Mirror Trading

Mirror trading is an increasingly popular investment strategy among forex and stock traders. The minimal time and effort required can be attractive to new traders, in particular, who may be seeking to replicate the returns of seasoned investors. In this article, we explain how mirror trading works, how to get started, and the potential risks involved.

Mirror Trading

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Found 31 Brokers

eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Copy Trading Platform
One of the best proprietary platforms currently on the market is the award-winning eToro CopyTrader, which is free of charge for eToro clients. The web-based platform includes a user-friendly and interactive layout and also comes with social features, including a community chat.
Demo Account
Yes
Regulated By
FCA
MT4 Integration
No
Min. Deposit
$200 ($50 in US)
Min. Trade
$1
Bonus
None

Leading forex and CFD broker regulated in Ireland, Australia, Canada and South Africa. Avatrade are particularly strong in integration, including MT4

Copy Trading Platform
Regulated across multiple jurisdictions, AvaTrade not only offers a proprietary platform, but also a selection of social and copy trading systems, including its own AvaSocial app, along with MetaTrader suites. There’s also the web-based platforms, DupliTrade and ZuluTrade, which are both easy-to-use and suit novices and experts alike.
Demo Account
Yes
Regulated By
CBoI, ASIC, FSB
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
$1
Bonus
None

Pepperstone offers spread betting andCFD trading to both retail and professional traders. Clients can trade FX, indices, commodities and shares on MT4, MT5 and cTrader platforms.

Copy Trading Platform
Pepperstone offers an impressive range of third-party platforms, including MetaTrader 4, MetaTrader 5, cTrader and DupliTrade. The broker also offers social trading and an account mirroring tool, Myfxbook. The tool offers automated analytics which allows traders to track, compare and share trading activity within a user-friendly dashboard.
Demo Account
Yes
Regulated By
FCA, ASIC, SCB, DFSA, CMA, BaFin
MT4 Integration
Yes
Min. Deposit
£200 / $200
Min. Trade
0.01 Lots
Bonus
None

Trade Forex on 0.0 pip spreads with the world's leading True ECN forex broker - IC Markets.

Copy Trading Platform
Based in Australia, IC Markets, is a good all-round broker for the MetaTrader suites, cTrader, ZuluTrade and Myfxbook. IC Markets has been around for over 10 years, so clients also enjoy a comprehensive range of educational tools and research.
Demo Account
Yes
Regulated By
ASIC, CySec, FSA
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 Lots
Bonus
None

XM.com Offer a range of Account types and a low minimum deposit to appeal to all levels of trader. With 1000+ markets and low spreads they offer a great service.

Copy Trading Platform
XM offers over 1,000 instruments and copy trading on MT4 and MT5. Although you may not get the same interactive feel as some of the proprietary platforms, the MetaTrader platforms will not disappoint in terms of their advanced trading features and tools, including MQL5 signals.
Demo Account
Yes
Regulated By
FCA, IFSC, CySec, ASIC
MT4 Integration
Yes
Min. Deposit
5 $/€/£
Min. Trade
0.01 Micro lots
Bonus
None

PrimeXBT is a Bitcoin-based platform offering highly leveraged trading in FX, indices, commodities, & cryptocurrencies.

Copy Trading Platform
PrimeXBT offers an excellent Covesting module where traders can follow the strategies of other users with free and paid-for signals.
Demo Account
No
Regulated By
MT4 Integration
No
Min. Deposit
0.001 BTC
Min. Trade
0.01 contract
Bonus
None

BDSwiss offer 250+ Shares, Indices, Forex, Commodities and Cryptocurrencies markets via CFDs. With spreads from 1 pip and an award winning app, they offer a great package.

Copy Trading Platform
Forex copy trading is available with access to successful investors selling their positions and strategies to aspiring traders.
Demo Account
Yes
Regulated By
CySec, FSC, FSA
MT4 Integration
Yes
Min. Deposit
100 $/€/£
Min. Trade
0.01 Lots
Bonus
None

FXTM is a leading forex and CFD broker. Offering a huge range of markets and 6 account types, they cater to all levels of trader.

