Copy Trading Platforms and Brokers 2023
As one of the most hands-off investing strategies, it’s clear why copy trading is popular – but does it work? We’ve created a comprehensive guide to copy trading in 2023. We review the pros and cons, explain how it works and the risks involved. We also share our tips to finding the best platforms and list the best copy trading brokers in the UK.
Copy Trading Brokers
-
AvaTrade is a leading forex and CFD broker, established in 2006 and regulated across 9 jurisdictions. Over 400,000 users have signed up with the broker which processes over 2 million trades each month. The firm offers multiple trading platforms, including MT4, MT5, and a proprietary WebTrader. 1250+ financial instruments are available for trading, alongside a comprehensive education center and multilingual customer support.
Avatrade Copy Trading
There's a strong selection of social and copy trading systems, including the AvaSocial app and popular third-party platforms, DupliTrade and ZuluTrade. Clear performance metrics can help you find the right strategy provider for your goals and risk appetite.
-
Pepperstone is a leading online broker with over 400,000 clients in more than 175 countries. The top-rated brokerage offers excellent market access, industry-leading platforms in MT4, MT5, TradingView and cTrader, plus low fees with no hidden charges. Pepperstone is also heavily regulated with a high trust score, holding licenses with reputable bodies, including the FCA, ASIC, DFSA, and CySEC.
Pepperstone Copy Trading
Pepperstone offers an impressive range of third-party platforms, including DupliTrade, a tool that allows investors to automatically replicate the trading activity of experts. Trading signals are also available, identifying potential entry and exit points.
-
IC Markets is a respected multi-asset broker offering premium trading technology, highly competitive pricing and 24/7 customer support. The broker provides various social trading features for beginners whilst experienced traders can enjoy advanced charting and analysis tools. Over 180,000 clients from more than 200 countries have signed up with the heavily regulated and trustworthy brand.
IC Markets Copy Trading
The IC Social app is easy-to-use and allows traders to learn, share and mirror positions in a few clicks. The app also hosts risk management tools and facilitates direct messaging and dedicated trading groups. Alternatively, IC Markets provides access to Signal Start, plus popular third-party copy trading tools - ZuluTrade and Myfxbook.
-
XM is a globally recognized forex and CFD broker with 10+ million clients in 190+ countries. Since 2009, this trusted broker has been known for its low fees on 1000+ instruments. XM is regulated by multiple financial bodies, including the ASIC and CySEC.
XM Copy Trading
XM global offers a user-friendly copy trading service. Aspiring investors can copy the trades of strategy managers. Investors can find strategy managers by viewing performance metrics and can decide how much they want to invest. Strategy managers can earn 50% of profits.
-
Kwakol Markets is a Nigerian headquartered broker with strong regulatory oversight in Australia and Canada. A great selection of trading assets are available, including synthetic products that simulate realistic market activity. Clients can trade on the MT4, MT5 and cTrader platforms, as well as a copy trading solution whereby a fee is only paid on profitable trades.
Kwakol Markets Copy Trading
Kwakol Invest offers straightforward copy trading, connecting newbies with experienced traders. The leaderboard makes it easier to find suitable strategy providers with insights into the number of followers, total returns and more. You also only pay a fee on profitable positions.
-
RoboForex is a global broker launched in 2009. The firm offers more than 12,000 instruments spanning 9 asset classes with trades from 0.01 lots and spreads from 0 pips. The broker's advanced copy trading tool is also home to thousands of active traders.
-
Trade Nation is a top FX and CFD broker regulated in multiple jurisdictions including the UK and Australia. The firm offers low-cost fixed and variable spreads on 1000+ assets with robust trading platforms and training materials. The Signal Centre can also be used for trade ideas.
Trade Nation Copy Trading
Trade Nation Seychelles offers signals and copy trading. These are attractive options for beginners and those looking to a hands-off approach to online trading. You can leverage the expertise of seasoned traders to speculate on popular financial markets, including forex, stocks and commodities.
-
eToro is a top-rated multi-asset platform which offers both investing in stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 76% of retail CFD accounts lose money.
eToro Copy Trading
One of the best proprietary platforms currently on the market is the award-winning eToro CopyTrader (at no additional cost for eToro clients). The web-based platform includes a user-friendly and interactive layout and also comes with social features, including a community chat. Copy trading on crypto trades only.
-
Fusion Markets is an Australian-regulated broker that offers low-cost forex and CFD trading. Copy trading, 1:500 leverage plus multiple account types are also available, catering to short-term traders of different experience levels and budgets. New clients can sign up and start trading in three straightforward steps.
Fusion Markets Copy Trading
The broker's native copy trading platform, Fusion+, offers access to experienced traders with low to zero fees and a hassle-free follower process. Alternatively, leading third-party tool, DupliTrade, connects aspiring investors with proven traders.
-
FXTM is a top-rated forex and CFD broker. The company is secure and regulated by leading authorities, including the FCA and CySEC. Offering 1000+ trading markets and three account types, they cater to all levels of trader.
FXTM Copy Trading
FXTM Invest is a popular copy trading app connecting clients to established investors with successful portfolios. Learn from traders with proven strategies in forex, stocks and more.
