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Why Is Copy Forex Trading So Interesting?

By Louis H-P on June 27, 2022

Reading Time: 4 minutes

Have you ever considered outsourcing your wealth growth? How about doing so for the most liquid market of them all? Copy Forex trading can help you with both! This has many merits, but there are also risks to be involved, not least the famous one: past performance is not an indication of future returns!

Key Takeaways

What is copy Forex trading

Why is can appeal to those of who want to invest with less risk

How you can take part

What is currency trading?

Currency trading is when two currencies are traded, by selling one and buying another. The Forex trading market is the most liquid of them all and is open 6 days a week 24 hours a day. This is possible as different financial centres take over the baton of Forex trading.

Although currency trading was originally performed for business reasons: buying raw materials in dollars, but selling the finished item in pounds, today it is largely driven by speculation.

As currencies are not as volatile as other asset classes, they are seen as lower risk. This reduces losses when they occur. It is important to remember that everyone can profit from a trade but not everyone can avoid regular losses. Traditionally the dollar is seen as the strongest currency in the world.

What is copy Forex trading?

Copy Forex trading is a trading strategy where you copy a successful Forex trader. In effect your outsource the currency trading part of your portfolio to someone who has a track record of success.

In a world where many are rushed off their feet with the normal chores of life, financial planning often gets left out. Copy trading allows you to grow your wealth whilst maintaining some control of your assets. If the trader you are copying performs badly on a consistent basis then you have the ability to switch to another.

Why is Forex trading attractive?

Because you do not have to do it? No need to spend hours reading economic or data reports. You are outsourcing your wealth creation. You could also assign different traders different parts of your stock portfolio. For example you could assign one to gold, silver or bond investing. You can also spend more time on your hobbies (watching cat videos anyone?)

If you interested by eToro please click on the following links for USA customers and worldwide (non-USA) based customers.

Forex trading is also lower risk. If your account ends up including major currency pairs which involve any of the following currencies, USD, EUR, GBP, JPY, you are unlikely to have major price swings. This caps your losses (and gains too!). This means your wealth will grow in a consistent manner without too much volatility. In turn you can sleep soundly at night! (Trading can be, and often is stressful)

What are the risks with copy Forex trading?

Although Forex trading is considered relatively staid risk wise, there are some nonetheless. When the SNB removed the price cap against the Euro in 2015, it shocked everyone. Some trading platforms also went bankrupt. If the professionals got it wrong, many so called ‘professional’ copy traders may also get it wrong. They may also have taken greater risk using leverage.

Copy Forex trading can lead to big losses if leverage is used

Leverage is the killer of any trader. Using leverage is akin to picking up pennes in front of a steamroller. You will make small amounts of money before it eventually gets you. Its the same with trading, the one time your leverage position goes against you it will clean you out. Do not copy traders who use leverage.

Other options you have

There are several platforms which offer copy trading. The most famous is eToro. It is the market leader. This is important as it means there are more copy traders to chose from. Anyone interested should follow the following links for USA customers and worldwide (non-USA) based customers

You should also be aware of Naga and Avatrade, each of whom has a strong following. They each will have traders offering for you to copy their strategy. Before selecting one or more, check that they focus truly on currencies and not riskier corners of the market such as cryptocurrencies.

Another check, and this will take a bit of work, is to see how they performed in a downturn. Timing the market is incredibly hard, but there are sensible steps a trader can take. This can mean reducing profitable positions when the market is running ahead of itself or buying some form of protection.

There are also variants of copy trading such as and social and mirror trading. The former means interacting with other traders who assist you with their trades, this will require time and effort on your. The latter means only copying some of the other traders strategy, not the entire account (as per copy trading).


Copy Forex trading can be an interesting addition to your overall investment strategy. Many investors do not bother (at their loss) from investing in currencies. Some do in an imperfect manner through a foreign portfolio investment.

Do not forget that the two largest currencies in the world, the dollar and Euro are backed by two of the most reputable economic areas (the USA and Europe). This makes them safer than many other investments. Can you therefore pass on this opportunity?

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Louis H-P

Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.

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About author

Louis H-P

Louis is a portfolio manager and a trader who brings a wealth of experience in private banking to The Lazy Trader. A fundamentalist and a trouble-shooter, Louis makes a firm contribution to the trading team.

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