The Forex trade copier is one of the most powerful tools that provides ease to a trader, and it emerged as an immensely popular tool among traders. A trade copier might be a dream come true for you, whether you are an experienced trader who needs to manage many accounts or someone looking at how expert trades and strategies are implemented. This blog post is a comprehensive analysis of all there is to know about forex copiers, specifically the MT4 trade copier and the MT5 trade copier.
What is a Forex Trade Copier? A forex trade copier is simply a piece of software or tool that allows you to copy trades from one trading account to another in real-time. This is commonly used by accounts traded for multiple clients or copies the trades of established traders.
If you open a trade with your one account, it will be done through some other trading accounts connected to that device automatically. All that is very useful for individual traders and managers of funds.
What is the MT4 Trade Copier, and what does it do, compared to an MT5 trade copier? Currently, the two most popular solutions in this industry are MT4 trade copiers and MT5 trade copiers. MetaTrader is one of the most preferred trading terminals due to various reasons like great charting tools, a big community, and a rich web store where traders have more than thousands of indicators as well as expert advisors at their disposal.
In this article, we will compare two top platforms.
MT4 Trade Copier For over a decade, MetaTrader 4 (MT4) has been the go-to platform in the forex industry. This includes certain important characteristics of the MT4 trade copier:
User-friendly: MT4 has a clean interface that makes it easy for beginners to understand, and the trade copiers are simple enough to use.
Available to Many Traders: MT4 is the software of choice for a large majority of forex traders, and it can be used with most brokers.
Lot sizes, stop loss, and take profit levels: Most MT4 trade copiers permit detailed customization like modifying the lot sizes.
Stability: MT4 is a mature trading platform, and many can rightly point to it being one of the most stable Forex trade copier development environments out there.
MT5 Trade Copier The following platform is regarded as a continuation of MT4, which tries to take usability one step further by adding some new features but still retaining an almost similar environment. This last version was labeled MetaTrader 5 (MT5). The following reasons account for the popularity of the MT5 trade copier:
The additional features: MT5 has tools such as economic calendars, order types, and charts, which are more advanced for expert traders, making it a complete platform.
Differences in assets: MT5 is a multi-asset trading platform — it accommodates equities, commodities, and derivatives.
Better Backtesting & Strategy Optimization: MT5 provides a more advanced backtest, so it is simpler than ever to fine-tune your strategies before copying them across multiple accounts.
How Does a Forex Copier Work? Forex copiers typically work through software or plugins that are installed on your MetaTrader platform. Trade copiers usually come in two main types:
Local Trade Copier: This copier works on the accounts that are hosted and operated inside a common trading terminal. If all your MT4 or MT5 accounts are on the same device, the local trade copier will copy trades between these accounts.
Forex Trade Copier (LTC): LTC allows trades across accounts on different devices and even locations to be copied. This can be extremely useful for fund managers or signal providers looking to distribute trades everywhere.
Main Advantages of Using a Trade Copier
Fastest — Time Efficiency: It enables you to save additional time that could have been wasted in case of placing trades manually across different trading accounts.
Uniform trading in all Accounts: By using a trade copier, you can ensure that all trades are executed across various accounts, maintaining consistent results.
Scalability: If you are a money manager or signal provider, for scaling your strategies to more customers, the trade copier will help in this regard.
Risk Management: Trade copiers also have inbuilt risk management facilities, like limiting the number of trade sizes to be copied or adjusting the lot according to account size.
Selecting the Perfect Trade Copier
Some reasons to choose an MT4 trade copier over the other are:
Platform Compatibility — Ensure your brokers support the platform and trade copier you intend to use with them.
Trade Copier Highlight: Features such as lot size configuration, slippage control, and risk management functionality.
Cost — Fees can be associated with using some trade copiers, and those