Mirror Trading: Overview, Benefits, Limitations

what is mirror trading

This helps to filter out losing trades, increasing the reliability of algorithms. Mirror trading platforms operate by combining the strategies of their top traders to create a trading algorithm. This algorithm will send signals to your trading account, telling it what trades to make in almost real time. As the name suggests, mirror trading involves mirroring the trading strategy of other more established and experienced traders. Although mirror trading can be done in both stock and forex markets, it is most commonly used in forex markets. Russian stocks were being bought through Deutsche Bank in Moscow (with rubles), and the same stocks were being sold to Deutsche Bank in London (for US dollars).

what is mirror trading

The only method to benefit from trading appears to be by replicating the small portion of traders that are successful. Mirror trading, also known as copy trading or social trading, is a cutting-edge investment strategy that allows individuals to replicate the trading decisions of expert traders. It operates on the premise that skilled traders have honed their expertise over time, making sound investment choices that lead to positive returns.

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As mentioned above, you must choose a mirror trading platform to connect your account to a pro or master trader’s account and automatically execute your trades. The followings are the top five best forex mirror trading platforms. Mirror trading provides investors with access to the profitable strategies and trading insights of experienced traders, who themselves have a successful track record of investing in crypto. https://investmentsanalysis.info/ As with any service, crypto mirror trading platforms usually charge a fee, which can be either a percentage of the profits generated by the portfolio or a flat fee. Mirror trading is a type of trade selection most often used in foreign exchange (Forex) markets. It is a method that enables investors to mimic the trades of seasoned forex investors and then execute identical transactions in their own accounts.

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Recently, the crypto market cap eclipsed an all-time high of over $3 trillion. And with some institutional investors projecting that Bitcoin may reach $1 million per coin, interest in crypto investing will continue to grow. This is especially true among the “do-it-yourself” investor crowd, particularly those experiencing FOMO.

Mirror trading saves time

I have tried and tested many forex mirror trading platforms over the years. These I have listed here I think truly deserve to be on this list after a thorough and prolonged examination. There are many who make a living day-to-day trading, but the facts are in the numbers. In fact, according to a recent research from Brazil, 97% of day traders there lost money, indicating that the majority of people who try to trade the markets do so at their own peril.

It is a good way to enter a new market, with low effort, and a way to learn without imparting emotional trading. However, it is not the secret weapon to guarantee the best results. Trality’s Marketplace is a one-of-a-kind space that brings together crypto trading bot creators and investors for mutually beneficial purposes. In mirror trading, a trader can decide a lot size and amount of trading positions in each copied trade by himself/herself. While in copy trading, the follower should allocate part of its capital to the signal provider and pay fees and commissions for provided services.

Mirror Trading

If you do mirror trading, then by definition you are also a social trader. However, it’s also possible to be a social trader who doesn’t do mirror trades. Researching more experienced traders takes a long time – Although you won’t be placing any trades yourself, you still need to find the best strategies to mirror.

It billed itself as a forum for discovering exceptional portfolio managers, who collectively covered a complete range of strategies, sectors and risk levels. Covestor enabled its clients to save money through low trading costs and automated software which replicated portfolio managers’ trades in mirror accounts. However, trading services and trading rooms may have “gurus” that want you to mirror their trades. Retail investors can trade Forex, futures, options and cryptos with FP Markets, which offers a variety of services to assist them be successful in their trades (thanks to the MetaTrader suite).


Collective2 is a trading platform that takes advantage of the latest technology to create an all-inclusive, easy-to-use experience for traders. The Collective2 system has been validated by US agencies and amassed over 78,000 users from around the world with its great reputation. Based out of Greece, Zulu Trading offers copy trading services to its users around the world – even those residing inside Online gold trading America’s borders. There are a variety of social features that help you engage with traders and like-minded investors. For example, the “feeds” section of the platform is designed to allow users to keep up with traders, just like they would on Twitter or Facebook. They offer an ultra competitive spread through their Raw ECN account to ensure traders are getting the best possible deal on trades.

You will need less time to get started with more chances to keep your funds. Mirror trading works by copying the trading strategies of experienced traders in real-time. Investors can choose to automatically replicate the trades of selected traders.

Still looking for a broker you can trust?

You no longer have to worry about which of these mirror trading platforms is best for your needs because I have extensively examined and assessed each one. Have you ever desired to profit from the markets but were just intimidated by the myriad of available options and technical jargon? You’re not alone; according to studies, only 20% of day traders stick with it for more than two years and a large percentage of retail traders lose money. However, despite its many advantages, mirror trading isn’t a foolproof path to profits.

  • This fraudulent activity should not be confused with legitimate mirror trading despite the misnomer in financial reporting.
  • Because of its automated nature, it may assist investors in avoiding making trading choices influenced by their emotions.
  • You have the option to trade on the currency markets from anywhere in the world thanks to AvaTrade.

Just because a trading strategy has been profitable for three months on the trot, it doesn’t automatically mean that it will continue to work when you start using it. You see, past performance is no guarantee for future success and all traders go into draw-down at some point, which means you may not get the expected results. Mirror trading empowers new traders by providing access to proven strategies and techniques developed and proven by experienced traders.

Large Initial Investment

Successful traders set themselves up with a plan, follow it, and then never lose focus. Every trader will experience losses, but they should be minimised by following risk-management principles, like not risking more than 1% of your account on any single trade. Mirror trading is a method that allows any trader to set their account to automatically “mirror” the decisions taken by a pre-selected trading strategy.