While copy trading can be a convenient way to participate in investment strategies created by others, the ultimate responsibility for your investment decisions remains with you. This article covers Core portfolios, which are created by other dub users.
Authorization for Copy Trading
When you tap to Copy a Core Portfolio, you provide dub Financial, LLC with authorization to place self-directed orders based on trade signals from the portfolio you're copying. Every three months, we provide a check-in to ensure the copied portfolio still aligns with your investment goals.
Important Limitations to Understand
No Investment Advice
Users are expressly prohibited from providing investment advice through the dub app. Portfolios created by users do not constitute recommendations for the purchase or sale of any security or portfolio.
Individual Circumstances Matter
Users create portfolios based on their own individual circumstances, preferences, and investment objectives. These portfolios may not align with your personal financial goals, risk tolerance, or time horizon.
Non-Fiduciary Relationship
By creating portfolios, users are not acting as investment advisors, fiduciaries, or registered representatives. dub does not endorse or validate the suitability of user-created portfolios for any specific individual.
Educational Purpose Only
Portfolios on the dub app are for educational and informational purposes only. They serve as tools to explore and understand different investment strategies but should not be considered personalized investment advice.
Your Responsibilities as an Investor
Understand the Risks
All investments involve risk, and past performance does not guarantee future results. You should carefully consider your own financial situation and consult with a qualified financial professional before making investment decisions.
Conduct Independent Research
You are encouraged to conduct your own research, seek independent advice, and carefully evaluate your financial goals before relying on information provided on the dub app. dub does not assume responsibility for the suitability, accuracy, or completeness of user-generated content.
Be Aware of Copy Trading Risks
When copying another user's portfolio, be aware of these specific risks:
- Price Discrepancies: Portfolio creators could be trading ahead of you outside of the dub app and potentially get better prices than you.
- Market Impact: If a user is buying or selling a high volume of a security, that activity alone could move the security to a less favorable price for you.
- Strategy Changes: Portfolio creators may change their investment strategies in ways that no longer align with your goals.
- Liquidation: If a creator sells or liquidates their portfolio, your copy is liquidated too.
- Timing Differences: There may be delays between when a portfolio creator makes a change and when that change is reflected in your copied portfolio.
Making Informed Decisions
To make the most of Core portfolios on dub:
- Regularly review your copied portfolios to ensure they continue to align with your goals
- Pay attention to the 3-month check-ins dub provides
- Consider your own time horizon, risk tolerance, and financial goals when selecting portfolios to copy