We have always wanted to invest in the financial markets, but don’t know how? Many beginners use copy trading to start trading without deep knowledge. Copy trading is the practice of using social platforms, automated tools, and signals to replicate the positions of other traders. Copy trading is popular with Forex traders and is widely used by popular 3rd party platforms.
Copy-trading has many advantages; there are also certain risks to consider. This article will help you decide whether to make a copy trade or not. Here we will present the list of all the top trading platforms that offer copy trading. This guide will help you to choose the best for a better return.
Best copy trading platform- Our list
The first thing you need to do to start copy trading is to find a platform you can trust. We searched the internet and found the following brokers that outperform all other brokers in terms of platform, reputation, and fees.
- NAGA Trader
- Meta Trader 5
Without a doubt, eToro deserves first place in the overall quality of its copy exchange service. This broker has 11 million users and offers an easy and ideal social trading network for beginners. eToro allows users to trade CFDs on cryptocurrencies, commodities, currencies, and stocks, or physically purchase 16+ cryptocurrencies and hundreds of stocks.
The network allows users to copy trades and portfolios from successful investors and share trading tips and strategies in an intuitive social trading stream.
eToro is regulated by CySEC, FCA, and ASIC and accepts a variety of deposit methods including PayPal, Skrill, and Neteller. Regarding fees, eToro calculates different percentage margins depending on the currency. eToro does not charge a deposit fee but does charge a flat fee of €5 for all withdrawals.
ZuluTrade ranks second behind eToro in the top 10 copy trades, but the service it offers is second to none. The reason lies in the specific quality of the replica trading platform and related services. Similar to eToro, ZuluTrade is a copy trading platform suitable for beginners. Because it only takes a few minutes to open an account and deposit funds, and you can start copying your trades right away.
The investment process is similar to eToro’s in that you have to spend time finding skilled traders who fit your financial goals. The ZuluTrade trade copy program has over 10,000 investors, so you have plenty of options. ZuluTrade is not a regulated trading platform, there are no regulations for this.
ZuluTrade gives users access to sophisticated portfolio management and signal provider system with a variety of features for customizing signal replication (this is why we created this beginner’s guide).
Naga is another trading platform that supports copy trading and it anonymously copies the trades. Naga traders are well regulated by the FCA and CySEC and offer maximum protection as a Forex trader. It is known as one of the best social trading brokers along with eToro, especially with a wide range of crypto assets.
It allows full access to all commercial markets on its platform. You can customize the auto-copy ratio or set a specific investment amount on this platform as per your requirement. You can set stop-loss and take-profit limits to protect your trading profits and limit your losses. NagaTrader accepts deposits in cryptocurrency and the minimum required deposit on this platform is very low. New traders can easily start trading with this platform without taking a huge risk because the initial deposit is low so the risk is also very low.
Darwinex is perhaps the most innovative copy exchange service you can find on this list. The basic concept is the same. This means users can take advantage of the performance of other sellers. However, this service is handled in a completely different way here.
At Darwinex, you buy synthetic assets called Darwins without copying other traders. This is an asset whose price depends on the performance of the trader behind it. The more the trader earns, the higher the price of Darwin, the more his investment in Darwin.
AvaTrade is based in Ireland and is one of the leading currency copy trading platforms regulated by the Irish Central Bank in Europe. They are one of the few major forex brokers that offer fixed-margin Forex trading. Avatrade offers a variety of copy trading and social platforms.
This is one of the best copy trading platforms that can automatically copy trades from one trading account to another in real-time. It can be used directly through the Meta-Trader 5 platform and the service principle is simple. Traders provide public access to what they do in the financial markets, and other users can subscribe to these signals. It runs automatically on the subscriber’s trading account. This includes in particular the Duplitrade platform for copy trading. Fixed spreads for all assets traded here to start at 1.3 pips.
FBS is one of the best copy trading brokers. FBS is one of the best forex brokers that offers copy trading, it is the first choice of beginners for forex trading. These accounts include a Cent account that can be used with a minimum deposit of $10. FBS offers a full copy exchange service. Unfortunately, this service is not currently available for European copy dealers. However, if you are eligible to register under IFSC regulations, you can start with a $100 deposit.
HotForex is another top copy trading broker that is especially popular with new traders. Its popularity is due to its competitive asset range, pricing, and extensive free training. It includes articles, videos, and live webinars to help you develop your business skills. The HotForex supports $300 to $1000 copiers for cop trading. This minimum deposit amount may change depending on your location.
FXTM is another popular copy trading platform. FXTM is an international ECN broker and it is very popular in the Asian market. This trading copy platform also offers FXTM Invest services with a minimum deposit of $100. You can copy the best traders on FXTM with a minimum deposit of $100. This makes copy trading very easy.
