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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Pepperstone offers the replication of skilled traders' strategies via MetaTrader Signals, DupliTrade, and its new proprietary copy trading app, in collaboration with Pelican Trading. This service, available in select regions, grants access to numerous experienced traders and customized risk settings. However, it does not support cTrader Copy, which might discourage traders who prefer Spotware's platform.
Instruments Regulator Platforms CFDs, Forex, Currency Indices, Stocks, Indices, Commodities, ETFs, Crypto (only Pro clients), Spread Betting FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB MT4, MT5, cTrader, TradingView, AutoChartist, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:30 (Retail), 1:500 (Pro) -
Introduced in February 2023, the IC Social app provides an easy platform for learning, sharing, and replicating the trades of other traders with minimal effort. The app also includes risk management features and supports specialised trading groups. Alternatively, IC Markets offers access to Signal Start and popular third-party copy trading platforms like ZuluTrade and cTrader Copy.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Bonds, Futures, Crypto ASIC, CySEC, FSA, CMA MT4, MT5, cTrader, TradingView, TradingCentral, DupliTrade, Quantower Min. Deposit Min. Trade Leverage $200 0.01 Lots 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) -
eToro consistently provides an outstanding proprietary trading platform for clients, free of charge. The web-based system is both intuitive and engaging, complemented by a community chat that appeals to novice traders. The recent 'Live Trades' feature grants immediate access to real-time insights on securities purchased by top investors on the platform.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, ETFs, Smart Portfolios, Commodities, Futures, Crypto, NFTs FCA, ASIC, CySEC, FSA, FSRA, MFSA, CNMV, AMF eToro Web, CopyTrader, TradingCentral Min. Deposit Min. Trade Leverage $50 $10 1:30 -
Fusion+, the broker's in-house trading platform, provides access to seasoned traders with minimal fees and an easy following process. Alternatively, investors can use DupliTrade, a third-party service that links them with professional traders, offering various automated solutions to suit diverse preferences.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, Crypto ASIC, VFSC, FSA MT4, MT5, cTrader, TradingView, DupliTrade Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
Trade Nation Seychelles provides signals and copy trading, appealing to novices and those preferring a passive trading strategy. Capitalise on experienced traders' insights to engage in popular financial markets like forex, stocks, and commodities.
Instruments Regulator Platforms Forex, CFDs, Indices, Shares, Commodities, Futures, Bonds, Spread Betting, Cryptos (Bahamas Entity Only) FCA, ASIC, FSCA, SCB, FSA MT4 Min. Deposit Min. Trade Leverage $0 0.1 Lots 1:500 (entity dependent) -
Blackbull excels with its extensive array of trading solutions, featuring options like CopyTrader, HokoCloud, DupliTrade, and Myfxbook. User-friendly dashboards display detailed metrics to evaluate strategy providers, including annual and percentage returns. This contributes to its reputation as a leading provider of inclusive trading packages available today.
Instruments Regulator Platforms CFDs, Stocks, Indices, Commodities, Futures, Crypto FMA, FSA BlackBull Invest, BlackBull CopyTrader, MT4, MT5, cTrader, TradingView, AutoChartist Min. Deposit Min. Trade Leverage $0 0.01 Lots 1:500 -
Traders benefit from social and copy trading at Vantage through MetaTrader, DupliTrade, ZuluTrade, and Myfxbook. ZuluTrade stands out as a leading social trading network. It employs an advanced algorithm to rank top signal providers.