-
Founded in 2017, Pocket Option is a binary options broker offering up/down contracts on forex, stocks and cryptocurrencies. With over 100,000 active users and a global reach, the brand has proven popular with budding traders. Pocket Option also supports dozens of payment methods and has a low minimum trade of just $1.
Pocket Option Copy Trading
Pocket Option offers hassle-free copy trading. Simply choose from the broker's top ranked traders and mirror their positions in your own account. The copy trading service is available 24/7 and also hosts active community groups where you can chat with other traders.
-
GO Markets is an established forex and CFD broker with multiple industry awards and accolades. The ECN/STP broker is popular with budding traders, offering competitive accounts in multiple base currencies and a range of flexible payment methods. With top-tier regulation from CySEC and ASIC, GO Markets is a trusted broker.
GO Markets Copy Trading
GO Markets uses the Myfxbook AutoTrade platform to provide investors with the option to copy other traders. Learn from profitable traders with straightforward risk management tools.
-
NordFX is an offshore CFD broker offering forex, stock, commodities, indices and crypto trading with leverage up to 1:1000. Traders access markets through the MetaTrader 4 platform and benefit from low commissions, spreads from zero and decent extra features. Minimum deposits start from just $10, which will appeal to newer traders.
NordFX Copy Trading
Copy the trades of experienced investors using real-time signals. You only pay a fee on winning trades, starting from 10%. New copy traders can get started with a competitive $100 payment.
-
IQCent is an offshore binary options and CFD broker based in the Marshall Islands with 10+ payment methods and a low $50 starting deposit. With 100+ assets, around the clock trading and high payouts the brand is popular with aspiring short-term traders.
IQCent Copy Trading
Copy trading is offered within the proprietary WebTrader platform. Clients can follow and replicate the trades of established investors using real-time performance statistics.
-
Axi is a global forex and CFD trading firm, trusted by investors around the world. Highly leveraged trading opportunities plus a $0 minimum deposit make it a popular broker with beginners and seasoned traders. Axi also stands out for its resources, including copy trading and Myfxbook.
Axi Copy Trading
After partnering with Pelican Trading, Axi has launched a user-friendly copy trading service that provides access to more than 30 products across popular financial markets.
-
Founded in 2009, Vantage offers trading on 1000+ short-term CFD products to over 900,000 clients. You can trade Forex CFDs from 0.0 pips on the RAW account through TradingView, MT4 or MT5. Vantage is ASIC-regulated and client funds are segregated. Copy traders will also appreciate the range of social trading tools.
Vantage FX Copy Trading
Traders enjoy social and copy trading at Vantage with the MetaTrader packages, DupliTrade, ZuluTrade and Myfxbook. ZuluTrade is one of the best social trading communities, using a sophisticated algorithm to rank top signal providers.
-
VT Markets is an Australian multi-asset CFD broker regulated by the ASIC, FSCA, and SVGFSA. With 1000+ tradeable instruments, support for the MetaTrader 4 and MetaTrader 5 platforms, plus powerful charts from TradingView, this broker provides traders with an intuitive way to access diverse markets. Spreads start from 0.0 on the ECN account with very competitive commissions on some instruments, and the commission-free account also has fairly tight spreads starting from 1.2 pips on the EUR/USD pair.
VT Markets Copy Trading
VT Markets offers copy trading via ZuluTrade. The platform also offers intuitive risk management safeguards. The bespoke VTrade platform also offers social investing with 100+ strategy providers.
-
PrimeXBT is a multi-asset platform offering highly leveraged trading in forex, indices, commodities and cryptocurrencies. The company launched in 2018 and now has over 1 million users from more than 150 countries. With no minimum deposit, copy trading features and low commissions, the broker has become popular among new and experienced traders.
PrimeXBT Copy Trading
PrimeXBT offers an excellent Covesting module where traders can follow the strategies of other users with free and paid-for signals. Once you have found a suitable trader you simply need to hit 'follow' to get started.
-
FXDD is an established forex and CFD broker founded in 2002. Regulated in Malta, Mauritius, Peru and Malaysia, the broker provides secure trading platforms, competitive ECN spreads and reliable 24/7 customer support. Competitive pricing and ultra-low latency is also offered via the broker's Direct Market Access execution model and tier 1 aggregated liquidity.
-
FXTrading.com is global broker offering highly leveraged CFDs on 10,000+ assets, including forex, stocks, indices, commodities and cryptocurrencies. Competitive prices with raw spreads and low to zero commissions are available. Traders can use the popular MetaTrader 4 platform and will have access to a suite of additional analytical tools and other resources. The multi-regulated brokerage is authorized by the ASIC and VFSC.
-
ThinkMarkets is a reputable CFD and forex broker with regulation from several top-tier bodies including the FCA and ASIC. Traders can use a bespoke platform, MT4 or MT5 to access a wide variety of assets including 3500+ stocks and ETFs, 46 forex pairs and over 20 cryptocurrencies. Fees are competitive, particularly for the ThinkZero account with spreads starting at zero.
ThinkMarkets Copy Trading
The Signal Centre is FCA-regulated and offers insights into forex, stocks, indices, commodities, and cryptocurrencies. Users can receive up to 40 signals before the trading day starts to plan setups.
