Binary Options Copy Trading
Binary options copy trading is where an investor uses software to mirror the exact moves another trader makes. This guide will explain how binary options copy trading works, from fees to start-up requirements. We also list the best platforms and supporting brokers in 2023. Find out how to start copying the binary options trades of successful investors today.
Binary Options Copy Trading Brokers
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Pocket Option offers short term binary options on a user-friendly platform with competitive payouts of 90%+. Over 130 assets are available with fee-free deposits and withdrawals. Joining bonuses are also available to new users.
Pocket Option Copy Trading
Pocket Option offers hassle-free copy trading. Simply choose from the broker's top ranked traders and mirror their positions in your own account. The copy trading service is available 24/7 and also hosts active community groups where you can chat with other traders.
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IQCent offers binary options on forex, stocks, cryptocurrencies and commodities with high payouts up to 98%. The broker uses a proprietary platform with advanced analysis tools and traders can choose contract timeframes ranging from 5 seconds to months, appealing to both short and long term traders.
IQCent Copy Trading
Copy trading is offered within the proprietary WebTrader platform. Clients can follow and replicate the trades of established investors using real-time performance statistics.
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Videforex binary options are available from 20% payouts on crypto up to 98% payouts on less volatile assets, beating many competitors. A wide range of contract lengths are also supported from 5 seconds up to 1 month. New users will appreciate the welcome deposit bonus.
Videforex Copy Trading
Videforex offers an integrated copy trading service where users can automatically or manually replicate the positions of other traders. Simply choose a trader and asset class and specify the investment amount.
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World Forex offers binary options where you simply decide the stake, price direction and contract timeframe. The payouts are high at up to 100% on American contracts and 85% on European, which also offers a partial refund to traders who close contracts before expiry.
World Forex Copy Trading
Use copy trading signals on MT4 to replicate strategies in your own live account. No additional fees apply and the platform is available via downloadable software plus a web-accessible solution.
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RaceOption offers 100+ binaries with decent payouts up to 95% and ultra-fast expiries from 5 seconds. With a $250 minimum deposit, clients can enjoy free deposits, fast withdrawals and a range of trading bonuses.
Raceoption Copy Trading
Replicate the positions and strategies of multiple traders while leveraging the RaceOption leaderboard. You can start copy trading in three fast steps and follow multiple traders simultaneously.
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BinaryCent provides binary options trading on a range of markets through a slick proprietary platform. Traders can invest as little as $0.10 per trade and earn payouts up to 95%, and these are excellent terms that accommodate casual and low-capital traders while allowing profit opportunities.
Binarycent Copy Trading
The copy trading tool is available for all account types, including the lowest - Bronze. You can pick a trader based on their returns and ranking. The sign-up process is quick and account activation is instant.
What Is Binary Options Copy Trading?
Binary options are a derivative product that can be used to speculate on the price of stocks, indices, cryptos, forex and commodities. Investors are aware of the exact risk and reward of a trade at the time of purchasing a contract. A trade that finishes ‘in the money’ wins the trader a fixed payout, typically displayed as a percentage, for example 75%. If the investor is incorrect, they lose their initial stake.
Copy trading is a method of investing whereby an investor links their finances to the actions of another trader (dubbed a leader or signal provider). Their trading actions will be automatically copied in the follower’s account. Clients can choose from fully automated copy trading or they can adopt a more manual approach where users can amend trade parameters to align with their risk tolerance and financial goals before deciding whether to open a position.
Copy trading on Pocket Option
Importantly, binary options copy trading allows customers to benefit from the experience and strategies developed by seasoned investors. This can help generate profits while also increasing a trader’s understanding and knowledge of different financial markets.
It’s also worth pointing out that any losses generated in the master account will be reflected in the follower’s trading portfolio. With this in mind, it’s important to choose a master trader with a good track record. Fortunately, the best binary options copy trading brokers rank providers across various metrics, from the strategies used to historic profit and loss.