Instruments Regulator Platforms CFDs, Forex, Stocks, Indices, Commodities, ETFs, Bonds, Spread betting FCA, ASIC, FSCA, VFSC ProTrader, MT4, MT5, TradingView, DupliTrade Min. Deposit Min. Trade Leverage $50 0.01 Lots 1:30
Pepperstone
IC Markets
eToro
Fusion Markets
Trade Nation
BlackBull Markets
Vantage FXSafety Comparison
Compare how safe the Mirror Trading are and what features they offer to protect traders.
| Broker | Trust Rating | FCA Regulated | Negative Balance Protection | Guaranteed Stop Loss | Segregated Accounts |
|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✘ | ✔ | |
| IC Markets | ✘ | ✔ | ✘ | ✔ | |
| eToro | ✔ | ✔ | ✘ | ✔ | |
| Fusion Markets | ✘ | ✔ | ✘ | ✔ | |
| Trade Nation | ✔ | ✔ | ✘ | ✔ | |
| BlackBull Markets | ✘ | ✔ | ✘ | ✔ | |
| Vantage FX | ✔ | ✔ | ✘ | ✔ |
Payments Comparison
Compare which popular payment methods the Mirror Trading support and whether they have trading accounts denominated in British Pounds (GBP).
| Broker | GBP Account | Debit Card | Credit Card | Neteller | Skrill | Apple Pay |
|---|---|---|---|---|---|---|
| Pepperstone | ✔ | ✔ | ✔ | ✔ | ✔ | ✔ |
| IC Markets | ✔ | ✘ | ✔ | ✔ | ✔ | ✘ |
| eToro | ✔ | ✔ | ✘ | ✔ | ✔ | ✘ |
| Fusion Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Trade Nation | ✔ | ✔ | ✔ | ✘ | ✔ | ✘ |
| BlackBull Markets | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
| Vantage FX | ✔ | ✔ | ✔ | ✔ | ✔ | ✘ |
Mobile Trading Comparison
How good are the Mirror Trading at mobile trading using apps or other mobile interfaces.
| Broker | Mobile Apps | iOS Rating | Android Rating | Smart Watch App |
|---|---|---|---|---|
| Pepperstone | iOS & Android | ✘ | ||
| IC Markets | iOS & Android | ✘ | ||
| eToro | iOS & Android | ✘ | ||
| Fusion Markets | iOS & Android | ✘ | ||
| Trade Nation | iOS & Android | ✘ | ||
| BlackBull Markets | iOS & Android | ✘ | ||
| Vantage FX | iOS & Android | ✘ |
Beginners Comparison
Are the Mirror Trading good for beginner traders, that might want an affordable setup to get started, along with good support and educational resources?
| Broker | Demo Account | Minimum Deposit | Minimum Trade | Support Rating | Education Rating |
|---|---|---|---|---|---|
| Pepperstone | ✔ | $0 | 0.01 Lots | ||
| IC Markets | ✔ | $200 | 0.01 Lots | ||
| eToro | ✔ | $50 | $10 | ||
| Fusion Markets | ✔ | $0 | 0.01 Lots | ||
| Trade Nation | ✔ | $0 | 0.1 Lots | ||
| BlackBull Markets | ✔ | $0 | 0.01 Lots | ||
| Vantage FX | ✔ | $50 | 0.01 Lots |
Advanced Trading Comparison
Do the Mirror Trading offer features that allow for more advanced trading strategies?
| Broker | Automated Trading | Pro Account | Leverage | VPS | AI | Low Latency | Extended Hours |
|---|---|---|---|---|---|---|---|
| Pepperstone | Expert Advisors (EAs) on MetaTrader | ✔ | 1:30 (Retail), 1:500 (Pro) | ✔ | ✔ | ✔ | ✘ |
| IC Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader, Myfxbook AutoTrade | ✘ | 1:30 (ASIC & CySEC), 1:500 (FSA), 1:1000 (Global) | ✔ | ✘ | ✔ | ✘ |
| eToro | Automate your trades via CopyTrader - follow profitable traders. Open and close trades automatically when they do. | ✘ | 1:30 | ✘ | ✔ | ✘ | ✔ |
| Fusion Markets | Expert Advisors (EAs) on MetaTrader, cBots on cTrader | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Trade Nation | Expert Advisors (EAs) on MetaTrader | ✘ | 1:500 (entity dependent) | ✘ | ✘ | ✘ | ✘ |
| BlackBull Markets | Expert Advisors (EAs) on MetaTrader, cTrader Automate | ✘ | 1:500 | ✔ | ✘ | ✔ | ✘ |
| Vantage FX | Myfxbook AutoTrade, Expert Advisors (EAs) on MetaTrader | ✘ | 1:30 | ✔ | ✘ | ✘ | ✘ |
Detailed Rating Comparison
Use this heatmap to compare our detailed ratings for all of the Mirror Trading.
