The 6 Best Copy Trading Platforms 2022 Reviews

Crucially, this means that there is no requirement to use a third-party platform like MT4 or download automated trading software. Instead, you simply need to open an account with the broker and choose a verified investor that meets your financial goals and tolerance for risk. Although you need to tread with caution when using such high levels of leverage, this allows you to engage in a copy trading strategy with a small amount of capital. Additionally, your chosen MT5 copy trader or forex EA might take scalping or day trading strategy – meaning that it will target small gains. As such, leverage via FinmaxFX ensures that your financial gains are viable.

Some brokers offer swap free Islamic trading accounts that conform with Sharia law which allows Muslims to engage in online trading through their platforms. It is important to ensure that the social trading platform is regulated by one of the most respected regulatory authorities. By using a regulated broker, investors have some form of protection should something go wrong.

  • Also, FXTM places a high value on education, and as such, it provides a wide range of educational materials to its consumers.
  • In this instance, you are able to decide in real time if you would like to copy each trade, or not.
  • Due to mistakes by novice traders, doubts regarding copy trading emerge.
  • This compensation should not be seen as an endorsement or recommendation by TradingBrokers.com, nor shall it bias our broker reviews.
  • The taker fee on the platform is currently set at 0.05% which makes it the second cheapest exchange in our list.

Basically, he is doing all the hard work and the copier is passive trading. By trading this way, he is not developing the required temperament and patience to trade by himself. With copy trading, you are able to manage your trading risks more effectively. https://xcritical.com/ First of all, you are eliminating all the major risks by not trading yourself. We will discuss how to choose the right platform for you later in the article. The terms copy trading and mirror trading are very similar and often confused by many.

The features you have to look for in a broker include regulation, minimum deposits, transaction methods, security, demo account, fees, etc. Signal providers earn money every time a copier makes money by copying them. It depends on the platform to platform how the signal provider gets compensated. Most copy trading platforms don’t allow you to allocate above a certain percentage of your investment at the hands of a single trader. Most platforms list the trader’s past trading history and trading performance for transparency.

Just always remember that past performance is by no means any guarantee of what will happen in the future. ZuluTrade, a social trading platform, allows users to follow expert traders and mimic their investment strategies. Each broker will offer you a range of different markets and trading instruments to trade what is copytrading via their online trading platforms. If you wish to trade a particular asset class such as forex, stocks, cryptos, futures, etc, you should check whether the broker offers that market through its platforms. It may also be wise to consider if you plan to diversify your investment portfolio in the future.

Expensive Fees

FXTM allows you to use its proprietary pivot points strategy with five different types of calculations you can set. This tool can help you analyze the current situation in the markets of your choice and predict potential directions. The customer support is top-notch with the ability to visit the developers personally in their offices worldwide. The copy trader of this platform is considered one of the key features, and the platform has become the leader of the fintech revolution. In today’s world, Cryptocurrency is becoming a prominent part of the monetary system due to consecutive months of exponential growth of their market capitalization. However, Cryptocurrency depends on technological factors, economic problems, security issues, pressure on the markets to deliver, political factors, security issues, etc.

Traders can choose a suitable signal provider on Myfxbook, MQL 5 marketplace, and Duplitrade and link it to their Pepperstone account. It allows you to copy trades from skilled traders with a single tap. Stocks, forex, indices, and ETFs are all supported, and a personal account manager is available for free to answer all your inquiries. You can use the web app or MT4/MT5 to access it from your phone or computer. It keeps your funds in a segregated account, providing safety, and comes under the regulations of FCA, ASIC, CySec, GFSC, FinCen, and FINRA.

Choosing Copy Trading Platform

You will need to make sure that the trading platform will run on your computer, VPS or mobile device by checking the specification requirements. Each online broker trading platform will have a minimum deposit requirement which is worth considering. TradingBrokers.com aim to provide unbiased broker reviews to give traders a clear understanding of the different brokers available to them. Traders can use our free service but should do their own due diligence and make their own decisions. Rates, terms, products and services on third-party websites are subject to change without notice.

If you rely solely on copy trading, you won’t be able to evolve with it, and could miss out on some lucrative opportunities. To solve our own problem, we created a website that helps investors find, learn and compare the different platforms to save and invest online. Another factor you want to consider is how active your signal provider is.

Minimal Investment

The biggest drawback of this trading method is that you have to mirror everything. It’s one of the most effective trading strategy for individuals who don’t necessarily have the time to trade independently. Here, you just need to fund your account, leave it alone, and hope to see it grow, or you can monitor.

The profit that you can make from copy trading will depend on how much you choose to invest, the copy trading platform that you use and the trader that you follow. There’s no set amount that you could make from copy trading, but providing you make the right decisions at the right time, you could soon find yourself with a passive income stream. Between 74-89% of retail investor accounts lose money when trading CFDs. Before getting started with Duplitrade, it is important to note that the minimum deposit stands at a whopping $5,000. The good news is that you can spread this $5,000 across as many copy trading strategies as you wish.

