Copy trading platforms with the best trading conditions
Copy trading platforms have gained a lot of popularity lately. It gives new traders a chance to make money off of the successes of more experienced traders instead of losing money. In this article, we will discuss all about copy trading platforms and give tips for choosing the best platform.
The TU has listed the top copy trading platforms below:
RoboForex - best social copy trading platform
eToro - best for Forex copy trading in US
Prime XBT - crypto copy trading platforms
AvaTrade - leading trading platform offering social and copy trading services
InstaForex - sensible leverage availability
FXTM - one of the most popular copy trading platforms
What is a copy trading platform?
Copy trading gives novice traders the chance to duplicate positions taken by experienced traders. Since it offers new opportunities to everybody interested in the financial markets, brokers can quickly raise their turnover.
Successful and experienced traders can continue to earn money by trading on their accounts on a weekly or monthly basis, but novice traders, less experienced traders, those who don't want to trade, or anyone else who finds it challenging to make profits can copy the positions of the successful traders.
Copy trading's main benefit is that it lets other people do the hard work of researching financial markets. This makes it easy to manage your copy account and keep track of how it's doing, even from a mobile device.
Either proprietary software or third-party platforms offer copy trading. Additionally, some brokers provide networking opportunities and research resources, such as TradingView or Telegram.
Social Trading Platform: What It Is and How Does It WorkTop copy trading platforms in 2024
The TU has listed the top copy trading platforms below:
RoboForex
eToro
Prime XBT
AvaTrade
InstaForex
FXTM
RoboForex CopyFx
RoboForex is a well-known copy trading platform that caters to many traders and is regulated by Belize (IFC).
RoboForex users like it because it is easy to use and has useful analytics for traders. It also has a low minimum deposit which makes it affordable. It has a $10 minimum investment, it has a significant network size of 1400 strategy providers. RoboForex takes a commission on all trades that go well, and the average commission is 40%.
RoboForex offers a social copy trading platform that serves as an affiliate scheme. You might get a partner commission if you send new members to the strategy provider.
But there are problems with using Roboforex. The filters aren't very good, and the commissions are expensive, which makes traders less likely to use them. Also, the broker is registered with a business that is based outside the country, which makes potential traders suspicious.
Read more about Copy Trading on RoboForexeToro
With the help of eToro's user-friendly interface, traders may copy the trades of investors across more than 2300 assets, including Forex, exchange-traded securities, well-known cryptocurrencies, and CFDs. eToro, which was established in 2007 and is licensed in two Tier-1 and one Tier-2 jurisdiction, is a reliable broker for trading CFDs and Forex. More than 12,000,000 traders use the eToro trading platform.
The integration of self-directed trading and copy trading into a single trading experience is its main innovation. With eToro, you can build a portfolio based on cryptocurrencies, buy and sell well-known stocks and ETFs, set up a meeting with your investors, and more. You can open one of four types of accounts on eToro with a $50 minimum deposit: a standard account, a micro account, an Islamic account, or a VIP account.
eToro is available on Web, mobile, and tablet apps, and its advantages are that it covers a large range of trading assets, has a cutting-edge platform, and is a highly regulated broker (CySEC, FCA, and ASIC). But eToro has some problems, like spreads that are a bit higher than usual and not having the MetaTrader platform.
Read more about Copy Trading on eToroPrimeXBT
With PrimeXBT Copy Trading, you can follow the most successful traders to learn from them and benefit from their experience. With PrimeXBT, copy trading is quick, simple, and doesn't require any prior trading knowledge.
PrimeXBT gives you access to many markets for copy trading, such as Forex, cryptocurrencies, stock indices, and commodities. You can also use the PrimeXBT mobile app to check your trading account and keep track of your trades no matter where you are.
Best Crypto Copy Trading PlatformsAvaTrade
AvaTrade is a well-known FX and CFD broker that has been around since 2006. It is regulated in three tier-1 and tier-2 jurisdictions. AvaTrade is not a low-cost trading platform in terms of commissions. Its proprietary trading platforms include MetaTrader, DupliTrade, and ZuluTrade.
