Forex $ocial Traders


Mirror Trading vs. eToro´s Copy Trading

Social trading platform eToro has become a pioneer of copy trading which is one of the easiest way of online trading. But you may also heard of mirror trading. What are key differences between these two concepts? Let´s find out.

mirror tradingWhat is Mirror Trading?

Mirror Trading has been in Forex market since earley 2000s and has become popular in online currency trading area. Basically it is concept of copying someone elses trades.

There is nothing simplier than letting best traders in the world handle your trades automatically. No intervention from your side is needed. Your only responsibility is to log in once a week or month to check your trading balance.

Some mirror trading platforms gather experienced traders from all parts of the world. They provide them with free trading accounts so they can display their trading performance on their websites. These mirror trading companies have agreements with several brokers.

Once the client selects which traders he wants to mirror, he is advised to open a trading account with one of those brokers. After that his trading account is linked to mirror trader´s master account and all trades are reflected on the client´s trading account.

The client is allowed to set his own risk rules so ocassional aggresion or failure of the mirror trader does not necessarily reflect in his trading account.

As you can see mirror trading is a very simple and effective concept. Now let´s take a look if  eToro has been able to improve it, make it more social and even easier.

eToro´s Copy Trading

What is copy trading? It is a concept pioneered by social trading company eToro to allow you to auto copy other traders on the platform. Simple put it´s allowing other experienced traders to do trading on your behalf.

eToro has lifted this concept higher by adding some social features that enables you to see in real time what other traders are doing by following them or even contact them, ask them question or participate in discussions with other traders, followers or copiers. Actually the whole platform looks more like a social network than a trading platform.

This way you can get to know each individual trader better before you decide whether you wish to copy him/her or not.

Simply click on trader´s profile and you will see full statistics, trading performance, portfolio, risk score, how many people copy him.

If you like any trader, all you need to do is to click on Copy button, select the amount you wish to copy him with and your stop loss and that´s it. You are all set to auto copy his trades in real time and achieve the same results.

To minimize your risk you can diversify and copy different copy traders who trade different asset classes like : currencies, stocks, commodities, ETFs or cryptos.

This way you will effectively build your own people based portfolio.

If you do not feel like to invest now, you can test the whole copy trading concept on a demo account where you will be trading with virtual money.

Visit eToro´s website and learn more

Warning: Trading carries risk. Only risk capital you are prepared to lose. Past performance in not an indication of future results.

Comments are closed.