Best copy trading platforms in South Africa
Trading in the global financial market is not a walk in the park. It requires tact, top-notch analytical, technical, risk management skills, and discipline.
Granted that mastering the art of Forex trading is beyond the grasp of the average trader, сopy trading allows inexperienced, amateur traders directly copy time-tested trading patterns specially curated by professionals.
Are you interested in copy trading? This piece exposes you to all things copy trading South Africa. TU experts compare the Top 10 South African platforms for copy trading, the cost implication in requisite fees, and trading conditions.
Interested in Copy Trading? - Try RoboForexBest copy trading apps in South Africa
If you are looking for the best copy trading app in South Africa, focus your attention on the following platforms: IC Markets, RoboForex, eToro, Tickmill, Avatrade, FXTM, InstaForex, and FBS, Pepperstone.
Best Copy Trading PlatformsCopy trading platforms in South Africa - Comparison
| Minimum Deposit | Markets | Regulated in South Africa/Available for South Africans | ||
|---|---|---|---|---|
RoboForex (CopyFx) |
$100 |
Forex, CFDs, ETF, commodities, Crypto, and stocks |
Available |
|
IC Markets |
$200 |
CFDs, Forex, crypto, stocks, bonds and commodities. |
Available |
|
eToro (Copy Trader) |
$200 |
US Stocks, Forex, Crypto, ETFs |
Available |
|
Tickmill |
$100 |
Bonds, CFDs, and Forex |
FSCA regulated |
|
AvaTrade (AvaSocial) |
$100 |
Crypto, Forex, Stocks, ETF, Bonds, commodities, and CFDs |
FSCA regulated |
|
FXTM (FXTM Invest) |
$100 |
Commodities, stocks, forex, and CFDs |
FSCA regulated |
|
InstaForex (Forex Copy) |
$10 |
Forex, stocks and crypto |
Available |
|
FBS |
$1 |
CFDs and Forex |
FSCA regulated |
|
Pepperstone |
$200 |
CFDs and Forex. |
Available |
RoboForex (CopyFx)
RoboForex lets traders earn passive income through automated trading. Offering over 12,000 instruments and eight asset types, RoboForex is the best copy trading platform for traders with minimal trading experience.
Usability
On RoboForex, you can specify the copy trading options based on your preferred functions. Thus, only the transactions pertaining to your specified parameters will be copied.
With a minimum investment of $10, you can invest in indices, commodities, stocks, Forex, and cryptocurrencies.
Safety and regulation
Since RoboForex is registered in Belize, it has a license from IFSC, which is the local regulator. As compared to other brokers in this list, RoboForex is not as highly regulated.
Copy trading features
RoboForex has a Traders Rating tab where you can find the top traders to copy. If you have any specific asset or instrument preferences, you can filter the results based on your desired factors.
The broker offers different search parameters, including the lifespan of the account, profitability, and risk level.
You can check a particular trader's transaction history and later their open transactions once you've subscribed to a signal provider.
Read more about Copy Trading on RoboForexIC Markets
IC Markets is one of the most cost-effective trading platforms in the market due to its low commission rates. Plus, it has phenomenal order execution features and multiple opportunities for you to earn passive income.
It also offers additional copy trading services in partnership with Autotrade, MyFxBook, and ZuluTrade.
Usability
IC Markets doesn't own a proprietary copy trading platform and offers its services through strategic partnerships with top social trading platforms - ZuluTrade and MyFxBook Autotrade.
While IC Markets is cost-effective, it compares poorly to other trading platforms in terms of minimum deposits; it requires a minimum of $200.
Safety and regulation
We believe IC Markets is a reliable and safe platform for social trading. First, the headquarters are based in Australia, licensed by respected Australian regulators like the Australian Financial Services License (AFSL No. 335692).
The social trading platform is also licensed in the European Union by the Cyprus Securities and Exchange Commission (CySEC License Number 362/18). In addition, their partner ZuluTrade social trading platform is licensed by the Cyprus Securities and Exchange Commission.
Copy trading features
Since IC Markets has no proprietor platform, you'll have to utilize one of the partners. The easiest way is to use ZuluTrade.
You'll first open an account on ZuluTrade and provide the necessary information. Then, verify the account since you can't trade with an unverified account.
