Copy trading is a method of trading that is mostly designed for new traders with limited financial knowledge, allowing them to automatically or manually copy the trades of more seasoned traders in the financial markets.
Amongst the copy trading platform, traders can check the historical performance and the risk level other traders are taking to gain from their current trading performance.
Since copy trading is legal in India, traders can use local and foreign copy trading brokers at their convenience. It is important to note that the broker one chooses is regulated to keep investments safe and provide a smooth trading experience.
However, an individual must consider a few factors before choosing a copy trading platform; these include:
Reliability: Ideally, the chosen copy trading platform should be reputable and trustworthy. Essentially, go through customer reviews and ratings before zeroing in on a platform. This way, a new investor is able to beat the risk.
Regulation: Considering that there has been a significant rise in digital scams these days, an investor should always use a copy trading platform that is regulated by the Securities Board of India (SEBI) or other reputed regulatory bodies to remain safe against falling for a scam.
Advanced managers: An ideal copy trading platform will comprise a vast network of advanced managers available to aid traders in making the most of their trades.
Risk management tools: Copy trading platforms offering up-to-date risk management tools are ideal for investors entering the trade market for the first time. Such tools aid traders in managing any risks arising from their trades effectively.
Platform’s technology: A copy trading platform with cutting-edge technology is another point that one needs to consider. Check out a platform’s features and then choose the one that suits your trading needs. This way, a trader is able to gain from features that provide risk management settings that can save them from future losses; besides, it can save time with its easy-to-use features.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.