Copy Trading Platform
FXTM is a popular copy trading broker connecting clients to established investors with successful portfolios.
Demo Account
Yes
Regulated By
CySec, FCA and FSC of the Republic of Mauritius
MT4 Integration
Yes
Min. Deposit
From $10
Min. Trade
0.01 lots
Bonus
None

FXCM are an FCA regulated, London based broker. Companies under the FXCM umbrella are also regulated in Australia and South Africa.

Copy Trading Platform
FXCM offers social and copy trading on forex, CFDs and cryptos through the hugely popular ZuluTrade platform.
Demo Account
Yes
Regulated By
FCA
MT4 Integration
Yes
Min. Deposit
£300
Min. Trade
Varies by asset
Bonus
None

Trade forex CFDs from 0.0 spreads with Vantage FX. Clients can access popular forex pairs like GBP/USD, EUR/USD and AUD/USD from 0.0 spreads with a flat $2 per lot commission on our RAW account.

Copy Trading Platform
With access to over 300 instruments, traders enjoy social and copy trading at Vantage FX with the MetaTrader packages, DupliTrade, ZuluTrade and Myfxbook. ZuluTrade is one of the largest social trading communities, which uses a sophisticated algorithm to rank top signal providers.
Demo Account
Yes
Regulated By
ASIC, FCA, CIMA
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 Lots
Bonus
None

Quotex offers a proprietary web platform that offers digital options and copy trading.

Copy Trading Platform
Clients can copy the trades of successful Quotex traders with a single click.
Demo Account
Yes
Regulated By
IFMRRC
MT4 Integration
No
Min. Deposit
$10
Min. Trade
$1
Bonus
None

OctaFX offers multi-asset trading on a range of platforms and mobile solutions.

Copy Trading Platform
Copy trading in OctaFX is offered through a proprietary platform and mobile app, as well as the MetaTrader suites and cTrader. cTrader Copy is a flexible investment platform offering a smooth copy trader experience alongside advanced trading features.
Demo Account
Yes
Regulated By
CySEC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Bonus
None

Trade on the financial markets with low cost, leveraged products at HYCM.

Copy Trading Platform
Copy the positions of experienced and profitable traders at HYCM with straightforward risk management tools.
Demo Account
Yes
Regulated By
FCA, DFSA, CIMA, CySEC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Bonus
None

FP Markets is a multi-asset broker offering a choice of trading platforms.

Copy Trading Platform
FP Markets Social Trading app allows for the straightforward mirroring of established traders with an easy-to-follow ranking system.
Demo Account
Yes
Regulated By
ASIC, CySEC
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Bonus
None

FBS is a top online broker offering MT4 & MT5 trading across a range of instruments.

Copy Trading Platform
The CopyTrade solution from FBS lets beginners replicate the success of top traders with secure, flexible trading tools. Clients can use the user-friendly mobile app to compare traders, allocate funds and create a unique trading portfolio.
Demo Account
Yes
Regulated By
CySEC, IFSC
MT4 Integration
Yes
Min. Deposit
$1
Min. Trade
0.01 lots
Bonus
None

NPBFX offers trading in leading financial instruments as well as copy trading.

Copy Trading Platform
NPBFX offers social trading via the ZuluTrade solution with a long list of signal providers to follow.
Demo Account
Yes
Regulated By
Financial Commission
MT4 Integration
Yes
Min. Deposit
$10
Min. Trade
0.01 lots
Bonus
None
Trade the markets with MT4 trading tools alongside CySEC regulation.
Demo Account
Yes
Regulated By
CYSEC, VFSC, FSCA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Bonus
None

TP Global FX offers a long list of popular financial assets with spreads from 0.1 pips.

Copy Trading Platform
Follow and copy multiple professional traders using performance analytics and market signals at TP Global FX.
Demo Account
Yes
Regulated By
SVG FSA, NFA, CAMA Nigeria
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 lots
Bonus
None
FXDD offers online trading in six major asset classes on the MT4, MT5 and WebTrader platforms.
Demo Account
Yes
Regulated By
Malta Financial Services Authority (MFSA), Mauritius Financial Services Commission (MFSC)
MT4 Integration
Yes
Min. Deposit
$/£1
Min. Trade
0.01 lots
Bonus
None

Forex broker Videforex accepts deposits in a range of cryptocurrencies. Payouts reach 95% per trade.