Once you log in, you'll access the most successful signal providers in the Top Traders section. They are divided into various categories like return growth dynamics, number of copiers, and the amount under management.
You can also search for traders using filters such as criteria such as performance, slippage, and experience.
How to use IC Markets copy trading to earn moneyeToro
eToro is a market leader in Forex trading. It was one of the first brokers to offer copy trading as an investment and launched in 2010. eToro is a broker that created the world’s largest social trading network. The company operates officially and is regulated in the U.S., Cyprus and also in Australia.
Usability
eToro offers an online trading platform for its users. You'll access it easily through a web browser on your phone or computer. It is easy to go through, and the instruments are well displayed.
If you are a beginner with limited capital, you can start with a minimum $10 deposit and enjoy copy trading without special requirements. You can also access a demo account where you can practice for free.
eToro offers you over 2300 instruments, including Forex, CFDs, stocks, ETF, cryptocurrencies.
Safety and regulation
You can trade on eToro knowing that your investment is safe. Top regulators from various regions regulate the broker, meaning they are continuously monitored for compliance.
Here are the licenses from top regulators that eToro has:
The Financial Conduct Authority (UK);
Cyprus Securities and Exchange Commission (CySEC);
Australian Securities and Investments Commission.
Copy trading features
eToro offers the best copy trading services. You'll not need to open a new account for copy trading, and you'll access the web version of the broker or trading app on your phone.
Once you log into your eToro platform, you'll access profiles of top successful traders based on our editors and special algorithms. In addition, you'll be able to choose a trader to copy using various filters, including risk score, returns, period and assets under management.
You can also manage your risk by setting a maximum amount for each trader, and you can change orders or cancel a trade if the trader takes another approach.
Read more about Copy Trading on eToroTickmill
Tickmill is a trading platform slowly making a name for itself in the industry. It offers various analytical instruments for Forex trading and copy trading as an opportunity for additional income. Let's closely look at what it has to provide a user.
Usability
Tickmill doesn't offer its users a proprietary trading platform and relies on its partner's MyFxBook trading platform to offer services. You'll have to open accounts on both sites as the partner offers the signals.
The copy trading platform also has a high entry threshold, with the minimum investment for copying at $1,000. In addition, you'll have access to 162 strategy providers and markets such as Forex, CFDs on precious metals, indices, and bonds.
Safety and regulation
The number of licenses held by Tickmill shows that it is safe, in our opinion. In addition, they have licenses from highly respected regulators such as FCA (UK), CySec (Cyprus) and FSCA (SAR).
Other jurisdictions where they are licensed include Labuan (Labuan FSA) and Seychelles (FSA), and the licenses held include:
FCA – 717270
CySec – 278/15
FSCA – FSP 49464
Labuan FSA – MB/18/0028
FSA – SD008
Copy trading features
You'll need a Tickmill and MyFxBook account to copy trade. First, open your MyFxBook account by providing the necessary information and link it to your Tickmill through the MetaTrader 4 option in the account section.
To find a trader to copy, use the search directly on MyFxBook. You can seek traders using the following indicators:
Gain;
Drawdown;
Pips;
Discussion (reviews);
Test ended;
Modelling quality;
Chart.
You'll also access a trader's statistics to look deeper before copying their trade.
How to use Tickmill copy trading to earn moneyAvaTrade (AvaSocial)
AvaTrade is a world-renowned name in the world of social trading and copy trading. It is regulated by the top seven global authorities, including the Central Bank of Ireland.
Usability
AvaTrade works with three other copy trading platforms, namely MQL5, DupliTrade, and ZuluTrade. In this way, it gives the users access to thousands of investors and signal providers.
With a minimum investment of $100, you can invest in indices, cryptocurrencies, stocks, bonds, Forex, CFDs, and 1,250 other markets.
Safety and regulation
AvaTrade is the best copy trading app in terms of regulation and safety since it has licenses from many top regulators worldwide, including:
British Virgin Islands Financial Commission
Financial Regulatory Services Authority (FRSA)
Japan FSA
South African Financial Sector Conduct Authority (FSCA)
ASIC
Central Bank of Ireland
Copy trading features
Once you've registered on AvaTrade, you can check the ranking of each copy trading signal provider on the platform.
