crowd power and enhanced sentiment data.
As a leading forex, CFD, stock, and cryptocurrency trading platform, 4x.fm has launched its own copy trading technology to help beginner traders get a head start while allowing advanced traders to scale up their trading portfolios.
In this 4x.fm review, we look at some of the key features and benefits of the new copy trader technology.
What Does It Mean to “Copy Trade”?
Using technology, you can copy the real-time forex transactions (forex signals) made by other live investors also known as trade providers.
The account will duplicate transactions every time they trade. Using 4x.fm copy trader technology, you can make a profit whenever the experienced trader makes a successful trade.
However, in order to control risk, choose the traders whose trading patterns interest you and then determine whether or not trades from those traders are likely to give you profit.
The best thing about 4x.fm copy trading is that the platform also gives you plenty of educational materials to help you determine which traders are worth copying.
You can find valuable content on their YouTube channel as well as on their Twitter and Medium pages. Traders can now choose 4x.fm to duplicate and execute transactions, manage risk and improve profits.
Key Features of the Service
Here are some of the main features and benefits of the copy trader technology:
Cloud-Based Technology
Because the Trade Copier is hosted in the cloud, you don’t have to worry about installing or maintaining any software or virtual private servers.
An easy-to-use web-based control panel makes it possible for you to keep an eye on the service from wherever you happen to be. To ensure fast trading and efficiency, the company’s maintenance team monitors the whole service 24 hours a day, 7 days a week.
The service is provided by high-performance servers that are powered by cutting-edge technology. End-to-end execution performance is continually being monitored and updated in an effort to minimize latency and enhance the service being provided.
In addition, the servers are housed in a financial services data center that is a global leader. The scalability, dependability, and responsiveness of the solution are all guaranteed 24 hours a day, 7 days a week.
4x.fm constantly updates its products with an excellent technological stack such as a memory-based core allows for lightning-fast transactions with an internal latency of less than a millisecond.
End-to-end execution performance is constantly monitored, and they have created fiber optic cross-connects with prominent brokers to further minimize latency.
Broker Compatibility
With over numerous servers now in service, the company is able to handle any MT4/MT5 broker in the world. FIFO and hedging limits may also be accommodated by copying between various brokers and accounts.
New brokers can be quickly and simply integrated by their customer service staff. This means that you can use the service to connect to other accounts you have on other brokers.
Scalability
After trading successfully for a long time, you may want to maximize your potential and grow your forex trading accounts as quickly as possible after you’ve achieved profitability.
Instead of just one, what if you had 15 trading accounts automatically executing a profitable deal with a high risk-to-reward ratio? It would take a long time to execute this manually, which is why trade copiers are needed!
This solution can be easily scaled up thanks to the network and design choices made by the team. The trade copier can handle up to multiple accounts at the same time, with little to no variation in performance. For brokers and money managers, this is an ideal option for handling your clients’ accounts.
Managing the Risks
A machine learning-powered risk management component keeps an eye out for things like position size, drawdown, and currency exposure.
If you plan on expanding your copy trading activities to a big number of customers, this is a must-have function.
Is Copy Trading Profitable?
Copy trading works the same way as you would when handling multiple accounts but it is a faster and more convenient method.
This means that you can either make money or lose funds depending on the person whose trades you are copying. In terms of profitability, your profitability is influenced by the traders you choose to replicate, as well as by the timing of those deals.
Make sure to follow their track record to determine long time profitability. If you have a small account, do your homework thoroughly before deciding on a plan.
Trading systems that are easy to replicate aren’t always the most lucrative ones. Your risk criteria must be in sync with the investment plan that best meets your objectives.
A more cautious investor, for example, may choose for a system with a smaller average loss per transaction in comparison to the average profit.
A more adventurous investor, on the other hand, may choose a strategy with more volatility, which implies a greater chance of loss — but also a greater relative potential reward.
Conclusion
4x.fm trading copier is a top-notch product when it comes to automating the copying of deals across a large number of accounts. The risk control tools and scalability and cloud hosting are ideal for traders with a big number of copier accounts, or brokers that want to enter into the copy trading sector.
As tempting as it may be to automate your trading technique in order to earn money, copy trading still demands active account management.
Keep in mind that it is not an overnight rag to riches method of making money. Your best option is to diversify your current portfolio and start small.
If done correctly and with the finest copy-trade brokers such as 4x.fm who will give tools to assist you to manage your account, copy trading can ultimately be quite profitable.