Anyone getting into Forex wants to make quick money. No one tells you that Forex trading is a long-term game that requires patience and years of practice. For that reason, many new traders run for anything or anyone who would bring them quick results.

I did the same thing in my early trading career. Immediately after learning how to enter a trade on mt4, I went looking for copy traders and signal providers. But, after a series of losses at the hands of these two, I eventually said goodbye to them to build a working trading strategy.

Today, I only depend on my signals/strategy to execute trades. For a long time, I have never used another trader’s signal, no matter how much profit it will bring.

I am not the only trader who has had an unpleasant experience with traders who sell/share signals.

Here is a post from a trader on X sharing his disappointment at losing a lot of money copy trading an influencer.

Even so, some traders have seen lots of success using these traders. u/EfficiencyMaterial51 explains in his comments how he has profited from expert advisors (EAs) and copy trading.

It seems like there is a great divide here between traders advocating for copy traders and those that don’t. In this post, we will look at which method (between relying on copy traders or creating your own trading strategy) guarantees long-term success in Forex.

Who is a copy trader?

A copy trader is an (experienced) trader who allows other traders (mostly beginners) to copy his trades/positions for free and sometimes for a small fee on the profits made by the copier. Copy traders may share their signals manually on Forex groups or automatically using copy trading tools or trade copier software.

Advantages of copy traders

Follower traders can earn from the market fast

The major advantage of copy trading is that beginning traders can start earning almost immediately from the market without spending time analyzing charts and trades. So it is a less time-consuming way to earn big money quickly from the market.

Get mentorship

Some copy traders are comfortable mentoring new traders on how to trade, hence making copy trading a great mentorship opportunity for new traders. Thus, if you want to learn more about trading (identifying opportunities, risk mgt, how to be disciplined, etc.) working with a copy trader is an excellent way to get started fast.

Disadvantages of copy traders

Rarely show genuine results

Not all copy traders are honest about their signals and trading success. Most results are exaggerated for showing off and to collect your money, so due diligence is needed when looking for a copy trader.

Find a trusted platform hosting vetted copy traders or vet them yourself by studying their trading history on their live accounts (not demo). This is the only way to know whether the copy trader is trustworthy and will help you generate consistent profits.

Follower traders lack independent

Follower traders are completely dependent on the copy trader for trades and this is not good because if the expert is not around or make mistakes, copiers can lose a lot.

Most follower traders don’t understand the risk involved in trading

A common thing I have seen in copy trading is that most copiers rarely care about risk. After a few winning sprees with the copy trader, the follower trader wants to go all in with a big lot size on a trade, ignoring all risk and money management advice. And then they blow up accounts with some blaming the copy trader for their loss.

I experienced this many times, and it brought me huge losses. For a copier to succeed at copy trading, they must understand risk and find a copy trader whose risk tolerance matches theirs. Follower traders must also note that not all trades/signals provided by the copy trader will generate profits.

Advantages of building your own strategy

You are independent

Building a solid trading system takes time and requires a whale of knowledge and experience in the market, reading charts, learning the effects of news on trades, and how a trade behaves. However, it is more rewarding than depending on someone for trade signals because you will be in full control of what you do.

You know your risk tolerance and profit targets and can adapt quickly to market changes based on your experience and knowledge of the trade and the market. You can execute trades without looking at someone for guidance.

Enjoy all the profits made

With copy trading, traders share a percentage of their profits with the copy trader and probably the platform they use for copy trading. This is not the case when you have a solid trading system as you are your own boss—enjoying all the gains or losses from the market.

Disadvantages of building your own strategy

The greatest disadvantage of building a working trading system is that it may take a long time to see results. Forex trading has a sharp learning curve that demands a lot of patience and persistence from a trader.

Learning about risk management and being disciplined in the way you trade doesn’t come easy. You must dedicate thousands of hours to the chart to develop a solid/working trading system.

Should you rely on copy traders or build your own trading strategy?

I am not a fan of any copy traders and signal providers. As I have mentioned, I have never succeeded in Forex by using someone else signal. It is hard to find a copy trader who is reliable or has a proper risk management strategy.

Many entice novice traders with paper profits made on demo accounts, while some don’t care about risk. Rarely do they use stops in their trades.

Besides, I don’t know what strategy the copy trader is using to execute his/her trades, and that is just what I hate. But, the greatest disadvantage is the powerlessness and fear one feels when a copy trader is unavailable.

The way to succeed at Forex trading is to allocate time to study trades carefully and how the market behaves. It may take one, two, three, or even four years, but the rewards are generous since you can control your trading plan/strategy without looking up to someone for direction.