Master Trader vs. Copy Trader

Copy trading has grown to be one of the most popular and easiest methods to trade in the forex market. Not only in forex, but in other markets as well, copy trading has become an important and popular tool of investment for new and inexperienced traders. In copy trading, there are two types of traders: master trader and copy trader. A master trader is someone who allows his/her trades to be copied, while a copy trader copies trades made by master traders. In this article, we will see how both types of traders are different from each other.

How Does Copy Trading Work?

Copy trading works through the social networking of the forex broker’s platform system. A trader chooses to share his strategy.The signal is carried to those traders who are interested in copying strategies. When the trader interested in copying links his account to that of the master trader, trades are executed automatically.

Who Is A Master Trader?

A master trader is the one who opens his account for other copy traders to follow strategies. Statistics show that master traders do very well, with fewer drawdowns and more gains than losses. Many traders mimic the strategies of well-known master traders. A master trader who has more followers is likely to be more successful.

How To Be A Master Trader?

A beginner cannot be a master trader. A trader must acquire the necessary abilities to regularly and dependably earn from the market, especially in challenging market conditions. A trader is qualified to be a master trader if they have previously achieved success as a forex trader with adequate risk management and high profitability.

A master trader himself needs to have proficient technical analysis and fundamental analysis skills. He must be able to decipher correct speculations based on price chart actions, trendlines, indicators, and as well as, important economic news.

The master trader must also have effective risk management knowledge. He must know how to adapt to market changes, sudden fluctuations in the forex market, and liquidity changes. The trader must be able to control how much money he loses in a trade by changing his strategy as per market requirements. Only then, can he be a worthy master trader to copy from.

The master trader should also have a long history of trading. A trading track record of less than 12 months is usually not followed by copy traders. Because as the market changes stays anywhere from between 6 months to 12 months, having a track record of more than 12 months proves to be beneficial in showing the experience and profitability of the trader.

Who Is A Copy Trader?

On the other hand, a copy trader is simply the person who links his forex account with that of the master trader to follow his strategies and moves. A copy trader can be a beginner forex trader who wants to use copy trading to learn from expert master traders how they analyse and trade in the market. Or, a copy trader can also be traders or investors from other markets who want to try their hands at the forex market as well.

How To Be A Copy Trader?

In order to be a copy trader, you first need to select the right broker platform, and then the right account type. In order to be a successful copy trader, the most important step is to choose the right Master Trader. You must follow the master trader with the same risk appetite and account capital as much as you can afford to risk. A copy trader can choose whether to automatically copy trades or manually open and close trades. Also, when choosing a master trader, one must keep in check their profitability, statistical records, and track record.

Difference Between A Master Trader and A Copy Trader


Copy trading is a terrific way to invest in the forex market since it allows you to follow another trader’s performance by copying their transactions. When one’s transactions are executed automatically, this is called automated copy trading. A trader can carry out their own deals using the manual version. Again, copy trading is a fantastic way for experienced traders to make more money through commissions.