Knowing how to approach a diverse financial market such as forex can make all the difference, especially for newcomers who have either no or very little experience making tough trading choices. So, is there a way for inexperienced traders to enter the FX market alongside pro traders knowing full well they can, not only survive but also thrive? The answer is YES, there is a sure-fire way, aka XM Copy Trading, for even the most novice of traders to join the trading markets and reap the benefits even if they don’t know anything about trading at all.
What is the XM Copy Trading Program all about?
XM Copy Trading program is a trading system that enables new traders to copy the trades of experienced traders who know how to make the right choices even when the going gets rough in a stormy forex environment. By joining the XM Copy Trading, the necessity of learning how to make sense of charts, deciphering different trends, or utilizing various trading tools become a thing of the past. Furthermore, willing and capable pro traders can join this program as well to showcase their developed strategies to potential customers (investors) and make more money than before by way of earning profit and commission for their trading services.
So, let’s see how this program works and where you fit in:
XM Forex broker thought of everything to make your trading efforts as palatable as possible. The broker offers two choices when it comes to your trading account, you can either opt for the Investor or the Strategy Manager account depending on your preferences and overall objectives.
If you don’t want to learn how to trade forex from scratch which can be a very time-consuming process, then the Investor role fits you the best. To do so, make your investment (as required), find your strategy managers by browsing through the list of potential candidates, and finally follow and copy them. When you copy a strategy, it’ll be mirrored in your trading account. Subsequently, the only thing that remains is for you to observe and let the experts do their magic for promising trading results, i.e., profits for you both and a commission paid to the Strategy Manager by you in lieu of services rendered.
What’s more, in this particular copy trading program, Investors can choose multiple Strategy Managers to follow simultaneously to diversify their portfolio, by dint of which augment favorable results (profits) and prevent or at the very least minimize unfavorable outcomes (losses).
If you want to try your hand at the Strategy Manager role you can do so through establishing strategies that are worth following and copying by investors who want the best bang for their buck. In this way, you’ll have access to a much larger capital to work with, and when your hard work bears fruit you get to collect a good bit of money in the form of commission to boot.
The ins and outs of XM Copy Trading Platform
To use the XM Copy Trading platform as an Investor or a Strategy Manager, you need to register, provide all the necessary info as specified, and opt for the program. Each role (Investor or Strategy Manager) has its own set of steps and procedures that you need to complete to sign up for your respective role depending on your preferences and goals. The rest is just a matter of following one (or several strategy managers) and copying their strategies or showcasing your very own strategies to gain Investors (followers) and get paid for your efforts.
The steps are as follows: first, you need to log in to the Member’s Area, On the left side of the screen, you will see a menu with a list of items, namely Copy Trading, Portfolio, Competitions, Social Feed, Settings, and FAQs.
To browse through the list of strategy managers with all the crucial details to take into account for your choice, simply head to the “Copy Trading” menu. There you can take a look at performance charts, returns, numbers of investors following them, and percentage fees to size up the strategy manager/s that catch your eyes the most. This menu is your best bet because it can help you make an informed decision based on criteria, such as the best performers, most popular Strategy Managers, trading frequency, risk score, and strategy type.
How to opt for the Investor role:
The process is quite self-explanatory: in the Member’s Area, click the “Create Investor” button to open an Investor Account by providing all the required details to complete your registration. Afterward, look for the Strategy Manager/s that you want to follow and copy. This step should be done based on several factors, including but not limited to leverage, fees, minimum investment, number of investors, total investment, performance chart in different time frames, portfolio, and asset allocation. So, take your time here and don’t make any rash decisions.
XM also provides you with the following Multiplier Formula which takes the guesswork out of the equation:
As an investor in this copy trading program, you need to know that your Investor account is only available on XM Web Platform / Mobile, you cannot have more than 1 Investor Account (multiple copied strategies allowed), and your account unit and leverage amount are USD and 1:300, respectively. In addition, micro lots, spreads, and swaps similar to those of the standard account are available to you. You can also choose your deposit method in the Member’s Area from all the available options. What’s more, the prevailing market prices will ultimately determine the way your copied positions will be applied and handled in the open market. The XM Copy Trading program allows you to pause your copied strategies and choose to reactivate them at any time. Important details, such as the minimum trade volumes for indices and other trading instruments (0.1 lots and 0.001 lots, respectively) should also be taken into account. Finally, your Investor account comes with a Margin Call of 50%, a Stop Out of 20%, and a minimum of $50 investment. Please note that Stock CFDs are not available at this time.
Here's how the fees are calculated:
The good news is, that the investors are only required to pay for trades that result in a profit, i.e., trades that are considered above the High-Water Mark (HWM). You can see a visual representation of that in the example chart below:
Since only profitable trades are subject to commissions, the Investor in the above chart is only required to pay a commission for Trades 1, 2, and 5 which are considered above the High-Water Mark. The commission is to be paid on a daily basis and can go as high as 50% depending on the Strategy Manager’s requirements.
The Perks of Using the XM Copy Trading Program
✅ No initial Knowledge or trading experience is required (for Investors). If you are new to the trading scene and don’t know where to start, then you can really benefit from the XM Copy Trading program with no hesitation. Simply, find the traders whose background and history of trading seem encouraging, make the required amount of investment, and copy their strategies for favorable trading results. It does not get easier than that!
✅ Watch the masters at work (for Investors). Even if you have no idea how trading works, observing seasoned traders can teach you a lot. Enough exposure to those who mastered the art of trading could teach you a lot of tricks in a short while. You can then use this invaluable knowledge to create your own strategies down the line. So, it’s a two-fold opportunity for you; you’d make a profit by investing in the best while gathering valuable data you can use later.
✅ Attract more investors to earn more in the form of profits as well as commissions (for Managers). It goes to show that the more money you have within your reach, the bigger trades you can make, and if you take calculated risks, both you and your investors can fill out your pockets. Plus, after making profitable trades, your investors would happily pay you your well-deserved commission (up to 50%).
✅ You can experiment with novel approaches and strategies (for Managers). Here sky’s the limit as to how imaginative you can be. When your trading results speak highly of your trading prowess, this will attract more followers, and thereby, give you even more access to shine among all the others. Bear in mind, no matter how good the results are, the tides may shift and if they do it won’t only be your money that you’re risking. Therefore, take necessary precautions to avoid causing irreversible damage to your reputation.
And finally, to make sure you can keep trading for as long as you want, you have to approach the XM Copy Trading program cautiously. Both Investors and Strategy Managers ought to be really careful about their choices and make them wisely. Strategy managers need to devise their strategies by taking into account multiple factors to avoid losses, and Investors need to study the traders thoroughly before following them. XM Copy Trading can be a great opportunity for traders as well as investors; however, it is not a cure-all for bad decisions.
