What is mirror trading: What Is Mirror Trading in Crypto?

mirror traders

Each trade generated by one of the trader’s chosen strategies will be opened automatically in the trader’s account. As suggested, mirror trading and copy trading are two popular trading strategies, which entail following and replicating the trades of other traders. Both fall under the umbrella of social trading, but there are some important distinctions to be made. In fact, it’s often easier to define mirror trading in conjunction with copy trading rather than in isolation.

You’ll also need to keep a close eye on your account to make sure you don’t overtrade. I accept FBS Agreement conditions and Privacy policy and accept all risks inherent with trading operations on the world financial markets. Click the ‘Open account’button on our website and proceed to the Personal Area. Once you are done with all the checks, go to the preferred trading platform, and start trading. Since 2005 the Mirror Trader platform has gained popularity with tens of leading financial institutions.

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Lack of emotional self-control is a primary factor contributing to many people’s failure to establish successful trading careers. Mirror trading is a trading selection methodology that can be carried out in both the foreign exchange and the stock markets; however, this is much more common in trading in the foreign exchange market. Mirror trading allows traders or investors to mimic others by implementing the same trades that others do in the trader’s own account. Copy trading, on the other hand, is a simpler alternative that mainly enables you to follow a specific trader, by copying their open trades in your trading account. The Mirror Trader presents detailed summary of the strategies performance, helping traders making educated choices.

Increases trade precision and transparency

Go to the Withdrawal page on the website or the Finances section of the FBS Personal Area and access Withdrawal. You can get the earned money via the same payment system that you used for depositing. In case you funded the account via various methods, withdraw your profit via the same methods in the ratio according to the deposited sums. Traders can add, reamove or modify money management settings to suit their trading preferences.

Clients select strategies that match their personal trading preferences, such as risk tolerance and past results. Once a strategy has been selected, all the signals sent by the strategy will be automatically applied to the client’s brokerage account. No intervention is required by the client as all account activity is controlled by the platform. Margin trading involves a high level of risk and is not suitable for all investors. Forex and CFDs are highly leveraged products, which means both gains and losses are magnified. You should only trade in these products if you fully understand the risks involved and can afford to incur losses that will not adversely affect your lifestyle.

Since all trades in Mirror Trading are automated, it saves you the time of monitoring the forex markets and placing orders manually. The brokers regularly analyse the market on your behalf and provide you with the exact strategies to be used. Verified trading results lead to improved trade precision and efficiency. Mirror Trading also ensures that all trading orders and ideal price levels are transparently showcased on the platform.

It is a strategy that allows investors to copy the trades of experienced and successful forex investors and implement the same trades, in almost real time, in their own accounts. Mirror trading was initially only available to institutional clients but has since been made available to retail investors through various means. Since its inception in the mid- to late-2000s, mirror trading has inspired other similar strategies, such as copy trading and social trading.

You need to choose the right trader.If you pick a lousy strategy or trader, you might lose your capital. The traders choose from the vast amount of Mirror Trader’s tested and monitored strategies and build their own team of winning strategies. Once the broker provides you with the ideal entry/exit levels and strategies to be used after monitoring the market, it is your turn to analyse the same. You can skip this step if you have 100% faith in your broker, but it is always recommended to double-check. This will ensure that you not only understand how the broker is operating but also pinpoint if something does not look right. With Mirror Trading, you can identify when a trade is opened, closed or changed through advanced automatic tools.

Negative Aspects of Mirror Trading

Mirror trading is sometimes also referred to as copy trading although copy trading differs slightly from mirror trading in the way that accounts are linked. Forex brokers that offer mirror trading typically review, verify, and validate the trading results of strategies they add to their platform, which aids in identifying and eliminating losing trades. Before accepting a new strategy, a broker may require it to have a 12-month track record of profitability and a certain maximum drawdown limit.


When trading currency pairs, a forex signal system creates a buy or sell decision based on technical analysis, charting tools, or news events. Mirror trading has become a more acceptable alternative for traders and investors to consider as information and transparency tools have increased in quality. You may want to test the environment with virtual money with a Demo account.

Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models. If you use a VPN service, make sure you are connecting from the country that is authorized for fbs.com services. Update it to the latest version or try another one for a safer, more comfortable and productive trading experience. Investment products are not insured by the Federal Deposit Insurance Corporation or guaranteed by a bank, and may decline in value.

What Is Mirror Trading in Crypto?

It is incumbent on investors to be aware of the regulatory landscape in their jurisdiction and to ensure that the mirror trading platform being used is compliant with applicable laws and regulations. Additionally, mirror trading platforms may have their own terms and conditions that investors must agree to before using their services. These terms may include limitations on the types of traders that can be copied, restrictions on the amount of funds that can be allocated to a single trader, and other conditions.

Where have you heard about mirror trading?

Although we’re generalizing with this next point, mirror trading usually requires a higher minimum investment threshold than copy trading. One of the reasons is the often greater complexity of algorithms used when mirror trading, with the opposite tending to be the case with copy trading. Access our latest analysis and market news and stay ahead of the markets when it comes to trading.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Global Banking & Finance Review (FGF studies in small business and entrepreneurship ed.). The same year, IC Markets began offering mirror trading, later growing to 200 countries globally with a trading record of USD 1.016 trillion per month in 2021. Autotrading is a trading plan based on buy and sell orders that are automatically placed based on an underlying system or program.

To follow one of these strategies you open an account with one of the supporting brokers and this account is then linked to the signal provider’s account. Whenever they carry out a trade, this is also executed in your account. Thus, mirror trading is suited for slightly more experienced traders or those willing to invest larger amounts of money in copying several traders. You can also read more about the benefits of mirror trading in our article The Benefits of Mirror Trading. The portfolio is the combination of the traders selected trading strategies for automatic mirroring. Creating an effective and balanced trading portfolio will diversify the traders’ investment profile.

For example, if a trader has a minimal risk tolerance, they may choose to mirror a strategy that has a low maximum drawdown. When strategy developers execute their trades, these trades are duplicated in mirror traders’ accounts using automated software that operates 24/5 with the intention of replicating similar results. Prominent forex brokers that offer mirror trading include AvaTrade, FXCM, and Dukascopy. Mirror trading is a methodology of trade selection used primarily in forex markets.

A forex trading strategy is a set of analyses that a forex day trader uses to determine whether to buy or sell a currency pair. A trading platform is software with which investors and traders can open, close, and manage market positions through a financial intermediary. Mirror trading is a method that involves the automated trading of assets based on algorithmic strategies rather than individual trades, as is the case with copy trading. In mirror trading, a trader can decide a lot size and amount of trading positions in each copied trade by himself/herself. While in copy trading, the follower should allocate part of its capital to the signal provider and pay fees and commissions for provided services. Moreover, every trade gets opened according to allocated capital to provider’s capital ratio.

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