For more than a decade, forex copy trading has been on the rise. Also, financial news and market analyses are disseminated at breakneck speed thanks to social media and an ever-expanding web.
We’ve compiled a list of brokers and systems that let you replicate other traders’ trades. Third-party platforms such as MT4 are extensively utilized by forex traders for copy trading. We’ll go through the basics of copy trade, including what it is and how it works. In addition, we’ll discuss its benefits and drawbacks, as well as provide a short list of the most popular options.
Our list of the best copy trading platforms
The following is a list that we have compiled from the top brokers for copy and social trading. We chose them based on their performance and because they provide a clear explanation of how they do what they do. There are also precise stats for each trader that works with them.
1. TechBerry
TechBerry, a social trading program, has become one of the greatest copy trading platforms in the market since its inception in 2015. For the Forex market, it’s a trading strategy generator that runs on large data and artificial intelligence.
Why copy trade with TechBerry?
Any day trader can access TechBerry, provided they have access to MT4 or MT5 trading platforms. The neural system analyzes and discovers patterns in over 100k trading accounts. Scam-detecting sites like MyFxBook and FxAudit have also confirmed that TechBerry is a genuine trading platform with good performance.
Pros
- Setup is simple and easy.
- Membership options include a variety of price ranges.
- Brokers generally accept it.
- It cushions members from large trading losses.
Cons
- It only supports MT4 and MT5.
In summary: Best Copy Trading Broker Overall.
2. PrimeXBT
Traders of all skill levels can use PrimeXBT’s copy trading platform because it is designed for everyone. Professional traders can monetize their expertise by letting others duplicate their techniques, which is another benefit of the service. Also, it supports trading cryptocurrencies, FX, commodities, and stock indices on margin.
Why copy trade with PrimeXBT?
PrimeXBT reduces your risk and diversifies your portfolio. Aside from that, it’s easy to use and provides access to a large selection of markets and more than 100 trading instruments all from one platform. You can start Copy Trading for free, but some of your profits will be deducted as a commission. The trader you’re following gets some of the money, and PrimeXBT gets some of the blame.
Pros
- Live Chat assistance available.
- Has a mobile app for both iOS and Android.
- In order to safeguard customer assets, 2FA and a comprehensive cyber-security framework are in place.
Cons
- No support for API.
- This product isn’t available in 14 different countries around the world including Japan, US and Canada.
- There is no phone center for the company.
In summary: For traders outside the US, Japan and Canada.
3. eToro
With more than 13,000,000 active traders, eToro is among the most popular trading platforms. However, it does not have the MT4 trading platform. Third-party apps are not supported by this proprietary alternative. It supports fast copy trading with CopyTrader and CopyPortfolios is possible.
Why copy trade with eToro?
There are over 2300 assets to choose from on eToro’s copy-trading platform, including exchange traded equities, forex, CFDs and prominent cryptocurrencies like Bitcoin.
Pros
- Wide range of assets available.
- It has a thriving investment community and is great for social trading.
- Social trading tools with their own interface.
Cons
- Charges fees for internal withdrawals.
- Minimum deposits and little retail leverage.
In summary: Platform with large user community.
4. Pepperstone
It was founded in 2010 in Australia by Pepperstone, a forex trading firm. It has a wide variety of copy trade services available to customers. Traders can access MyFxBook, MQL5 and DupliTrade through the company.
Why copy trade with Pepperstone?
Because of the large selection of third-party add-ons and plugins it makes available, it is able to offer even more impressive trading platforms than those provided by MetaTrader alone.
Pros
- There are a variety of social copy trading platforms to choose from.
- Excellent customer service.
- Simple procedures for opening a new account.
- It is licensed in Australia, the United Kingdom, and Germany, making it a reputable broker.
Cons
- The MetaTrader platform is rather simple.
In summary: All-round Great Copy Trading Broker.
5. AvaTrade
AvaTrade was founded in 2006, and in addition to copy trading, it provides research and investor education. It is a safe platform, as Tier 1 and Tier 2 jurisdictions have strict regulations on it. ZuluTrade and DupliTrade are two of the company’s social trading platforms.
Why copy trade with AvaTrade?
One of Avatrade’s most appealing features is that it supports a wide range of trading platforms and allows novice copy traders to profit from the proven techniques of more experienced investors.
Pros
- Variety of trading instruments available.
- Collaboration with leading social trading platforms.
- Copy trading through a company-developed app.
Cons
- It is only available at the B.V.I. and FCA branches of the broker for European clients.
In summary: Best Proprietary trading software.
