The ForexCopy system of the broker InstaForex is a service that allows the user to follow successful Forex traders and copy their trades online in real time. In general, it is very similar to the service Copytrader offered by the broker eToro.
Basically this system allows the clients of InstaForex the instant order execution of trades carried out by experts selected traders. In this case, the client can register to trade with selected currency pairs or other financial instruments and also employing a particular relationship between the number of trades of the selected traders and the trades he wants to copy (a copy ratio). In this way, the trader can define a percentage of trades to be copied.
The system is designed to allow monitoring the trades performed by professional traders registered in ForexCopy. The system page shows updated statistics for each trading strategy trading available.
In the case of signal providers (professional traders), they can establish the terms under which their signals will be copied and then trade in the market as they normally do. The traders can choose among several options of payment such as a fee per transaction, a commission for each 0.01 traded lot or part of the benefits obtained by their followers (investors) with their signals.
The trader receives the corresponding payment only if:
- The earnings cover the fees payable by the follower to the trader.
- The trading signals produce earnings for the followers.
You can get more information about the company InstaForex and its brokerage services in the following guide about this broker: Review of InstaForex broker
System features for investors
The investors (signal followers) can monitor the list of trading strategies to choose who in their opinion are the best traders to copy their trades. The system allows the clients of this broker to set the parameters for each signal that they follow separately. Subscription parameters include the percentage of copy, currency pairs, and other instruments that the investors want to trade and the limit on the number of daily transactions copied. The follower can set all these parameters individually for each trader.
There is no limit to the account balance that a signal provider or a follower must have to use the system. If the account of a follower does not have the funds necessary to execute a signal, the trade is not performed. There is no limit to the number of signal providers that can be followed by an investor and among providers is also permitted to copy trades.
Any client of InstaForex can register for free in the ForexCopy system to receive trading signals from expert traders with years of experience in the market.
There is no limit to the number of signal providers who can sign a follower and among providers is also permitted to copy operations.
Main advantages of the ForexCopy system
- This system permits the real-time copy of orders generated by successful traders.
- The risk of loss can be reduced by copying the signals from multiple traders and using a combination of different strategies of these traders based on technical analysis and fundamental analysis.
- The funds of the followers are not handled directly by the signal providers. The capital remains in the trading account of the investors under their control. Therefore, the client need not request the return of funds to the account of the trader.
- The followers have the option to select the trades that they want to copy. This option has proved very useful when the follower wants to reduce the risk of copying all the trades of the provider or when he does not have sufficient funds to implement all the trading signals it receives.
- ForexCopy system lets the trader select the currency pairs to execute the trading signals. This parameter is set by the investor during the subscription with the signal provider. Likewise, the follower can change the list of trading instruments without this cancels the subscription.
- The investors should only pay commissions on winning trades. Also, the earnings must exceed the commissions that the followers must pay to the traders for copying their trades. Therefore, the investors do not pay for any losing trade, which favors and protects their interests.
- If the follower chooses the option of paying a daily subscription fee, the trader must perform at least one trade a day to receive the commission.