So, you’ve received an alert from Myfxbook Autotrade that your strategy meets their criteria and is eligible for their signal copying platform to trade foreign exchange markets. Congratulations! This is surely a magnificent day, the next step to becoming a professional trader.
The feeling of having your trading endorsed by a trusted website such as Myfxbook is wonderful. That dream of working full-time as a trader is now a little bit closer!
Or is it?
What is Myfxbook Autotrade?
Myfxbook introduced Autotrade several years ago, coat tailing other pioneers of the trade copying space (such as yours truly). In simple terms, Myfxbook is offering a foreign exchange trading account that allows users to copy trades of other investors using an Autotrade trading system. The great thing is that you can choose the one investor you want to copy based on past performance, the trader’s risk tolerance, and the profit factor.
In 2014, the signal and social trading industry looked to take over the forex world. Even Metaquotes, the developers of MT4, launched a signal service. Since that time, I’ve noticed a gradual decline in clients using the technology. Traders seem to prefer trading for themselves.
Nonetheless, copy trading via an autotrade system is a great way for beginners to invest money and start forex trading. It is also an excellent way for more experienced traders to enable other users to mimic their trades and get a fee in return.
How Much Money Can You Make Offering Your Foreign Exchange Trading Strategy?
Now that you’ve had a quick history lesson on the origins of Autotrade systems, the question begs – How much can you actually make offering your strategy on their platform?
Not as much as you might think…
As a constant recruiter of trading talent, traders often contact me that have their strategy listed in the top 20 here. One of the questions I always ask is how much they’re currently earning from the auto trading platform.
Remember, as a trader you’ll only earn commission on profitable trades, which is then shared with the Myfxbook Autotrade system. I find this a little sneaky, considering they keep the full commission on losing trades, then only share a portion of the commission on your winners. But it is what it is; they’re delivering thousands of potential clients and complies with the local law, so… they can kinda do whatever they want.
As a strategy in the top 20, you can expect to manage anywhere between $20k and $1mil. The most recent trader I interviewed ranked as the 8th best strategy, with 700 “subscribers”. Subscriber numbers also include demo trading accounts, so this statistic is essentially useless. Back in the early days of the platform they listed demo and live retail investor accounts separately, at the time the split was about 10/90, live/demo account.
With those 700 “subscribers” the guy was managing about $700k USD in his live account. The strategy was relatively active, entering positions several times per day on low leverage. And, as leverage creates additional risk when you trade foreign exchange currencies, his strategy was relatively safe.
Ultimately, his average take-home pay was $2,000USD per month.
$2,000. Doesn’t sound too bad?
But here’s the rub…
If you have dreams of becoming a professional trader, listing your strategy on Autotrade is one of the worst things you can do for your future career prospects and future results. Once your account is listed, there is no way for potential investors to contact you in order to seek advice or get any information. Even once it’s removed from the platform, they’ll lock the ability for you to receive messages.
Myfxbook is a wonderful tool for identifying trading talent. As a recruiter, I regularly search through hundreds of strategies looking for specs of gold, but if I can’t contact the trader of a strategy, then I move on.
Your Myfxbook statement is your biggest asset as a trader. It’s essentially a public CV, with verified proof of your abilities where you can show your trading past performance as a sort of independent financial advisor.
The Bottom Line
As a manager of FX Viper and Goldstar, 2 of the longest running and popular strategies in the industry, I can confirm that investors and entrepreneurs were in contact several times per week, every week, wanting to invest or work with the traders.
Read my post – 5 tips to trade like FX Viper
But if they can’t contact you, then you’ll never know. $2,000 is great, but it won’t change your life. If you have a 3+ year track record and can make a consistent 2-3% per month, then you should have money flying in the door wanting to work with you. After all, foreign exchange trading carries a risk so you should be compensated for sharing your success with other people.
If you’re not making $20k+ per month and living the life of your trading dreams, it’s probably because potential investors can’t find you. With other partner brokers in the industry, such distribution will enable you to share your trading purposes, investment objectives, informational purposes, the loss exposure, and the initial investment required by investors to copy your trades.
Have any of you been involved in Myfxbook’s Autotrade platform as either a trader or copier? I’d love to hear about your personal experience.
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