GUIDE

Copy trading explained: how it works, what it costs, what can go wrong

Copy trading lets your broker automatically repeat another account's trades in your own trading account. You don't place each trade yourself, but every result — profit or loss — lands in your balance. This guide explains the mechanics in plain English, so you can judge whether it fits you before you connect anything.

How copying actually works

A strategy account places a trade. The strategy (the "provider") trades its own account as usual.
The broker copies it. The broker's copy-trading system opens a matching position in every subscribed account, sized according to each subscriber's settings.
Your account carries the result. When the strategy closes the trade, your copy closes too. Gains and losses are yours.

Your money stays in your own broker account. You never send trading funds to the strategy provider.

Proportional copying and the coefficient

With proportional copying, trade sizes scale with the ratio between your account's funds and the strategy's. A coefficient of 1.00 keeps that ratio as-is; 2.00 doubles your relative exposure. A higher coefficient does not "catch up" on missed profits — it multiplies risk, including the risk of larger losses.

Your results can differ from the strategy's because of when you subscribed, minimum lot sizes, execution, spreads and your settings.

What it costs

Performance fee: many strategies charge a share of new profit. TradeVolumes charges 25% of eligible new copying profit as calculated by the broker. No eligible new profit means no performance fee.
Trading costs: spreads, and depending on the account, commissions or swaps, still apply.
Losses: are never shared by the fee — they remain yours.

The risks to understand first

Leverage: small market moves can cause large account swings.
Drawdowns: every strategy has losing periods; future ones can be deeper than past ones. See drawdown explained.
Strategy methods: some strategies use grid or recovery techniques that can look smooth for long periods and then lose heavily. Ask how the strategy controls losses.
Broker and counterparty risk: your funds depend on the broker.

A short checklist before you copy

Read the full history — equity, drawdown, length of record, open positions.
Understand the fee and when it is charged.
Only use money you can afford to lose entirely.
Check that the broker and service are available in your country.

Frequently asked questions

Is copy trading passive income?

No. Copy trading can lose money, including your entire balance. It requires you to understand the risks and to monitor your account.

Do I need trading experience to copy trade?

You do not place trades yourself, but you need to understand leverage, losses, fees and the strategy's risks before connecting an account.

Can I stop copying at any time?

Brokers let you unsubscribe, but ending a subscription may not close existing trades. Check how open positions and fees are handled before you start.

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Educational content, not investment advice. Leveraged Forex and CFD trading involves a high risk of loss; you can lose your entire trading balance. Past performance does not guarantee future results. TradeVolumes may receive affiliate compensation and a 25% performance fee if you copy its strategy.