-
M4Markets is an award-winning broker regulated by the CySEC, FSA and DFSA. Clients can speculate on popular financial markets with ultra-tight spreads from 0.0 pips and very high leverage up to 1:5000. There are no hidden fees and funds are held in segregated accounts alongside negative balance protection.
M4Markets Copy Trading
M4Markets clients can use the Copy Trader app to mirror successful trading strategies in their accounts. You can access the social trading feed around the clock and learn from experienced traders and mentors.
-
SuperForex is an offshore CFD and forex broker that offers highly leveraged trades on a wide selection of forex pairs plus commodities, indices, cryptos and stocks using the popular MetaTrader 4 platform. With a range of account types, including swap-free, micro and zero spread, this broker will suit traders with different styles and setups. SuperForex is also based in Europe and offers welcome bonuses and trading contests.
SuperForex Copy Trading
The Forex Copy system provides access to a huge network of experienced traders with strategies that can be mirrored in a few clicks. You only need $10 to get started with the copy trading solution.
-
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
Videforex Copy Trading
Videforex offers an integrated copy trading service where users can automatically or manually replicate the positions of other traders. Simply choose a trader and asset class and specify the investment amount.
-
IronFX is a multi-regulated broker offering CFD trading on forex, stocks, indices and commodities through the MetaTrader 4 platform. The broker offers various account types with competitive pricing, including spreads from zero on STP/ECN accounts. Leverage varies by regulator between 1:30 and 1:1000.
IronFX Copy Trading
TradeCopier allows aspiring investors to copy the strategies of top traders in real-time. Funds can be withdrawn at any time with real-time account management features.
-
Ingot Brokers is a multi-regulated brokerage offering CFD trading opportunities on 1000+ instruments including forex, stocks, indices, commodities and cryptocurrencies. The broker supports the MetaTrader 4 and MetaTrader 5 platforms and offers both raw spreads and commission-free account options with competitive pricing and fast execution. It also has copy trading functionality and a decent suite of extras including educational content and calculators.
Ingot Brokers Copy Trading
Ingot Brokers offers a bespoke copy trading app where users can copy seasoned traders with low fees and detailed performance metrics. Beginners can learn from seasoned traders who in turn can generate a second revenue stream by marketing their trades.
-
FXCM is a respected forex and CFD broker, established since 1999. The British-headquartered broker has won multiple awards and operates in various jurisdictions, including the UK and Australia. With zero commissions, over 400 assets, and a range of analysis tools, FXCM is a popular choice. The broker is also FCA regulated and authorized in Australia and South Africa.
FXCM Copy Trading
FXCM offers social and copy trading on forex, CFDs and cryptos through the hugely popular ZuluTrade platform. The sign-up process is quick and you can track your performance in real-time.
-
ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
ForexChief Copy Trading
Clients can follow copy trading signals on the MetaTrader platform. Alternatively, signal providers can generate extra income by selling their positions. You can start copy trading in a few easy steps.
-
MultiBank FX is an established broker offering forex and CFD products since 2005. With 20,000+ instruments, plenty of local payment methods and 24/7 multilingual customer support, the broker is a popular choice among traders globally. New clients can also access a variety of bonus offers and access the hugely popular MT4 and MT5 trading platforms.
MultiBank FX Copy Trading
Clients can start copy trading in three simple steps at MultiBank FX, gaining access to profitable online traders from around the world. Build a diverse portfolio while learning from experienced investors and saving time on market research.
-
Pacific Union Prime is an FSCA and offshore-regulated multi-asset broker offering competitive fees and direct market access on forex, commodities, stocks, bonds and indices. The broker supports the popular MetaTrader 4 and MetaTrader 5 platforms and a proprietary mobile app. Fees vary by account type with no commission and spreads from 1.9 pips on the Standard account and $7 commission per lot and spreads from 0.4 pips on the Prime account.
PU Prime Copy Trading
PU Social enables clients to mirror the positions and strategies of expert traders. The app is available on iOS and Android devices and features a social investing network with thousands of traders.
-
Errante is a Cyprus-based and regulated forex and CFD broker with leveraged trading on multiple assets, tiered accounts including a zero-spread option, and copy trading support. The broker offers leveraged trading up to 1:30 under its CySEC-regulated branch and 1:500 from an offshore branch, and supports the MetaTrader 4 and MetaTrader 5 platforms. Errante's asset list is relatively limited but it does offer fast execution and low latency, and it is a trustworthy brand.
Errante Copy Trading
The Errante copy trading solution allows users to choose from a selection of master traders with insights into their returns, volatility ratio, recovery factor, and more. There are also no restrictions on the number of traders you can follow.
-
World Forex is an offshore broker registered in St Vincent and the Grenadines, offering commission-free trading with a $1 minimum deposit and 1:1000 leverage. Digital contracts are also available, offering beginners a straightforward way to speculate on popular financial markets.
World Forex Copy Trading
Use copy trading signals on MT4 to replicate strategies in your own live account. No additional fees apply and the platform is available via downloadable software plus a web-accessible solution.
