Binance Futures has introduced a new feature on its crypto trading platform: Copy Trading. This offering is now accessible through both the Binance website and mobile app, empowering users in select regions to replicate the real-time futures trading strategies of seasoned experts, known as “Lead Traders.”
Copy trading is now live on #Binance.
You can replicate the trades of some of the best traders on our platform.
— CZ 🔶 Binance (@cz_binance) October 9, 2023
How Does Binance Copy Trading Work?
The mechanics are straightforward. Copy Traders, eager to enhance their trading prowess, can seamlessly mimic the strategies of Lead Traders. In return, Lead Traders receive a 10% profit share from their Copy Traders, along with a 10% commission from the trading fees generated by their proteges.
Users can follow up to 10 Lead Traders simultaneously, accessing vital portfolio data such as returns over various time frames, profit and loss records, maximum drawdown, and assets under management. This transparency empowers Copy Traders to make informed decisions about whom to follow and copy from.
Moreover, Binance Copy Trading offers a duo of modes tailored to individual preferences. The first, “Fixed Amount,” allows Copy Traders to designate a specific sum for replicating trades. Alternatively, the “Fixed Ratio” mode adjusts strategy replication based on the Copy Trader’s account balance, offering a flexible approach to investment management.
Rachel Conlan, Binance’s Chief Marketing Officer, expressed the company’s mission to democratize financial access and provide users with greater control over their finances. This initiative directly responds to the rising demand from newcomers eager to learn from seasoned traders.
“We are meeting the demand of new users who want to learn from and engage with seasoned traders, who in turn, will now have more ways to share and monetize their experience. We believe copy trading lowers the barriers to entry into crypto and can help improve social engagement within the community.”
This move by Binance aims to create a more interactive and educational environment within the trading community. By allowing users to become both Lead and Copy Traders, it lowers the barriers to entry into crypto and truly fosters greater social engagement.
It’s worth noting that in 2021, the Binance crypto exchange made adjustments to comply with regulatory pressures in certain regions. They withdrew their futures and options services for Australian customers and paused the opening of new accounts for certain trading options.