The broker lets you see the history of a user's trades and their approach to risk management.
You can then subscribe to your preferred trader's signals.
AvaTrade also lets you diversify your trade by subscribing to multiple signals. Depending on your risk tolerance, you can set the risk parameters at which copy trading will be stopped.
Read more about AvaTrade Copy TradingFXTM (FXTM Invest)
FXTM released its copy trading services for traders in 2016 and has been a highly user-friendly option since then. Even beginners can grasp the mechanism of the platform quite easily.
Usability
You need a minimum investment of $100 to get started on the platform. FXTM makes trading convenient for traders by offering a number of deposit and withdrawal options, such as wire transfer, debit and credit cards, Bitcoin, and payment services, like Neteller and Skrill.
It has more than 250 instruments and lets you copy trade in several markets, like CFDs, stocks, and Forex.
Safety and regulation
FXTM is considered a safe broker since it has financial licenses from:
Cyprus – CySec No. 185/12
The UK – FCA No. 600475
South Africa – FSCA No. 46614
It is also safe for UK and EU users since it's a deposit guarantee fund member.
Copy trading features
Copy trading on FXTM is made easier by the platform's comprehensive display of a trader's risk parameters and profitability. When you click on a trader's profile in FXTM, you can see their data. You can see the following parameters for each signal provider: average daily loss, average daily win, unprofitable days, maximum drawdown, profitable days, and total trading days.
Read more about FXTM Copy TradingInstaForex (Forex Copy)
InstaForex was among the first brokers to offer copy trading and remains a popular option for beginners since anyone can get started with a minimum deposit of $10.
Usability
InstaForex has been around since 2010 and offers a wide assortment of markets to copy, including indices, commodity futures, cryptocurrencies, commodities, CFDs on stocks, and currency pairs.
With more than 300 instruments and six types of commissions, the broker is ideal for traders with different experience levels. You can get started with just $10.
Safety and regulation
InstaForex is regulated in these jurisdictions:
Instant Trading Ltd (Virgin Islands);
Insta Service Ltd (Saint Vincent).
Since these jurisdictions aren't transparent about their beneficiaries and are offshore, InstaForex isn't considered as reliable as some other options we've mentioned.
Copy trading features
When you're selecting an InstaForex trader to copy, you can see a lot of information about them to make a decision. InstaForex lets you see the trader's rating on the platform along with their capital, account balance, number of open trades, number of transactions, total balance gain, total capital gain, and average per day balance gain.
You can also check the profitability of the signal provider to determine if they're the best trader to copy.
Although you can see a lot of transactional information, the broker falls short in terms of showing risk indicators.
Read more about InstaForex Copy TradingFBS
Another great platform for copy trading, FBS has been in existence since 2009. The copy trading platform is ideal for both beginner and experienced traders. Currently, the platform boasts over 23 million traders in over 150 countries.
With its copy trading feature that has thousands of copyable strategies, FBS makes copy trading easy and efficient. Users can copy experienced asset managers for a fraction of the cost, enabling them to benefit from their market knowledge without having to pay high fees. The platform also offers advanced features, such as automated trading, which can help make trading even easier.
One of the great things about FBS Copy Trading is that it is very user-friendly. The interface is intuitive and easy to use, so even beginners can get up and running quickly. There are also plenty of tutorials available on the website, so users can learn how to use the platform more effectively.
Another great feature of FBS Copy Trading is that it offers competitive spreads, which means users can make more money by taking advantage of market fluctuations. In addition, there are very low commissions or fees associated with using this platform, meaning users can maximize their profits.
👍 Pros of the FBS trading app
•Friendly user interface with plenty of tutorials to help beginners get up and running quickly.
•Low commissions or fees associated with copy trading.
•Competitive spreads mean more potential profits for traders.
•CySec-regulated, meaning user funds are safe.
•Users get a special offer that comes with risk-free deals.
👎 Cons of the FBS trading app
•Copy trading comes with few individual settings.
•No online or desktop version.
•Stats on traders are limited.
Pepperstone
Pepperstone is a leading copy trading platform that offers users an opportunity to make money by copying successful traders. The firm provides access to well-known platforms- MyFxBook, MQL5 and DupliTrade.
