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Mirror trading, social trading, and copy trading are very common terms that have been around in recent years. Since the birth of online trading and the widening of the investing world to reach anyone with capital and a computer, a much more social approach has been used to develop new market strategies. From there, mirror trading.
When we talk about the Forex market, mirror trading is a common investing strategy. But how to choose the best forex broker Australia for mirror trading? And, is this even legal?
Yes!
Mirror trading in Australia is very popular thanks to some online brokers that offer the possibility to mimic the operations and deals of trades with a higher level of expertise.
Obviously, there is the matter of security. Thanks to numerous online tools, now online brokers can offer the transparency and information needed to make sure traders using mirror trading do not fall victim to scams or fraudulent operations that may lead them to lose their money.
What is mirror trading?
Mirror trading is an investing strategy, which is very closely connected to what is more commonly known as copy trading. It’s very often used in the Forex market.
This methodology allows traders to copy the operations and strategies of more advanced and experienced traders that broadcast their moves for others to mirror. Those mirroring can implement in real time the moves of other traders, hoping to gain a better profit.
Since the Forex market changes so much and so suddenly, it’s very important that these moves are done without a second delay. Platforms that offer the possibility of implementing a mirror trading strategy have the tools to make this possible.
While the sound of mirror trading may make it approachable to those with no previous market experience, this may be a bit tricky. In order to choose which operations and deals to mirror, there is a bundle of information and a few charts with the history of such trader’s strategies and average success.
To be able to choose who to mirror, traders should commit to serious research.
Is mirror trading legal in Australia?
Yes!
Mirror trading, or its more contemporary evolution, copy trading, are legit in Australia.
However, choosing the right Forex broker to implement these strategies is very important. The first step in this direction is to make sure the broker you’re dealing with is abiding by the regulations required in the country you’re in.
In Australia, an entity called Australian Securities and Investments Commission (ASIC) is the one in charge of setting up the standards that all serious brokers should follow. Making sure your broker is registered in the ASIC, guarantees your money’s safety.
Pros and cons of mirror trading
Among the pros, we should mention the fact that mirror trading is slightly easy. In an ever-changing market, like the Forex, automating your decisions, reduces the stress and the need to be online at the right time.
Traders can check the performance of the mirror trading strategy they are copying and decide if that satisfies them or they should change it.
Online platforms offer the possibility of filtering the traders you want to mirror. So users can go for those with a higher degree of success working with certain pairs in the market, or they can personalize their parameters to find the perfect strategy to mirror.
While mirror trading sounds fun and easy, trades should keep in mind that it doesn’t eliminate the risk factor. So, doing your research on the market you want to invest in and the trader you’re planning to mirror is fundamental.
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