Copyop is not your typical binary options trading site and it’s not meant to be. It is a little hard to describe because it is more like a follow the leader type site than it is a true binary options trading site. It could probably more easily be compared to an auto trading robot that tracks people’s trading skills as opposed to asset analytics like most auto trading software does.
The site is run by the same company that runs the world’s largest binary options trading site, anyoption. It is a relatively new site that was just launched earlier in 2015. It expands on a popular new way of trading binary options called ‘social trading’; which basically means you don’t do any technical analysis yourself; you just mimic the trades of other more experienced and consistently profitable binary options traders. You can copy the trades of those people who trade on the Copyop or Anyoption websites. It is really the first ‘full-fledged’ social trading web broker.
For the purpose of this review we will not add information about the anyoption website. There is a full review here under are binary options broker reviews section if you want to learn more specifics about anyoption.
There are two ways in which a trader can register to trade on Copyop; either by signing up for the website directly or by linking to it from the anyoption website. You might want to consider doing the latter if you are the type of trader that likes to take advantage of some of the bonuses that Anyoption offers. One of the nice things about each site is your deposited funds can be used on either site too. You might want to note that we actually had to ask for the bonus after signing up and you have to be aware there are trading minimums before any bonus money can be withdrawn too.
There are 3 different choices of currencies that can be used to open an account in Copyop; the Euro, the British pound and the US Dollar. You have to be careful which one you pick because after the initial deposit you can only add or withdraw money in the same currency. You do not actually need to deposit money to open an account and this will allow you to check out the traders you can follow and see the features of the website. After doing this you can pretty much expect a phone call from the Copyop sales team to try and aggressively get you to make a deposit.
Who are Those Traders that You can Copy?
There is no set format to whose trades you can copy; you can copy any person that trades on either site and any person can copy you. Really the only condition is a trader can only have a maximum of 100 people that copy there trades. As we did our review we only saw one instance of a trader being maxed out. You can also keep an eye on a specific trader without making trades and have it displayed on your social trading feed. There is a lot of flexibility built into the web platform as far as how you look at another investors trading.
Another thing to note is there is no slippage with Copyop like there is with FOREX social Trading. Slippage is the difference in the trade from when the person whose trades you are copying and the price when you decided to copy is factored in. You get the identical trade parameters as the person you are copying with Copyop. The drawback is you get slightly lower return on investments than the person you decided to copy. Most people accept this as the cost of being able to access the service.
Most sites that allow social trading only let you do it with FOREX but that is not the case with Copyop. You can use it with stocks, Indices, commodities and FOREX pairs. Interestingly enough you will be rewarded if you place trades and people copy you. You are copying real people who are risking their own money so that in itself should increase your confidence level in the trading process. There is a small payout on losing trades too. You can increase your profit by watching traders and manually copying their trades instead of using the ‘automatically’ copy feature; of course this takes more time too.
How to Observe and Select Which Traders You Copy
In order to be successful with this web broker you need to know how to pick out the successful traders. With what we teach you here you will be able to choose traders to copy from both Copyop, Anyoption, Banc de Binary and 24option as was mentioned before. Keep in mind that you can’t see every trader at once or look at a list of traders results, that is probably where the risk of trading this way comes in bit you can hot the ‘random explore’ tab or the ‘hot list’ tab to try discovering new traders to follow who have a record of success. The explore tab brings up random traders that have recently traded and the hot list brings up traders who are trading well as of late.
Here is a list of what you can see about each individual trader:
- Nickname, country, joining date, risk percentage
- Number of people watching them
- Number of people copying them
- Hit % on their own investments
- Longest winning streak
- Number of trades per day average
- Incremental hit percentage
- Last three trades
- Asset breakdown on their trades
One of the big drawbacks with Copyop is that you can only see the last three trades an investor makes and not a complete history of the clients trading or their current open trades; this is consistent with other sites that allow social trading also. The most useful stat is probably the trader’s hot percentage when factored on their last 120 trades. The lack of detail on the trader that you want to copy is what keeps people from doing social trading a lot of the time.
How Copyop Handles Risk and Money management
As with all binary options trading, on Copyop you will know and be able to assess risk before you make a trade. It is one of the nice benefits when it comes to binary options trading. That is a lot different than say FOREX trading where you have virtually unlimited risk until you get to your stop level. Even when you are copying other investor’s trades you still get to assess the risk versus reward on that trade before you execute the copy feature.
When you copy a trader you will be asked the following:
- Exactly how many of the investor’s trades do you want to copy
- The amount per each copied trade
- What assets are involved in the investor’s trades that you want to copy
You may stop copying a trader at any time you so choose.
It must be noted that when you are copying trades the amount you invest stays the same per trade regardless of what the person you are copying invests. So you must be aware that there is no proportionality in percentage to the amount the copied trader invests. It is fixed for every trade you copy for the amount you selected for each copied trader. Because of this your results will never be exactly the same as the trader you copy. As explained before you will also not receive the same return on investment as the trader you are copying because they get a small percentage of what you make on the trade.