Usability
Pepperstone doesn't offer users the opportunity to copy trade on their platform. However, you'll get to copy trade on their partner's platforms. As such, you'll open accounts with Pepperstone and one of the partners.
The minimum investment for copy trading is $1000, and you'll have access to 182 strategy providers and markets such as Forex, CFDs on stocks, stock indices, and commodities.
Safety and regulation
Pepperstone holds licenses from highly respected regulators, meaning its services are legit. Some of the licenses they have include:
Australia – ASIC AFSL No. 414530
UK – FCA No. 684312
Germany – BaFin No. 10151148
Cyprus – CySec No. 388/20
Copy trading features
To trade on Pepperstone, you must connect it to your preferred partner. If you decide to use MyFxBook, you'll need to open an account by providing the required information. Then, head to the portfolio and choose a trading platform. Select MetaTrader 4 and choose Pepperstone.
For copy trades, specify your name and the rest of the fields are filled by traders who want to become strategy providers. Save, and you can start selecting traders.
You'll use strategies to get a trader you want to copy or leverage filters through indicators like:
Name;
Gain;
Drawdown;
Pips;
Discussion;
Test Ended;
Modelling Quality;
Chart.
You'll access all the traders who offer their trades to be copied.
Pepperstone Copy Trade ServiceWhat is copy trading?
Copy trading is a trading method in which you copy the positions managed and opened by other traders. It shouldn't be confused with mirror trading since that involves mirroring every action of the copied trader.
Meanwhile, in copy trading, traders can copy certain strategies of the investor they want to emulate. Modern copy trading platforms allow traders to earn money through this method by using the following features:
Showing the trade analytics of investors to be copied.
Giving options to distribute equity among multiple traders with different trading instruments and strategies.
Offering an option to stop trade copying when certain risk tolerance is reached.
Setting maximum risk level for particular investments.
How to choose a copy trading broker in South Africa
TU experts recommend the factors discussed below as a guide to consider before choosing the best copy trading platform in South Africa:
Exercise Due Diligence: Every financial decision must be based on due diligence. Copy trading is a deeply regulated terrain. It is best to ensure the preferred broker ticks all the right boxes in regulatory compliance to weed out fraudulent platforms with questionable reputations. It is advisable to ensure that your preferred copy trading platform is regulated by the UK (FCA), Australia (ASIC) or the European Union (CySEC).
Trading terms and conditions: It is essential to ascertain a broker's rule of engagement before pitching a tent with them. Trading terms and conditions to identify include commissions and charges, available trading instruments and their diversity, and the quality of order execution for profitable copy trading. It is also important to note whether the preferred broker charges extra in the spread as it profoundly impacts the trading result.
Network Scale: There is a strong correlation between the network scale and the trading opportunities it offers. It is best to choose brokers with a bigger network over ones with smaller networks. A bigger network suggests the availability of a broad range of managers to choose from and wider capital-attracting opportunities.
Integrity and Transparency: An independent audit of all publicly available managers' statistical data is necessary to ascertain transparency.
Platform's functionality and technological efficiency: Trading financial markets is quite complicated. The least a copy trading platform can do is make things easier. User-friendliness and technological efficiency must be at their core. It must be responsive and feature top-notch risk management mechanisms and a broad range of traders for profitable copy trading.
How can I find good traders to copy?
The first step to finding the best trader to copy is identifying the best copy trading app in South Africa, which requires using time-proven metrics, including regulatory compliance, transparency and fairplay, network іcale and trading terms and conditions. Here is how to find a good trader to copy:
Access traders track records: The longer the trading experience, the higher the chances of consistency-fuelled trading expertise and professionalism. It establishes that the trader's success is not based on luck but on an established pattern for success. Interestingly, some copy trading apps allow you to filter traders based on critical indices, including experience and track record. In addition, eToro, for instance, also allows users to filter traders by returns rate.
Attendant risk: Copy trading is a risky venture. Accessing risks of a trader's strategy before copying them is vital. While this is easy to recommend, practicability is a different kettle of fish. This is because the higher the return, the higher the risk - which makes it easy to be carried away with potential returns at the expense of in-depth risk analysis. Striking a balance between potential returns and inherent risk of loss is an important factor in deciding on the best trader to copy. Again, eToro has made things easier by allowing users to filter professional traders to copy using risk and return metrics. The surest path to striking balance is to ensure that the riskier the strategy, the smaller the share of the trading portfolio committed to it.
