Trade together: Learn strategies from global pros with copy trading & social trading on FP Markets
Before the internet connected everything, trading was truly a solo activity. Knowledge was limited to books or passed along within small circles. Whoever suffered a loss felt the pain quietly alone. Whoever discovered a good strategy might keep it for themselves.
But times have changed. Today, the world of trading has entered an era of connectivity. Two terms have taken on a significant role: Copy Trading and Social Trading. This technology means you no longer have to battle the market alone. You can see how other professional traders around the world are thinking, what plans they are making, and the reasons they open or close orders. Some platforms even allow their accounts to automatically follow these traders.
Where should you start to turn it into a classroom that helps develop stable, sustainable trading skills?
What are copy trading and social trading? How do they differ from trading yourself?
Copy Trading is a system that allows their trading account to automatically copy the orders and trades of other traders, whom they call Strategy Providers or Masters. When you select a trader you want to follow, the system will open and close orders based on that master account in real-time.
It will calculate the trade size proportionally, based on the capital one allocates. For example, if the master account has US$10,000 in capital and opens a 1.0 lot order, and you have US$1,000 and choose to copy proportionally, the system will open a 0.1 lot order for you.
As for Social Trading, it is the world of the trading community. It’s a social media platform focused on trading. Traders can share strategies, performance statistics, chart analyses, and discuss or exchange opinions about market conditions.
It is about watching, listening, and learning from others. You can follow traders you admire, read their news feeds, or even set up alerts for when they make a trade.
Compared to trading entirely on your own, solo trading means you have to go through all the trial and error yourself. This includes learning theory, analysing charts, managing risk, and controlling emotions.
But with the introduction of Copy Trading and Social Trading, they are shifting from guesswork to trading based more on data. FP Markets can see clear, real-world examples of people who survive in the market and can filter master traders based on tangible historical statistics, such as:
- Returns
- Maximum drawdown level
- Age of the strategy
- Number of profitable months versus losing months
Why do copy & social trading meet the needs of today’s traders?
These tools help solve problems that most retail traders face and allow others who view the market the same way you do, or why they see it differently. This helps reduce feelings of insecurity when the market moves against you and provides a space to ask questions and exchange knowledge.
- It bridges the gap of ‘not knowing where to start learning.’
For new traders, the financial market is full of complex theories. Starting by observing the behaviour of those actually doing it via Social Trading, or trying to copy a strategy with a small amount of capital via Copy Trading, provides a faster understanding of real-world application. It’s like watching an expert play repeatedly before you step onto the field yourself.
- It helps in learning risk management.
Most beginners make mistakes in risk management. Professional traders who survive long-term usually have clear plans for managing Lot Size, Stop Loss, and Take Profit. By seeing these examples or using the Copy Trading system to enforce this discipline, you learn the disciplined structure of professionals before developing your own style.
- It suits people who want to trade but don’t have time to watch the screen all day.
Copy Trading helps reduce the time needed to sit and watch charts. However, it must be emphasised that this doesn’t mean you don’t need to understand anything. You still need to do your homework to select reliable master traders and must monitor your portfolio’s performance periodically.
How does FP Markets offer copy trading & social trading?
FP Markets is an international broker trusted for over 20 years. Regulated by leading authorities such as ASIC and CySEC, the company ensures international standards of security and confidence. It offers trading services for a wide range of assets, including Forex, Indices, Share CFDs, Commodities, and Crypto. The company has prepared systems and platforms that support Copy Trading and Social Trading to connect traders worldwide.
Once a trader opens an account with FP Markets and completes verification, they can access the Copy Trading or Social Trading platforms supported by FP Markets.
The core feature is the Trader Ranking Table, which greatly aids their decision-making.
- Statistics Table: Shows cumulative returns, profit percentage, maximum drawdown, and age of the strategy.
- Performance Graph: Displays historical portfolio growth.
- Trading Style Information: Indicates whether the trader focuses on short-term or long-term trades, their trading frequency, and their preferred assets.
How to choose a pro who is right for you
A common mistake is choosing based on the person with the highest profit in a single month. FP Markets advises users to look at the bigger picture.
Check the Drawdown first: See if you can tolerate their past maximum loss. If you see a -30% figure and it makes your heart pound, this person might not be suitable for you.
Look for consistency: Choose someone with steady profits over someone whose profits skyrocketed briefly and then disappeared.
Look at the strategy’s age: A strategy that has weathered more market conditions is often more reliable.
Risk Management Tools The FP Markets platform doesn’t just let you follow blindly; it empowers you to control your own risk.
Set the allocation: You can choose how much capital to use for copying or what proportion of the master’s trades to copy.
Set your own Stop Loss: You can configure the system to automatically ‘stop copying’ if the copied portfolio reaches a loss level you have defined.
Instead of putting all your money on one person, you can diversify your copying across multiple traders with different strategies.
Use copy & social trading as a classroom to develop your own skills
Your attitude toward using these tools is crucial. View the traders you follow as ‘teachers and case studies.’ Instead of just clicking ‘follow’ and walking away, try opening the historical charts and taking notes:
- When in the market did they enter the order?
- Where did they have the courage to cut their losses?
- How long did they let their profits run?
Doing this will change you from a follower into a student.
When you follow multiple people, you will start to see that there isn’t just one ‘path to survival’ in the market. Some may be skilled at short-term trading, while others excel at following long-term trends. You can adapt the best parts from each to create your own plan in the future.
Use a demo account or small capital as a training ground
FP Markets offers the opportunity to test the system with a Demo Account, or you can start with a small amount of money. This allows you to test how the strategy works and, importantly, to test ‘your own feelings’ when the portfolio is fluctuating.
The ultimate goal of Copy Trading is to use it as a shortcut for learning, not to hand over 100% of your financial responsibility to someone else.
Before starting, it is recommended that readers study the product information and read the risk warning (Disclaimer) provided clearly and thoroughly by FP Markets before deciding to follow a strategy.
You don’t have to trade alone, but don’t let anyone else do all the thinking
Copy Trading and Social Trading on platforms like FP Markets have completely broken down the wall of isolation in trading. It helps reduce loneliness, speeds up the learning process, and opens up opportunities to see trading perspectives from professionals worldwide.
What must always accompany this is risk management that is appropriate for you, setting trade proportions you are comfortable with, and never handing over 100% of your financial authority to someone else.
For those interested, FP Markets always provides an opportunity for you to start. Try beginning with your own account. Use this time to ‘study the strategies of others’ sufficiently, until it becomes the ‘foundation of your own trading plan.’ And once you are proficient, you can open a live account.
This article is intended solely to provide information and insights regarding Copy Trading and Social Trading concepts on the FP Markets platform. It does not constitute an offer, solicitation, or recommendation to invest. Trading in any financial product involves risks. Please study the product risk disclosures thoroughly and carefully. Consider your own risk tolerance before making any investment decision.
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