-
FXPrimus is an award-winning CySEC-regulated brokerage offering CFD trading on 200+ instruments via the MetaTrader 4, MetaTrader 5 and cTrader platforms. The choice between a competitive commission-free account and two affordable raw spread options make this an accessible broker for anyone seeking forex, stocks, indices and commodities with high leverage.
FXPrimus Copy Trading
Replicate the success of other traders via the cTrader platform or the FXPrimus MAM solution. Traders retain control over their capital and can get started in a few easy steps.
-
FP Markets is an ASIC- and CySEC-regulated broker that offers forex and CFD trading on a broad range of assets through the MT4, MT5 and IRESS platforms. With trading available through standard and raw spread accounts on thousands of international stocks, forex, indices, commodities, cryptocurrencies, bonds and ETFs, this broker has some of the most comprehensive market coverage available. FP Markets also offers a full range of additional features, including educational resources and access to powerful software such as Autochartist.
FP Markets Copy Trading
FP Markets Social Trading app allows for the straightforward mirroring of established traders with an easy-to-follow ranking system.
-
AdroFX is an online forex and CFD broker with a beginner-friendly copy trading platform, zero commissions and tight spreads. The mix of fiat and crypto deposit options will appeal to global traders while the choice of 8 accounts will suit different trading strategies and styles. Traders also benefit from 11.07 millisecond execution times with minimal slippage.
AdroFX Copy Trading
Use the Allpips platform to copy the trades of successful investors. Thousands of traders have joined the social trading community and new users can get started with a $100 deposit.
-
Anzo Capital is an offshore broker that offers leveraged CFDs on 100+ instruments including forex, stocks, indices and metals. The MetaTrader 4 and MetaTrader 5 platforms are supported, and traders can choose between an STP account with spreads starting from 1.4 pips and zero commission, or an ECN account with a $4 round-turn commission and spreads from zero. A decent range of payment methods are accepted, including crypto deposits.
Anzo Capital Copy Trading
Copy trading is available through the popular third-party platform, Myfxbook. There is a $1000 minimum deposit for Anzo Capital clients and a $12 commission per lot round turn.
-
Global Prime is a multi-regulated trading broker offering 150+ markets. Traders can get started with a $200 minimum deposit and trade with leverage up to 1:100. The firm also has a high trust score and a good reputation with a license from the ASIC.
Global Prime Copy Trading
Interact with and copy the trades of experienced investors with Global Prime's exclusive copy trading service. Over 40 different setups can be copied on the popular Myfxbook Autotrade platform.
-
Hantec Markets is a UK-based multi-regulated broker offering CFDs on a range of forex pairs, stocks and indices as well as cryptocurrencies, commodities and bullion. With support for MetaTrader 4 and ZuluTrade, this broker provides good market access for traders of all experience levels, with competitive spreads from 0.2 pips.
Hantec Markets Copy Trading
International clients can use the ZuluTrade add-on for copy trading. This is one of the top-rated copy trading platforms with thousands of strategy providers to follow and mirror with straightforward risk management tools.
-
BlackBull is a New Zealand-based CFD broker with trading opportunities on forex, stocks, indices, commodities and cryptos. The broker supports the MetaTrader 4 and 5 platforms as well as TradingView, cTrader and a proprietary mobile app. Clients can trade with high leverage and tight spreads from 0 pips on the broker's ECN accounts.
BlackBull Markets Copy Trading
Blackbull Markets offers an excellent selection of social and copy trading products on its CopyTrader system, plus HokoCloud, DupliTrade and Myfxbook. Traders can copy trades and strategies in a range of popular financial markets with user-friendly risk management tools.
-
FXOpen is a multi-asset broker with regulation from several trustworthy bodies including the UK's FCA. The broker offers CFD trading on forex, stocks, commodities, indices, cryptocurrencies and ETFs via the MetaTrader 4 & 5 and TradingView platforms.
FXOpen Copy Trading
FXOpen offers copy trading, enabling users to follow and copy the positions and strategies of other traders. Myfxbook and ZuluTrade are supported, two of the highest-rated and easiest to use third-party copy trading platforms on the market.
-
Kucoin is a crypto exchange that offers trading on 1000+ tokens as well as leveraged trading opportunities via futures and perpetual swaps. This exchange has a slick trading platform that supports robots, allowing traders to implement automated strategies. Other attractive features include a demo account, flexible funding methods and DeFi features like staking and mining.
KuCoin Copy Trading
Kucoin offers copy trading via automated bots with low fees and instant deposits. The service will appeal to beginners new to crypto trading. Users can choose a suitable trader in the marketplace and select 'copy' to start mirroring positions.
-
Admirals is an FCA- and ASIC-regulated broker with an excellent range of leveraged instruments, including forex, stocks, indices, ETFs, commodities, cryptos and more. The broker supports the MetaTrader 4, MetaTrader 5 and TradingCentral platforms. With both spread betting and CFDs available and thousands of instruments, this broker provides more flexibility than most rivals.
Admiral Markets Copy Trading
Admiral Markets offers an intuitive copy trading solution where subscribers can mirror the strategies of proven investors while setting their own stop loss and take profit limits in line with their risk appetite.
-
TMGM is an ASIC-regulated forex and CFD broker with a vast range of tradeable assets covering forex, stock, index, crypto and commodity markets. The account types on offer provide a flexible choice between no commission or zero spreads, with competitive pricing all-round.
