Copy and Social trading has grown massively over the last few years, and now those interested in trying out copying trading themselves have a wide range of options to choose from. Increasingly, brokers are launching their own copy/social trading networks, with prime examples being FxPro’s SuperTrader platform and FXCopy run by VantageFX. More recently well known FX broker RoboForex has launched there own copy trading platform, and it this platform we will be having a look at today.
How Does CopyFX work?
Once the customer has signed up for a CopyFX account with RoboForex, the platform allows users to automatically copy the positions of the traders featured on the CopyFX platform. So that all positions opened by the traders you select to copy are automatically mirrored in your own trading account. Unlike other copy trading services, those using the CopyFX platform compensate the traders they automatically copy in one of two ways. Firstly, the copier can opt to pay the trader a fixed amount of commission for each successful trade made. Or alternatively, the user can opt to share a fixed percentage of the profit from each successful trade made the trader. The fact that traders are only rewarded for successful trades should help to motivate those sharing their signals on the platform to avoid using high risk strategies. Traders can opt to only offer when revenue sharing option, so some traders may only offer profit share while others may offer only a flat commission option.
As already mentioned the CopyFX service is not broker independent. This means that those using the service will be using it in conjunction with the brokerage services of RoboForex. This has both advantages and disadvantages. Networks such as MyDigiTrade and ZuluTrade allow traders to choose from a range of different brokerages allowing them to pick a brokerage they feel comfortable with. However, the slippage experienced by users of these networks tend to be larger as orders have to be communicated between accounts often at different brokerages. Those who are not inclined to use the services of RoboForex will however unlikely want to open an account with the CopyFX network.
The platform provides users with lots of details regarding the previous performance of the networks signal providers. Allowing potential copiers to view all of the previous trading positions of the traders on the platform, which can help them get a feel for the risk profile and strategy used by the trader. The data provided to traders is not quite as comprehensive as it is on some other copy trading networks, but it is more than enough to evaluate the performance of the various traders sharing their positions on the network.
Does CopyFX work?
The CopyFX platform has certainly allowed some users of the platform to make impressive returns from simply copying the trades of other users. In fact, CopyFX allows you to search through ‘Investors’ using the platform which allows you to see how those using the service have performed over certain time periods. At the time of writing the top performing investor had achieved a 131% return over the last three months. While this sounds particularly impressive, it should also be noted that there were also many users who had the value of their accounts completely wiped out over the last three month period. While there are some traders on the service who seem to have a relatively sensible risk/reward approach. It should be noted that there are also traders who have adopted very high risk trading strategy, and some of these traders dominate the top of the CopyFX trader leader board. This means that users of the platforms should pay particular attention to who they decide to follow, rather than just relying on the CopyFX ranking system. Those interested in the CopyFX platform would be sensible to try out a free demo account to get better understanding of the positives and negatives of the platform.Free Demo Account Open Real Account