Copy Trading Questions

Has any here tried copy trading? Which brokers offer copy trading? Are there any risks involved?

Hi there,

The term "copy trading" normally refers to the practice of copying or following the trading strategies of other investors. Specialized services let investors track the investments of other investors and have the broker perform identical investments on their behalf. In this way, copy traders partake in the success and failures of other investors (typically well-known investors).

Reputable brokers which offer copy trading include eToro, Ayondo and Wikifolio (which also offers its services to residents of Switzerland).

Consider the following points before you engage in copy trading:

1. Risks: Copy trading and social trading activities bear as much risk as most other trading strategies. be prepared for the possibility of losing money.

2. Pay attention to brokerage fees and other costs related to transactions.

3. Over the long term, passive investment strategies often deliver better results than active strategies.

4. Copy trading can easily become emotional. Make sure you don't lose money on emotionally-driven investments.

Best regards from Moneyguru

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