Copy trading is becoming more and more popular today. However, a few people know the approach was born in 2005 when traders were seeking new automated ways to execute orders. They required new specific algorithms that made it possible to achieve automated trading. Leading brokers like MTrading and software developers quickly recognized the potential and introduced copy trading in the way we know it today.
The idea of copy trading is simple. The approach was developed for people with no prior skills letting them follow more experienced investors and copy their traders across different markets. The model has evolved since 2005. Today, it comes with the accurate signal distribution, strategy customization, stats tracking tools, and other instruments to ensure safe and potentially profitable techniques.
Copy Trading Stats
The latest surveys and researches show how popular copy trading is now:
- 43% of all beginner stock traders consider stock markets too complex. They believe automated approaches can simplify them making copy trading a perfect choice to get started.
- 35% of traders were involved in copy trading in 2022.
- Copy-trading platforms have witnessed 96% growth over the last year promising €90bn in 2025.
As you can see, the approach looks quite promising, especially considering new algorithms, transparent tracking tools, and preloaded risk-management instruments.
What Markets Are Best for Copy Trading?
The strategy can be used across multiple financial markets. In other words, copy trading lets you invest in different assets depending on the strategy you prefer (either long-term or short-term trading). The most popular markets include:
- Forex.
- Indices.
- Commodities.
- Stocks.
However, experts recommend diversifying one’s portfolio, which means investing in different assets that refer to different financial markets. Besides, a bit of analysis will help you define the best time to enter or exit the market while performance metrics and ratings help to select a proper trader to follow.
