ForexNewsNow – ForexCopy is an innovative platform launched by InstaForex, one of the world’s leading forex brokers. The ForexCopy system enables traders from all over the world to copy and duplicate trades carried out by professional traders. This system results in a win-win situation where traders copying trades can benefit from the knowledge and skills of professional traders while professional traders can earn commissions based on the performance of their trading activity.
InstaForex is one of the few forex brokers to offer such an innovative trading platform. Being a forex broker, InstaForex can guarantee instant execution and accurate quotes with the ForexCopy system. Most other companies that offer a similar service aren’t forex brokers and need their systems to interact with third party forex brokers, which can result in relatively slower transactions and frequent slippages. The InstaForex ForexCopy platform is one of the pioneering platforms that combine the power of social wisdom and forex trading to create an exciting social forex trading platform.
How the ForexCopy Platform Works
To understand how the ForexCopy platform works and how one can benefit from it, it is important to divide potential users into groups of expert traders and followers.
1. For Expert Traders
To be classified as an expert trader on the ForexCopy platform, one needs to open a live trading account with InstaForex. After opening and funding the live trading account, you can set the terms and conditions for people who would like to follow your trades.
The terms and conditions will decide how your commission will be calculated after a profitable trade for the followers. The commission can be calculated for every profitable trade or it can be calculated for every profitable day.
The ForexCopy system is extremely scalable and after your account is added to the public monitoring list of the ForexCopy platform, there is no limit to how many followers can choose to follow your account. InstaForex puts no restriction on the number of followers and allows hundreds or even thousands of followers to follow your account.
Depending on your terms and conditions and the number of followers you have, you commissions will be automatically calculated and credited to your trading account by InstaForex by the end of every day. InstaForex has streamlined the entire process so that traders can focus solely on their trading activities.
2. For Followers
Followers can check ForexCopy’s public monitoring list to identify an expert trader that they would like to follow. After deciding on a particular expert trader or a group of expert traders, followers can automatically or manually mimic the trading calls of these experts.
At no time during the trades are your funds ever sent to the expert traders. All trades are carried out right from your own accounts making the system highly secure and ensuring your privacy.
Followers can set the parameters of eligible currency pairs, copy ratio, maximum trade size among others to set the system to copy only those trades which satisfy the set criteria. These settings can be changed by the followers at any time and affect all future trading activities.
The best part about the system for followers is that they have to pay the expert traders a commission only when the trades are profitable enough to at least cover the expert trader’s commission. This means that you don’t have to pay anything for any trade that results in a loss thereby protecting your investment.
Comparison With eToro’s OpenBook & Currensee
While InstaForex charges a commission only when your trade is profitable, Currensee charges a 2% annualized service fee in addition to a 20% success fee from all your profits. The commissions at on eToro’s OpenBook platform are included in the spreads of the currencies.
All these platforms let you check the performance of leading traders out of which you can determine the trader or combination of traders that you want your account to copy.
Pros of InstaForex’s ForexCopy Platform
- InstaForex is a forex broker which enables it to ensure instant execution of trades on the ForexCopy platform.
- Professional traders get rewarded via commissions for sharing their trades with everyone when the trades are profitable.
- New and amateur traders can imitate professional traders and learn forex trading by observing the most successful traders.
- Traders have to pay a commission to experts only when a trade is profitable.
- The live monitoring tables provided by InstaForex let traders easily identify the best experts and provide details of all the trading activities.
- Traders can choose from different types of arrangements to calculate the commission of the expert trader.
Cons of InstaForex’s ForexCopy Platform
- To use the ForexCopy platform, you need to open a forex trading account with InstaForex.
- You can’t integrate ForexCopy with your trading account with some other forex broker.
- The spreads of the currency pairs at InstaForex are marginally higher compared to leading forex brokers.