Lesson 7 of 84:004 Sources
Signals and copy trading: use them wisely

Video coming soon
Educational content, not investment advice. Nour explains how markets work. She never tells you what to buy or sell.
A signal tells you what to trade and you execute it yourself; copy trading opens another trader's positions in your account automatically. Either way, you bear the result.
- ESMA (2023) treats copy trading as potentially an investment service, including qualifications of copied traders; IOSCO (2025) warns of investor harm from automated copying.
- A 90% win rate can still lose: 9 × +10 pips and 1 × −150 = −60 pips.
- Check a verifiable track record, max drawdown, stop-loss use and how the provider earns.
- Treat signals as ideas; size them with your own 1% rule and set a maximum loss for copying.
Quick check
Three questions. Pick an answer to see why.
1.A channel wins 9 of 10 trades at +10 pips each and loses one at −150 pips. Net result?
2.What did IOSCO warn about in its 2025 report on online imitative trading?
3.What is the smart way to use a signal?
Sources
Every fact in this lesson is backed by the sources below.
- 1.ESMA — Supervisory briefing on copy trading (30 Mar 2023)ESMA supervisory briefing (30 Mar 2023): copy trading may qualify as an investment service; expectations incl. qualifications of traders whose trades are copied
- 2.IOSCO — Final reports on finfluencers and online imitative trading (19 May 2025)IOSCO final reports (19 May 2025): potential investor harm from automated imitative trading; finfluencer regulatory gaps
- 3.FCA FG24/1 — Financial promotions on social media (26 Mar 2024)FCA FG24/1 (26 Mar 2024): influencers promoting regulated products without approval may commit a criminal offence
- 4.Investor.gov (SEC) — Internet and social media fraudPosters claiming to be unbiased may be paid promoters; beware promises of guaranteed returns
Educational content, not investment advice. Risk warning: trading forex, CFDs, gold and crypto carries a high level of risk and may not be suitable for everyone. You can lose more than you put in. Souq Daily is an education platform. Nothing here is investment advice, a recommendation or an offer, and past performance does not predict future results.