What Is A Trade Copier Service?

You may have come across the term “Trade Copier Service” or “Trade Copying” before in your trading.

Trade copying is the use of software to copy trades to multiple trading accounts.

This allows the management of more than one MetaTrader account at the same time.

In this week’s article we’ll be looking at:

  1. Two main types of trade copying
  2. How trade copier services work
  3. The benefits of using a trade copier service
We will start off by first having a look at what trade copying is and how forex traders use it in their trading.

What Is Trade Copying?

As mentioned before, trade copying involves copying trades from one account onto another.

To do this, you will need specialised software.

There are many types of trade copying software available.

The majority of software is designed around the MT4 trading platform.

Simpletrader offers one of the worlds fastest and reliable trade copying platforms.

Using a trade copying platform gives a trader the ability to link many trading accounts.

Once linked, that trader can then place trades to each account via the main account.

One trade placed across many accounts, this is also referred to as mirror trading.

Copier platforms simply act as a delivery method.

So what would be the main reasons for wanting to do this?

Well, there are two main uses:

  1. Personal trade copying
  2. Providing a trade copier service

We will take a closer look at these two in the next section.

The Two Main Uses Of Trade Copying

Trade copying platforms such as Simpletrader offer a variety of different uses.

The two main uses being trade copying and providing a trade copier service.

Both are similar yet they have different purposes which we will discuss in more detail.

Trade Copying

So a general purpose is for traders who want to be able to copy their trades over to other trading accounts.

Using trade copier software allows a trader to duplicate trades onto other accounts.

Trades are first executed on what on a “master account” and then duplicated on to slave accounts.

This is great if you have more than 1 trading account as you won’t have to place separate orders in each account.

This tool also allows you to share your trades with friends, family and clients.

It doesn’t matter if both the master account and slave accounts are in different locations as the software will copy all trades.

Pretty straightforward but a very useful tool for a trader to be able to use.

Trade Copier Service

Trade copier platforms do not make traders or money on there own.

They are only the method of delivering the trades.

To have trades placed, you would need to connect your account to a trading manager or Forex EA.

This is where a Trade Copier Service comes into play.

Experienced traders can give others the opportunity to watch over the shoulder.

They do this by using trade copying platforms as a way of providing their signals to other traders.

Those signals are then received by other traders directly to their MT4 account.

Don’t worry though, the master trader will not have direct access to your trading account.

Traders should be able to set their own parameters for the signals that are being copied.

When choosing a trade copier service you should consider the following;

  • Offer you technical support
  • Give flexible risk management options

Trade Copier services use an EA to set parameters (which will discuss later).

Unlike with many EA’s, with trade copier services the master trades come from a real trader and not a robot.

Many signal providers will charge a fee to copy their trades, but there are also some free providers.

Most trade copier services will need you to have a real account with funds greater than $1,000.

If you are using SimpleTrader then you can take a look here for instructions on how to get set up for this service.

How Does A Trade Copier Service work?

 To copy trades from one MT4 to another you will need to meet these requirements:

  • Have at least one Metatrader4 (MT4) Forex account
  • Run the MT4 platform during market hours
  • Trade copier account setup & Expert Advisor (EA) to enable trade copying

The setup is simple as that.

Believe it or not, it doesn’t take that long to set this up.

The downside is that you would need to keep your MT4 account running at all times to receive the signals.

Problems could arise if your account were to disconnect from the server.

Being disconnected from the server could lead to missed trades.

But don’t worry, if you don’t like the idea of having your MT4 running at all times, there are other solutions.

One of the easiest solutions would be to use a hosting service like that offered by SimpleTrader.

SimpleTrader offer hosting which is available from $24.99.

If you do use SimpleTrader then they offer a free guide on how to set up your MT4 account to their signal providers.

Another option would be to set up your own Virtual Private Server or VPS for short to run MT4.

That might sound complicated, but don’t let that scare you off.

Most providers will offer you guides to help you get set up.

First off, you might be wondering what a VPS is and how to use it.

What Is A VPS

With a VPS server in place, you can have MT4 terminals running 24/7.

A VPS is like having a virtual PC online in any location.

What this means is that you can install your MT4 platform and trade copier to the virtual PC.

By using a VPS your computer can be on or off and it doesn’t matter.

This is because the platform and trade copier will be running on the virtual PC.

This is a more reliable option to use for trade copying.

Using a VPS will also rule out any issues such as a slow internet connection or having a slow computer.

This is because most VPS providers offer high-speed connections.

You can find a variety of VPS providers online starting from as little as $5 per month.

You can also try comparison sites such as TechRadar and HostingAdvice.com.

The next part of a trade copier service is using an EA, what’s that? you may ask.

Using An EA

EA stands for “expert advisor“.

It is a program capable of performing any action and following the instructions of a trader.

It does not need any direct involvement of a trade once instructions have been set.

Trade Copiers consist of two main components; a server EA and a client’s EA.

Attaching the server EA to the MT4 account creates a master account.

The master account handles the sending of trades.

Attaching the client EA to the MT4 account creates a slave account.

The slave account receives the trades from the master.

So now that you know how a trade copier process works, how can you select the right one?

Selecting The Right Trade Copier Service

There are a variety of trade copier services offering available offering signals.

When choosing a trade copier service it is important to select the right one.

We have outlined a few handy tips to help you when selecting a signal provider.

  • Check the regulatory status of paid providers, genuine providers will be regulated.
  • Select a provider that has a proven track record and experience. You don’t want to be taking signals from someone with no idea.
  • Avoid the free signal providers, many lack credibility and are not worth copying.
  • Be cautious of those offering to make unrealistic amounts of profit out of a signal service.

Conclusion

So whether you are trade copying from one account to another or using a trade copier service for signals, you should always do adequate research.

By now you should have a better understanding of what trade copying is and how it works.

If you have a topic that you’d like us to explain, then please type your suggestions in the comments section below.

Please also feel free to ask any further questions too.

We read every comment and do our best to respond to your ideas.

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