Copy Trading

The process of copying another trader’s positions by leveraging social platforms, automated tools, and signals is known as copy trading. Copy trading is popular among forex traders and is commonly employed in major third-party platforms such as MetaTrader 4. We’ll define copy trading and go over its essential aspects. We’ll also discuss the advantages and disadvantages, as well as the top copy trading platforms on the market.

Top 3 Copy Trading platforms

exness

up to 100%
no Deposit Bonus

Trade NowTrade Now
Markets.com

up to 100%
no Deposit Bonus

Trade NowTrade Now
Legacyfx

up to 100%
no Deposit Bonus

Trade NowTrade Now

The Best Copy trading Brokers

Broker
Rating
Regulated
Bonus
Min. Deposit
Avg. Returns
1.
Markets.com

FSCA

up to 100%

R 3500

70% - 95%

2.
Black Bull Markets

EU, AU, USA,UK,ZA

up to 100%

R 3800

90% - 100%

3.
Eagle Fx

Globally

up to 100%

$200

90% - 100%

4.
Exness

ASIC

up to 100%

R1200

70% - 90%

5.
Olymptrade

FSC

up to 100%

R1500

70% - 90%

6.
Deriv

CySEC

up to 100%

R1500

70% - 98%

7.
Legacyfx

CySEC

up to 100%

R 3500

70% - 90%

There are numerous copycat trading brokers available, with both proprietary and third-party copy trading systems. Some cryptocurrency brokers and exchanges, such as Coinbase and Binance, are also catching up and beginning to offer their own social and copy trading capabilities.

 

We’ve compiled a list of the finest brokers that offer copy trading support above. Remember to always conduct your own research to determine which option is best for you.

What Exactly Is Copy Trading?

Individuals can clone another trader’s positions when they are opened or closed, either automatically or manually. Traders use signals to broadcast their positions via a social network or forum, where followers can duplicate the strategies.

The definition of copy trading is closely related to mirror trading, with the difference being that traders blindly duplicate trades rather than replicating top tactics. Traders can replicate positions in a variety of markets, including forex, equities, and CFDs. You can also replicate deals on prominent cryptocurrencies such as Bitcoin (BTC) or significant precious metals such as Gold or Platinum.

Platforms for Copy Trading

Copy trading can be provided by a broker using proprietary software or through a third-party platform such as those listed below. Some brokers, such as Telegram or TradingView, also provide additional research tools or networking sites.

MetaTrader 4 Copy Trading

MT4 has been designed to allow you to replicate the trades and methods of successful traders. Within the interface, go to the Signals page to gain access to over 3,200 free and paid signals from leading forex sources. Traders are listed in order of results, making it quick and simple to select a supplier and set your parameters. After that, you can begin copying trades in both live and demo mode.

MetaTrader 5 Copy Trading

The MT5 platform, like MT4, allows you to instantly duplicate the trades of others. The MT5 platform connects traders across continents and brokerages, thus masters and followers do not need to be registered with the same broker. In the MT5 market, subscription costs are fixed, and quick data exchanges help to eliminate execution delays.

Using cTrader Trading

The integrated cTrader solution is another popular platform. After opening an account, clients can navigate to the Copy section to investigate potential strategies and compare providers’ history, risk appetite, and pricing. Clients choose how much money to invest in mirroring a specific trader, and they are free to duplicate many suppliers at the same time.

Trading Cryptocurrency Copy

Cryptocurrencies are a newcomer to the financial markets, presenting both volatility and profit potential. Many suppliers are working swiftly to allow copy trading on popular crypto coins such as Bitcoin, Ethereum, and Litecoin. Users can mirror trades on crypto only pairs as well as crypto and fiat currency pairs in the same way that they would copy FX positions.

Copy trading on cryptocurrencies is available via leading providers such as eToro, as well as specific crypto platforms such as Coinmatics and 3Commas. The latter two provide clever crypto copy trading robots that execute market positions swiftly and in real-time. Clients benefit from an easy-to-use dashboard for tracking their investment.

