“How do I earn money from forex without trading?”
Have you ever opened a few trading sites and see many statistics, graphs, and other confusing digits that you know nothing about, so you decide to backtrack and close it? If you could ask yourself why you decided to open it, it would be either it’s for more
- Earning opportunities.
- Investments for your future.
These forex markets are for everyone, so don’t be discouraged. The realization that trading takes a lot of effort to understand doesn’t have to be your downfall from ever trading again.
Forget about what you learned in school regarding no copying. In forex trading, we earn best when we gather knowledge and expertise of different trading strategies from a variety of traders. You can earn a lot of money in forex trading by copying the best strategy used, and by investing in them without the hassle of it studying it.
This strategy is copy/mirror trading and is widely used around the world from amateur to experienced traders.
1. All About Copy Trading
What is Copy Trading?
Copy trading is simply mirroring a trade done by a trader. in other words, If the trader decided to open a trade in a certain pair with a certain lot size, you will be copying all the information/Data the trader use in your trade
It takes 3 easy steps to copy trade:
- Select trader.
- Set amount.
- Copy trade.
In doing this, you get to learn about the financial strategies and positions of the best traders in the world, as well as choose to copy their financial decisions.
You earn without having to know the complexities of the trading market by having someone else analyze it for you.
All trades are proportional to the trader and those that copied the trader. This means that if the trader that you copied invested 3% in the amazon stock market with the sum of all the invested funds, then the copiers would also be investing the same 3% from their investment fund.
Fig.1 The “Market Screen” in eToro. For illustration purposes only.
What can you do?
The task at hand now is in knowing your traders by choosing the best and setting your amount. As easy as the task sounds, selecting a trader is still the most crucial step that determines the future of your investment.
Copying a trader is the same as entrusting your investment through someone else’s goals. You have to be cautious and meticulous in knowing where you set your amount because what they earn or lose will become of your investment.
Fig. 2 The “Trader Screen” in Zulu Trade. For illustration purposes only.
To minimize the risk and maximize your investment, choose a trader that possess the following criteria:
A credible trader can be seen with the number of investors that he/she has. The more investors they have the greater the trust that was proven through their trading decisions and their performance.
A consistent trader can be seen in the flow of profits during a year, month, or even a week. Return of Investment (ROI) can also give a better assessment of the trader’s performance during those times.
An experienced trader can be found through the weeks that they’ve been actively trading in their profiles. The longer that they’ve been trading means the more knowledge that they’ve gained from trading. This skill doesn’t always mean a good trader, it still needs to be refined through the other criteria present.
This is considered an important aspect because a trader that is critical won’t easily make risky investments and huge drawdowns that can affect those that chose to copy. They would be more vigilant in making profits and reducing loss.
a trader that invests in stock markets is better since they are less volatile. A critical trader can be found by setting a low-risk score to avoid great risks.
In copy trading, you have the advantage to learn on-site and experience trading through several world-renowned traders.
“Traders” in plural because you are not limited to only one perspective of trading skills but thousands that can better achieve your goals in investing. Even if you decide to discontinue copy-trading with a trader, then as simple as you copied, you can un-copy them.
Where do you start?
Internationally, there has been a massive increase in different copy trading platforms.
These platforms are where you can establish your first trade. These online trading platforms include eToro and Zulu Trade, which are part of the known top forex trading platforms that have assisted millions of investments over the years with top traders.
The platform that you chose institutes a variety of traders that you can follow in the future.
Are There Risks in Copy-Trading?
In forex copy trading, there are still risks in investing your money, but the key to decreasing those risks and increasing profitability is caution.
Don’t be in a pretense that if you copy a highly profitable trader, you are free from any risks. These traders could most likely be lucky in their trades, and their success can lead many to adopt risky investments, which could ultimately lead to unpleasant results.
So, treat copy trading as an opportunity to learn and not only to earn. If you set your goals to better knowing the trade, in due time, you can become a better trader with higher profits.
What Are The Benefits Of Copy Trading?
If you’ve opened forex trading platforms you must know the tedious work that is involved in trading like studying the trade and being constantly updated in the economic news, for hours in a day, to protect your investment. Manual trading has its fair burden, which copy trading avoids through its benefits.
- Doesn’t require extensive research about forex trading.
- Saves time and lessens the burden of forex trading.
- Allows you to learn from renowned traders.
- Allows you to see several traders’ history to find the best trade.
- Expands your range of experience through different traders.
- Gives access to different international markets.
2. Wealth management
Wealth management, like copy trading, offers the same hassle-free trading solution.
Wealth managers gather, share, and exploit their knowledge and skills in trading to better provide investment advisory services and other financial services that can help their clients invest in the best markets.
They manage the client’s financial investments through a set fee. This solution towards trading usually applies to high net worth individuals with a vast preference in different trading markets.
Aside from investment advice, wealth managers also provide banking services, coordinate with the client’s attorney and accountants, and advise them on other philanthropic activities.
Zulu Trade vs eToro
Zulu trade and eToro are two diverse social trading platforms that have indefinitely grown from the rising popularity of forex trading.
While still at the beginning of its growth, it has already achieved great profitability and attracted thousands of traders in the world.
Each platform has its unique traders and features that can help in your investment.
We will be looking into 5 categories to differentiate these two trading platforms.
- Real-time Profits
- Commissions and Payments
- Selection of Brokers and Markets
- Platform Design
Both platforms earn real-time money with the thousands of traders that are active every day.
- Zulu Trade has live rankings to show its followers who gained the most weekly and monthly.
- eToro shows its traders the trending investors and top investors.
Commissions and Payments
Zulu Trade and eToro are relatively free upon registration.
Some trading requires payment of commission to your broker.
- Zulu Trade has a relatively low minimum trade deposit requirement with as low as $1-300,
- eToro’s minimum trade deposit is $50 for U.S. and Australian investors and $200 for other international investors.
Selection of Brokers and Trade Markets
Zulu Trade has access to 10,000 traders from 192 countries.
However, the official ranking in their platform is inconsistent and displays an inferior selection. While, eToro has 10,000,000 clients around the world but only allows traders to operate in its main platform, resulting in a fewer selection of traders.
Both platforms have a wide selection of trade markets to choose from that traders can opt to invest like Amazon, Facebook, Netflix, Testa, etc.
The stock investment isn’t limited to the U.S, but international investors are welcome as well.
eToro’s platform design is clean and simplified without many distractions that allow users to trade.
They offer a modern and attractive design for all its users in comparison to other trading platforms. They also contain VIP features for more experienced users.
Zulu Trade offers an easy-access design that categorizes their different features for their traders. Statistics and profiles of traders are also on the main trading page.
Zulu Trade has features that allow you to choose from traders that use their own money in trading, had a maximum drawdown of 20%, and have traded for a year.
Fig.3 The “Feature bar” in Zulu Trade. For illustration purposes only.
Other features are:
- Lock Trade – allows you to verify a trade;
- Automator – emails and notifies when an event occurs;
- Social network features – reviews signal providers; and
- Zulu Guard – informs traders if erratic trades are opened.
eToro has features that also allow investors to communicate directly with followed traders, and for VIP cases, they can access a trader simulator and portfolio.