Choosing Copy Trading Platform

Signal providers, however, will need to deposit at least $1000 in order to open the HF Copy account. HF Markets is a beginner-friendly type of copy trading broker, as it offers a great selection of educational content. Copy trading is offered on MT4, while on AvaSocial you will be able to interact and choose the trader to copy. To try out the copy trading service, NAGA makes a free demo account. With copy trading at eToro you will be able to trade not only CFDs, but also real stocks and cryptocurrencies.

Do keep in mind that you’ll need to deposit funds to open an account and start trading. For example, you can filter traders based on their level of expertise, ranging from “newcomer” to “legend”. This forex trade copy service supports you in creating a diversified portfolio as you’ll be able to trade across various markets, including forex, CFDs, commodities, and cryptos. That’s why OctaFX is well-known as one of the easiest platforms for beginners, guiding them as they enter the world of forex trading. OctaFX connects experts who share their trading signals with other users. It offers the best copy trading app for Android phones; however, there’s no app for iPhones.

This is especially the case if your chosen forex EA takes a day trading strategy. After all, Libertex charges tight spreads – so the EA can target modest but frequent gains without getting hammered by indirect fees. All trading platforms come with a range of free built in trading tools to assist with your online trading, helping to improve overall efficiency and performance. These can include technical indicators for analysing charts such as a moving average, MACD, Bollinger Bands, RSI, CCI and many more.

The Copy trader can then automatically set the amount that their followers have to pay to copy the trading strategy. On Bitget, the user can also be a part of a crypto community that helps the traders increase followers, consequently expanding their profits. The term “people-based portfolio” has been used to describe traders who invest in other traders or investors rather than making their trades. Many platforms use algorithms to automatically select the best traders to copy, but you can also do that manually. While some praise its user-friendly dashboard and demo account, others are not entirely satisfied with the customer service. We’ve checked the support, and we haven’t noticed any shortcomings.

Step 3: Choose A Trader To Copy

Similarly, keeping the average trade size on the low is a reflection of flexibility. Such a trader’s overall performance is not dependent on a single deal, and the risk is therefore spread out. You might want to go with an average trade size that is lower than 10%. That being said, social traders with very high drawdowns are extremely risky to work with. They might drive your account into margin call, especially when you don’t have enough capital to withstand a series of losses.

The vast majority of retail client accounts lose money when spread betting and/or trading CFDs. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Marketing for CFDs and spread betting is not intended for US citizens as prohibited under US regulation.

Sure, you might have access to the maximum drawdown percentage, but this in itself doesn’t give you a clear idea of how much risk the respective trader typically likes. Each online broker will offer different options for making deposits and withdrawals to and from the trading platform. Most brokers accept bank wire transfers and credit/debit cards but some traders prefer online payment processors such as Skrill, PayPal, Neteller, etc. Ensure that the trading platform supports your preferred funding method. Along with trading platforms, spread, commission and swap fees, most online brokers will charge additional fees that should be checked and clearly understood. Other fees that are worth considering include withdrawal and inactivity fees.

After all, you’ll want to be copying the very best copy traders in the industry. If the same trader then decides to short-sell Facebook stocks, again, you will do the same. The main concept here is that you can actively trade without needing to do any of the legwork. This is because your chosen copy trader will make all investment decisions.

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There are various brokers who offer copy trading functionality – some are semi-automated, automated, or manual. Depending on the platform you choose, you will either be trading using a proprietary trading platform or using a popular platform such as MetaTrader 4. You can copy trade almost all financial assets but the most popular asset is by far, forex pairs.

Choosing Copy Trading Platform

If you are already familiar with a specific trading platform then it could be a good idea to choose an online broker that offers that platform. MetaTrader 4 platform is often considered as one of the most intuitive and easy to use trading platforms which makes it a popular choice amongst new traders. You will find that there are lots of MetaTrader brokers which gives convenient market access for manual and automated trading strategies.

How To Start Copying Another Trader?

You can run this tool in both the desktop and mobile versions of the MetaTrader platform. Through the use of advanced recognition algorithms, AutoChartist will attempt to find trade opportunities in a vast array of financial assets. If you qualify for an Islamic account, you will get several benefits if you open such an account. For example, the broker will not charge swap fees and commissions for trades you keep open for more than 24 hours. Did you know that you can engage in the currency market even without trading knowledge and experience? That is possible through copy trading, which is a good option for novice traders or a busy person with limited time to make analyses.

Open Trades

In addition to potential fees for gaining access to the brokers trading platforms, you should consider other online trading costs. Most online brokerages will charge a commission for placing trades in addition to the spread and overnight swap fee. These costs can vary significantly from broker to broker so it is important to consider the overall costs you will incur and the affect that will have on your money management. Each social trading platform will offer different options for making deposits and withdrawals to and from your online trading account. Most brokers will accept bank wire transfers and credit/debit cards, whilst some will accept e-wallets.

Although there are no additional fees for copy trading, there is a $200 minimum amount for investing in trading, whereas the maximum amount is $2,000,000. One of the reasons eToro has so many users is its easy-to-navigate dashboard. You can search for traders that match your portfolio by using various filters. There’s also the Editor’s Choice page with the most popular traders to follow.

All Principal Traders go through a strict audit to ensure outstanding performance and stable earnings. The minimum amount you need to deposit to open an AvaTrade account is $100. Like other social trading apps, AvaTrade provides a demo account that you can use to practice and learn forex trading.