Best copy trading platforms in Portugal 2024
The best copy trading platforms in Portugal - eToro (Copy Trader)
Best copy trading platforms in Portugal 2024:
eToro (Copy Trader) - overall best copy trading platform.
RoboForex (CopyFx) - best copy trading platform for beginners and professional traders.
Tickmill - best analytical instruments for Forex trading and copy trading.
IC Markets - provides traders with 3 supported social trading networks with extra low fees.
AvaTrade (AvaSocial) - best copy trading app for novice traders.
Have you ever wanted to get in on a hot trading opportunity but didn't have the experience or time to research the markets yourself? Copy trading may offer a solution. This emerging investment strategy allows investors in Portugal and beyond to access the trades of experienced traders almost immediately. Simply by choosing top performing traders and mirroring their moves, you can potentially tag along for profits without developing your own analysis. Of course, nothing is risk-free. In this guide we break down how copy trading works, the best platforms available in Portugal, and important factors to consider such as taxes and risk level.
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What are the risks of copy trading?
As with any investment, copy trading carries risk of loss. You're relying on others' decisions and market forces outside your control.
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How do I find traders to copy?
Platforms typically let you filter by metrics like returns, risk level, assets traded, history and more. Look at performance over time, not just short-term gains.
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How much money do I need to get started copy trading?
Requirements vary but most platforms allow starting with as little as $100-500. Consider deposit amounts that you're comfortable potentially losing.
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How can I diversify my portfolio when copy trading?
Copy a variety of traders across different market sectors, geographies and strategies.
Copy trading platforms in Portugal - Comparison
Minimum Deposit |
Markets |
||
|---|---|---|---|
eToro (Copy Trader) |
$200 |
US Stocks, Forex, Crypto, ETFs |
|
RoboForex (CopyFx) |
$100 |
Over 12.000 assets Forex, stocks, ETFs, crypto |
|
Tickmill |
$100 |
Forex, Stocks, Crypto, Bonds |
|
IC Markets |
$200 |
Forex, CFDs, commodities, Crypto, Stocks, Bonds |
|
AvaTrade (AvaSocial) |
$100 |
Crypto, Forex, Stocks, ETF, Bonds, commodities, and CFDs |
1 eToro
eToro is a multi-asset investment platform that offers market analysis, comprehensive tools, and impressive copy-trading capabilities. Through the eToro CopyTrader feature, users can explore the profiles of successful traders and copy their trades. eToro also offers CopyPortfolios, which group assets based on a specific market approach, providing diversified investments. The platform has a user-friendly interface, educational resources, and innovative trading tools.
👍 Pros
• Well-regulated platform
• User-friendly interface and copy trading features
• Innovative trading tools
👎 Cons
• Limited educational resources
• Wide spreads resulting in higher trading costs
2 RoboForex
RoboForex's CopyFX is an investor-friendly platform that allows users to copy the trading strategies of professional traders without needing prior experience. With complete control over their investments, users can subscribe to professional traders, copy their transactions, and benefit from the Forex market. The platform offers user-friendly tools and a transparent interface, making it an excellent opportunity for both investors and traders. You may also be interested in reviews about RoboForex from clients in Portugal.
👍 Pros
• Convenient tools for investors
• Transparent trading control
• Options for Traders on Profits/Commissions
• All-in-one trading account
👎 Cons
• Limited filters
• High commissions
• Registered offshore
3 Tickmill
Tickmill is a platform that offers various analytical instruments for Forex trading and copy trading. It partners with MyFxBook to provide copy trading services, and users need accounts on both platforms. Tickmill has a high entry threshold for copy trading, with a minimum investment of $1,000. The platform is licensed by respected regulators such as FCA, CySec, and FSCA, ensuring safety and regulation.
👍 Pros
• Partnered with MyFxBook for copy trading services
• Licensed by respected regulators
👎 Cons
• High entry threshold for copy trading
4 IC Markets
To copy trades with IC Markets, users can link their account to ZuluTrade, an innovative copy trading platform that allows duplication of successful traders' positions. With over 90,000 signal contributors, ZuluTrade provides access to a wide range of traders worldwide. The platform offers advanced features like ZuluGuard for capital protection and a user-friendly interface. Additionally, Myfxbook Autotrade allows traders to copy trades directly into their MT4 account.
