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AvaTrade is a global Forex and CFD (Contracts for Difference) broker founded in 2006. The broker is regulated in various jurisdictions, including Australia, the British Virgin Islands, Ireland, Israel, Japan, South Africa, and the UAE. Which means the broker can be trusted.
AvaTrade offers access to trading over 1,250 instruments such as currency pairs, CFDs on stocks, ETFs (Exchange-Traded Funds), indices, and currencies through the use of various trading platforms. The available platforms are MetaTrader 4, MetaTrader 5, DupliTrade, and ZuluTrade.
AvaTrade enables its clients to copy trade. Let’s dive deep and find out what copy trading is and whether it’s worth trying to do so with AvaTrade.
Copy trading is very popular in the CFD and Forex trading scene. This feature enables traders to automatically copy the trades of other more successful traders. Beginner traders benefit from copy trading by increasing their account balance while at the same time learning how to trade, and professional traders become signal providers and create additional streams of income for themselves.
AvaTrade offers its customers a copy trading app called AvaSocial. The app enables traders to copy the most successful traders as they can easily check their results and stats using this platform.
There are many reasons to copy trade, one of which is the lack of time. Learning how to trade profitably and consistently takes a lot of time and energy. In contrast, copying other traders is easy. On the downside, traders might become entirely dependent on signal providers, which poses many risks, such as, what if the trader that you copy decides to quit trading or gets sick and cannot trade for a while. In addition, each trader has their own goals when placing an order, some are aiming for quick profits, while others are interested in steady and gradual account increases. When selecting a trader to copy, it’s important to find a trader with a similar goal and mindset to yourself.
AvaTrade offers access to various trading platforms such as MetaTrader 4 (MT4), MetaTrader 5 (MT5), DupliTrade, and ZuluTrade. MT4 and MT5 enable traders to copy trade using trading algorithms called Expert Advisors (EAs).
Moreover, copy trading is available using ZuluTrade and DupliTrade. In addition to desktop and web trading terminals, the broker provides the AvaSocial copy trading app that can be found in both Google Play and the AppStore. Using this app, you can thoroughly research the statistics and success rates as well as the portfolio allocation of the traders you wish to copy. It’s important to focus on consistency rather than productivity. In investing, stability is more valuable than high profits. This way you can reduce the risks associated with trading financial instruments.
While copy trading can be highly beneficial for many traders, there are drawbacks to consider. Here are some of the most common pros and cons of copy trading:
|Beginner traders can learn how professionals trade||Traders lose control over trading decisions|
|Professional traders create additional streams of income||Copy trading can be costly as some trading platforms and traders charge money for the service|
|Traders can save a lot of time||Traders do not gain valuable experience when watching other people making trading decisions for them. Copy trading is beneficial for beginners but not for too long|
|Copy trading can help diversify a portfolio||A trader that you copy might have different trading goals|
|Copy trading can be consistently profitable when suitable traders to copy are found|
Overall, AvaTrade offers its traders various trading platforms that support copy trading. Copy trading is associated with many benefits and drawbacks. On the upside, beginner traders get to see how professionals make trading decisions, copy trading saves time, and creates additional streams of income for professionals. On the downside, copy trading is costly and not a great way to learn to trade in the long run.