TMGM Copy Trading
Copy trading is available through HUBx, a service designed to help investors automatically mirror the positions of successful traders. This is ideal if you want hands-off access to popular financial markets.
-
Pionex is a crypto trading platform that specializes in trading robots, offering a variety of ready made bots and strategies to traders as well as integrated AI to help customize a strategy or come up with your own. These can be used on spot crypto markets as well as crypto futures.
Pionex Copy Trading
Pionex clients can find other successful investors and copy their trading bot setups. This allows users to buy and sell cryptos 24/7 from a user-friendly platform and app.
-
Infinox is a UK-based and FCA-regulated broker that offers diverse trading products thanks to its STP and ECN account types and support for MetaTrader 4, MetaTrader 5 and a proprietary platform. Clients can also benefit from a free VPS that can support automated strategies and a social trading platform, catering to both beginner and seasoned traders.
INFINOX Copy Trading
With IX Social (Infinox social trading), you can automatically replicate the trades of the best investors. On the negative side, the usability and choice of master traders lags behind competitors like eToro.
-
Baxia Markets is an offshore CFD broker that offers trading on forex, commodities and indices with tight spreads on a straight-through processing model with ultra-low latency. Trade on MetaTrader 4 or MetaTrader 5 with leverage up to 1:500 and no restrictions to scalping or hedging strategies. Users also benefit from third-party copy trading services.
Baxia Markets Copy Trading
Baxia Markets has partnered with award-winning copy trading solutions; Zulutrade and Myfxbook. These are among the most well-regarded copy trading apps that connect aspiring traders to seasoned investors.
-
RoboMarkets is a Cyprus-based forex, CFD and stock broker aimed at traders from Europe. The broker offers thousands of instruments across six asset classes and provides access to four leading platforms, including MetaTrader 4. With ECN pricing, Cent accounts and algorithmic trading tools, RoboMarkets caters to a range of trading strategies and investing styles.
RoboMarkets Copy Trading
RoboMarkets offers a bespoke copy trading service - CopyFX. Clients can use the broker's leaderboard to pick traders and strategies to follow.
-
RaceOption is a binary options broker operating from the Marshall Islands. With over 1,500 clients, the broker aims to offer fast funding, low fees and a secure trading environment. Traders can access over 100 binary options and CFDs, plus copy trading and weekly prizes.
Raceoption Copy Trading
Replicate the positions and strategies of multiple traders while leveraging the RaceOption leaderboard. You can start copy trading in three fast steps and follow multiple traders simultaneously.
-
BinaryCent is an unregulated binary options broker that offers 24/7 trading on forex, cryptos and stocks with payouts up to 95%. Despite its lack of regulation, this broker takes client security seriously and stores client funds in European banks. The broker also offers CFDs with very high leverage up to 1:500.
Binarycent Copy Trading
The copy trading tool is available for all account types, including the lowest - Bronze. You can pick a trader based on their returns and ranking. The sign-up process is quick and account activation is instant.
-
Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.
Just2Trade Copy Trading
Copy other traders with a $100 starting payment. You only pay a commission on winning trades. Just2Trade ranks the top strategies and provides good insights into the number of subscribers, fees and monthly yields.
-
FXCentrum is an offshore broker that offers highly leveraged, commission-free trading on diverse instruments with tight spreads. Traders can access forex, equity and commodities markets via MetaTrader 5 or the proprietary FXC platform and use the award-winning ZuluTrade platform for copy trading.
FXCentrum Copy Trading
Copy trading is available via the award-winning ZuluTrade platform. There are over 100,000 registered users and master traders, providing an array of trading opportunities and strategies to follow.
-
Trading 212 is a European-regulated CFD, stock and ETF broker that also offers ISA accounts. Traders can access markets through a proprietary trading platform and speculate on the movements of 1800+ tradeable instruments including forex, stocks, ETFs and commodities.
Trading212 Copy Trading
Trading 212 offers a portfolio copy trading service which is user-friendly and suitable for beginners
What Is Copy Trading?
The definition of copy trading, also known as copycat trading, is simple: an investor selects an experienced trader with proven results who matches their risk profile, and copies their trades.
Trades can either be copied automatically using software from the multiple vendors on the market, or can be placed manually by communities of traders communicating their ‘signals’ via social platforms or forums.
Traders are either ‘Masters’ or ‘Followers’. Followers are essentially ‘making a copy’ of Master trading accounts.
This system requires minimal time and knowledge and could potentially bring hefty profits for those following the correct trader. This makes it great for beginners or those who are time poor. However, there is no upside without risk, meaning investors can experience losses if the Master trader is wrong.
Copy Trading Platforms
There are many copy trading platforms and applications that allow trades to be copied, making it an easy strategy to follow. Investors can choose between third-party software available at multiple providers and exclusive copy trading platforms.
MetaTrader 4 (MT4)
MT4 is offered by some of the best brokers in the business, including Pepperstone, AvaTrade, XM, and Alpari. Access the MetaTrader 4 copy trading function via the ‘Signals’ tab on webtrader, desktop or mobile apps.