6. Naga Trader
This website gives users the ability to mimic the trades of over 9,000 advanced traders who have been selected after going through many phases of the screening process. It gives you access to trade and trader statistics, allowing you to pick and choose who to copy.
Why copy trade with Naga Trader?
In addition to bank transfers and credit/debit cards, users can use Sofort, Neteller, Skrill, and cryptocurrencies to withdraw funds from the site. You can change the investment amount and other elements as you duplicate a trade. Additionally, you are able to keep up with the latest industry news and communicate with other traders through messaging or online chat.
Pros
- Customer service that goes above and beyond.
- Has vast educational resources.
- Low fees.
- Has a list of top traders to follow.
Cons
- Fees for cash withdrawals
In summary: Copytrading on Three Platforms
7. FXTM
In addition to being an international ECN broker, this one has a wide variety of account types available. With a $100 minimum deposit, you may begin copying the top traders at FXTM.
Why copy trade with FXTM?
FXTM is regulated by the FCA, the CySEC, and the FSC, among others. The fee structure based on commissions is still one of the most benevolent to traders among all brokers. Also, FXTM places a high value on education, and as such, it provides a wide range of educational materials to its consumers.
Pros
- In-depth market analysis and educational materials
- High leverage
- Has proprietary trading software.
- This is one of the best places to trade on a commission.
Cons
- Small product range.
In summary: Best for Beginners
8. OctaFX
Unlike some other platforms, OctaFX does not use a third-party system. Despite the fact that it is an unlicensed broker, a growing number of people have confidence in it. On OctaFX, market leader MT4, MT5, and ECN favorite cTrader are all available to traders.
Why copy trade with OctaFX?
OctaFX offers traders a commission-free trading environment with competitive pricing. Furthermore, the fact that this broker has over 1,500,000 accounts suggests that it offers a dependable trading environment.
Pros
- Educational resources that go into great detail.
- Requires low deposit.
- Offers support for MetaTrader 4, MetaTrader 5, and cTrader.
Cons
- Limited funding options.
- There are only a limited amount of assets to trade.
In summary: Best ECN Broker on the MT4 Platform
What is copy trading?
Copy trading is a trading strategy that allows one or more individuals to mimic the trades of another person or group. In copy trading, you are tied to another trader’s account because your positions are automatically reproduced from theirs. You win if they make a profit, and you lose if they don’t. This type of trading is passive because the trader performs all the legwork for you, and it’s almost always done using software.
What is a copy trading platform?
A copy trading platform is a piece of software that enables financial market investors to automatically replicate the trades of a particular professional trader. With today’s systems, users can subscribe to other traders, buy and sell trading signals, and link to broker platforms that allow them to automate copy trading. Many copy trading brokers exist, and they offer both proprietary and third-party platforms for copying.
How much does copy trading cost?
Depending on whatever platform you use, copy trading might cost anywhere from zero to hundreds of dollars. Quality of signals, amount of transactions, and profitability can all have an impact on how much you’ll have to pay. Be aware that while some platforms allow you to control your funds, others work on a predetermined structure and do not allow you to do so.
How does copy trading work?
If you are interested in trading forex like a real-time investor, you can follow their trades by copying their real-time forex trades (also known as “forex signals”) . As a copier, you will select the trader you want to mimic. Copy trading platforms then replicate all of the trader’s actions to their own account. With this approach, whenever they trade, you’ll be able to copy it in your own brokerage account.
Copy trading: can you make money from it?
A copy trade business might be profitable or lose money, depending on how it’s run and who’s providing the service. In part, this is due to the strategies and technologies of analysis employed by some of the expert traders. You shouldn’t expect to make a ton of money copy trading, though. Annual ROI should realistically range from 5% to 20%.
What are the ways of copy trading?
- Manual: If you’re looking for a way to trade like “regular” trading, then manual is the best option for you. This is also known as social trading by many individuals.
- Semi-automated trading allows you to see the positions of your preferred trader. Afterwards, you may either copy and trade yourself, or you can initiate automatic trades.
- Automated: In automated trading, you select the traders and methods that are most appropriate for your level of risk tolerance. The execution of these trades take place automatically.
| Type | Pros | Cons |
|---|---|---|
| Automated copy trading | Saves time.Novice traders can easily use this strategy. | May not respond to sudden market news.Novice traders miss out on opportunities to learn about trading strategies. |
| Semi-automated copy trading | Gives traders opportunity to confirm signals before executing trades.Novice traders can learn about the strategies used. | It is time-consuming.You may miss out on profitable trades if you place your orders late. |
| Manual copy trading | Novice traders can learn from experts.You can reject signals if you think they are wrong. | Consumes a lot of time.Requires some knowledge of trading strategies. |
Market liquidity with copy trading
When there is liquidity risk, there is a possibility that one may be unable to exit positions at the projected level. The trader should be able to see the maximum drawdown of the copy trader’s risk management approach.
