Is copy trading legal in my country?

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.

Is copy trading a scam?

Copy trading is not a scam, as traders can actually earn by copying professional traders. However, some regulators point out that the brokers don’t always disclose to the investors the full list of information about the important peculiarities of copy trading. For copy trading, we recommend that you select brokers with reputable regulatory oversight countries: the traders should choose a platform that is regulated in one of the following developed countries: the UK (FCA), Cyprus (CySec), and Australia (ASIC).

Is copy trading allowed in my country?

Copy trading is legal since there are no legal barriers when the platform shares information, opinions, and trading signals. On the other hand, the investor agrees to the terms and conditions of the provider.

The only possible issue is if your broker is illegal. In several countries, copying is legal. Nonetheless, it would be beneficial if you were familiar with the regulations in your nation that govern the status of copy trading. In the USA, copy trading is legal without restrictions.

If you continue copy trading with an illegal broker, the legitimacy eventually becomes a flaw. Consequently, a broker that adheres to the law is your best choice for accomplishing everything without interruption. Additionally, you might lose money if you do business with dishonest dealers or brokers.

How to choose the best copy trading platform?

Choosing the best copy trading platform can be tricky, hence, the Traders Union has listed some tips below:

Reputation and regulation

Reputation is the primary aspect to consider while selecting a copy trading platform. A copy trading platform with a solid track record and a lengthy history on the market will ensure your success and the safety of your assets. You will base your selection on the customer reviews and ratings of this service provider.

Leading copy trading platform

With the right broker, it's easy to trade on a wide range of markets through online platforms and mobile devices. You want a provider with a reputation for innovative leadership in the industry. With the right broker, it's easy to trade on a wide range of markets through online platforms and mobile devices. The finest platforms are those that are always seeking to improve their competitiveness.

Commissions and fees

It is essential to understand how competitive your provider's prices are. The market's variety of providers is matched by a range of fees and costs. Most experienced copy traders make it a point to ensure that the fees they are being charged are transparent.

Payment methods and customer support

When a broker offers a variety of financing options, trading is simplified and made more comfortable. Reliable funding options facilitate a seamless trading experience and procedure. Bank transfers, credit cards, PayPal, Skrill, Payoneer, and Neteller are all common ways to add money to an account. Before committing, you would need to investigate the amenities permitted by your preferred platform.

Additionally, your broker's customer service is a strong predictor of a good copy trading experience. Customer service can cover a variety of support services, including product or service training, installation, cancellation, upgrading, and troubleshooting. These services can ensure proper copy trading platform usage and improve your experiences.

Most brokers offer phone answering services, email customer care help, and live chat support as channels of communication.

Educational resources

Educational resources and tutorials help a beginner copy trader learn and trade better. Before finalizing a copy trading platform, you must check its educational support. The best copy trading platforms provide their traders with a wide range of learning materials.

Best copy trading platforms

RoboForex CopyFx

RoboForex Review

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Your capital is at risk.

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.

eToro

eToro Review

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eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

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.