XM is among the biggest Forex brokers in the world, having a presence in more than 180 countries. The platform lets you earn passively by copying trades of expert traders. XM has partnered with MQL5 by MetaQuotes to give users access to a broad pool of signal providers.
In terms of licenses, XM is regulated by authorities in Australia and the United Kingdom. Therefore, users are assured of their funds’ safety.
For starters, the XM copy trading feature involves novice traders following the trading strategies of experienced ones. It can be manual or automatic. However, although copy trading has several advantages, especially for beginners, it also comes with its disadvantages.
Pros and Cons of Copying Trades on XM
- Access to a wide range of experienced traders.
- Only a minimum deposit of $5 is required to start copying trades.
- You can follow trades in various financial markets, including forex, commodities, indices, and stocks.
- Past positive results of experienced traders do not guarantee future profits.
- A high monthly subscription fee is charged to copy trades.
How to Identify the Right Trader
There are several factors that you need to consider to find the right trader. They include the number of weeks a trader has been trading, the number of users following their trades, the win rate, the maximum daily drawdown, and the subscription fee.
How to Start Copying Trades
After registering and funding your XM trading account, go to the broker’s copy trading platform and evaluate the traders using the abovementioned criteria. When you identify the right one, go to their profile and click “Subscribe.” After that, copy the trader’s Stop Loss and Take Profit levels. Once done, click the “OK” button, and you will immediately start copying the trades of the experienced trader.
Can You Make Money Copying Trades on XM?
The simple answer to this question is yes. Copy trading also allows you to watch what seasoned traders are doing in the market, helping you to gain trading experience. However, it is worth mentioning that a trader will not always post profits, so brace yourself for losses as well.