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Unmasking the New Generation of Copy Traders

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  • Digital Team 

Who are the millions of mostly young working adults who use copy trading, AI (artificial intelligence) tools, and information from social media to play the markets? It’s a wide-ranging question and one that has enormous relevance for the future of global finance and investing. Whether you’re in the game or not, it’s essential to know how and why so many people are choosing to employ non-traditional tactics and strategies to seek profits in stocks, commodities, futures, cryptocurrency, forex, and dozens of other asset classes.

Copy traders tend to be members of Generation Z and reside in either Europe or Asia. Not only are most of them making money in the markets, but their skills vary a lot based on where they live. The copy trading niche is expanding rapidly, which is why so many brokerage firms are striving to meet the demand for all their new clients who want the latest tools of the trade. Here are additional details about who today’s copy traders are, where they live, and what makes them tick.

Most Are Young & From Europe, Southeast, and East Asia

Nearly 50% of all active copy trading enthusiasts are under 25, which places them squarely in the Gen Z population demographic. Combined with the next-up age grouping, from 25 to 35, the young bunch accounts for 76% of all copy trading practitioners. Where are they from? Central Europe leads the way with just over 30% of the copy trading population.

Adding Southeast and East Asia to the mix brings the total to nearly 80% of all who are involved in copy trading in one form or another. Those who use copytrading software tend to garner better returns than those who don’t. Most of all software users earned at least a modest profit during the past year of their buying and selling activity. There are no guarantees that any software system will produce positive results, but so far, the outcome is promising.

Their Skill Levels Vary

As might be expected, the younger members of the cohort are more comfortable with the technology behind copying trades, utilizing AI tools, and setting up automated buying and selling systems. The Generation Z group and those slightly older tend to possess excellent technical skills. But even older investors who are heavily involved in cryptocurrency markets are familiar with the new ways of doing business. However, there are some skill disparities within the groups, at least on a global basis. While Africa-based users usually have less experience with markets and technology in general, they make up for it by employing copy trading techniques on a more widespread basis.

Copy Trading is a Growth Industry

The entire social trading sector, which includes AI, copying, following, and all kinds of automation, is currently growing at the rate of nearly 8% per year, which means that the entire concept of non-traditional investing could undergo a massive transformation within a decade. What could happen? Those who are now under the age of 25 will probably make up most brokerage clients by 2035. Because they’ll be well acquainted with non-traditional methods of speculation, stock buying, and asset management, the entire financial sector could take on a totally different look. It’s quite possible that in a few short years, there will be only a few individuals who conduct their securities transactions the old-fashioned way, namely without any form of automation, copying, or AI enhancement.

Brokers Are Trying to Keep Up With Demand

Owners of brokerage firms and similar financial institutions are well aware of the immense popularity of multiple new forms of investing, trading, speculating, and banking. That’s why most of the top online and traditional firms are working to accommodate the Gen Z group who prefers AI-based and copy trade systems for their everyday needs. Even since the massive growth of online buying and selling during the past decade, brokerage platforms have begun incorporating various forms of automation into their standard and premium features.

In addition to standard vanilla accounts, new customers can opt for no cost or low-cost automated functionality. What is on the menu? There are ways for newcomers to select an experienced trader to follow or copy, as well as algorithms that let users set trading parameters on their accounts and check in whenever they like. For those who enjoy writing code and creating customized rules-based systems, there are tools for incorporating the code into an existing platform. Regardless of the sophistication of the user or the method, today’s leading brokers are ready to welcome a new generation of clients into the fold.

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