👍 Pros
• Fast and easy connection with top brokers
• All-in-one trading account
• Dedicated crypto copy trading area
👎 Cons
• ZuluRank algorithm could be improved
5 AvaTrade
AvaTrade is another leading trading platform offering social and copy trading services. The platform provides secure investments with high regulations, including the Central Bank of Ireland and ASIC. Users can access the AvaSocial mobile trading platform to copy top traders easily. With collaboration with top copy trading providers like ZuluTrade, DupliTrade, and MQL5, users gain access to thousands of signal providers and investors.
👍 Pros
• User-friendly mobile social trading platform
• Collaboration with top copy trading providers
• Wide range of instruments and markets
👎 Cons
• High minimum deposit
Rules and Regulation
Licensing in Portugal
Forex trading in Portugal is governed by strict regulatory measures enforced by the Portuguese Securities Market Commission (CMVM) and the Bank of Portugal (BdP). These regulatory bodies oversee and supervise Forex trading activities to maintain market integrity, ensure compliance with established regulations, and safeguard the interests of investors.
Investor protection in Portugal
The CMVM regulations in Portugal are designed to protect investors engaged in Forex trading. By promoting transparency, accountability, and fair practices in the Forex market, these regulations aim to enhance investor confidence and trust in the financial system. Through ongoing supervision and enforcement actions, the CMVM works to prevent fraudulent activities and market abuses, thereby providing a secure trading environment for investors.
Taxation in Portugal
Profits generated from Forex trading activities are subject to capital gains tax in Portugal. The applicable tax rates range from 28% to 35%, depending on the total amount of profit earned by the trader. It is important for Forex traders in Portugal to adhere to tax regulations and fulfill their tax obligations to avoid any legal issues and penalties.
What is copy trading?
Copy trading is an increasingly popular kind of social trading. This strategy allows new traders to either automatically or manually copy the trades of professional traders on the Forex and other financial markets.
In 2010, eToro was the first major broker to provide a copy trading platform. The creators combined the features of a social network for traders with a platform for copying trades.
Modern copy trading platforms have features that let users subscribe to traders and start copying their trades, either with a small amount of money or their whole account balance. Each position created by the copied trader, including stop-loss and take-profit orders, is immediately executed on the account of the copier. It is also possible to generate a portfolio analogue from multiple signal providers.
How to choose a copy trading broker in Portugal
When selecting a copy trading broker in Portugal, it is essential to consider the following factors:
Reliability and regulation: ideally, the platform should be regulated by official bodies of developed countries and regions, such as the UK (FCA), European Union (CySEC), or Australia (ASIC)
Trading conditions: It’s important to consider the commissions charged, diversity of trading instruments, and the order execution quality.
The scale of the network: The size of the network is a major factor in terms of social trading, as it provides more opportunities to investors and managers.
Transparency: All statistical data of the managers ought to be available for an independent audit.
Technological effectiveness of the platform: The best platforms offer in-depth settings for selection of traders and risk management criteria, which helps to improve chances for success.
Considering all of these factors goes a long way to making sure the right broker is chosen for the trader’s specific needs.
Is copy trading legal in Portugal? Is it safe?
Forex copy trading is legal in Portugal. The Portuguese Forex market is comparatively small, but it is one of the more competitive markets in Europe.
Forex brokers are not required to become authorized by the Comissão do Mercado de Valores Mobiliários (CMVM) to accept residents of Portugal as customers, but it is recommended.
Copy trading, like any investment method, involves inherent risks. Its safety largely depends on the platform's credibility, the traders you choose to copy, and market conditions.
While reputed platforms employ security measures to protect user data and funds, there's no guarantee of returns in trading. It's essential to do thorough research, select trustworthy platforms, diversify among multiple traders, and be cautious with investments.
Always invest what you can afford to lose and stay updated on market trends and the performance of the traders you're copying.
Should I pay copy trading taxes in Portugal?
Taxes are an important factor to consider when investing in copy trading in Portugal. In short - yes, traders who make profits with copy trading, as well as any Forex trading do need to pay taxes. Portugal has a 28% capital gains tax, though it is always advisable to seek professional advice in order to determine your tax obligations and how to pay such taxes.
It is also important to keep track of payments and other related documents in order to avoid any penalties or legal issues.
