Forex Prop Firms that Allow Copy Trading
The best prop firm with copy trading - Fidelcrest
Top 3 prop firms with copy trading are:
Fidelcrest: Instant account delivery and the ability to manually copy trades.
Glow Node: Copy trades from external traders for enhanced trading strategies.
The Trading Capital: Utilize EAs, trade copiers, and hold trades over weekends.
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5.7
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5.28
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6.68
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The world of trading is continually evolving, with innovative strategies and technologies emerging regularly. One such development revolutionizing the industry is copy trading - the ability for traders to automatically replicate successful investors' positions. By tapping into the knowledge and experience of top performers, copy trading offers traders a powerful way to potentially magnify returns. Previously seen mainly on retail trading platforms, copy functionalities are now being adopted by some proprietary trading firms as well. Props that facilitate copying provide added opportunities for traders to boost their skills and profitability.
This article explores the rising trend of incorporating copy capabilities within prop firms. We analyze platforms that allow copying between accounts. The benefits and limitations of this strategy will also be weighed.
Key points from the article
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Potential pros of copy trading include diversification, time savings, and accessing a variety of trading strategies. Cons can be correlated losses and technical limitations.
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Fidelcrest allows traders to manually copy trades between their own challenge accounts on the platform, up to a cumulative balance of $2 million. Trades of other professional traders can also be copied. They also offer instant account delivery.
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Glow Node enables traders to copy positions from external traders outside the firm to enhance strategies. However, copying within the firm is prohibited.
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The Trading Capital provides flexibility to use tools like EAs, trade copiers, and hold positions over weekends when copying trades.
Do prop firms allow copy trading?
Proprietary trading firms, also known as prop firms, typically focus on employing traders who use their own strategies and expertise to trade the firm's capital. The primary goal of prop firms is to generate profits for themselves rather than facilitating copy trading or allowing outside individuals to copy their traders' trades. Copy trading, on the other hand, involves replicating the trades of other traders automatically or manually.
However, some prop firms do have proprietary trading platforms or systems that allow traders within the firm to share and copy trades internally, it is unlikely that they would extend this functionality to external individuals. Prop firms usually operate as closed entities, with their traders following their own strategies and maintaining a level of confidentiality regarding their trading activities.
If you are interested in copy trading, you would typically need to look for platforms or brokers that specifically offer copy trading services. These platforms often allow you to connect with and copy the trades of experienced traders, either manually or automatically. It's important to research and choose a reputable and regulated platform if you decide to engage in copy trading.
Best prop firms that allow copy trading
Fidelcrest
Fidelcrest is a globally recognized Forex trading firm headquartered in Nicosia, Cyprus. With its commitment to providing skilled Forex traders with the necessary resources and opportunities, Fidelcrest stands out as one of the best prop firms in the industry. The firm has recently introduced copy trading, so traders can now manually copy their own trades if they have multiple challenge accounts with Fidelcrest. This allows traders to leverage their successful trading strategies across different accounts. Additionally, traders can benefit from the expertise of other professional traders by copying their trades. However, it is important to note that the cumulative balance of all accounts should not exceed $2,000,000 to maintain compliance with the firm's guidelines.
One of the key features that sets Fidelcrest apart is its instant and automatic account delivery upon purchase. This efficient process ensures that traders can quickly access their accounts and start trading without any delays. Another standout offering from the firm is its profit-sharing structure. Traders who successfully pass the Phase 2 exam are rewarded with a 40% profit share. This arrangement motivates traders to excel in their trading activities and strive for profitability. Additionally, Fidelcrest recognizes the needs of newer traders by offering low funding options. This allows traders with limited capital to access the markets and potentially grow their accounts.
In terms of trading flexibility, Fidelcrest imposes a minimum trading requirement of 10 days. This ensures that traders have sufficient time to engage in the markets and demonstrate their trading abilities. Moreover, Fidelcrest enables traders to engage in news-based trading, which can be advantageous in capturing market movements driven by significant news events.
Glow Node
Glow Node is a proprietary (prop) firm known for its comprehensive account options and attractive profit-sharing structure. The firm offers three account types: 2 Phase Evaluation, 1 Phase Evaluation, and Instant Funding. With an impressive profit split of 80% (which can be increased up to 90% during scaling), Glow node provides traders with the potential to earn substantial profits. This generous profit-sharing arrangement motivates traders to perform at their best and strive for profitability.