- Master trader rankings make it easy to choose the best performers
- Available on both live and demo accounts
- Over 3,200 free and paid signals
- Chat function
- VPS service
MetaTrader 5 (MT5)
Copy trading on the MT5 system is also available through their ‘Signals’ service on web and mobile. MT5 offers the added benefit of copying trades executed at different brokerages. This is another popular platform with top companies, including BDSwiss.
- Fully automated trades, just set your signal parameters
- Ultra-fast and secure data transmission
- Fixed signal subscription price
cTrader
The cTrader Copy function is fully integrated into the cTrader platform and offers reliable trading with a defined fees system and transparent strategy history. Popular websites that use cTrader include OctaFX.
- Copy investing account is separate from trading account
- Strong cTrader community
- Equity-to-equity ratios
ZuluTrade
ZuluTrade has become a big player on the automated trading scene since its inception in 2007. Increasingly, brokers such as VantageFX are partnering with the firm.
- Over 10,000 traders resulting in a strong choice of strategies
- Feature-rich, including ZuluScript trading bot (i.e Expert Advisors or EA)
- No limit on the number of traders you can follow, allowing for diversification
DupliTrade
DupliTrade is a leading copy trading platform for forex, crypto and stock markets. Clients benefit from transparent fees, easy registration and copy trading in offline mode.
- Scale up and down options
- Minimum trading deposits from $2,000
- Tough review process for Master traders
eToro
eToro is one of the biggest brokers for social and copy trading.
- Free account, zero commission on stocks and no management fees
- Education centre with PDF guides and details of how it works
- Huge social community
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
eToro copy trading platform Past performance is not an indication of future results.
Coinbase began offering the service in 2019. And as of 2018, the nanotrading service XTrend also offers the feature. Other notable copy trading providers include MyFXBook (available on IC Markets) and FBS CopyTrade. Furthermore, Zignaly, a trading bot (EA) which specialises in crypto copy trading on notable exchanges such as Binance.
Copy Trading Vs Social Trading: What’s The difference?
Copy trading and social trading are different but closely linked. Copy trading usually refers to automated trades that are tied to a Master trader or manual trades that are made based on signals shared.
Social trading is when the trader still executes their own positions but communicates with and trusts in the signals provided by a network of more experienced traders. These interactions might be through a signals provider, the trading platform itself, or via a social network such as Telegram.
For example, eToro’s software allows you to tie your account to another trader’s (copy trading). But you can also review activity using their social news feed (social trading).
Further still, mirror trading involves the automated copying of trades, but a more complex version which lends itself to more frequent position movement. For this reason, it is mainly used by institutional investors with large capital that can take steeper losses.
Copy Trading Markets
You can copy trade on multiple popular financial markets:
- Stock and shares
- Cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC)
- Forex pairs such as USD/GBP, EUR/USD and USD/CAD
- Commodities such as gold, platinum and crude oil
- Indices such as FTSE, NASDAQ and Dow Jones
- CFDs
Note depending on your broker and the software they use, copy trading may only be available on some instruments. For example, forex signals tend to be available on most of the best platforms, but for the stock market, signals are less common.
Copy Trading Strategies
Does copy trading work? The short answer is, yes. But there are several factors that can impact the systems you use.
Risk Profile
Do your research and select a Master trader with a risk profile and strategy that you’re comfortable with. Do they pursue day trading whilst you prefer a more long-term ‘buy and hold’ method? Do you trust in big, well thought through bets rather than small scalping trades? These are crucial decisions when choosing who to copy – trust is key.
Manual Or Automatic
Automatic copy trades are the ultimate hands-off investments. But there are downsides, as you’re not able to review the trade for yourself. Losses could rack up without your knowledge if you’re not considering a trade before you place it, so many traders prefer to take a signal and place the trade themselves.
MetaTrader copy trading
Services such as NinjaTrader enable automatic trades whereas LiteForex provides networking tools for traders to exchange strategies and research. The IQ Copy trading robot also receives popular reviews and is free to download.
Broker Specific Trading
Some platforms allow you to copy trades from a different broker to that which you trade with. This enables you to select from a wider pool of Master traders and could allow better diversification of your portfolio.
Stop Losses
Automatic trades can mean automatic losses. So, consider using strategic stop losses to minimise this. On the downside, this can oust you from a trading strategy just before it starts winning, so place stops carefully.
Benefits Of Copy Trading
Beat The Fees
Investing in a hedge fund can mean costly fees and commissions. Copy trading means you can reap the rewards of profitable traders without paying through the nose. A typical hedge fund charges 2% in fees plus 20% depending on fund performance.
Check out the fees leveraged by your broker to see what you’re saving.
For Beginners
Trading successfully relies on intricate knowledge and experience. If you’re a beginner, you don’t have this edge yet. So, you may want to copy trade until you understand what it takes to successfully and consistently make profits.
Time Saving
With bots automatically executing your trades, there’s all the benefit without the time commitment.
Disadvantages Of Copy Trading
Long Haul
Even the best traders won’t make a profit 100% of the time, so you’ll need to trust in the strategy of the Master you’ve chosen. If you’re likely to pivot between traders after a couple of losses believing their strategy doesn’t work – copy trading may not be suitable for you.
