Tutorial:
What is Copy trading?

What is Copy trading?

Before you begin

If you have come this far, it is because you are interested in the world of trading, more specifically in the world of Copy Trading.

You should know that we are experts in Trading and our mission is to help everyone understand what copy trading really is, all in a very practical way as you will see throughout our tutorials.

First of all, you should know that there are many ways to classify trading according to who is trading, to simplify we will say the most common ones:

Manual Trading: Performed by a human whose job is to trade in a market, known as Trader. Must be aware of the market, receiving signals, analyzing charts… involves full dedication and professionalism.
Expert Advisor: Made by a Program that trades according to predefined rules and configurations… trades for us but everything depends on 1 strategy that is usually a black box for those who do not know how to code.
Copy Trading: Performed by a Platform that allows anyone to copy Traders or Expert Advisors. It does not imply dedication and the strategies are diversified by following several Traders not correlated between them.

This is why as trading experts we find in Copy Trading the best of professional Traders along with the best of Expert Advisors.

We hope that throughout this tutorial about “What is Copy Trading” you will be encouraged to try it out for free, here is the link to begin: Start in Zulutrade >

What is Copy Trading?

Let’s first understand what is trading, which is the basis of copy trading:

Trading: Trading is the activity that can be done today by any person (Trader) or robot (Expert Advisor) to trade in financial markets. For example: buy Euros, buy Apple shares or buy Gold.
Copy Trading: Copy Trading allows anyone to automatically copy the trades opened and managed by a Trader or by an Expert Advisor who performs trading.

Below is a comparison of the features that differentiate Copy Trading from Trading:

Trading

Knowledge
Study for years and lots of practice.
Dedication
Full day, 40h/week.
Profitability
High long-term returns.
Diversification
No or very limited.
Capital
Own capital or capital from other investors.

Copy Trading

Knowledge
The basics can be learnt in a few hours.
Dedication
Less than 1 hour a week.
Profitability
High short-term returns.
Diversification
Several uncorrelated strategies.
Capital
Own capital.

Does this mean that Copy Trading is better than Trading?
All depends on your goals. Being a trader is a profession, commitment, study, full dedication and nothing guarantees good results after several years.
However, with copy trading you can obtain the results of expert traders who demonstrated good results with less dedication and less time.

Why use Copy Trading?

All investors interested in trading should start with Copy Trading. We have seen that copy trading is not incompatible with other investments or with learning to trade on your own; on the contrary, it is totally complementary thanks to the low correlation of the strategies with the market.

The main reason to use copy trading is to obtain a high profit but there are other advantages:

Knowledges: You learn in a few minutes how to use a Copy Trading platform.
Dedication: With less than 1 hour a week you can manage a Copy Trading account.
Profitability:You can obtain high and constant short-term profits. Capital and profits always available.
Diversification: Several uncorrelated strategies unrelated to more traditional investment cycles.
Capital: It is necessary to have your own capital, but management can be delegated.

In addition, to optimize the profitability of trading, there are several concepts that must be known about trading and copy trading helps us to do so: understand how trading works, understand its possibilities, its risks, learn from professional traders, understand the markets… and at the same time you can spend some time to train as a trader.

You can start Copy Trading without any cost, it is the best way to understand how it works: Start in Zulutrade >

How does Copy Trading work?

As you already know, Copy Trading takes place through Copy Trading Platforms such as Zulutrade. As with any online platform, the offer (traders) is linked to the demand (investors).
The 3 main players in copy trading are:

Trader: It is the person or robot that executes the trades in the market.
Inversor: It is the person who automatically copies the trades of the Trader with his own capital.
Copy Trading Platform: Organizes and automates all the interaction between Traders and Investors, reducing the costs to almost 0.

So it is thanks to Copy Trading platforms like Zulutrade that Copy Trading can be done. Without them there would not be a common place where all the supply and demand can be brought together.

Example of how it works

What the Investor should do:

The Investor opens an account in Zulutrade.
The Investor copies one or more Traders in Zulutrade.

From here on everything is automatic:

The Trader opens a trade in the market.
Zulutrade opens the same trade in the Investor account.
The Trader closes the trade.
Zulutrade closes the trade in the Investor account.
The Investor gets the benefits of his trade.

How to start with Copy Trading?

To start with Copy Trading is better to go to a Copy Trading platform and open a Demo Account to learn how it works. We will teach you how to become an expert in copy trading by using the best platform available: Zulutrade.

At Zulu4me we help you get started with copy trading safely:

We choose the best Traders thanks to our analysis.
We help you to use Zulutrade Copy Trading platform correctly.
We optimize the Portfolio by correctly configuring the copied Traders.

The best way is to start testing Copy Trading for free: Start in Zulutrade >

Get Started

You can start with Zulutrade in less than 2 minutes. The best way is to open a Demo Account and copy a Combo of Traders.

Step 1

Open a Zulutrade Account >

Fast and free

Step 2

Copy a Combo of Traders >

The fastest account Setup

Tutorial:
What is Copy trading?

What is Copy trading?

Before you begin