For many traders the time and effort needed to be successful in the Forex industry is far too much for them to commit to, so they opt for some trading assistance by way of MAM’s, Trade Copiers or EA’s.
These tools are also useful for the novice trader who is looking to learn the industry by following the trades of an expert or more experienced trader.
There are differences between each of these tools that are important for traders to consider. For some traders, the idea of a robot trading the account is not really something they feel comfortable with, so they prefer a human touch to their trading accounts. MAM’s and Trade Copiers are typically managed by an expert trader who traders can attach their accounts to.
Here are some defining elements of each system:
MAM stands for Multi-Account Manager which is a simple plugin that allows multiple sub- accounts to be assigned to a single master account. The MAM account trades the collective sum of all investor accounts however the software allocates the master trade to each sub account based on the size of the investor account.
Investors can access their accounts and check the history of the trades placed on the accounts. For an investor to set up their account with a MAM, they need to fill out a Limited Power of Attorney (LPOA) form that allows the MAM manager to trade their accounts on their behalf. If the investor chooses to disconnect from the MAM, all they need to do is revoke the LPOA.
Trade Copier services are available on Tradeview’s MT4 platform and allow traders to copy the “signals” of other traders within the MQL community. This type of service does not give the master trader direct access to the investor account, and investors can set their own parameters for the signals they are copying. Trade Copier services are most similar to using an EA (which will be discussed later), however the master trades are originating from a real trader and not a robot.
Some signal providers charge a fee to copy their trades, however some are free to use. The set up for this service can be found here and will soon be available on the MT5 platform as well.
Expert Advisors are programmed softwares specifically for the MT4 and MT5 platforms. They can execute trades or advise traders on what trades they should place. The popularity of EA’s stems from the automatic trading function that has been programed into the software using MetaQuotes Language programming.
An EA can be installed into the trading platform and parameters set up to a trader’s preference, risk level and account size. EA’s can be disabled at any time and are usually easy to install and enable on the platform.
Most EA’s have a one-time cost associated with them. Traders must purchase the software from the developer to receive the files needed to install on the platform. Costs of EA’s vary greatly, and a trader must research these products carefully to ensure that they are compatible with their trading style and risk level comfort.
There are many options for traders at Tradeview, please contact us directly to find out which service is right for you.