Copy trading software for money managers

As a money manager, you are a financial professional who manages the investment portfolios of others. People trust you to manage their money and your goal is to do your best to deliver them the results they are going after. Since copy trading is a feature that allows to copy the trades of more experienced or successful traders, it can be useful for money managers because it allows them to replicate the profitable trading strategies without having to do the research and analysis themselves. For example, money managers can use copy trading as a way to diversify their clients’ portfolios and potentially generate additional returns. 

Copy trading strategies for money managers

There are a number of ways in which money managers can use copy trading.

• As a standalone strategy: Some money managers may use copy trading as a standalone investment strategy, allocating a portion of their clients’ portfolios to this type of trading.

• As a supplement to traditional investment strategies: Money managers may also use copy trading as a way to supplement their traditional investment strategies, such as by adding a selection of successful traders to their clients’ portfolios.

• As a way to access new markets or asset classes: Money managers may use copy trading as a way to access new markets or asset classes that they are not familiar with or do not have the resources to trade directly.

Commission structure and income

If you configure copy trading wisely, after some trial and error, you can transform it into a passive stream of income. In this case as a money manager you have two goals. First, build a solid trading strategy or, in other words, a portfolio of the traders you follow. Second, attract new clients to follow your investment strategy. The better and more stable profits traders you follow generate, the easier it becomes to attract new followers.

As a money manager, you get paid for helping others make money. If you are a copy trading money manager, then for selecting reliable and profitable traders to follow, so that your followers don’t have to do it themselves. Clients will pay you because it saves their time and prevents them from making rookie mistakes. As a money manager, you can select the most suitable commission structure: fixed monthly fee, percentage of the profit or a combination of both. The fixed fee is the best option to create stable monthly income and it protects you from financial losses. Typically, in this case the fee should be high enough for the project to be interesting to you. On the other hand, with the flat monthly charge it might be harder to convince traders to trust you with their money and you may have a higher drop-out rate if in some months your strategy doesn’t bring profit. Percentage from profit or from the money turnover is more flexible and allows to attract more clients, because people only pay you a portion of their profit if and when they earn it. However, it imposes more risk on the money manager. The balanced approach is to use the combination of both pay structures – charge a relatively small monthly fee for using your services and additionally collect profit percentage in the successful months.

Money manager’s copy trading software

There are a number of copy trading software platforms available that are designed specifically for money managers. These platforms typically allow money managers to connect their own trading accounts to the platform and then select other traders to follow. The platform will then automatically execute trades in the money manager’s account based on the trades of the selected traders.

There are copy trading software platforms that even allow money managers to manage multiple accounts from a single interface, which can be more efficient than managing each account separately.

Some examples of copy trading software platforms that might be suitable for money managers include:

1. Trade Copier: a decentralized copy trading platform that supports multi-account management and offers a lot of features designed specifically for money managers, including a unique Money manager Studio add-on. 
2. Duplikium: another cloud-based trade copying service that allows to connect accounts from multiple brokers and trading instruments.
3. metaApi: a websocket API designed to simplify forex application development process. The API can be used to connect multiple MT4 trading accounts and automatically copy trades between them.
4. mt4copier: a local trade copier which also copies trades between multiple MT4/MT5 accounts. Unlike the first three services, this trade copier installs and runs from your own computer.

Trade Copier provides an easy-to-use solution specifically for money managers, and its Money Manager Studio is worth taking a closer look. This add-on is powerful enough to build your name in money management from scratch, if you are new to this market or to take you to the next level, if you already have some reputation. Money Manager studio allows money managers to build their own website with custom branding. You can use the website to attract new clients, manage existing subscriptions, provide performance reports and automate the fee calculation process based on a flexible set of conditions that matches your commission structure.

Money managers are responsible for making investment decisions on behalf of their clients, so it is important to choose copy trading platforms wisely. It’s important to note that copy trading carries inherent risks, as the performance of the traders being followed may not always be consistent and the money manager has no control over the trades being executed in their clients’ accounts. Money managers should also ensure that they are in compliance with any regulatory requirements when using copy trading as part of their investment strategies.