Are you a trader from Malaysia who is interested in copy trading? Before you start copy trade in Malaysia, try to know about it better. Copy trading is a kind of automated trading strategy. With this strategy, a trader can copy other traders automatically. It means as those traders win or lose their trades, the same happens with you too. This type of trading is perfect – whether you want to trade forex or other instruments using copy trading. If you a beginner who does not know much about what to do, or if you do not have a lot of time to dedicate to trading, then copy trading can be your perfect solution.
Anyone can begin copy trading by copying other traders. However, if you want others to copy you, you need to be a very successful trader yourself first.
How Does Copy Trading Work?
When a trader begins copy trading, he/she needs to be aware of the process first. This is how it happens. First, a trader places a trade. If this trader is a professional and advanced one and is relied upon by other traders and investors, then others copy this trader. It generally takes place automatically.
Traders do not need to intervene for it. The traders that follow or copy win or lose the trade along with the trader they have copied. If the advanced trader’s positions grow, so will be the traders that have copied them and vice versa. Keep in mind that everything is proportionate here.
So, you may invest any amount you want, and you will end up gaining or losing proportionately through copy trading. When you select a trader to copy them, make sure to check the position sizes usually opened by them because this can influence your investment.
For example, if a trader places trades on numerous instruments when their average profit/low is at +10%, then you decide to invest 100 US dollars. The profit/loss goes to 15$ finally when you close your position. It will make you earn +5% as the trader was at +10% profit already when you started copying them.
How to Choose a Trader to Copy?
Copy trading is indeed beneficial, but you must keep in mind that you will have to suffer losses if you do not follow the right trader. So, follow these steps when you choose a trader to copy –
- Find the right moment
It is a must to monitor the performance of the trader before copying them. It is wise to avoid copying them during strong positive streaks or right after the trader reaches earning peaks. It may mean that their positions have reached the maximum potential already. So, it is best to copy a trader when they have opened new positions or are on a bit of downturn after long positive periods.
- The history of the trader
Consistency is crucial in not only copy trading, but trading as a whole. It would be a good idea to avoid following traders that have both large earning peaks and huge losses on their trading history. The more consistent a trader is, the more you can rely on them for a better return on investment.
- Risk rating
Risk management is another essential factor when it comes to trading. Even though brokers offer an algorithm to let you know if a trader is risky, the final decision is yours to take. The risk strategy scale of traders ranges from 1 to 10. This scale decides if a strategy is risky to follow or not. Keep in mind that a risky trading strategy may bring big returns, but may lead to losses as well in the long run. So, keep the risk/reward ratio and balance in mind to determine what would be ideal for you.
- Earnings and drawdowns
You may come across traders that have no losing trades on their records. These traders must be avoided at all costs. Always remember that even the most skilled traders face losses. So, a record with no losing trade is too good to be true. It is clearly a warning sign and you must use your judgment here.
- Open positions
Another point you should note that there should never be too many open positions at the same time. By limiting your open positions to a few, you can monitor them better. You should also consider placing a stop-loss order on your trades. It can stop you from losing positions endlessly. So, do not follow a trader that has so many open positions.
Brokers with Copy Trading Features that Accept Malaysian Traders
If you are a trader from Malaysia and want to start copy trading, then you must find a suitable broker first that offers copy trading services to Malaysian traders. Some of the top traders who do so are –
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1. OctaFX
OctaFX is one of the top brokers that offer copy trading services to users. The broker is popular because of its ultra-low spreads, starting from 0.4 pips only on a standard account. If you open a pro account, then you can start trading at 0.2 pips only. The broker also offers fast execution of trades and a low minimum deposit. Click here to start trading with OctaFX.
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2. HotForex
When it comes to copy trading providers, HotForex is very popular among new traders. The reason behind this popularity lies in its wide range of assets, competitive pricing, and an extensive section of educational materials, including video tutorials, articles, and live webinars that can help you develop your trading skills. If you are a copier, you can open the HFCopy account for $300 on the platform, and signal providers can open it for $1000. Visit here to start copy trading with HotForex.
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3. FBS
FBS is another great option if you are looking for a decent broke offering copy trading services. This broker is also very well-known among beginners due to the range of trading accounts it offers. You can open the Cent account for $10 only. Visit the official website of the broker by clicking on this link.
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4. eToro
eToro easily grabs the top spot when it comes to social trading and copy trading. One of the best in the forex industry, the eToro copy trading system is for both beginners and advanced traders. You can open a trading account on this broker with a minimum deposit of $200. eToro does not only offer its copy trading services on live accounts, but it also allows traders to try copy trading through its demo account without using real money. Click here to start trading with eToro.
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5. AvaTrade
Based in Ireland and licensed by the Central Bank of Ireland in Europe, AvaTrade also offers its services to Malaysian traders. It is also one of the very few brokers that provide fixed spread trading. You can choose from a wide range of trading platforms offered by the broker to execute trades. The broker offers its copy trading services through its specifically built Duplitrade platform. You can start trading all assets on this platform at the fixed spread starting from 1.3 pips. Visit here to start trading with AvaTrade.
Conclusion
It cannot be denied that copy trading is a great technique if the traders can apply it by using their knowledge and control the right way. If you are a busy person who does not have much time to invest in trading, then copy trading is ideal for you. It is practically the same as assigning the best traders to make trading decisions on your behalf. Moreover, if you are a new trader, you can take the advantage of the knowledge and experience of expert traders by copying them.
Finally, if you end up becoming an expert trader yourself and other traders start copying you, you can earn commissions from the trades that you will be making. So, if applied right, everyone involved with copy trading can benefit from it.