The evolution of trading systems made buying and selling various financial instruments with fewer interactions possible, leading to minimised processing time and improved efficiency.
Digitalised platforms like trading software allow investors to interact with financial markets and explore various ways to make money. Moreover, trading has become more automated and seamless thanks to strategy copiers.
MetaTrader is a renowned trading platform where users can manage their investment portfolios and follow the path of proven traders. Let’s explain how MT5 copy trade software works and how to use it.
Understanding Copy Trading Strategy
Copy trading allows investors to explore different investment models and choose the one that suits their preference, trading style and risk tolerance. Users can select a particular strategy and adjust the parameters to fit their portfolio and objectives.
Each trading system has its own approach, markets and assets, offering different ways to capitalise on this advanced strategy.
Beginners usually prefer copy trading to mitigate the risk of creating a flawed strategy due to the lack of experience. Moreover, traders can apply a selected trading style and enhance it over time as they improve their knowledge and cope with market changes.
Copy Trading vs Social Trading
Copy strategies are considered an improved version of social trading, where investors of different experiences join online communities to discuss changing trading dynamics and investing trends and strategies.
Socialising with other market participants helps newbies develop a logical rationale while creating their own trading strategy. However, this setting has developed into a fully-fledged system that can be picked and implemented.
MT5 Copy Trade Software
MetaTrader 5 is a trading platform developed in 2010, which remains today as one of the most commonly used software to interact with financial markets and implement various investment strategies.
Copy trading strategies are implemented with the help of trading platforms, such as MT5, offering a dedicated section for users to choose and copy a preferred portfolio offered by industry experts.
MT5 copy trading is known for its adaptability and flexibility, catering to new trends in the market, such as automation and algorithmic trading, making it one of the best copy trading platforms.
You can start copy trading on MT5 by following these steps:
- Launch the MetaTrader 5 platform, whether from the webtrader or the native app.
- Click on “Signals” from the bottom bar in the main traders’ room.
- Navigate through various signal providers and check out their history and ratings.
- Choose the signal provider that suits your needs, asset preference and risk tolerance.
- Change the parameters if necessary, such as stop-loss and take-profit levels, number of Forex lots, etc.
What Makes MetaTrader 5 a Reliable Trading Software
Copy trading is not exclusive to MetaTrader because you can find other trading software that offers almost a similar service. However, MT5 offers several benefits, including the following:
Various Technical Indicators
Technical indicators are great tools to understand previous price movements and draw future predictions. Some indicators are used to determine the right time to enter the market or close your trading position.
MT5 comes with 80 built-in indicators, like the RSI index, which shows the asset price momentum, indicating if an asset is being overbought or oversold.
Multiple Trading Signals
Signals notify the trader about the right time to execute a certain order, such as buying or selling, according to market changes. Signals can mark significant price fluctuations or entries that present significant gain opportunities.
Advanced Analysis Tools
MetaTrader 5 comes with around 100 charting options, allowing traders to read and understand previous and ongoing market actions and predict future prices accurately.
Additionally, MT5 incorporates recent technological trends, such as automation and algorithmic trading, making it far easier to manage multiple positions simultaneously.
Cross-device Compatibility
MetaTrader 5 is compatible with multiple devices and operating systems. You can either sign into your account from the web browser version or open a trading session from your mobile phone or laptop through a downloadable program.
Conclusion
Selecting a copy trading software on MT5 is a smart way to engage in financial markets and execute buy/sell orders following the steps of successful investors.
Several reasons make MetaTrader 5 a suitable program for copy trading, starting from its compatibility with multiple devices to offering a plethora of signals and indicators that help you succeed in the financial markets.
