What is copy trading, and how does it work?

Copy trading connects investors with traders who have a track record of trading. When you follow a trader, the platform mirrors their trades in your account, in proportion to the amount you allocate.

The appeal is that you do not need to research every trade yourself. You choose traders based on their history, risk level and how consistently they trade, then monitor the results over time.

Before you copy anyone, check how long their track record is, how large their drawdowns have been, and whether they trade with a risk level you are comfortable with. A trader who has done well for a few weeks may not have been tested by a difficult market.

You can stop copying at any time. Keep in mind that copied trades carry the same market risk as the original trades, and you can lose money. Past performance does not guarantee future results.