| Broker | Trust | Platforms | Mobile | Assets | Fees | Accounts | Support | Research | Education |
|---|---|---|---|---|---|---|---|---|---|
| Pepperstone | |||||||||
| IC Markets | |||||||||
| eToro | |||||||||
| Fusion Markets | |||||||||
| Trade Nation | |||||||||
| BlackBull Markets | |||||||||
| Vantage FX |
Our Take On Pepperstone
"Pepperstone is a premier trading platform, providing tight spreads, swift execution, and sophisticated charting tools for seasoned traders. Beginners benefit from no minimum deposit, comprehensive learning materials, and outstanding 24/7 support."
Tobias Robinson
Reviewer
Pros
- Pepperstone presents itself as an economical choice for traders, offering spreads as low as 0.0 in its Razor account. The Active Trader programme provides rebates up to 30% on indices and commodities, plus $3 per lot on forex.
- Support for top-tier charting platforms such as MT4, MT5, TradingView, and cTrader. These tools accommodate different short-term trading methods, including algorithmic trading.
- In recent years, Pepperstone has significantly enhanced the deposit and withdrawal process. By 2025, clients can use Apple Pay and Google Pay, while 2024 saw the introduction of PIX and SPEI for customers in Brazil and Mexico.
Cons
- Pepperstone doesn't offer cTrader Copy, a favoured feature for copying trades found in the cTrader platform, which is available on other platforms such as IC Markets. However, Pepperstone has launched its own user-friendly copy trading app.
- Pepperstone's demo accounts expire after 30 days, which may not provide sufficient time to explore various platforms and evaluate trading strategies.
- Although its market range has improved, its crypto offerings remain limited compared to brokers specialising in this sector, lacking real coin investment options.
Our Take On IC Markets
"IC Markets provides excellent pricing, swift execution, and easy deposits. With cutting-edge charting tools like TradingView and the Raw Trader Plus account, it continues to be a preferred option for intermediate and advanced traders."
Pros
- IC Markets provides some of the industry's narrowest spreads, offering 0.0-pip spreads on major currency pairs. This makes it an extremely cost-effective choice for traders.
- IC Markets provides reliable 24/5 support, especially for account and funding queries, drawing from direct experience.
- Access over 2,250 CFDs across diverse markets like forex, commodities, indices, shares, bonds, and cryptocurrencies. This variety enables traders to employ diversified strategies.
Cons
- Certain withdrawal methods incur fees, including a $20 charge for wire transfers. These costs can reduce profits, particularly with frequent withdrawals.
- Interest is not paid on idle cash, a feature gaining popularity with alternatives such as Interactive Brokers.
- Although there are four top-tier third-party platforms available, the absence of in-house software or a trading app tailored for novice traders is notable.
Our Take On eToro
"eToro's social trading platform excels with its outstanding user experience and lively community chat, aiding beginners in spotting opportunities. It offers competitive fees on numerous CFDs and real stocks, alongside exceptional rewards for seasoned strategists."
Pros
- eToro has launched automated crypto staking, offering a pathway to passive income. However, Ethereum requires users to opt in.
- The broker offers excellent services for beginners, featuring commission-free stock trading, a low minimum deposit, and an unlimited demo account.
- The web platform and mobile app receive higher user reviews and app rankings compared to leading competitors like AvaTrade.