Advantages Of Binary Options Copy Trading
- Opportunity to learn from experts – Consistently following the moves of traders who make a profit through binary options can help achieve fluency in this type of investing.
- Simplicity – The most difficult part of the process is finding a suitable broker and leader, everything else is as simple as keeping track of profits and losses.
- Time saver – Once you set up an account and select who to copy, you can get started trading. There are no more complex hoops to jump through.
- Additional revenue – Experienced traders can generate an additional revenue stream by selling their strategies and positions to beginner traders.
- Tax-free – There isn’t any tax to pay on binary options trading profits in the UK.
Disadvantages Of Binary Options Copy Trading
- Risk of scams – Due to the broker market being difficult to regulate, there are many online scams. This is why it’s important to sign up with a trusted software provider.
- No definite returns – Even seasoned traders can get things wrong and make a loss due to the inherent risk involved with speculating on popular financial markets; if your leader makes a loss, so do you.
How To Start Binary Options Copy Trading
To get started, open an account with a broker that supports binary options copy trading. As outlined above, these brokerages tend to have statistics concerning their top signal providers, from which you can select. The best brands offer a user-friendly dashboard that compares and ranks the leading master traders. It will also be made clear what fees you will have to pay. For example, is it a fixed commission per trade or a percentage of winning trades?
RaceOption Leaderboard
Once you have chosen a trader to copy, you can allocate funds to your account. You can then finalise your settings to start automatically copying the moves of your selected traders, so if they profit, you will profit.
Tips For Binary Options Copy Trading
- Research leaders – Before settling on a trader to copy, and to avoid being scammed, ensure you look at the commission they charge, alongside their profitability rate. Additionally, check how much experience they have with binary options trading and choose an individual to copy who trades with a similar level of risk to you.
- Research brokers – Some brokers are unregulated and this can increase the risk of scams and losing capital. When choosing a brokerage, compare the payouts and platforms each provider uses. Are the fees worth the copy trading services the broker provides? Also, when are their customer services available to contact and how?
- Keep track of your profits – Although the process is relatively simple, it is wise to regularly check the progress of your signal provider as it will reflect your own profit/loss statement and things can change quickly in binary options trading.
Bottom Line On Binary Options Copy Trading
Binary options copy trading can reduce the risk involved as some signal providers have a history of generating good profits due to their knowledge of markets and experience. To get the best returns, ensure brokers and signal providers are trustworthy by following the tips provided in this review. Use our list of the best binary options copy trading brokers and software providers to get started today.
FAQ
Where Can I Learn More About Binary Options Copy Trading?
Videos on YouTube by signal providers and expert traders, as well as Facebook groups, can be a good place to learn more from active traders. Online seminars are also available.
Is Binary Options Copy Trading Halal?
Binary options copy trading can be halal if your selected signal provider follows a careful approach, as there is no interest or long-term charges involved. The planned approach can also help eliminate the gambling aspect of this type of trading. However, it ultimately depends on the individual trader you follow and how they perceive it to be. Finally, make sure the master trader doesn’t speculate on prohibited industries, such as alcohol and tobacco.
What Kind Of Profits Can Be Made With Binary Options Copy Trading?
This depends on the percentage of the final price that is taken by the broker. Usually, the trader takes 75%-95% of the final price, if the leader correctly predicts the price change at the time of purchasing the contract. If the leader is wrong about price movements, the investor will lose their stake.
Can I Become A Binary Options Signal Provider?
Signal providers make money from each trader that copies their moves. To get traders to follow your lead, you need to build a reputation for being a successful binary options trader. Get started with one of the top brokers that offer binary options copy trading to earn a place on their leaderboard.
Is Binary Options Copy Trading Considered Gambling?
This depends on the trading behaviour of the signal provider you are following. If they make decisions on a whim it can be considered gambling, otherwise, it is legitimate speculating because planning is done beforehand. Importantly, follow a master trader with a track record of making profits.