Nowadays copy trading service is getting popular in the trading industry. The naive traders are making a decent profit just by connecting their trading account to the professional trader's account. In the past, no one could have copied the trade of professional traders in real-time. Though there were many signal service providers, it was a very hectic process. A slight mistake from your end while using the signal service might cost your entire account balance. But this will not be a problem if you use the copy trading service.

The copy trading service is usually offered to the retail traders by the high-end brokers like Rakuten. The retail investors link their trading account to their preferred professional traders. All the traders that are executed by the professional trader’s account get copied to your trade automatically. So, if the pro traders earn money, you earn and if he loses, you lose. So, it’s very crucial to find the best trader to ensure success in copying trading. Let's find the four important factors related to copy trading service.

Portfolio of the pro traders

You need to analyze the portfolio of the pro traders. In the online market place, thousands of scammers are trying to take your money by offering a copy trading service. They don’t have any valid portfolio and you are not going to get any good result for your purchased amount. So, find a reliable trader who has a solid track record in offering financial service. If not, make sure you analyze the trader’s past trading result. Based on the past result, you have to determine how much money you are going to invest in. Always remember, if the monthly return is insanely high, its better not to copy such trades as the risk exposure is also very high.

Risk exposure factor

When you think about the mt4 copy trading service, you need to think about the risk exposure factor. The smart traders who are willing to do business with the rookie traders don’t ever take the high risk at trading. They know how important the risk management factor is. Before you chose your copy trading service, make sure you analyze the risk exposure, drawdown rate, and the maximum profit factors of the traders. These are very critical information and it tells a lot about the traders.

Preferred time frame

There are two types of professional traders in the Forex market. Those who use the scalping method are using the lower time frame and those who rely on the conservative trading method use the higher time frame. Based on your trading performance, you need to pick your signal service to provide. However, the rookie traders should always go with the conservative traders since they always emphasize on quality trade execution. Most importantly, they have an extreme level of patience which allows them to make a big profit without losing a big sum of money. So, think twice before you select your service provider.

Pricing

Pricing is the last thing you need to consider while using the copy trading service. A professional trader might have premium level trading skills but if he charges $500 monthly for offering copy trading service, it might not be suited for your trading account. Unless you have big size investment there is no point in taking such an expensive service. Think about the potential outcome you can achieve after paying a $500 premium for the copy trade service. Start with the moderate pricing so that you can easily evaluate the performance of copy trade service in real life.

Conclusion

Things have changed to a great extent in the investment world. If you can take advantage of modern technology, you can create a steady alternative source of income at trading without even learning to trade properly. But still, keep that in mind relying on others at trading is not a good idea.