It allows you to access all your business accounts in one place. On this platform, you can trade 250+ CFD financial instruments on the go. It enables cross-device transactions between desktop and phone. On this platform, you can receive real-time prices and real-time price updates. FXTM is regulated by FCA, CySEC, and FSC.
When it comes to account types, FXTM as a Forex trader offers a total of six. This includes a penny account that can be opened with a minimum deposit of just $10. This award-winning broker also offers FXTM investment services with a minimum deposit of $100.
OctaFX is one of the best copy trading brokers. They are known for their very competitive low margins. This starts at 0.4 pips on a standard Forex trading account and can go up to 0.2 pips if you qualify for the Pro account type.
With this Forex Broker, you can benefit from faster execution and a very low minimum deposit. Beginners can easily use the OctaFX trading system for copy trading and it has consistent performance.
Meta Trader 5
Meta Trader 5 is a powerful platform for currency markets and stock exchanges. This leading forex trading copy service provider uses the MQL5 language, the automated trading software that runs on your computer and works on your behalf.
MT5 also offers full mirror trading functionality that works similarly to eToro in many ways. This is because you can use the MT5 platform to search for thousands of traders and then choose to copy open trades similarly. MT5 charges a monthly subscription for this, which depends on your account and the specific trader you are copying. MetaTrader 5 is supported on mobile as well as desktops. One of these best social trading platforms uses the MQL5 language.
Copy Trading Platforms- Our Comparison
|Trading Platforms||Copy Trading||Social Trading||Min. Deposit||Unlimited Trial|
|Meta Trader 5||Yes||Yes||$0||Yes|
What is Copy Trading?
Copy-trading allows people to automatically or manually copy when they open or close another trader’s position. The definition of copy trading differs from copy trading in that the trader blindly copies the trade instead of duplicating the main strategy, but is closely related to mirror trading.
Traders can do copy trading for stock, options, CFDs, Forex, and others. You can also copy transactions into popular cryptocurrencies like Bitcoin (BTC) or major precious metals like gold or platinum.
How does copy trading work?
Copy trades allow you to copy the trading strategy and portfolio of successful traders. Those platforms offer copy trading, automatically copy the trades on behalf of the traders. For example, a trader might consider following long-term investors in the stock market.
Followers have to choose how much to invest, and they can always raise more or less money depending on the success of the trader. Though copy trading is safe sometimes it may be risky as the market is uncertain so it is advised to the traders to always do some research and don’t trust blindfold.
Copy Trading vs. Social Trading
The terms social trade or social trade and copy trade are too often used synonymously. Copy trading is one part of social trading.
Social trading is a way to give traders instant access to market information shared by other users online. Therefore, your trading strategy is based on the data and analysis of other traders.
When you use copy trading in your investment strategy, you automatically copy the activities of other traders. Automate your trading strategy by duplicating the position of one (or more) traders in your trading account.
As you can see, social commerce can be used to collect market information from other stakeholders. You can use it freely. Copy trade, on the other hand, consists of automatically cloning the location of another trader you choose in your trading account.
Copy trading: Advantages & Disadvantages
Without a doubt, copy trading has its advantages. However, you should also understand the limitations of this tool. Let’s see this-
Advantages of copy trading
The main advantages of copy trading are:
- Copy-trading strategies allow you to utilize the market without actual trading knowledge. Then there is the opportunity for beginners.
- If you have access to a copy trading strategy, you can trade without wasting time on trading. So you can please those who don’t act full-time.
- In general, copy trading strategies allow you to trade 24/7.
- You can also diversify your portfolio by following various top investors.
Disadvantages of copy trading
- 100% dependent on the performance of the operators you follow.
- It also relies 100% on technology.
- Here you do not have the right to make decisions at your discretion.
Is a Copy Trading Strategy Right For You?
To improve the decision-making process, it is important to consider what other traders are doing. This will give you an overview of what is happening in the market.
Tools to better understand your trades
Social trading and social media can help you understand the thinking of the financial world. This will give you an idea of the investor’s psychology before taking a position. This gives an idea of what most traders think and act.
This makes it easier to determine the direction and strength of a movement, volatility, or possible trend reversal. This allows you to personalize your business decisions. If you do not want to trade directly, you can use a copy trading strategy.
A good copy trade for beginners
And if you’re a beginner or don’t have much time to trade, automated trading with copy trading strategies allows you to replicate proven investment strategies. Copying deals allows you to use your free time to do your favorite activities or to learn more about trading while making money.