A copy trader, for instance, might have a drawdown of 30 %. This suggests that one can anticipate losing at least 30% at any point in time if they imitate the trader’s strategy. Furthermore, if traders take positions in less liquid assets, volatility may escalate, resulting in portfolio losses that are too great to bear.
Pros and cons of copy trading
Pros
- It is a good strategy for diversifying portfolio.
- Helps inexperienced traders learn from experienced traders.
- Helps to build a network of knowledgeable traders
- An excellent way to earn money while you sleep.
- When results do not meet your expectations, you can move your focus to other traders.
Cons
- Choosing the correct copy platform or software might be a challenge.
- Deciding which trader to imitate can be a challenge.
- A streak of bad luck can also befall professional traders.
Copy trading broker: key factors to consider
Regulation
Make sure your broker is properly licensed and regulated before investing any money with them. Regulation is essential for the protection of investor funds. If your broker has the proper insurance coverage for trading, it’s a nice perk. This assures that you will be compensated in the event that the broker suffers an unexpected loss.
Fees and commissions
Before deciding to use a broker’s copy trading service, find out how much they charge. Others charge a percentage of the profit, while others demand subscription fees. Don’t sacrifice quality in order to save money on trading fees and commissions.
Deposit
Most sites don’t demand a minimum deposit to begin copy trading. However, if you only have a modest amount of money, you may discover that your options are limited. To ensure that the copier’s trades go through, some signal providers demand a minimum investment amount.
Withdrawal
Always use a broker that allows you to fund and withdraw your account the way that is most convenient for you. For most merchants, low-cost online payment processors are the ideal option. Debit cards, credit cards, and wire transfers are widely accepted by most brokers.
Customer support
Copy trading forex is a wonderful option for novices because it doesn’t require any trading expertise. However, it’s still a good idea to have help available when things go wrong. When deciding on a platform for copy trading, keep in mind the quality of the company’s customer service. Phone, email, and live chat are all common methods of contacting customer service representatives.
What does the best copy trading platform offer?
A good platform should have a good history of generating profits. The company should be transparent and the trading data should be easily verifiable from reputable platforms like FX Blue and MyFXBook. In addition, a decent platform will offer three levels of copy trading functionality: fully automated, semi-automated, and manual.
Finding traders that have a proven track record and a trading style you like is also made much easier with a solid platform. Customer service is also a major factor to keep in mind.
How to find good traders to copy?
- Research: Not only should you thoroughly investigate providers before signing up, but you should also constantly monitor trading performance after your capital is on the lin
- Know your risk threshold: How much volatility in the market are you willing to accept, and what risk management alerts and tools are you going to set up to manage that volatility?
- Choose your asset: Forex, stock indexes, commodities, and cryptocurrency are just a few of the assets for investors. It’s critical to know the market you plan to invest in.
- Flexibility: Fixed and fully-automated systems will mirror trades with little or no control or input. Those who desire more control may prefer to choose a more open and adaptable structure.
How to start copying another trader?
- Open an account: Join your broker by registering for an online trading account with a reputable and well-regulated trading platform.
- Fund your account: Before you may follow the trades of others, you need to have money in your account.
- Link your account: Log in to the copy trading system with your live account’s login details once you’ve funded it.
- Start trading: After a successful account setup, one may immediately begin copying the transactions.
Can other traders copy you?
To allow others to mimic your trades, you can become a signal provider by registering. Before you begin distributing signals and billing copiers, be aware that additional paperwork may be required.
Do you need prior trading experience to engage in copy trading?
It is not necessary to have any experience, although it is important that you understand the fundamentals of trading first. Long-term success in trading depends on your ability to stay informed about the markets and manage your exposure to risk.
Risks associated with copy trading
Market risk
A portion of your money is put at risk in copy trading. If your chosen trader loses money on their transaction, you’ll lose that money, too. This is market risk.
Liquidity risk
When there is a liquidity risk, there is a possibility that one will be unable to close out positions at the expected levels. Risk management measures can affect a trading strategy’s maximum drawdown.
Execution risk
The copy trader’s returns should also include the bid/ask spread, as well as any other charges that the copy trader may incur. If that does not happen, there’s exposure to execution risk.
Conclusion
If you’re a novice trader, copy trading can be an excellent method to get a taste of the markets and make money with no effort. Also, traders can learn from other traders’ successes and failures, as well as from their own. However, copy trading may be risky, and there is often little control over the outcome, so while it has worked for some, it is not for everyone.