Trading App Copy

One advantage of copy trading is that you may delegate the tough lifting and analysis of financial markets to others. As a result, managing your copy account and tracking outcomes from your mobile device is quick and simple.

MetaTrader 4, MetaTrader 5, eToro, and many other famous suppliers give downloadable iOS and APK mobile apps. With a few clicks, clients may compare traders, consider strategy, fund their account, and begin copying trades.

copy trading brokers

Trading Strategy Copy

It’s critical to analyze how your trading approach compares to that of the suppliers you want to emulate. This will help to ensure that there isn’t a significant difference in risk tolerance, for example.

Consider the following important strategy considerations:

  • Markets – In which financial markets do you wish to invest? Popular markets include forex, equities, indexes, commodities, and cryptocurrency. It is critical to understand the market in which you desire to invest your money.
  • Fixed versus flexible – How much control over your capital do you want? Mirror trades with minimal control or input using fixed and completely automated copy systems. Those seeking greater influence and control may prefer a more open and flexible approach.
  • Research – There is a risk with copy trading that clients may not conduct adequate research before investing big quantities of money. It is critical to not only thoroughly study providers before signing up, but also to routinely monitor trading performance once your capital is at stake.
  • Leverage – Leveraged copy trading allows you to expand your position sizes with a minimal initial investment. This means that by replicating the trades of various suppliers, you can boost your profit potential and diversify your portfolio. Leverage rates vary based on your jurisdiction; for example, CySEC-regulated services cannot offer more than 1:30 leverage.

Trading Signals to Copy

Signals, as the name implies, are essentially signs that followers can use to take positions in the markets. After receiving a signal, you can modify your settings and trade parameters to match your strategy. Signals are more flexible than fixed and automated copy trading. Before you execute trades, you may wish to adjust your trade size, stop loss, and take profit settings.

 

MetaTrader 4 and MetaTrader 5 are two of the most popular signal providers, with thousands of top traders providing both free and paid alerts.

Advantages of Copy Trading

One of the key advantages is the comfort of having someone else perform the work, which means you don’t have to be a copy trader guru or expert to participate. It’s also ideal for any trader who lacks the time to devote to full-time day trading.

  • Demo accounts – Some brokers provide demo copy trading accounts, which are perfect for beginner traders who wish to first explore the platforms. Demo accounts are free, risk-free, and frequently include access to important research tools.
  • Authorized practice – copy trading is widely accepted by important regulatory bodies such as CySEC, ESMA, MiFID, and the FCA. Using a qualified and trustworthy broker will keep your assets safe and protect you from scammers.
  • Portfolio diversification enables traders to acquire exposure to opportunities or trends that they would not have considered otherwise without the assistance of another trader’s knowledge.
  • The Drawbacks of Copy Trading
  • Risk – Even if you choose an experienced trader to copy, the dangers can be substantial. If a strategy fails, the risk will be transferred to a follower’s account, potentially resulting in a financial loss.
  • Control – One of the most significant downsides is the lack of control a trader will have once they begin replicating an account; traders are effectively entrusting their portfolio to a stranger.
  • Fees – Copy trading may incur fees depending on the broker. Clients of OctaFX, for example, pay a Masters’ commission that is determined separately and invoiced in USD per lot of traded volume. A minimum deposit amount will also be required to invest in a trader. The minimum deposit at eToro, for example, is $200.

How to Create a Copier Trading Account

  1. To open a copy trading account, you must first open a real account with your preferred broker. Check your broker’s regulatory status ahead of time, as this will affect the level of security and fund protection given.
  2. To invest in another account, traders must first deposit funds into their accounts. Once you obtain your login information, you may need to link your copy investment system to your real account, depending on your platform. The broker will usually provide instructions on how to do so.
  3. You can begin replicating trades once your accounts are set up. We recommend watching any video training guides beforehand; some brokers, for example, provide easy-to-follow YouTube tutorials. The eToro copy trader tutorial also includes information and content on how to begin and use risk management tools like Copy Stop-Loss (CSL).