Nowadays, you will see that copy trading services have so much to offer to brokers. Although some use the ready-made solutions available in the market, others tend to prefer to develop this software on their own. However, this is not reasonable, both in terms of results and cost. Thus, it is recommended that you always opt for ready-made cloud trading positions. However, if you are confused about how to choose, here are highlighted the top five things that you can consider while opting for a copy trading platform. Read More
Reliability
This is the number one request of clients worldwide. No one wants the software to get crashed every now and then, disrupting their trading operations. It will only irritate the broker’s clients when they have to manually correct orders that were lost or corrupted due to loss of connection. If this is happening, you can’t consider the trading platform to be reliable. As a broker, you must ensure that the platform you are using has all the essential features which make it speedy to execute the transactions for your clients.
The reliability of a platform is all about the stability of the service and preventing scenarios where the service constantly disconnects. Thus, you would be required to contact the support team to restore the lost trades. Since this will directly impact your profits, such a situation must be dealt with precisely.
Accuracy
No client wishes to lose even a single penny of their profits. This is why clients are always interested in knowing how accurately the trading platform can depict the profit distribution among the traders. This point is very much important when various deposits and copying ratios are combined. Automated calculation is essential here as it can be quite difficult to calculate all of this, and that too without errors. Thus, selecting a copy trading platforms pays closer attention to the accuracy of the profit distribution.
Social Trading Platform vs Other Trading Platform
The principal rationale behind the copy trading platform remains the same for everybody. However, various variations of trading platforms are available in the market, such as PAMM, MAM and social trading. Earlier, PAMM trading accounts used to be the most popular ones, where the traders transferred all their funds and traded on their entire amount without showing their trades. PAMM account is still considered an ideal platform for traders who wish to trade a huge sum of money and know all the relevant strategies but do not want to share this knowledge with others.
However, in recent years, the trend of social trading has become quite popular. Every 3 out of 5 clients opt for social trading these days. In this method, the traders trade on their separate trading accounts with their limited funds. It’s a convenient way for many traders as they don’t have to worry about the total amount of investment or be accountable for the client’s funds while using their regular trading strategies.
Convenience
Another critical factor brokers should consider if they are looking for a ready-made copy trading platform for their clients is its user-friendliness and convenience. You need a unified client management system in place where traders and investors can interact with each other in real time. Many brokers prefer to design their own trading platform because it is difficult to find such a trading platform where everything is available in one place. However, not everyone can do it because the process of developing in-house software is too time-consuming and expensive. Keeping this in mind, brokers should search their options wisely to choose one that can offer a unified system.
Copy Trading Platform For MetaTrader
Last but not least, if you are opting for the standard trading platforms: MT4 or MT5, ensure the efficiency of its copy trading platform. Furthermore, the market changes very rapidly. The customers switched from MT4 to MT5 within a year. Thus the brokers should always have insights into various brokerage products coming into the market in the upcoming years.
