CopyFX Pros And Cons (Real User)
CopyFX is a proprietary copy trade investment platform by the RoboForex group. Investors can copy already successful traders and have their trades automatically duplicated on their trading platform… 100% hands free.
Full disclosure: I personally offer investors the ability to follow my accounts on CopyFX. Therefore, this is not a generic take on RoboForex CopyFX. I have insight as a real user… which means I understand things on a deeper level.
If you are an investor looking to put your money to work to passively grow wealth (potentially faster than other investment opportunities), CopyFX is worth a serious look.
But just like any investment opportunity, there are pros and cons to using CopyFx to copy already profitable Forex traders.
CopyFX has a lot of pros including maintaining control of your money, accurate trade copying at the broker level, no need to download platforms or use a VPS as well as many others. CopyFX cons include country restrictions and high commissions charged by some CopyFX traders.
Let’s go over the CopyFX pros and cons in more detail.
Since not everyone is eligible to use CopyFX, and I don’t want to waste your time, I will start with the Cons first.
CopyFX Con #1:
CopyFX trade copy service is run by the RoboForex broker. Therefore, in order to be able to copy traders in the CopyFX service, you need to be able to open and fund an account with RoboForex.
As is the case with most Forex brokers, where you reside in the world determines where you can open a broker account. This means there are some restricted countries and not everyone is eligible to open an account at RoboForex.
This is taken from the RoboForex website:
RoboForex Ltd and it affiliates don’t work on the territory of the USA, Canada, Japan, Australia, Bonaire, Curaçao, East Timor, Liberia, Saipan, Russia, Sint Eustatius, Tahiti, Turkey, Guinea-Bissau, Micronesia, Northern Mariana Islands, Svalbard and Jan Mayen, South Sudan, and other restricted countries.
So, if you are from one of these restricted countries, you won’t be able to use this broker, which means you won’t be able to participate in the CopyFX service.
I personally tried to mitigate the impact of these restrictions by also offering my trade copying directly through the MT4 platform using MQL5.com. You can see what I am talking about here: How To Copy PMTW Trades Using MQL5 Signals
Furthermore, you can always trade my signals manually in only a few minutes a day: Forex Signals Blast Off
If you are not from one of these restricted countries, you can open an account at RoboForex and use the CopyFX service.
CopyFX Con #2:
High Commissions For Some Traders
Most CopyFX Traders are compensated by charging commissions on profits made. If a profit is made, a percentage of the profits goes to the trader you are copying.
I personally think this is a great situation for the trade copier. They don’t have to pay subscription fees up front every month… and they only pay the trader if profit is made. Since the percentage of profit to pay the commissions comes from profits gained on the account… no money needs to come “out of pocket”.
This means no ongoing payments to worry about and the trade copier only has to make the initial investment to get started.
But, in my opinion, some of the commissions for some traders are high. I read somewhere that the average commission is 40%. This means the account you are copying would have to be extraordinarily profitable to make copying this trader worthwhile.
I personally only charge a 20% commission, half of the average. I feel this is a good number because the trade copier does not have to do anything… but still can keep 80% of the profits.
This commission structure also benefits the trade copier because I am not a frequent trader. If they were paying a monthly fee, this might be a concern.
But since I only get compensated when I make profits, it doesn’t matter how many trades are placed… only that there are profits.
Here is an example of one of my accounts:
This is about all of the CopyFX cons you should be aware of. However, if you are not located in a restricted country, and can find a CopyFX Trader with reasonable commissions, neither of these cons should be a deal breaker.
As you will see, there are a lot of benefits to using CopyFX.
CopyFX Pro #1:
CopyFX Investors Can Copy Already Profitable Traders On Autopilot (True Passive Income Opportunity)
This is the most obvious benefit.
Look, I’m not going to lie. Learning to trade Forex profitably is difficult. I mean, the actual activities you have to perform are not all that difficult to learn… but sticking to the rules and controlling your emotions when real money is at risk is very challenging.
Plus, depending on how you decide to trade, trading can be quite time consuming. (The way I trade requires only a few minutes a day, but some people think that is more time than they want to dedicate to trading, or the trading time is inconvenient).
The truth is, the harder trading is and the longer you sit in front of the charts… the more money you need to make in order for your efforts to feel “worth it”.
But by putting your trading on autopilot, your efforts are exceptionally low… meaning you are much more likely to stick with the trading for the long term. (And that is the key to extraordinary wealth accumulation).
CopyFX Pro #2:
CopyFX Investors Can Enjoy
More Accurate Trade Copying
Since you are copying trades at the broker level, the trade copying is more accurate compared to other trade copying methods.
You don’t have to deal with trading platforms, trade copy expert advisors or sending the trading information from one broker to another over the Internet. Everything is happening at the same location.
This cuts down on missed trades, mismanaged trades or slippage which lower the accuracy of the trade copying.
CopyFX Pro #3:
CopyFX Investors Maintain Control
Of Their Money
One of the great things about using a service like RoboForex CopyFX is you are not handing your money over to someone else to manage. Your money remains in YOUR account. You are only allowing trades to be placed on your account.
Therefore, you are not sending your money to a trader and giving them power of attorney over your funds. You are depositing your investment into your own trading account… and having a successful trader place trades on the account for you.
