Basics

Slippage and latency in copy trading, explained

Why a copied trade never fills at exactly the source's price, where the milliseconds go, what the difference costs over a month, and which settings keep it small.

3 min readUpdated By the CopyTraderTool team

Two different things

Latency is time: how long it takes from the source's trade to your order reaching your broker. Slippage is price: the difference between the price you expected and the price you got. Latency causes some slippage, but not all of it, and a fast copier can still produce slippage if your broker's price is different.

Where the time goes

Orders of magnitude, not guarantees. CopyTraderTool records each copied trade's latency in History so you can see your own numbers.
StepTypical timeWho controls it
Source broker reports the new positionTens to hundreds of msSource broker
Copier matches symbol, sizes, filtersA few to tens of msThe copier
Order travels to the target brokerTens of msNetwork
Target broker executes the orderTens of ms to over a secondTarget broker
For Telegram: post delivered by TelegramUsually under a second; occasionally moreTelegram, channel

The copier's own part is usually the smallest. A VPS next to your broker saves milliseconds on the network leg, but nothing on the brokers' legs, which is why a cloud copier and a well-placed VPS perform similarly for anything except very short-term scalping.

Why your price differs even with zero delay

  • Different price feeds. Each broker aggregates its own liquidity. EURUSD at two brokers can differ by a few tenths of a pip at the same instant; gold and indices by more.
  • Spread. You buy at your ask and sell at your bid. A source on a raw-spread account and a follower on a standard account start every trade about a pip apart.
  • Market movement. In fast markets, the price moves during the round trip. Around news this can be many pips.
  • Requotes and partial liquidity. Some brokers reject or partially fill orders when the price moves.

What slippage costs over a month

Small numbers add up. Half a pip on one EURUSD lot is $5. A source that trades 200 times a month at 1.00 lot costs a follower $1,000 a month at half a pip of average slippage, before spreads, commissions and swaps.

monthly cost = slippage (pips) × lots × pip value per lot × trades per month

That is why copying a scalper with a 3-pip average target is a different business from copying a swing trader with a 60-pip target: the same half pip is 17% of the scalper's edge and under 1% of the swing trader's. Put your own numbers into the slippage cost calculator.

Settings that keep it small

  • Max slippage: a market order is not filled if the price is more than this many pips away.
  • Max signal age: signals older than this (for example 60 seconds) are skipped instead of chased.
  • Time filter: skip new entries during the rollover hour and the first minutes after big opens, when spreads and slippage peak.
  • News filter: pause new entries around high-impact releases.
  • Spread adjustment: shift SL and TP by the entry difference, so your stop distance equals the source's.
  • Account type: a raw-spread account with commission often costs less than a standard account for frequent traders.

Measure, don't guess

After two weeks of copying, compare the source's and your trades in history: average latency, average entry difference and the share of trades skipped by filters. If the difference eats a large part of the source's average win, the problem is the strategy's sensitivity to execution, not the copier.

Risk warning. Trading forex, CFDs, metals, indices and crypto on margin carries a high risk of loss and is not suitable for everyone. Copying trades does not reduce market risk: a copied loss is a real loss. Examples on this page are illustrations, not advice or a forecast. CopyTraderTool is software; it does not give investment advice or manage funds. See the Risk Disclosure.

Put it into practice on a copier.

Risk-based lot sizing, symbol mapping, filters and drawdown rules, set up in a browser in about ten minutes.

7-day free trial · Cancel anytime · No VPS