The Rules of Copy Trading at Trendo Broker
Copy trading in Forex is an attractive investment method offered by most brokers. Copy trading is a feature where trades from a professional trader are executed simultaneously on other accounts, allowing investors to profit proportionally to their investment from the account manager's trades.
Next, we will introduce the copy trading system of Trendo broker and examine the rules and conditions of Trendo's copy trading accounts for both investors and traders.
How does the Trendo Copy Trading system work?
In the Trendo Copy Trading system, a successful and professional trader executes trades in their account, and these trades are simultaneously copied and executed in the accounts of individuals who are connected to this account. In fact, the copy trading system is an opportunity for investors to become partners in a professional trader's profit by paying a small commission.
In copy trading accounts, the trader or manager who executes trades is referred to as the account manager, and the individuals whose accounts replicate the manager’s trades are known as investors. For instance, if the account manager opens a buy position in gold, the same purchase is executed immediately in all the investors’ accounts. Likewise, when the account manager decides to close the trade, it is simultaneously closed in all the investors’ accounts as well.
Account Manager in Trendo's Copy Trading System
In Trendo Broker, traders who have high knowledge and experience in trading can have a Trendo copy trading account based on their positive trading history and start their activities as an account manager. Trendo's copy trading system is a suitable platform for professional traders who intend to increase their income by attracting capital in addition to making profits from their own trades.
Investor in Trendo's Copy Trading System
Users who, for reasons such as lack of skill, sufficient experience, or time constraints, do not wish to engage in forex trading directly, but are interested in investing in the Forex market, can participate through the Trendo copy trading system. Investors, by reviewing conditions such as the amount of commission and the resume of copy trading account managers, can invest in the safe environment that Trendo Broker has prepared.
If you intend to invest in copy trading systems, thoroughly examine the collaboration terms with account managers and gather sufficient information about their trading strategies and capital management style. Then, choose a professional account manager.
For further information, read: What is Copy Trading in Forex?
Types of Copy Trading Accounts at Trendo Broker
In the Trendo Copy Trading system, for different investment and trading scenarios, two types of trading accounts are offered, which are:
- PAMM Trading Account
- CopyTrade Account
Trendo Broker’s PAMM Account
In a PAMM account, investors will be connected to the account of a successful trader under specific and agreed-upon conditions. In a PAMM account, trades will be exactly copied and executed in the investors’ accounts, and investors will pay a certain and agreed-upon percentage of the positive outcome of trades over a specific time period to the trader’s account as a commission.
In the proposed plan, the account manager determines their trade fees for investors and will receive a certain percentage of the profits from trades that are closed with profit from the investors’ accounts as a commission. However, if trades are closed with a loss, the account manager will not receive any commission. The commission received by the manager for a PAMM account can vary, and usually, individuals who have a considerable capital pay a lower percentage of commission to the PAMM account manager.
Trendo Broker’s CopyTrade Account
In Trendo’s CopyTrade Account, investors connect to the account of a successful and capable trader with a specific fee. Similar to the PAMM account, the trader’s trades are precisely copied into the investors’ accounts. In the CopyTrade Account, investors pay a subscription fee to the trader on a monthly basis. Unlike the PAMM account, the amount of commission received by the account manager is not related to the profit or loss resulting from the executed trades.
Trendo's Copy Trading System Rules for Account Managers
1. To open a PAMM account or a copy trading account, an account manager must deposit a minimum of $500 as initial capital into the PAMM wallet or copy trading wallet. The receipt of the initial capital from account managers is intended to motivate adherence to capital management and prevent high-risk trading in PAMM and copy trading accounts. The principal amount received from the account manager is non-withdrawable while the copy trading account is active. If the investors’ accounts are depleted, this initial capital will be distributed among the investors as part of compensation. It should be noted that the amount of initial capital can vary based on the number of investors and the invested amount, and the account manager is obliged to deposit the specified initial capital as a form of guarantee with the broker.
2. The commission percentage for PAMM accounts is determined by the account managers for specific time periods. If the net result of the account manager’s trades is positive during the specified time period, this commission will be automatically deducted from the investors’ accounts and will be deposited into the account manager’s wallet on the first day of each Gregorian month. If the net result of the trades is not positive, no commission will be paid to the account manager.
3. The amount of the fee (monthly subscription cost) in copy trading accounts is determined by the account managers and at the end of each month, this amount is automatically deducted from the investors’ account and will be deposited into the account manager’s wallet. In copy trading accounts, the monthly subscription fee is fixed and does not depend on the amount of profit or loss of the account manager.
4. The maximum leverage available for use in copy trading accounts is 1:500.
5. Registering as an account manager in Trendo’s copy trading system constitutes acceptance of all the broker’s rules.
The Rules of Trendo’s Copy Trading System for Investors
1. Investors have full access to all transactions conducted in their accounts by the PAMM and copy trading account managers. They can monitor and control all transactions. In fact, an investor can close a trade or trades at any time they wish. Additionally, investors will be able to withdraw their profits whenever they want.
2. Stopping cooperation and investing in any of the PAMM or copy trading accounts is very simple, and investors can terminate their membership in any of the investments whenever they wish. To rejoin a PAMM or copy trading account, a new application must be submitted.
3. The rules for depositing and withdrawing funds by investors in copy trading accounts are similar to those of the main (Real Account) accounts. For studying the rules, you can refer to the deposit and withdrawal methods page.
4. The volume applied in investors’ accounts will be proportional to the balance and trading volume of the account manager. In other words, any capital management that the account manager adheres to will also be applied to the investors’ accounts.
5. Investors can set a multiplier for the volumes applied by the account manager in order to control risk and protect their capital. For example, an investment multiplier of 0.5 means that the trading volume in the investor’s account will be halved.
6. Investors on the Trendo platform can use the Signal section to review the rankings, conditions, and details of each PAMM and copy trading account and invest in the best account. When choosing a professional account manager, it is recommended to consider parameters such as risk level, trading style, profitability, and duration of trades. Investment decisions should not be based solely on one parameter.
7. In case of any dispute between investors and traders, Trendo Company has the right to review and arbitrate the matter. If there is misuse of the PAMM and copy trading services by any party (account manager or investor), Trendo Company reserves the right to review the accounts. The consequences of any misuse of these services will be the responsibility of the users.
8. Registering as an investor in Trendo’s copy trading system signifies the acceptance of all the broker’s rules.
Risk Warning
Please note that past positive performances in PAMM and copy trading accounts do not guarantee future profits, and financial markets carry risks. Traders and investors should have full knowledge and awareness of the conditions and risks of financial markets before starting cooperation.
It is also worth mentioning that Trendo Company only provides a secure and efficient platform for the collaboration of investors with traders and has no role or activity in the execution and management of trades. Trendo Company consistently recommends that traders and investors practice prudent capital management.