Forex Copy Trading Brokers Malaysia
Updated February 15, 2023
The Forex trading industry boasts a legion of experienced trading brokers that offer a wide range of investment opportunities through thousands of trading instruments. However, not all of them support copy trading. Hence, you may have a hard time finding a broker that supports it.
This article provides a list of the top 4 Forex copy trading brokers in Malaysia and helpful hacks that will minimize trading risks and increase your chances of making profitable decisions.
What is Copy Trading?
Copy Trading refers to using technology to copy the real-time forex trades or signals of the live investors you follow on your preferred trading platform. Following them puts you at an advantage: you can automatically copy their trades into your brokerage account.
How Does Copy Trading Work?
Understanding how copy trading works is a skill you must acquire before you throw your money into the idea. The importance is highlighted by the volatility of the Forex industry and the realization that all businesses and investment opportunities are risk-filled.
In copy trading, you’ll automatically copy a trade opened by a trader. By copying their signals, you put yourself in the same situation with the trader you copy: you will lose if the trader loses and vice versa. The possible impact of your choice on your trading implies that you must know the position size that your target trader opens before you copy him or her.
Why Copy Trading?
Why should you copy another trader’s work when you and expose yourself to the risks of losing your investment?
Here are some reasons why you may consider copy trading:
- Learning opportunity: Copying other people’s trades offers you a golden opportunity to learn the best forex trading strategies. You may learn the rationale behind a trade’s implementation to give you an insight into how that trade works. Over time, you’ll have a better understanding of the Forex market and be well equipped to make wise trading decisions.
- Time-saving: Manual trading is time-consuming. Monitoring your trade from time to time may not be ideal for you if you have a full-time job or other responsibilities that live you little time for trading. You can remove these obstacles to trading by copying another traders’ trade. That reduces the time you spend trading.
- Diversification: One of the best risk-minimizing strategies is diversification. Copy trading allows you to diversify your investment as you replicate traders who invest in diverse instruments.
- Access to a global market: Copying investors from different backgrounds across the globe will give you access to a global market and increase your trading experience significantly. A copy trading platform helps you create a trading strategy that reduces the impact of a fluctuating financial market.
You can leverage these numerous benefits to make a fortune trading Forex by copying from tested and trusted traders with a track record of successful trades over the years.
Best Forex brokers for Copy Trading
Here are the top 4 Forex brokers for copy trading in Malaysia you should check out:
OctaFX Copy Trading Malaysia
OctaFX Malaysia is another broker with copy trading platform you should check out. Through the platform, you can streamline your search for the appropriate brokers by using some parameters such as mobile support, minimum deposit amount, and others.
It costs you nothing to open an account on this platform where you have the liberty to copy the portfolios of investors that meet your criteria. As a user, you equally have access to portfolio management and signal providers that will ease the copy trading process.
The broker is regulated by NFA, MIFID-ESMA, CySEC, ASIC, and CFTC, proof of its credibility. You can take advantage of its free demo account to hone your trading skills in advance before trading with real money on its proprietary web platform.
When you’re done sharpening your skills through the demo account, head over to the live account with the $200 minimum deposit amount to have access to copy-worthy traders.
OctaFX addresses its users’ concerns through several channels such as email, live chat, and phone supports. Irrespective of whether you are an inexperienced or experienced investor, the broker will help you to mitigate your risks.
OctaFX Malaysia is regulated by MIFID-ESMA. You are only allowed to use the broker and replicate other users’ signals through its proprietary web and OctaFX platforms after meeting the $100 minimum deposit.
AvaTrade is a regulated copy trading broker in Malaysia. The Central Bank of Ireland-regulated broker offers users a wide range of copy trading opportunities. It is also regulated by some of the most respected finance and Forex trading regulators in multiple regions across the globe.
Automatic real-time copying is allowed on the broker’s several platforms such as MetaTrader 4, Mirror Trader, Web Trader, Mac, Tablet, and Mobile applications.
The regulated copy trading broker accepts a host of funding methods such as Credit Card, bank transfers, and PayPal to enable its users from different backgrounds to choose the most convenient funding option.
Leverage its demo account offer to learn some trading tricks and start copy trading on a good note.
With just $100, you can trade on this broker that is approved for operation and regulated by the top regulatory bodies in the industry such as IIROC, MIFID-ESMA, FSA, Offshore, FSCA, and FSC. Avatrade Review
Pepperstone announced its arrival in the Forex trading market in 2010. With just $200, you can access the broker that offers an impressive list of supported third-party platforms and a host of social copy trading options.
