Ever wished you could trade like a pro without being one? Well, copy trading is your shortcut to financial success and XM is the platform to make it happen. This trading form began in 2005 as a form of mirror trading between investors in the financial markets.
Through automated trading, traders replicated strategies and created algorithms. Soon, it evolved into a social trading network where investors started copying the trading methods of others, including the exact trades rather than just the strategies.
Copy trading gained so much popularity over time that dedicated websites were built for it, giving users the opportunity to trade in stock and FX markets for the first time.
If trends are to be believed, the copy trading industry is expected to grow at an annual rate of 7.8%, reaching a market size of $3.77 billion by 2028*.
For those in India who are interested in learning more about copy trading, platforms like XM offer an engaging network where you can easily follow and copy successful strategies.
This article will take you through the details of it and why XM is a great option for seasoned as well as inexperienced investors.
What Is Copy Trading?
Through copy trading, investors can copy the decisions and trading strategies of professional traders in their trading accounts. With this feature, anyone, regardless of their level of experience, can potentially profit from the financial markets by having someone do all the required research and analysis for them.
In India, where participation in the financial market has been steadily rising, copy trading offers beginners an easier way to get started. By letting one rely on the experience of seasoned traders, it eliminates the significant learning curve that comes with trading.
However, it’s important to pick a reliable platform like XM, which provides comprehensive educational resources in addition to straightforward and effective services.
XM offers intuitive and trader-friendly tools along with educational resources to help you learn and succeed in trading, no matter where you are in your journey.
How Does Copy Trading Work on XM?
Of course, the first step in the procedure is to create an account on XM for free. Once created, you can view the performance metrics of various strategy managers and then decide on which trader’s tactics you would want to copy. Every trader has a thorough profile available on XM, complete with their trading history and analysis.
As a result of such transparency, investors can make well-informed choices about which strategy manager best fits their investment goals.
Anyone can start copy trading without paying any additional platform fees. You can copy a selected trader’s moves, and these are automatically executed for your investments in real-time on your account, which guarantees that you never miss a trading opportunity. Investors can adjust the amount of money for each strategy to manage risk and returns.
You can choose from a wide range of asset classes to trade in, so you have a more diversified portfolio. These include Forex, indices, cryptocurrencies, and gold. With more than 150,000 strategies completed every day on the platform, XM offers a vibrant and busy trading atmosphere.
Is Copy Trading Good for Beginners?
Copy trading is a great option for beginners because it lets you follow and copy the trades of experienced traders. This means you can benefit from their knowledge without needing to know a lot about trading yourself or analysing charts for hours.
It can also help you learn about trading and how the market works. However, it’s important to choose the right traders to follow because you earn or lose when they do.
Why Choose XM for Copy Trading?
- Free Copy Trading and Opportunities for Earnings
Creating an account is free. You only pay strategy managers when you make a profit. Even if you’re an experienced trader, it’s a great way to diversify into other instruments and asset classes, helping you build a more balanced portfolio.
- A Selection of Copy Trading Strategies and Transparency
XM is dedicated to revealing all relevant information about each strategy manager, including their fees, win percentage, drawdown, investor count, invested funds, and personal capital.
Investors can select from a variety of alternatives, including top performers, methods centred around cryptocurrencies, high win ratios, high own funds, low risk, low drawdown, low fees, most popular, and most invested, with the assistance of comprehensive information.
3 Simple Steps to Start Copy Trading with XM Today
- Create and verify your account: Sign up on the XM platform and complete the verification process. During this process, you need to verify your email, and upload a selfie and a government approved ID document.
- Sign up as an investor or a strategy manager: Go to the Copy Trading platform and create an investor account. You can start copy trading with a minimum deposit of $50. Choose whether you want to follow strategies or share your own.
- Copy successful strategies or share your own: As an investor, you can select the strategies you want to follow based on various parameters and then decide how much to invest in each. Any trades made or closed within these strategies will be mirrored in your portfolio. As a strategy manager, you can create your own strategies and share them with the community, earning a profit share from the gains made by those following your strategies.
XM stands out for its focus on transparency and education. The platform offers a large library of educational resources to help users make informed decisions that match their financial goals.
XM also provides detailed analytics and reports, showing important data like profit/loss ratios and historical performance. This helps investors understand how well their trades are doing and make any needed changes.
Top 5 Copy Trading Tips
- Don’t just focus on a trader’s overall returns. Since it’s impossible to predict the market perfectly, look for traders who perform consistently well over time.
- When evaluating a trader, look at different statistics, like average profit and loss, the number of trades they make, and how long they usually hold trades.
- Diversify your investments to match your trading goals. Copy trading allows you to include various trading styles and markets in your portfolio.
- Consider how long you want to invest when copying a trader. Even if a trader has been consistent, their strategy can change daily in terms of trade frequency and volume.
- Understand your copy trading platform’s risk management settings. Copy trading involves risks, so set stop-loss and take-profit orders based on your risk and earning appetite.
Copy Trading is not without risk!
Like any trading method, copy trading has its risks. If the trader you’re copying loses money, you’ll lose money.
Relying on others’ trades might make you less motivated to learn about financial markets yourself. Without doing your own research, you might make mistakes and face losses.
While copy trading is helpful for beginners, it’s not the only way to trade. As you gain more experience, it’s a good idea to try different trading strategies and diversify your portfolio.
Conclusion
Copy trading allows investors of all skill levels to enter the market with relative ease, marking a major advancement in the industry. With its combination of intuitive features, an extensive range of trading strategies, and an abundance of educational materials, XM presents an attractive platform for Indian investors.
By using XM, investors can take advantage of the knowledge of seasoned traders and obtain a greater comprehension of the financial markets, enabling them to make more intelligent investment choices. XM is the perfect place to begin and expand your copy trading journey.