Market Psychology
Trading is all about psychology. While some assets have a physical presence, like gold or crude oil, most are traded on value. And value is determined by what people will pay.
Therefore, if a large community of social traders begin unloading shares in a company, this could push the value of the stock down, regardless of the firm’s underlying profits.
In reality, professional traders exchange millions of pounds of stocks and share each day, so retail trading activity has less influence on value.
However, for this reason top traders often keep their strategy top secret. Therefore you may consider why any Master traders would let you copy their positions.
Master Profits
So, why would a Master let you copy their trades? The answer is commission. And this means there could be a conflict of interest.
If a Master is making profit from commission on copy trades, they may not need to run their portfolio at a profit for them to be winning. They just need to tempt enough followers to copy them.
Of course, this is a cynical view. And clearly Masters make more money from trading profitably as well. But, it highlights the importance of making sure those you copy have equal skin in the game. If you lose, do they lose too?
There are some signal services out there that are scams and are just looking for the commission – so it’s crucial to research where your signals are coming from and consider whether you trust the source.
How To Open A Copy Trading Account
So now we’ve explained all you need to know, you may be wondering how to start trading?
Firstly, you’ll need to open an account with a trading broker, making sure to choose one with copying trading functionality enabled software. You can copy trade on both real and demo accounts. Real accounts will require a minimum deposit to begin.
Download the trading platform and log in using the credentials required by your broker. Alternatively, select one of the mobile apps available on both Android (APK) and Apple (iOS) devices.
Wrapping Up
Copy trading has catapulted to popularity in the past 10 years. The range of software on the market makes it easy to choose a provider that suits you.
There are thousands of copy trading success stories. But, whether copy trading is good or bad for your profits depends on whose trades you copy and whether your capital allows you to follow a strategy in entirety. So, ensure you’ve done your research before you invest.
If you’re a beginner who is aware of the risks, copy trading could be a successful strategy compared to trading alone.
FAQ
Is Copy Trading Legal?
Yes, copy trading is legal and is supported by most regulatory boards including the FCA.
The European Securities and Markets Authority (ESMA) has assessed that copy trading software that automatically executes trades on behalf of an investor could be considered portfolio management and at the very least, signals can be considered investment advice and therefore such activities should be regulated.
Not all UK brokers that offer copy trading are regulated, so make sure you check before you trade.
Is Copy Trading Halal?
Copy trading can be halal as long as the trades being copied comply with Sharia law. Check with your broker whether halal copy trading is possible.
Where Can I Copy Trade?
Copy trading is available at many leading UK brokers or through special software platforms. See our list of the best UK copy trading brokers 2023 for further details.
Does Copy Trading Work?
Yes, copy trading can work. But you’re only as good as your signals, so be careful to select the right source. Look for copy trading tutorial videos on YouTube or check out our guide as a starting point.
Is Copy Trading Right For Me?
If you have very little time to spare, or you are just starting out with trading, replicating others’ trades might be the answer. Becoming a forex trading guru doesn’t happen overnight – it takes time and dedication – and copy trading can be a shortcut for beginners or those with precious little time. But note that it’s critical that you choose the right traders to copy, so be prepared to spend at least a little bit of time on researching this when setting things up.
Additional Resources
- We recommend reading the copy trading article on DayTrading.com for an in-depth tutorial on copy trading platforms, relevant for traders both in the UK and globally.
- “Copy Trading” – a research paper by Jose Apesteguia, Jörg Oechssler, and Simon Weidenholzer, September 17 2019. The conclusion of this paper is that the ability to directly or indirectly copy other traders can lead to excessive risk taking.
- “The Transparency-Revenue Conundrum in Social Trading: Implications for Platforms and Investors” by Mingwen Yang, Eric Zheng, and Vijay Mookerjee at Jindal School of Management, The University of Texas at Dallas
Programming Your Own Copy Trading Software
Having the right software is crucial to implementing a long-term successful copy trading strategy. If you are unable to find an out-of-the-box copy trading software program that suits your needs and preferences, you can elect to create your own proprietary software.
Nowadays, nifty code editing tools have made it much easier to create your own software and learning a bit of coding to get the copy trading software solution that is 100% right for you can be well worth the investment. You should also take into account that freelancers with coding skills are available online, and hiring a professional for a small software project doesn’t have to cost big bucks.
Key points to remember
- Creating or ordering bespoke copy trading software will require an investment (time, energy and money) but it is an investment that can pay off big time if you get it right.
- In addition to making sure you get exactly the features needed for your specific trading strategy or strategies, you will also be able to forge the software in accordance with your interface preferences. This will make it easier for you to use the program, which in turn enhances the overall trading experience.
- A bespoke copy trading software application can work faster than one-size-fits-all software since it will not be weighed down by features you have no need for.
- For some copy traders, bespoke software is necessary to allow them to use highly complex algorithms.
Warnings
- You wouldn’t just hire a random carpenter for your house, hand them a blank check and hope for the best. You would ask for references, investigate them a bit, and negotiate the terms of the contract in advance. If you wish to hire a programmer to create software for you, you need to do the same.