Copy Trading Platform
Videforex offers an integrated copy trading service where users can automatically or manually replicate the positions of other traders.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$250
Min. Trade
$1
Bonus
None

IFC Markets is a top broker offering the bespoke NetTradeX plus MT4 & MT5.

Copy Trading Platform
Follow and profit from top traders using IFC Market's copy solution.
Demo Account
Yes
Regulated By
BVI FSC, Labuan Financial Services Authority
MT4 Integration
Yes
Min. Deposit
1 USD / 1 EUR / 100 JPY
Min. Trade
0.01 lots
Bonus
None

Global Prime is a multi-regulated trading broker offering 100+ markets.

Copy Trading Platform
Interact with and copy the trades of experienced investors with Global Prime's exclusive copy trading service.
Demo Account
Yes
Regulated By
ASIC, VFSC, FSA
MT4 Integration
Yes
Min. Deposit
AUD $200
Min. Trade
0.01 lots
Bonus
None

Global FX is an unregulated broker offering a suite of trading tools and products.

Copy Trading Platform
Global FX offers a CopyDeal service where clients can follow and execute the positions and strategies of top traders.
Demo Account
Yes
Regulated By
MT4 Integration
No
Min. Deposit
$300
Min. Trade
0.01 lots
Bonus
None

ICM Capitals offers ultra-low spreads on FX, CFDs and futures via the MT4 platform.

Copy Trading Platform
Clients of ICM Capital can use the MetaTrader 4 platform to interact with and copy the trades of other investors. Both manual and automated copy trading is available.
Demo Account
Yes
Regulated By
FCA, SVGFSA
MT4 Integration
Yes
Min. Deposit
$200
Min. Trade
0.01 lots
Bonus
None

Tradeview is based in the Cayman Islands and offers four leading trading platforms and 100+ financial instruments.

Copy Trading Platform
Choose between manual and automated copy trading at with a range of leading market signals.
Demo Account
Yes
Regulated By
CIMA
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Bonus
None

JFD Bank offers comprehensive trading services, complete with MT4 and MT5 platforms and a range of products.

Copy Trading Platform
JFD Bank offers mirror trading to retail investors with multiple providers and strategies to copy.
Demo Account
Yes
Regulated By
CySEC, VFSC, BaFin 
MT4 Integration
Yes
Min. Deposit
$500
Min. Trade
0.01 lots
Bonus
None

LH Crypto combines a digital alt coin exchange with a user-friendly online brokerage offering an array of tools, instruments and payment options.

Copy Trading Platform
MT5 offers market signals from established investors so clients can manually or automatically copy trading positions.
Demo Account
Yes
Regulated By
VFSC
MT4 Integration
No
Min. Deposit
€10
Min. Trade
0.01 lots
Bonus
None

MultiBank FX is a regulated forex and CFD broker offering sign-up deposit bonuses, tight spreads and MT4 trading.

Copy Trading Platform
Clients can start copy trading in three simple steps at MultiBank FX, gaining access to profitable online traders from around the world.
Demo Account
Yes
Regulated By
ASIC, BaFin, FMA, CNMV, DFSA, FSC, CIMA
MT4 Integration
Yes
Min. Deposit
$50
Min. Trade
0.1 lots
Bonus
None

Zenfinex is a UK-headquartered broker offering social trading, low fees and MT4.

Copy Trading Platform
Zenfinex offers social copy trading through the interactive iOS and Android ZenConnect mobile app. Investors can buy and sell on the financial markets using the tips and positions of other traders.
Demo Account
Yes
Regulated By
FCA, SVGFSA
MT4 Integration
Yes
Min. Deposit
$50
Min. Trade
0.01 lots
Bonus
None

M4Markets is a forex broker offering deposit bonuses with MT4 & MT5 tools.

