FXCM Copy Trading -Everything You Need to Know

Launched in 1999, FXCM is one of the leading brokerage firms in the world. It is licensed by a top-tier regulator in the UK, the Financial Conduct Authority, thus making it a reliable trading platform.

FXCM offers multiple services to fulfill the needs of various users. Among the services is copy trading. The brokerage firm has partnered with social trading provider ZuluTrade to allow its customers to copy trades of professional traders who have a track record of closing profitable trades.

Keep reading this article to learn more about the FXCM copy trading service and how to use it to earn passive income from the financial markets.

Copy Trading Explained

Copy trading is a new concept that enables novice traders to earn profits by automatically copying the trades for seasoned traders. Traders who let others replicate their trading strategies earn a commission on every profitable trade. Alternatively, some charge a subscription fee.

Advantages and Disadvantages of FXCM Copy Trading

Advantages

• FXCM offers access to a wide pool of Signal providers. So, the chances of finding your ideal trader are high.
• You can start copy trading with a small deposit of as low as $50.
• The broker is regulated. Therefore, you are legally protected.
• FXCM allows you to copy trade various trading instruments, not just forex.

Disadvantages

• Spreads are relatively high.
• Signal providers impose a monthly subscription fee of $30, which you must pay whether you made profits or not.

How to Start Using FXCM’s Copy Trading Service

As mentioned, FXCM offers its copy trading services through ZuluTrade. Before you can copy trades on the social trading platform, you will need a FXCM account. To open and activate a FXCM account for copy trading, go to FXCM.com and provide the requested details for registering an account. After accessing your account, fill out the authorization form to receive login details that you can use to link your FXCM account with ZuluTrade.

Copy Trading With a Demo Account

Even if you have connected your FXCM live account to ZuluTrade, you can still use a demo account provided by the social trading platform to copy trades. This allows you to determine whether the platform works as expected before committing real funds.

Copy trading Through ZuluTrade

ZuluTrade is among the leading social trading platforms, boasting over 1,000 signal providers. The platform is regulated in Japan, the United States, and Greece. Besides FXCM, several other reliable brokerage firms use ZuluTrade to offer users access to copy trading. Some of them include IC Markets, TickMill, AAAFx, Swissquote, Oanda, EverFx, Weltrade, and InstaForex.

Finding the Right Trader to Follow Their Strategy

FXCM customers who wish to copy trades on ZuluTrade can find their preferred traders in these two ways:

Using ZuluTrade’s recommendation: The social trading platform has a “Top Traders” section in which it lists the best traders based on a number of factors like assets under management, win rate, number of followers, and quickest profitability growth.

Using search filters: ZuluTrade lets users search for the right traders based on specific aspects such as experience, risks, and performance.

How to Begin Copying Trades as an FXCM User

Once you have your FXCM account linked to ZuluTrade, you are ready to start copying trades. After identifying your ideal signal provider, click “Follow” and enter the amount you wish to risk per trade. Next, press “Copy” to start replicating the trader’s positions.

It is worth mentioning that you can follow up to 10 traders at once. This helps you to spread the risk. Moreover, while FXCM has set the minimum copy trading amount at $50, some signal providers on ZuluTrade may ask you to invest more.

Remember to set your stop loss and take profit as part of risk management.

Is Copy Trading on FXCM via ZuluTrade Safe?

Yes! Given that both ZuluTrade and FXCM are regulated, you can consider your funds safe. However, like any other trading strategy, copy trading is not safe. You can lose your money anytime. So, only copy trades using funds you don’t mind losing.