How much can I earn?
Your earnings as a copy trader can depend on various factors. As a beginner, you will find it difficult to copy the trades of professional traders, hence, you may end up making low earnings. However, after choosing and copying professional traders, you might earn more.
Usually the best professional traders can make from 5% to 30% per month, however such a range is not constant. Remember that the risk of loss remains in any kind of investment.
Is Forex copy trading risky?
Forex copy trading can be a high-risk investment, and investors should carefully consider the associated risks before entering into any such transactions. The risks associated with copy trading include market volatility, the possibility of financial loss, and the reliance of the investor on the performance and skill of the trader they copy.
The trader chosen to copy is also a major variable in copy trading, as a poor choice can result in significant losses. The broker chosen is also important, as the fees and services will vary between brokers.
The amount invested should also be considered, as investing too much can lead to greater losses in the event of the trader's underperformance. Additionally, the investor should keep their expectations in check, as there is no guarantee of success and they should not expect large returns from copy trading.
It is also a good idea to diversify investments, which can help to reduce risk. Selecting a portfolio of several traders allows the investor to spread the risk and limit their losses. Setting a maximum drawdown limit can also help, as it can ensure to prevent large losses if the market turns against the traders.
In short, copy trading can be a high-risk investment, and investors should carefully consider the associated risks before entering into any such transactions. It is important to select the right broker and trader, invest a reasonable amount, keep expectations in check, and diversify investments to mitigate the risk of loss.
How can I find good traders to copy?
Copy trading streamlines the investment process, enabling you to automatically mimic the trading moves of seasoned investors. The question becomes, how to pinpoint the ideal trader to follow?
Let's take eToro as our reference. Being a premier platform in the copy trading space, choosing traders on eToro is pivotal for positive outcomes. Here's a strategy to guide your choices:
Start with filters: Before signing up on eToro, explore different filters under the 'Top Markets' section. By selecting 'Copy People', you'll get an expansive view of potential traders to mirror.
Explore past performance: While it should be noted that previous outcomes don't guarantee future performance, diving into a trader's past can offer insightful cues. Target those who've consistently shown good financial results over a considerable time frame, e.g. one to two years. For example, a filter highlighting traders with over 10% gains in the last two years can refine your search.
Weigh the risk factors: Greater profits might entail greater risks. Seek a sweet spot between prospective returns and risk. eToro's unique risk assessment tool can be handy here. You can classify traders based on risk scales: low (0-2 points), medium (3-6), or high (above 6). Typically, it's wise to assign a lesser portion of your funds to those with more aggressive tactics.
Prioritize stability and risk-reward balance: After vetting for performance and danger, opt for traders who excel in balancing both. Advanced metrics like 'Performance-Risk Score' can guide you to traders with commendable risk profiles and consistent positive outcomes.
Inspect trader profiles and portfolios: Before finalizing, head to the trader's profile to study their metrics and asset distribution. This offers a deeper understanding of their trading approach, chosen assets, and portfolio diversity.
Measure trader popularity: The count of a trader's followers can hint at their reliability. A vast audience often speaks volumes about their prowess. Tread carefully with those boasting minimal followers, as it might signal potential concerns.
Think about diversified portfolios: Alternatively, eToro curates portfolios blending assets from a range of top traders. While promising, they generally demand a steeper initial commitment, starting at $5,000.
Summary
Copy trading can be an effective way to invest in the financial markets. It allows traders to access the strategies of experienced traders and copy their trades.
In Portugal, there are numerous copy trading platforms that offer a variety of features and benefits. When selecting a copy trading broker in Portugal, traders should consider their experience level, the features offered, and the fees.
Additionally, traders should be aware of the potential risks associated with copy trading, and should seek out experienced traders to copy.
Ultimately, copy trading can offer an efficient way to enter and grow in the financial markets, but it is important to research and understand the associated risks and rewards before investing.
Team that worked on the article
Vuk stands at the forefront of financial journalism, blending over six years of crypto investing experience with profound insights gained from navigating two bull/bear cycles. A dedicated content writer, Vuk has contributed to a myriad of publications and projects. His journey from an English language graduate to a sought-after voice in finance reflects his passion for demystifying complex financial concepts, making him a helpful guide for both newcomers and seasoned investors.
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).