Because it provides its traders with negative balance protection, AvaTrade is the better option. It has locations all around the world in different nations. In many places, it is regulated by some of the most trusted financial and foreign exchange trading bodies. Its demo account can only be used for 21 days, which is a downside for many traders. Additionally, AvaTrade levies large inactivity fees, which deter casual traders.
Read more about AvaTrade Copy TradingInstaForex
InstaForex debuted in 2007. InstaForex EU follows all European laws and is regulated by CySEC. One thing that draws traders to InstaForex is that they offer a reasonable amount of leverage. The EU's rules on Forex trading for retail clients are reflected in the maximum leverage limit, which is set at 1:30.
Depending on the account, the minimum deposit for InstaForex is $100, and the company prefers MetaTrader4 or MetaTrader5. Also, InstaForex has an app called Forex Portal that has analysis, real-time quotes, trading signals, and other useful information. Additionally, they provide the Forex Courses App, which has been beneficial for novices.
Read more about InstaForex Copy TradingFXTM
FXTM Invest is one of the most well-known copy trading platforms and a global ECN broker. It is actively present in the African and Asian markets. FXTM has different kinds of accounts, such as the Invest service, which requires a $100 deposit.
The ability to access all of your trading accounts from one location while trading more than 250 financial CFD products on the go is one of FXTM's core advantages. Trading between your phone and PC is supported by FXTM. This gives you access to real-time prices and live price updates.
Read more about FXTM copy tradingHow to choose a copy trading platform?
It is essential to choose the right trading platform. Below is a list of tips that you should look out for when choosing a copy trading platform:
Reputation
Your success and the security of your money are guaranteed by a copy trading platform that has a solid reputation and has been around for a while. Your choice will be influenced by the testimonials and ratings left by previous traders.
Leading provider of signals
You want a trading platform that has a reputation for being innovative. If you work with the right provider, you can easily access a number of marketplaces and do business using your phone and an online trading platform. The best signal providers are those who are always looking for ways to get ahead of their competitors.
Commissions
Knowing how competitive the prices charged by your provider are is crucial. A range of fees and dues are associated with the different providers on the market. The majority of professional copy traders make it a point to be transparent about the fees charged by their signal provider.
Payment methods
It is convenient when the copy trading platform has multiple payment methods, as it makes the process smooth. Payment methods include bank transfers, PayPal, credit cards, Payoneer, etc. It is important that you research the payment methods offered by the platform before committing to them.
Best Forex Copy Trading BrokersIs copy trading profitable?
Copy trading can be profitable, and below, the Traders Union has listed some tips to make copy trading profitable for you:
Choose an appropriate trader to follow as you make profits only if they make profits.
Diversify your portfolio by investing in different markets and copying the strategies of multiple traders.
Avoid taking excessive leverage as it can amplify your losses.
Be disciplined and stick to your investment plan rather than making hasty decisions.
Keep a close eye on the investments and make any changes that are necessary in case the strategy is not performing well.
FAQ
What are the drawbacks of copy trading?
It can be difficult to find a reliable trader whose strategies you can copy, and there is no guarantee that an experienced trader's past successes will pay off the same way in the future.
Is copy trading suitable for beginners?
Copy trading is beneficial for beginners because they have limited knowledge and can simply follow experienced traders' strategies to achieve success instead of investing time and effort into studying the market.
How to become a copy trader?
To become a copy trader, you must join a trading platform of your choice, deposit the minimum amount as per the requirements of the trading platform, and copy the trades of traders in real-time.
Is copy trading legal?
Copy trading is legal in most countries; however, it is best that you research the laws and regulations pertaining to the country the broker belongs to.
Is it safe to copy trade?
Copy trading is safe, as traders do not have access to your trading funds, so they can not get a hold of it and disappear.
Glossary for novice traders
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1
Broker
A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.
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2
Trading
Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.
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3
Copy trading
Copy trading is an investing tactic where traders replicate the trading strategies of more experienced traders, automatically mirroring their trades in their own accounts to potentially achieve similar results.
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4
CFD
CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.
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5
Leverage
Forex leverage is a tool enabling traders to control larger positions with a relatively small amount of capital, amplifying potential profits and losses based on the chosen leverage ratio.
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Team that worked on the article
Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.
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).