Via its Razor Account, you will enjoy its competitive pricing and other features that make it one of the go-to copy trading platforms.
Pepperstone is dully regulated and offers some of the best resources that are designed to help you maximize your copy trading.
FXTM Malaysia is another reputable name in the industry where you can begin your copy trading journey. As an International ECN broker with presence in Africa and Asia, FXTM offers a wide range of account types suitable for individual player’s needs.
With $100, you can access the broker and start your copy trading journey by choosing from the over 250 financial CFD instruments available on the platform.
FXTM also gives you access to an array of order functions, view real-time live price updates and cross-device trading on mobile and personal computer platforms. That’s in addition to a wide range of education and research resources and commission-free trading.
Another incentive you can enjoy from the broker is quick deposit and withdrawal and fast and hassle-free account opening.
FXTM offers a wide range of trading platforms such as MetaTrader 4, MetaTrader 5, Proprietary Web Platform, and Desktop. This is a big bonus for traders using the regulated broker with a stamp of approval from the leading regulators such as FSCA, FCA, CySEC, MIFID-ESMA, and FSC.
However, FXMT’s portfolio isn’t the most comprehensive and it doesn’t offer a proprietary trading platform.
How to Choose the Best Copy Trading Broker
Choosing the best copy trading platform from the avalanche of options at your disposal can be challenging. To make the right choice, here are some factors to consider. Consider these:
- The number of traders to copy: Since copy trading involves copying other traders’ trading activities, the number of available options is an important factor to consider. You will have more options on a platform that offers thousands of other traders than one with just a handle of traders.
The quality of the available traders matter, too. Besides the number, consider what these traders have to offer you to increase your options.
- Security and regulation: Your investment’s security and whether the broker is regulated or not are two important factors you shouldn’t overlook. Reputable and secure brokers are regulated by tier-1 regulators as proof of their meeting industry standards.
If the broker ticks the boxes above, check whether it is publicly listed, its location, years of experience in the business, and most importantly, customers’ reviews. The latter may give you a clue into its operations and reputation in the industry.
If the broker’s positive reviews outweigh its negative reviews, you may give it a shot. Otherwise, it’s advisable to consider other options.
- Transparency: Is the broker transparent in its operation? What information can you effortlessly gather about it? A great broker will have enough information you can process to have an idea about its operations. Its style, strategies, and track record are some of the information you need to process and have an idea about its transparency level.
How to Copy a Trade
Copy a trade is a hassle-free process if you follow the step-by-step guide below:
- Choose a copy trade broker: Go through the list of copy trader brokers you find and choose one that meets your needs.
- Open a demo account: A demo account allows you to learn about copy trading for free. Seize the opportunity to gather the knowledge to excel as a copy trader.
- Open a live account: When you’re confident of your skills, open a live account and deposit trading money. Each broker places a minimum deposit amount requirement on their users.
- Choose a trader to copy: Once you’ve set up your real account, choose the best copy trader whose activities you want to replicate from the available options. You should study your options so you can make an informed decision.
Practical Tips for a Successful Copy Trading Experience
While copying a trade simplifies trading, you don’t necessarily have to relinquish all decision-makings to the traders you copy. Here are some helpful tips that will help you avoid disaster and trade wisely:
- Diversity is key: In all types of trading, copy or traditional, diversifying your portfolio is a surefire way to minimize your risks and increase your profitability. Although achieving this may be a bit challenging but by strategizing carefully and researching the copy trading sector extensively, it’s achievable.
- Enter at the right time: Another important copy trading hack is striking when the iron is hot. Knowing when to enter and exit a copy relationship may hold the key to your success. It is common knowledge that the market is volatile with upswings and down strings when you least expect. So, don’t copy blindly.
Enter at the beginning of the upswings rather than at the tail end of the down string. Check a trader’s profile for their trading history and especially, completed trades. If the majority of the trader’s trading positions are in the red for a while, that’s a red signal not to copy that trade. However, you may hang around for a change of position when it’s ideal to copy it.
- Have an exit plan: Besides knowing the right time to enter a copy trading relationship, you must equally have an exit plant as a protective measure against losing your investment alongside the trader you are copying.
Knowing when to let go may be challenging, especially if you have developed a mental connection or personal relationship with the person you are copying. However, losing your entire capital isn’t worth it.
It makes no financial sense to keep copying a trade that makes you lose money because you’re attached to the person you’re copying. Set a Stop Loss to reduce your losses and trade with peace of mind.