There is a big difference.
And since you are in control, you can pause or stop the trading at any time.
CopyFX Pro #4:
CopyFX Investors Don’t Need To Download
The MT4 Trading Platform
When trading the Forex market, you usually need to download and run a trading platform. In this case, the trading platform in question is Metatrader4.
However, with CopyFX you don’t even need to download and deal with a trading platform at all. Everything is done at the broker level.
In order to see the trading activity in your account, you simply need to login to your RoboForex account over the Internet from any computer. You can access the trading activity directly from inside your Personal Member’s Area.
CopyFX Pro #5:
CopyFX Investors Don’t Need A Virtual Private Server (VPS)
For most trade copy services to work, you need to have your trading platform running and connected to the Internet. Since the trades are sent from one platform to another, your platform needs to be operational and connected to the Internet at all times.
This means you would have to keep your computer on with the platform running 24 hours a day. Otherwise, you risk missing a trade or trade management action.
The most effective way to deal with this situation is with a Virtual Private Server (VPS). A VPS allows you to have your platforms running on the Internet while still being able to shut down your personal computer.
Unfortunately, this means an additional cost for the VPS.
Using CopyFX you don’t need a VPS, so you don’t have to pay anything extra, which is a big plus.
CopyFX Pro #6:
CopyFX Investors Can Study
The CopyFX Trader’s Trading History
You’ve all probably heard before, “Past performance does not guarantee future results”. And that is true. There are no guarantees the trading performance will remain the same moving forward.
But it is reasonable to expect that a well thought out trading strategy that works over a period of time will continue to work in the future… even if not exactly.
Plus, being able to study the trading performance in advance can prepare you for success.
- If you notice the trader doesn’t place a lot of trades… you know you are not going to see a lot of trading activity in your account and will have to be patient.
- If you notice the trader trades with a high risk to reward ratio… you know you don’t need to have a high win rate to still be profitable, and shouldn’t get discouraged by a few losses.
- If you notice there are losing streaks but the trader is still profitable… you know you are going to have to suffer through those losing streaks and not prematurely abandon the trading.
Being able to study the trade history and visualize how you would feel with the trading results allows you to prepare yourself emotionally.
CopyFX Pro #7:
CopyFX Investors Can Control Their Risk
You can change the risk settings to meet your risk tolerance. If you find you want to lower the risk per trade, you can do so.
However, that being said, I would not advise using higher risk than the CopyFX Trader. These traders are profitable for a reason, and money management is a big part of it… so I wouldn’t recommend using a higher risk, which could hurt long term performance.
CopyFX Pro #8:
CopyFX Investors Can Follow A CopyFX Trader
In “Test” Mode First
There isn’t a function to follow traders on a Demo account so you can experience the trade copying for yourself. However, there is a “Test” mode. You are still risking money on each trade, but it is at the lowest lot size of 0.01 per trader.
If you want to experience the trade copying, start off in Test mode which uses very small risk first. When you are comfortable, you can change your risk settings.
CopyFX Pro #9:
CopyFX Investors Can Use A Pro Cent Account
RoboForex offers Pro Cent accounts. Basically, all the trading conditions are the same except $10 is treated like $1000.
Being able to use a Pro Cent account with CopyFX means you can get started with a very low initial investment. However, keep in mind your account must be at least $100, or as otherwise instructed by the CopyFX Trader.
CopyFX Pro #10:
CopyFX Investors Don’t Need To Pay
A Monthly Subscription Fee
Most CopyFX Traders get compensated on a commission on the profits made. This means you don’t have to pay a monthly fee. You only pay the trader you are copying IF they make you profits, and the commission comes from the profits.
This means you don’t have to pay anything up front, or keep paying every month for the trade copying.
This is a huge benefit, especially when following a CopyFX Trader that doesn’t trade all that often (like me), but that is still profitable over the long term (like me).
CopyFX Pro #11:
CopyFX Investors Can Earn Affiliate Commissions
Most CopyFX Traders allow you to get affiliate commissions if you attract other investors to their offer. A CopyFX Trader gets compensated on the profits they make for investors copying them, and a percentage of what they make is given to affiliates.
If you have friends or family that are interested in investing, or have an online presence where it makes sense to promote your link, this can be a way to recoup some of the trading costs.
CopyFX Pros And Cons Final Thoughts
Being able to copy already profitable Forex traders has many advantages and only a few drawbacks. And as long as the drawback is not a deal breaker (for example, you cannot open an account at RoboForex), then this is an investment opportunity worth looking into.
Even if you are in a restricted country and cannot take advantage of the automatic trade copying, you can still follow my trades manually. It is possible to place the same trades I’m placing manually in only a few minutes, once a day.
If you see the wisdom of leveraging the hard won knowledge, skill and experience of traders who can profit over the long term, and you want to set everything up on autopilot, the first thing to do is open an account at RoboForex.
See everything I’m doing to accumulate wealth faster and secure my financial future here: Put Money To Work
To Your Wealth,
Disclaimer: Ever since you got your first coin and could decide what to do with it, you became your own money manager. I am not your financial advisor, but you can learn from my example and do your own research. Some posts may contain affiliate links, where at no cost to you, I may receive a small compensation.