Copy Trading Platform
M4Markets clients can use MetaTrader signals from other traders to mirror successful trading strategies in their accounts.
Demo Account
Yes
Regulated By
Financial Services Authority (FSA)
MT4 Integration
Yes
Min. Deposit
$5
Min. Trade
0.01 lots
Bonus
None
AMarkets offers a suite of tools and trading products on the MT4 & MT5 platforms.
Demo Account
Yes
Regulated By
FSA SVG
MT4 Integration
Yes
Min. Deposit
$100
Min. Trade
0.01 lots
Bonus
None

What Is Mirror Trading?

Mirror trading is a strategy that allows investors to automatically copy the trades of experienced financial market participants into their own accounts. The technique has been used since the early 2000s and is most popular in forex and stock markets. Mirror trading is available to retail investors through various means which we cover below.

Mirror trading differs slightly from copy trading in that it is usually fully automated, making it an easy system for beginners. With copy trading, investors still mimic top strategies but can often also manually amend and execute positions. The automated nature of mirror trading frees investors from making emotionally-charged investment decisions.

How Mirror Trading Works

Investors use brokers’ mirror trading platforms which work differently depending on the provider you sign up with. Mirror trading platforms often use software similar to MetaTrader 4 (MT4), for example.

Platforms that offer mirror trading list successful participating traders, known as ‘Masters’. Users can choose a Master who matches their own investment preferences such as technique (day trading) and asset type (forex, options, stocks, cryptos).

Importantly, users can select Masters based on their own risk parameters. From then on, whatever the Master trader does on their own account is automatically replicated in the client’s account. No intervention is required by the user as all activity is managed by the trading platform.

What is mirror trading

Another type of mirror trading involves a server or bot, known as an Expert Advisor (EA). The EA will execute trades for you using algorithms that react when certain patterns or trends appear in market data. Most platforms that offer mirror trading allow users to install an EA on their accounts.

Mirror Trading Regulations

Mirror trading is a legal practice and is regulated by various international authorities including the US Securities and Exchange Commission (SEC) and the Australian Securities & Investments Commission (ASIC).

The UK regulator, the Financial Conduct Authority (FCA), supports the European Securities and Markets Authority (ESMA) view as to how mirror trading fits within the MiFID directive. According to the FCA, mirror trading fits within MiFID’s definition of portfolio management. Therefore, brokers may offer the service so long as they abide by relevant licensing rules.

Pros Of Mirror Trading

  • Suitable for beginners
  • Legal and regulated in the UK
  • Limited time and effort required
  • Automated so limited emotional decision making

Cons Of Mirror Trading

  • Losses are mirrored too
  • Difficult to assess overall risk
  • Less control over your own portfolio

How To Start Mirror Trading

Choose A Broker

To start mirror trading, you need to register with a broker that offers the service. We always recommend choosing a brokerage with strong customer support, positive user reviews, fast withdrawals and multiple Masters to choose from.

It’s also worth selecting a trusted provider that protects your personal information including contact details and address, as well as offering secure 2FA login. Popular options that offer mirror trading include JFD Bank and the XM Group.

Download A Platform

Brokers that offer mirror trading through a third-party platform like MetaTrader 4 will need you to download or install the software from their website. Some providers also offer a digital login for web trader solutions. An increasing number of mirror trading providers, such as eToro, also offer mobile investing.

Mirror trading software

Pick A Strategy

There are a couple of ways to be successful at mirror trading: copying Master traders or relying on algorithmic software that assesses market trends. There are positives and negatives to both. Arguably traders have already analysed their own risk appetite and found a technique that compliments their profit objectives. However, algorithms remove emotion from trading and can spot trends quicker than a human.

Define Risk

We cannot assess the level of risk that you are willing to take so we always recommend taking the time to think about this before trading with real funds. One piece of advice is to choose a trader whose aims are aligned with your own.

Research

You should aim to understand the success of the method you’re choosing to invest in. We’d recommend running an Expert Advisor on a demo account before investing real funds. There should be enough backtesting data to help you make an assessment, meaning there is proof that the algorithm could be profitable. Master traders’ results are also posted on platforms so viewing their trading success and history should be straightforward.