- Untested software is prone to contain bugs (malfunctions). Popular commercial software has gone through hundreds or even thousands of hours of bug testing, troubleshooting and tweaking to get things right. Well-established commercial software has also been used by thousands of traders before you, who have stumbled upon issues here and there and reported them. With bespoke copy trading software made just for you, you get none of this. Get ready to do your own testing, and make sure you don´t risk big money during the trial and error period.
DIY: Programming your own copy trading software
You do not have to be an expert programmer to do this, but you do need at least some basic programming skills and know-how to code a trading algorithm.
Fortunately, there are software packages available nowadays that make the coding process easier than it used to be. With that said, they are intended for people with at least basic programming skills – they won’t do the job for you.
One example of a popular choice is for building copy trading bots (copy trading software) is Vim.
Using VIM to create your software
One of the best tools you can use to make it easier and more efficient to create your software is WIM. WIM is a universal text editor specifically designed to make it easy to develop your own software. It is used by a huge number of skilled programmers and coders from around the world.
Vin was first created in 1991 by Bram Moolenaar (Vim’s founder). It was based on Bill Joy’s vi text editor.
Bram Moolenaars goal was to create a universal text editor that was designed with coding in mind. Many other texts editors inject extra information in the files when you save them. This can create problems and corrupt code. VIM will therefore never add anything extra to your code. It will also automatically identify and colour code different elements in your code which makes it a lot easier to read and edit the code. You can quickly find the line that you want to find and edit. VIM is turning 40 years old this year but remains one of the best text editors for coding and one of the best tools to use if you want to create your own trading software.
One large benefit of using VIM is that vim is “charityware”. Any income that the software generates is used to help children. It will help you create your software and help make the world a better place at the same time.
Vim is not just a basic text editor. It can also help you create code by easily inserting different functions into your code. It is a command-based editor where you use text commands to activate and insert different functions. There are no menus for you to use. It is all text-based.
This might make it sound like the software is hard to use but nothing could be further from the truth. The command-based interface provides a very uncluttered clean interface that put the focus on the code above everything else. This makes it very easy to see and edit the code without having parts of the screen occupied by menus and other interfaces. This allows VIM to offer a very large selection of features while still keeping a very clean interface.
Vim will be suitable for your needs regardless of whether you are a novice or expert coder. Experts can use advanced functions while the novice can limit themselves to the functions they understand. The command-based interface means that you will never be overwhelmed by menus filled with functions you do not understand. You can find a very detailed guide on all the functions that VIM offers and how they function on VIMs official website VIM.org. You can find tips and tricks on a number of other websites.
VIM is very popular among freelance coders since it is easy to use and makes it easy to find bugs and errors. VIM is a very good choice if you want to try to create your own software but know that you might need to hire a freelance coder to perform part of the work. This is due to the fact that VIM makes it very easy for the freelancer to quickly familiarize himself with the work you have already done. It is possible to use VIM to edit software that has been created in another code editor but it is always good to use a popular editor like VIM right from the start since it makes it easier to cooperate with other workers since you know that the screen will look identical for both of you if you use the same editor. This makes it easier to communicate. Small differences between how different editors display things can increase the risk of miscommunications.
VIM supports hundreds of different programming languages and is a good code editor almost regardless of which programming language you want to use. There is a large selection of different plugins available that you can use to add extra functionality to VIM:
Hiring a programmer to create the software
Creating your own copy trading software can be a fun and rewarding process, but it does require an investment in both time and energy – especially if you need to start at the bottom rung by learning basic programming and algorithm coding skills.
An option to DIY is to hire a professional to create the copy trading software for you, in accordance with your specifications. Still, we advise you to at least learn the basics about copy trading software before you hire anyone since that will make it easier for you to understand (and communicate) what you actually want – and what you do not want.
There is an abundance of freelancing programmers available online that are willing and able to take on small projects, such as programming a bespoke copy trading software that will only include the specific features required by your trading strategy. Ideally, select a programmer that has programmed this type of software in the past and can provide you with some examples of previous work.
Since you will be risking your own hard-earned cash using the software for copy trading, simply going with the lowest bidder is not recommended since a poorly designed copy trading robot can cause enormous losses. On the other hand, paying for a high-priced programmer does not automatically mean that you will get a high-quality product, so you need to do your own research before picking a programmer instead of relying on price to guide you.
Important: Communication is essential. If you can´t explain what it is that you want, how will the programmer be able to know? You are asking for a bespoke product here, so you can´t simply order ”the usual stuff” from the menu. If you are having trouble communicating with your programmer, it might be because:
A.) You know too little about the subject to provide valuable and detailed input.
B.) Your ideas are still half-baked and you need some serious handholding to reach a conclusion about what kind of product you actually want to have built for you.
C.) There are communication issues between you and the programmer, and you would be better off selecting another programmer that finds it easier to connect with you.
Take the trading platform’s API into account
API is short for Application Programming Interface. When creating a copy trading robot, the API provided by the trading platform must be taken into account. Otherwise, the trading robot will not work on the trading platform.
This also means that the API will restrict your freedom a bit when it comes to programming a copy trading robot. If your robot can not communicate properly with the trading platform, automatic trades can not be carried out.
Also, remember that your copy trading robot can only make trades and other actions that are supported by the trading platform.
If a particular copy trading feature is essential to you, make sure you use a trading platform that will support that feature.