Copy trading enables individuals in the financial markets to automatically copy positions opened and managed by other selected individuals. Unlike mirror trading, a method that allows traders to copy specific strategies, copy trading links a portion of the copying trader's funds to the account of the copied investor.
Copy trading is widely regarded as lawful in most countries. However, you should check the copy-trading laws and regulations in your own country to be sure.
Like any other investment, you won't become rich overnight! Copy Trading involves risks, including capital loss, even when following and/or copying or replicating top-performing traders. Anything above 60–70% annual returns is tough and probably down to luck or taking huge risks.
It is suitable for traders who are new to the stock market and need more expertise, time, and commitment to analyze the market. It can be done either manually or automatically. The traders whose position is copied are typically experienced and backed by years of knowledge.
Copy trading is one of the easiest ways to use another trader's expert knowledge. It also means that you don't lose any control over the outcome.