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Forex Signal Provider - Mirror Trading - What Are the Advantages?

The Forex market offers many opportunities. However, for various reasons, many people do not take full advantage of these opportunities.

By Bhagirath RoyPublished 12 months ago 4 min read
Forex Signal Provider - Mirror Trading - What Are the Advantages?
Photo by Kenny Eliason on Unsplash

Forex signal providers provide actionable trading signals that allow you to trade profitably in the forex market without having to understand why or how those trades work. Trading allows your portfolio to trade the same as a trusted public dealer.

Leveraging Experienced Traders and Analysts

Forex trading is a hard-earned skill that takes time and experience to develop. Not everyone has that kind of experience and doesn't have the time to develop the necessary understanding. To be honest, most people don't want to do the work required to develop those skills. Many people do not have the emotional control to effectively trade forex. For one of these reasons, forex signal providers fill this knowledge gap. Mirror trading doesn't even require the details of how the trade is executed. All this is done by the merchant whose account you are mirroring. Before mirroring a trader, you can easily see the trader's past performance, thus giving a clear indication of his level of skill.

Outsource the Time and Energy Required for Effective Trading

Profitable Forex trading is a complex undertaking that requires a lot of analysis of charts and news. Tracking both technical and fundamental drivers of market movements can take a long time. Some people don't enjoy finding the best entry and exit points for their traders.

Some traders do not trust themselves or believe they have the skills to do it effectively. You can't make room for market analysis. Even if you have other responsibilities or don't want to be involved in this kind of analysis, forex signal providers basically outsource the work to someone else and make it practical

Forex trading opportunities can present themselves very suddenly, and even those who have the time or inclination to analyze the market will find all the opportunities a forex trading signals provider can offer. May not have the ability to monitor the market continuously. Keeping up with the top 7 forex currency pairs, which make up about 85% of the forex market, can be a daunting task.

With mirror trading, you don't even need time to trade on your own based on the signals. Your portfolio automatically reflects the portfolios of traders you follow. This is a very powerful way to leverage the expertise of an experienced trader and saves a lot of time and effort. A very recent development in the environment, it has great potential to attract more traders and investors to the Forex market. However, the time and effort saved in trading should be focused on choosing a good and reliable forex signal provider or trading account to mirror.

Mirror trading is a form of investment involving automated trading of assets based on algorithmic strategies rather than individual trading. This is a strategy that allows investors to view and copy the trades of experienced and successful investors and execute the same trades in near real time through their own accounts. This is a trade selection method used primarily in the Forex market, but due to changes in Forex and CFD regulations, it is now more commonly used in the stock market.

The biggest advantage of mirror trading is cost savings. Exchange-listed products typically involve higher costs associated with execution or brokerage services

These include functions such as analytics, market data or any type of information that the professional trader may need, in addition to the time required to screen the market, analyze it, and select the right instruments or sectors to invest in.

Particularly for FX broker firms, mirror trading is not only cost-efficient, but it also helps in gaining a competitive edge in a market, drives the opening of more new accounts, it ensures improved account conversion rates and boosts the trading activities of existing customers.

Mirror trading saves everything mentioned above by offering a ready-made investment tool to the client in which he will only pay the execution fee without having to pay for any additional service to make a better investment decision.

Mirror trading is most suitable for technically inclined investors—traders who understand how trading algorithms work and are more likely to make informed decisions when choosing a mirror trading platform or algorithm. With our FIX API engine and dynamic risk management systems, a financial institution can provide a significant value-add to their clients by offering them the concept of mirror trading that is not restricted only to the world of FX and CFDs, but also to a real multi-asset environment including exchange listed products.

It is also suitable for global macro traders, as algorithms are often developed based on strategies developed by hundreds or thousands of experienced traders who share similar strategies. Investors who understand and appreciate how experts react to macroeconomic trends and data may choose mirror trading over copy trading. It is especially useful for emotion-driven traders who tend to make trading decisions based on their emotions, as they can delegate the responsibility of portfolio management to the Mirror Trading Algorithm.

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