The number of copiers: Few copiers are a pointer to a trader's mediocre trading skills. The ability to attract multiple traders is a testament to a trader's superior trading ability, professionalism and dexterity.
Is copy trading legal in South Africa? Is it safe?
The simple answer is yes. While by law, South African regulated brokers can offer clients copy trading services, TU experts recommend choosing international and local regulatory-compliant stock brokers. It may be necessary to consider international stock brokers for the best of all things copy trading South Africa.
The South African foreign exchange and financial market is chiefly regulated by the Financial Sector Conduct Authority (FSCA). Forex brokers, intermediaries and advisors must be registered with this government authority to clothe their business with the requisite legality. It is worth noting that the registration requirement is not limited to South African forex brokers; foreign-based brokers operating within the South African ecosystem are also required to register with the FSCA.
Forex scammer list South AfricaShould I pay copy trading taxes in South Africa?
By law, gains from copy trading are taxable in South Africa. It is immaterial that the stock broker is a foreign-based corporate entity.
Also, the tax liability is not restricted to South African citizens. Every copy trader based in South Africa is expected to pay the copy trading tax. Copy trading tax is technically construed as a personal income tax. Hence, taxation rate is dependent on profit.
Against the background of tax evasion being a criminal offense in most jurisdictions, South Africa inclusive, TU experts recommend prompt payment of accruable taxes from copy trading.
Brokerage Fees Definition and ComparisonHow can I find a copy trading platform?
Finding a good trader to copy involves critically evaluating a broker's trading performance over an extended period. Here is a comprehensive guide to analyzing performance.
Trading instrument
It is best to copy traders with expertise in a wide range of trading instruments, including ETFs, stocks, forex, commodities, crypto and CFDs. The wider the list of trading instruments, the better the copy trading experience.
Regulation
As previously discussed, regulatory compliance clothes brokerage firms with legality. It predisposes a commitment to ethical trading standards, safety and transparency. Copy from brokerage firms with IFSC, ASIC, FSCA, CySec regulations. The more regulations, the better.
Network size and performance index
Needless to say, an excellent trading performance index over a big network size is a great testament to a broker's top-notch professionalism. Interestingly, the best copy trading apps feature performance metrics for the best copy trading experience.
Investment threshold
Trading the global financial market is a risky endeavor, copy trading inclusive. Considering the investment entry threshold as a determinant factor in choosing a broker is advisable, especially if you are running on a budget. Some brokers allow as low as $1 in investment entry threshold. Others go as high as $100 as the minimum entry threshold.
Reviews
While some brokerage platforms do not support reviews, you may need to read reviews of preferred traders on independent platforms for the best decision. If your search for independent review is fruitless, as discussed earlier, TU experts strongly recommend copying from traders with several copiers. The higher the copier, the better.
How you can earn money on copy tradingSummary
Mastering the art of trading financial markets is a hard nut to crack. Copy trading provides ample opportunity for inexperienced traders to copy trading patterns from established professionals with proven track records of success.
Several factors, including a number of copiers, regulation, network scale, and terms and conditions, must well be considered before selecting the best copy trading platform in South Africa.
FAQ
Is it illegal to use Copy Trading services of Brokers?
Generally, copy trading platforms are legal and regulated in most countries. This is to prevent fraud and ensure fair play.
Is Copy Trading suited for beginner traders?
Trading financial markets requires great technical and analytical skills, which beginner traders may lack. It is best they settle for copy trading as it requires less technical and analytical skills.
What is the best copy trading platform in South Africa?
There are several copy trading platforms in South Africa. The best ones include RoboForex, eToro, Tickmill, FXTM, InstaForex, Avatrade, FBS and Pepperstone.
Do traders pay tax in South Africa?
Profits from trading are considered personal income. Hence traders are liable to pay tax.
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Team that worked on the article
Glory is a professional writer for the Traders Union website with over 5 years of experience in creating content in the areas of NFT, Crypto, Metaverse, Blockchain, or Web3 in general. Over the last couple of years, Glory has also traded on different cryptocurrency and NFT platforms including Binance, Coinbase, Opensea, and others.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO).