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

  1. rating empty
    rating full

    AvaTrade maintains a top position when it comes to social and copy trading tools. Traders can access the proprietary AvaSocial app as well as popular third-party platforms, DupliTrade and ZuluTrade. The comprehensive performance metrics can help you find the right strategy provider for your goals and risk appetite.

  2. rating empty
    rating full

    Pepperstone facilitates the replication of experienced traders' strategies through MetaTrader Signals and DupliTrade. However, it lacks support for cTrader Copy and does not offer a proprietary social trading network similar to those found on platforms like eToro or Vantage, which foster lively social trading communities for aspiring traders.

  3. rating empty
    rating full

    Launched in February 2023, the IC Social app offers an intuitive way to learn, share, and mirror the positions of other traders with just a few clicks. Additionally, the app features risk management tools and supports dedicated trading groups. Alternatively, IC Markets grants access to Signal Start, along with well-known third-party copy trading platforms including ZuluTrade and cTrader Copy.

  4. XM

    rating empty
    rating full

    XM global offers a pre-integrated signals service via the MT5 platform. Aspiring investors can view detailed performance metrics and copy the trades of strategy managers. It's easy to set up, only requiring a handful of steps after logging in to your MQL5 community account.

  5. rating empty
    rating full

    DNA Markets offers Signal Start, a user-friendly copy trading solution. The tool is easy to use and new traders enjoy the first 3 months subscription-free. On the negative side, it lacks the social trading features you get with more comprehensive apps like eToro.

  6. rating empty
    rating full

    eToro continues to deliver one of the best proprietary copy trading platforms on the market, at no additional cost for eToro clients. The web-based platform features a user-friendly and interactive layout and also comes with a community chat, making it a stand-out choice for beginners.

  7. rating empty
    rating full

    RoboForex’s CopyFX service is designed specifically for currency traders with flexible control over your funds. The ‘Rating’ view provides helpful metrics on master traders, notably profit/loss, maximum drawdown, balance and number of trades spanning time intervals from 1 week to 6 months. That said, the joining process and resources are convoluted, which may confuse newer investors, while the interface trails the smooth user experience provided by category leaders like eToro.

  8. rating empty
    rating full

    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.

  9. rating empty
    rating full

    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.

  10. rating empty
    rating full

    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.

  11. rating empty
    rating full

    Fusion+, the broker's native copy trading platform, offers access to experienced traders with low fees and a hassle-free follower process. Alternatively, a third-party tool, DupliTrade, connects aspiring investors with established traders, ensuring a choice of hands-free solutions for different preferences.

  12. rating empty
    rating full

    Pocket Option hosts a user-friendly social trading service. Available in the platform, you can use the ‘Top Ranked Trades’ leaderboard, among others, to find traders to follow. The social trading solution is also available 24/7 and has active community chats. Tip: check the number of trades made and profit generated over several months rather than comparing providers over a few days.

  13. rating empty
    rating full

    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.

  14. rating empty
    rating full

    You can copy the trades of experienced investors using real-time signals. You only pay a fee on winning trades, starting from 10%. New subscribers can also get started with a competitive $100 minimum deposit.

  15. rating empty
    rating full

    A copy trading service is pre-integrated into the broker’s web platform, where you can follow and replicate the trades of up to 10 established investors. Where it shines is its ease of use - you simply decide how much you want to invest and hit 'copy'. On the downside, the pool of master traders is narrow and you get limited data on past performance, making it less reliable.

  16. Axi

    rating empty
    rating full

    After partnering with Pelican Trading, Axi remains a strong option for traders seeking a reputable copy trading service. The user-friendly app requires no minimum deposit and connects seamlessly to your MT4 trading account.

  17. rating empty
    rating full

    VT Markets continues to offer copy trading via its proprietary service, VTrade. Followers can choose from 100+ strategy providers through a user-friendly platform, whilst providers can boost their earnings through the rebate scheme.

  18. rating empty
    rating full

    Choose between manual and automated copy trading at with a range of leading market signals.

  19. rating empty
    rating full

    PrimeXBT offers a decent copy trading service where traders can follow the strategies of other users with free and paid-for signals. Once you have found a suitable strategy provider, you simply need to hit ‘follow’ to get started.

  20. rating empty
    rating full

    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.

  21. rating empty
    rating full

    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.

  22. rating empty
    rating full

    M4Markets continues to deliver a user-friendly copy trading service to beginners looking to mirror other strategies and to experienced investors looking to become a mentors. The service easily synchronizes with your trading platform and is active 24/7.

  23. rating empty
    rating full

    GC Invest allows clients to mirror the strategies of profitable traders with a $100 deposit. Commissions range from 0% to 70% and traders can track returns in real-time.

  24. rating empty
    rating full

    The TradeCopier service allows aspiring investors to copy the strategies of top traders in real-time. The tool is a great way for beginners to learn from more experienced investors, whilst strategy providers can earn performance fees.

  25. rating empty
    rating full

    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.

  26. rating empty
    rating full

    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.

  27. rating empty
    rating full

    4xCube is an online forex and CFD broker registered and licensed in the Cook Islands. Clients can trade on popular financial markets and choose between three accounts based on their capital and trading strategy.

  28. rating empty
    rating full

    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.

  29. rating empty
    rating full

    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.

  30. rating empty
    rating full

    Kwakol Invest continues to offer 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, making the service more affordable than some competitors.

  31. rating empty
    rating full

    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.

  32. rating empty
    rating full

    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.

  33. rating empty
    rating full

    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.

  34. rating empty
    rating full

    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.

  35. rating empty
    rating full

    FP Markets introduced a proprietary social copy trading platform, alongside access to the MetaTrader signals market. These offerings, coupled with support for Myfxbook, establish FP Markets as an excellent option for social copy trading, even if the system is less intuitive compared to cTrader Copy.

  36. rating empty
    rating full

    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.

  37. rating empty
    rating full

    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.

  38. rating empty
    rating full

    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.

  39. rating empty
    rating full

    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.

  40. rating empty
    rating full

    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.

  41. rating empty
    rating full

    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.

  42. rating empty
    rating full

    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.

  43. rating empty
    rating full

    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.

  44. rating empty
    rating full

    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.

  45. rating empty
    rating full

    RoboMarkets offers a bespoke copy trading service - CopyFX. Clients can use the broker's leaderboard to pick traders and strategies to follow.

  46. rating empty
    rating full

    You can use the broker's Allpips platform to copy the trades of experienced investors. Thousands of traders have joined the community and new users can get started with a $100 deposit. That said, it doesn't rival category leaders like eToro with its highly active social trading network.

  47. rating empty
    rating full

    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.

  48. rating empty
    rating full

    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.

  49. rating empty
    rating full

    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.

  50. rating empty
    rating full

    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.

  51. rating empty
    rating full

    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.

  52. rating empty
    rating full

    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.

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.