Cons
- The absence of extra charting platforms such as MT4 may deter experienced traders who rely on external software.
- The only significant contact option, besides the in-platform live chat, is limited.
- The minimum withdrawal is set at $30, accompanied by a $5 fee. This may impact traders with limited funds, particularly those just starting out.
Our Take On Fusion Markets
"Fusion Markets offers forex traders competitive pricing with minimal spreads, low commissions, and new TradingView integration. It is an excellent choice, especially for Australian traders, given its base and regulation by ASIC."
Pros
- The selection of charting platforms and social trading features is outstanding. Options like MT4, MT5, cTrader, and the newer TradingView meet diverse trader preferences.
- With an average execution speed of approximately 37 milliseconds, traders can secure optimal prices more effectively, outpacing many competitors in rapidly changing markets.
- Fusion Markets provides exceptional support, characterised by rapid, friendly, and efficient responses. Unlike other platforms, it doesn't utilise automated chatbots, ensuring traders experience a seamless interaction.
Cons
- The broker stands out with its extensive selection of currency pairs, surpassing most competitors. However, its alternative investment options are merely average, lacking stock CFDs outside the US.
- Unlike AvaTrade, there is no specialised trading platform or app tailored for beginners, which is a significant disadvantage.
- The demo account, lasting only 30 days, is limited in its effectiveness as a trading tool when used with a live account.
Our Take On Trade Nation
"Trade Nation is ideal for novice traders seeking diverse markets on an easy-to-use platform. It offers no minimum deposit, complimentary funding options, and robust educational resources."
Pros
- The trading firm provides narrow spreads and a clear pricing structure.
- A variety of trading platforms and apps, such as MT4, make the brand suitable for experienced traders.
- Global traders can use accounts in various currencies.
Cons
- Reduced legal safeguards with an offshore entity.
Our Take On BlackBull Markets
"Following the upgrade to Equinix servers in New York, London, and Tokyo, BlackBull has reduced latency, making it a clear choice for stock CFD trading using ECN pricing."
Pros
- BlackBull provides everything a trader needs: execution speeds under 100ms, leverage as high as 1:500, and competitive spreads starting at 0.0 pips.
- BlackBull provides three ECN-powered accounts—Standard, Prime, and Institutional—to cater to traders of all experience levels, from novices to seasoned professionals. The variety of account types allows for flexible options tailored to individual trading needs and available capital.
- After collaborating with ZuluTrade and Myfxbook and refining its CopyTrader, BlackBull now provides an exceptionally comprehensive trading experience.
Cons
- BlackBull does not offer its own trading platform, instead utilising MetaTrader, cTrader, and TradingView. Although these platforms are highly regarded, some brokers, such as eToro, provide proprietary platforms with distinct features that cater well to novice traders.
- Despite an expanding range of over 26,000 assets, including new additions to Asia Pacific indices, their offerings are primarily equities. The selection of currency pairs and indices remains average.
- Despite enhancements such as webinars and tutorials in the Education Hub, our review indicates that the courses still require greater emphasis on elucidating broader economic factors affecting prices.
Our Take On Vantage FX
"Vantage is an ideal choice for CFD traders looking for a well-regulated broker with access to the dependable MetaTrader platforms. With a swift sign-up process and a minimum deposit of $50, starting trading is simple and fast."
Pros
- With a minimal deposit requirement of just $50 and no funding fees, this broker stands out as an excellent option for novice traders.
- Hedging and scalping strategies are fully permitted without any short-term restrictions.
- The broker recently expanded its range of CFDs, offering more trading opportunities.
Cons
- Regrettably, cryptocurrencies are accessible solely to clients in Australia.
- Based on tests, average execution speeds of 100ms to 250ms are slower compared to other options.
- To access optimal trading conditions, a substantial deposit of $10,000 is required. This includes a commission of $1.50 per transaction per side.
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.
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.
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.
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 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 eToro 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.
Is Mirror Trading Legal?
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.