Mirror trading strategies

Mirror Trading Fraud

It is important to note that the following mirror trading fraud cases are a different type from those discussed in the rest of this article. With that said, having an understanding of the dangers posed may help you take a careful approach to risk management.

Mirror Trading International

Mirror Trading International Limited (MTI club), registered in South Africa, used its online trading platform to trade Bitcoin. However, cryptocurrency-related investments were not officially regulated in South Africa and many investors lost money.

Mirror Trading International always denied it was a scam and heavily promoted itself on Twitter and Facebook via influencers in the crypto community. There are claims that the company used false testimonials and reviews by paid members to attract innocent investors.

A significant attraction of Mirror Trading International was its growth calculator which showed investors enormous projected returns. In addition, videos posted on its YouTube channel explain MTI’s referral program which offers its investors referral, binary, or leadership bonuses.

In mid-2020, a panel in the US issued a cease-and-desist order against MTI for operating a pyramid scheme. Mirror Trading International collapsed and its website (www.mirrortradinginternational.co.za) went down meaning investors couldn’t make withdrawals.

Blockchain analysis firm, Chainalysis, released a crime report that named Mirror Trading International as the biggest cryptocurrency scam of 2020 after raking in $589 million which its CEO disappeared with. According to News 24, Mirror Trading International Ltd was placed into provisional liquidation in January 2021 after it stopped paying out funds to its thousands of members.

Mirror Trading & Money Laundering

Anti-money laundering (AML) regulators have paid close attention to mirror trading activities in recent years. In January 2017, mirror trading made the news concerning Deutsche Bank (DB) and Russian money laundering of around $10 billion.

Russian rubles were used to buy blue-chip stocks. The same value of identical Russian stocks was sold in London for US dollars and other currencies with the same bank—DB. The Russian buyer of the shares and the seller—offshore entities in Cyprus and the BVI—had the same beneficial owner. This ultimately created a money laundering pipeline that continued undetected for years.

Deutsche Bank’s compliance department was ultimately responsible for ignoring the red flags and identifying the beneficial owners of the companies executing the mirror trades. The bank was fined a total of $630m by the UK’s FCA and US regulators after it was alleged that the former Director of the bank’s Russian trading desk had accepted bribes in exchange for overlooking the questionable trading activities between 2011 and 2014.

Final Word On Mirror Trading

The term ‘mirror trading’ has been tarnished in recent years by the fraudulent activities of companies and individuals. In reality, when executed correctly, it can be a successful strategy. However, while handing over control of your portfolio is an attractive prospect, success is not inevitable and you should always do your own risk assessment. Ultimately, mirror trading is a good starting point for inexperienced traders looking to learn the ropes.

FAQ

Does Mirror Trading Work?

Mirror trading is a strategy that can be successful when applied correctly. However, when choosing a method and broker, make sure that the Master trader you copy is aligned to your preferences, especially risk tolerance, and has a proven successful track record. If using an algorithm or EA, do your research and check that it’s been properly backtested before linking it to your account.

How Do I Start Mirror Trading?

Firstly, choose a broker that offers mirror trading on its platform, such as AvaTrade, eToro, JFD Bank, or Pepperstone. You can then copy the strategies of successful traders based on asset, strategy, and risk appetite. Whatever the trader does on their account will be automatically replicated in yours.

Yes, mirror trading is legal and is regulated by most international financial authorities including the UK’s FCA. It’s also important to open an account with a UK-regulated broker to reduce the risk of online scams.

Is Mirror Trading Safe?

As with traditional investing, there is always going to be a risk when mirror trading. Knowing your own risk appetite is important before you start authorising automatic trades. Fortunately, you can usually check a Master trader’s track record or use an Expert Advisor that has been backtested before making a decision.

Is Mirror Trading A Pyramid Scheme?

Mirror trading allows investors to automatically execute and replicate a selected trader’s strategy or an automated bot’s algorithm. This is not to be confused with the fraudulent South African investment company, Mirror Trading International Limited. Its Bitcoin trading website was named the biggest cryptocurrency scam of 2020 after accumulating $589 million which its CEO vanished with. MTI was a pyramid scheme in that it paid its user base to recruit new investors.