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11 Mar, 2023

Remote and local trade copiers – pros/cons review

A trade copier is a software that allows traders to copy the trades of other traders automatically. There are two types of trade copiers: local and remote.

A local trade copier is a software that is installed on the same computer as the trading platform and is used to copy trades from one account to another account on the same computer.

A remote trade copier, on the other hand, is a software that is installed on a separate computer and is used to copy trades from one account to another account on a different computer. Remote trade copiers are typically used when the trader wants to copy trades from one account to multiple accounts or when the trader wants to copy trades from multiple accounts to one account.

Both local and remote trade copiers have their own set of advantages and disadvantages, which are worth taking a closer look.

Local trade copier

Here are some advantages of a local trade copier:

  1. Easy to set up: local trade copiers are easy to install and set up as they are installed on the same computer as the trading platform.
  2. Fast execution: local trade copiers can execute trades faster as they are on the same computer as the trading platform and do not have to communicate with a remote server.
  3. Reduced latency: local trade copiers have reduced latency as they do not have to communicate with a remote server, which can result in faster trade execution.
  4. More control: local trade copiers give the trader more control over the trade copying process as they can be customized to suit the trader’s specific needs.

Here are some disadvantages of a local trade copier:

  1. Limited to a single computer: local trade copiers are limited to a single computer and cannot be used to copy trades to multiple accounts or from multiple accounts.
  2. Not suitable for remote trading: local trade copiers are not suitable for remote account trading as they are installed on the same computer as the trading platform.
  3. Dependent on the computer: local trade copiers are dependent on the computer they are installed on, and if the computer fails, the trade copier will not be able to function.
  4. Potential security risks: local trade copiers may pose security risks as they are installed on the same computer as the trading platform and may have access to sensitive information such as login details and trade history.

Remote trade copier

Here are some advantages of a remote trade copier:

  1. Can be used to copy trades to multiple accounts: remote trade copiers can be used to copy trades to multiple accounts, making them suitable for money managers who want to manage multiple accounts.
  2. Can be used to copy trades from multiple accounts: remote trade copiers can be used to copy trades from multiple accounts to a single account, making them suitable for traders who want to consolidate their trades.
  3. Suitable for remote trading: remote trade copiers can be accessed from any computer with an internet connection, making them suitable for remote trading.
  4. Improved security: remote trade copiers are installed on a separate computer and do not have access to sensitive information such as login details and trade history, which can improve security.

Here are some disadvantages of a remote trade copier:

  1. May have slower execution: remote trade copiers may have slower trade execution as they have to communicate with a remote server.
  2. Increased latency: remote trade copiers may have increased latency as they have to communicate with a remote server, which can also result in slower trade execution.
  3. Limited control: remote trade copiers may offer limited control to the trader as they are typically pre-configured and may not be customizable to suit the trader’s specific needs.
  4. Dependency on the service provider: with a remote trade copier, you are fully dependent on the platform availability. If the website is down, you will not be able to make trades. Luckily, most trade copiers have several backup servers to prevent such outages and there is very small possibility of the service being unavailable.
Local Remote Trade Copier

Decentralized trade copier

A decentralized trade copier is a remote trade copier that allows to copy trades between different broker accounts and even different platforms. Decentralized trade copiers offer several benefits over traditional centralized trade copiers, such as:

  1. Improved security: decentralized trade copiers make it easy for you to manage your finances stored in the different broker accounts. For example, you can have 50% of your portfolio at broker A, 25% at broker B, and another 25% at broker C, and then use a trade copier to automatically copy the same trades between them. This can help protect against unauthorized access and tampering of trade data.
  2. Greater flexibility: decentralized trade copiers can be accessed from any device with an internet connection, which can provide greater flexibility to traders.
  3. Improved scalability: decentralized trade copiers can handle a large volume of trades and accounts due to their decentralized nature, which can improve scalability.

It’s worth noting that decentralized trade copiers are still a relatively new concept and may not be as widely available as traditional centralized trade copiers, but due to their convenience they are quickly growing in popularity.