Copy Trading
(made simple).
Copy the trades of the world's best traders, in your own brokerage account.
Show Me The Traders
Copy the trades of the world's best traders, in your own brokerage account.
Show Me The Traders
If you've ever sat down at your computer, logged into your brokerage account, and said... "What should I buy?" Or "What should I sell?" then you should consider "copy" trading.
Copy Trading, very simply, uses computer software to copy the trades of a talented trader (or trading algo) into other people's broker account. It's typically used with forex, but is also popular with stocks, options, and futures.
The earliest "copy trading" companies had very, er, interesting economic models. They got paid on a per-trade basis. Even worse, they paid their "leaders" (that is, the people whose trades were copied) on a per-trade basis.
As you can imagine, this had perverse incentives, leading to over-trading and high costs. This gave copy trading a bad name... deservedly.
At Collective2, we don't play those games. No one is paid on a per-trade basis. There's no incentive to generate extra trades or commissions.
Collective2 is a "marketplace" for copy trading strategies. Once you sign up for a free account, you can "shop" for traders that meet your criteria. Then with the click of a button, or two, you'll be able to "copy" those trades in a regular brokerage account. Trades will be performed automatically. You'll have complete visibility into what's being traded, and when -- and you'll be able to "pull the plug" at any time if you don't like what you see.
The traders on Collective2 are software programmers, finance professionals, and traders from around the world. Rather than working for a hedge fund or quant shop, these developers sell their services independently on Collective2. (Or they moonlight at Collective2.)
Some of the results on Collective2 seem surprisingly good. (To be fair, some are surprisingly bad, too!) While all the "Model Account" track records on Collective2 are hypothetical, they share one important characteristic: they are "forward out-of-sample" results. This means that trades you see on the web site were "called" by the strategy manager as they happened. In other words, strategy managers do not say to us, "We would have bought EUR/USD back in 2001. Trust us." No. We don't trust anyone. (Neither should you.) Instead, we record when a strategy manager actually decides to buy or sell. We also record the any trades that are placed in customer brokerage accounts as a result of following a strategy.
Unlike other copy trading platforms, we do not charge a per-trade fee. Nor do we compensate our "leaders" on a per-trade bases. Nor do not charge a percentage of any profits. Rather, each leader charges a flat monthly fee. The price is set by the individual leader, and ranges from between $25 and $300 per month. You can snap together multiple leaders to copy in one brokerage account.
If you ask this, Collective2 is probably not right for you. Remember that trading is risky. You may lose money, as well as make it. We do not guarantee that the traders you choose will perform well. If you use Collective2, you should only trade with "risk capital" -- that is, capital you can afford to lose. Sound fair?