Functions for Peaceful Trade
Needless to say, automated trading strategies can help you trade markets outside your time zone. With copy trading, you don’t have to deal with the stress of trading or sit at your desk for hours watching the market. You don’t have to deal with your own emotions when using copy trading. This can negatively affect your trading performance, especially if you have difficulty controlling your emotions or lack knowledge.
Copy Trading Strategy
It is important to consider how your business strategy aligns with the strategy of the broker you are copying. This helps to avoid large differences in risk tolerance. Important strategic considerations include:
- Risk: Quantify the risk tolerance. How willing are you to tolerate market volatility and what precautions and tools will you use to manage your risk?
- Markets: Which financial markets would you like to invest in? Forex, stocks, indices, commodities, and cryptocurrencies are popular markets. It is important to understand the market in which you want to invest your money.
- Research: With copy trading, clients risk not doing due diligence before investing a lot of money. It is important not only to carefully research your suppliers before registering but also to regularly monitor your business performance if your capital is at risk.
- Leveraged: Leveraged copy trading allows you to increase the size of your position with a small investment of capital. This means you can reflect the operations of multiple vendors to increase your profit potential and diversify your portfolio. Leverage rates vary by jurisdiction. For example, CySEC regulated providers cannot offer leverage greater than 1:30.
- Fixed or flexible: How much control do you have over your capital? A fully automated static copy system allows you to mirror your work with minimal input or control. Those who want more influence and control can opt for a more open and flexible system.
How to start copy trading with a broker?
If you are interested in opening a trading copy account but don’t be afraid to overwhelm your mind with the sheer size of information we provide today. This guide section will guide you through the process of signing up for eToro, the best copy trading broker in 2021.
Step 1: Open the trading account
You must first open an account with eToro. As this copy trading platform is a regulated broker, you will need to enter your information and contact details and then verify this with documentation. Required documents are an official ID and proof of residence (issued within the last 3 months). Unlike other trading platforms in this space, eToro verifies documents almost instantly.
Step 2: Deposit the funds
eToro will now ask for a deposit. If you want to process your deposit immediately, you can choose between a check/credit card or e-wallet. Alternatively, you can transfer money from your bank account, but it may take several days. The minimum account depends on where you live. US citizens must deposit a minimum of $50 and most other countries require a minimum of $200.
Step 3: Choose a dealer to copy
Funding your eToro account allows you to find traders to copy. Click the Copy People button on the left side of the screen. As mentioned above, there are tens of thousands of validated copy operators, so you need to use the filter button. Please return to the Select traders to copy section for additional guidance on selecting investors.
Step 4: Invest in Copy Traders
Once you have selected the traders you want to copy from eToro, you need to click on the “Copy” button. An order box will appear asking how much you want to invest. Again, the minimum amount is $500. There is also an option to copy the current job. This means that it reflects all future long and short positions in addition to a copy of the operator’s current portfolio of assets. Finally, click the “Copy” button to complete your investment.
How to choose the right copy job support?
In copy trading, the trading account copies the location of the profitable master account you want to pre-select, so one of the most important steps is to carefully select the traders to copy. But it’s not just a performance issue. There is a lot of other information you need to consider to make sure this trader is suitable for your trading capital and the level of risk you will be taking.
Please check the following:
- Investment style
- Traded financial products
- Crisis management
- Associated performance cost
- Other statistics such as average loss, average gain, commitment level, profit factor, or stop loss.
Copy trading is the best trading strategy for beginners. Newbies who have no proper knowledge of the trading can use copy trading. Beginners can easily start trading by copying the successful trades without risking much capital. Traders can also experience the success and failure of their trades by observing the behavior of others. However, this can be dangerous and often out of control. There may be success stories, but copy-sharing doesn’t work for everyone.
Can I make money by copy trading?
Just like any other investment, copy trading can make or lose money. Yes, you can easily make money by copying the successful trades.
What is copy trading?
Copy-trading means opening and closing trading positions at the same time as the signal provider you want to copy.
How do I copy a trade?
To do the copy trading you need to open the trading account with any trading platform that offers copy trade. You then need to select a trader (which can usually be found in a specific section of the platform) and invest a certain amount.
Is copy trading legal?
Of course yes. Signal providers can be seen as money managers, so this may be the only limitation. In the latter case, only certified professional traders can become signal providers.
Where is copy exchange allowed?
Counterfeit trade is widespread in several regions, including the UK and several countries in Asia and Africa, such as the UK and Europe, Canada, Latin America, Hong Kong, Indonesia, Malaysia, the Philippines, Kenya, and South Africa.
Which is the best copy trading platform?
The most popular among copy trading and social media traders is the award-winning eToro broker, cited by numerous reviews online.