You can do such things as only take the trades of the people you are watching that they invest the most money. This may give you an indication of their confidence level in a particular trade. Someone who invests $2000 in a trade is obviously more comfortable with that trade than a person who only invests $200 on the same trade. You can study the information given on each trader and come up with your own conclusions for each trader and invest accordingly. If you watch a trader long enough you can really pick out the reasons why they are winning on certain trades and not on other ones. For example: A trader may only have a 40% success rate when trading but an 80% success rate in trades involving gold; so you would want to copy this trader only when they do a trade that involves gold as an asset.
Copyop Costs and fees
There are not a lot of fees and costs as far as Copyop is concerned. Signup is totally free and you can even make one totally free withdrawal each month.
Copyop Customer Support
Customer support options are limited but functional. You can only contact this web broker by email or contact form; that means you can rule out ever getting a quick answer to a question or concern. We were not thrilled with that aspect of their customer service at all; as a matter of fact the average response time to the questions we submitted was three to four days and improvement is certainly needed in that area.. The FAQ page is not extensive either but what is there is very thoroughly covered and explained well.
There are a lot more support options for their sister site anyoption, so again we lean toward accessing Copyop after you sign up for an account with anyoption.
Copyop does have a nice variety of learning tools that they give access to those that register for their website.
Social Media Access
Copyop does allow it traders to connect using their Facebook account too; once you do this your friends can see your trades and vice versa. We are not sure why you would want your friends to know you trade and how much but this could be useful if you had an account that was made up of just trading group friends.
Unfortunately Copyop does not provide their users with a demo account at this time. As was mentioned before they do allow you to see the features of the website and follow some traders after signing up even if you have not made a deposit. At least that way you get a little sneak peek into the website. It will give you a good idea how successful a lot of the traders are on the website.
Pros and Cons
- Takes statistical analyses out of play
- It’s an excellent site for those with no binary options trading knowledge to make money
- There is a large selection of traders that can be copied because you can copy those from their sister site anyoption; it’s the biggest binary option web broker in the world
- Simplifies social trading
- You copy traders that are risking their own money and you can copy anyone
- The site has an easy to understand user interface
- Tools to limit and manage risk
- No demo account
Our Final Thoughts on Copyop
This site is very different from other web brokerage sites for sure. As we stated it is much more a form of auto trader than it is a binary options website but you can still place your own trades too but make no mistake about it the site is made to help you coattail off the success of experienced traders. There are a lot of pros and a lot of cons so clearly this type of website is not for everyone. If you’re into trying to profit from other trader’s skills then there is no harm to giving Copyop a try. You may want to consider signing up for their sister site Anyoption so you get the bonuses they offer and can still access Copyop too.
References and Further Reading:
- Measuring the acceptance of electronic marketplaces: A study based on a used-car trading site (Tobias Kollmann-2001)
- FROM DESIGN FEATURES TO FINANCIAL PERFORMANCE: A COMPREHENSIVE MODEL OF DESIGN PRINCIPLES FOR ONLINE STOCK TRADING SITES (Youngsu Lee, Jinwoo Kim-2002)
- CUSTOMER TRUST ONLINE: EXAMINING THE ROLE OF THE EXPERIENCE WITH THE WEB SITE (Marios Koufaris William Hampton-Sosa-2002)
- Using the Internet for market research: A study of private trading on the Internet (Ray, Kent; Lee, Matthew-1999)
- Trading costs and the relative rates of price discovery in stock, futures, and option markets (Jeff Fleming, Barbara Ostdiek, Robert E. Whaley-1996)
- Trading Systems and Methods (Perry J. Kaufman-2013)
- The impact of institutional trading on stock prices (Josef Lakonishok, Andrei Shleifer, Robert W. Vishny-1992)
- Mining sequential patterns from multidimensional sequence data (Chung-Ching Yu ; Yen-Liang Chen-2005)
- Scaling for e-business (D.A. Menasce-2000)
- Managing Online Auctions: Current Business and Research Issues (Edieal J. Pinker, Abraham Seidmann, Yaniv Vakrat-2003)
- Context-dependent foraging choices in risk-sensitive starlings (Melissa Bateson-2002)
- Choosing the greater of two goods: neural currencies for valuation and decision making (Leo P. Sugrue, Greg S. Corrado & William T. Newsome-2005)
- Exchange rate regimes: China’s experience and choices (Haizhou HUANG, Shuilin WANG-2004)
- Vehicle Currencies And the Structure Of International Exchange (Paul R. Krugman-1973)
- EXCHANGE RATE CHOICES (Richard N-Cooper-1999)
- The Effects of European Monetary Union on the Dollar and the Yen as International Reserve and Investment Currencies (Michael Frenkel and Jens Søndergaard-1998)
- Exchange Rate Regimes: Choices and Consequences, Volume 1 (Atish R. Ghosh, Anne-Marie Gulde-Wolf, Holger C. Wolf-2002)
- Time and energy constraints and the relationships between currencies in foraging theory (R. C Ydenberg, C. V. J. Welham, R. Schmid-Hempel, P. Schmid-Hempel and G. Beauchamp-1992)
- Rate currencies and the foraging starling: the fallacy of the averages revisited (Melissa Bateson and Alex Kacelnik-1995)
- The Yen, the US dollar, and the trade weighted basket of currencies: Does the choice of anchor currencies matter in identifying incidences of speculative attacks? (Victor Pontines , Reza Siregar-2007)
7 Binary Options review: Copyop: stars.
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