While Glow node offers copy trading options, there are specific guidelines and restrictions in place. Traders are allowed to copy trades from external traders outside of the firm. This feature enables traders to access and benefit from the successful strategies of other traders. However, traders are prohibited from copying trades within the firm, including their own accounts. This restriction ensures that traders maintain independent trading activities and avoid any potential conflicts of interest.
Another thing to consider, Glow node's accounts are scalable, meaning that traders can receive initial funding ranging from $10,000 to $200,000. The specific amount of initial fees depends on the account type and balance. It is worth noting that the minimum fee of $99 is refundable upon successful trading, further demonstrating the firm's commitment to supporting traders' success.
The Trading Capital
The Trading Capital is a prominent prop firm based in Canada that has gained recognition for its restructured account options and partnership policy. The firm offers traders the flexibility to use expert advisors (EAs), trade copiers, and engage in news trading. These features enable traders to optimize their trading strategies and potentially enhance their trading outcomes. Additionally, traders have the freedom to hold trades over the weekend, allowing them to capture potential market movements during non-trading days.
In 2021, The Trading Capital introduced a universal account, replacing multiple account types. Traders now have the flexibility to choose from balance options of $50,000, $100,000, $200,000, or $500,000, based on their trading preferences and capital requirements. Further, only since recently, traders now receive 85% of the net profit from the first day of live trading. This generous profit-sharing structure allows traders to retain a significant portion of their trading profits, providing them with the motivation to excel in their trading activities.
Pros and cons of copy trading
While copy trading between your own accounts in a prop trading company may not be a common practice, it's still worth considering the potential advantages and disadvantages.
Here are some pros and cons to consider:
👍 Pros
•Diversification. Copy trading between your accounts allows you to diversify your trading strategies and risk across multiple accounts. You can allocate different strategies or risk levels to each account, which can help manage overall risk and potentially increase the chances of overall profitability.
•Efficiency. Copying trades between accounts can save time and effort, especially if you are executing the same trades in multiple accounts. Instead of manually entering trades in each account, you can simply copy the trades from a master account to save time and reduce potential errors.
👎 Cons
•Risk of Loss. While diversification can mitigate risk to some extent, it does not guarantee profits. If the master account incurs losses, all the copied accounts will be affected as well. If the master account is not performing well or the trading strategy is flawed, it can result in losses across all linked accounts.
•Technical Limitations. Depending on the platform or software used for copy trading, there may be technical limitations or delays in executing trades across multiple accounts. It's important to ensure that the technology supporting the copy trading process is reliable, efficient, and properly synchronized.
Remember, the availability and feasibility of copy trading between accounts in a prop trading company will depend on the specific policies and practices of the company. It's recommended to consult with the prop trading firm directly to understand their rules and whether copy trading between accounts is permitted.
Methodology for compiling our ratings of prop firms
Traders Union applies a rigorous methodology to evaluate prop companies using over 100 quantitative and qualitative criteria. Multiple parameters are given individual scores that feed into an overall rating.
Key aspects of the assessment include:
Trader Testimonials and Reviews. Collecting and analyzing feedback from existing and past traders to understand their experiences with the firm.
Trading instruments. Companies are evaluated on the range of assets offered, as well as the breadth and depth of available markets.
Challenges and Evaluation Process. Analyzing the firm's challenge system, account types, evaluation criteria, and the process for granting funding.
Profit Split. Reviewing the profit split structure and terms, scaling plans, and how the firm handles profit distributions.
Trading Conditions. Examining leverage, execution speeds, commissions, and other trading costs associated with the firm.
Platform and Technology. Assessing the firm's proprietary trading platform or third-party platforms it supports, including ease of use, functionality, and stability.
Education and Support. Quality and availability of training materials, webinars, and one-on-one coaching.
What are the benefits of prop trading?
Access to cutting-edge technology: Proprietary trading firms heavily invest in advanced trading platforms, tools, and analytics, providing traders with state-of-the-art resources. This technology enables traders to execute trades swiftly, accurately, and with reduced risk.
Access to capital: Adequate capital is crucial for traders to maximize their potential profits. Prop firms address this challenge by granting traders access to their capital, allowing them to trade large positions and seize profitable opportunities.
Competitive commission rates: Prop firms offer competitive commission rates, which translates to cost savings for traders. Lower commission rates increase traders' profit margins and contribute to their overall trading success.
Networking opportunities: Joining a prop firm creates valuable networking opportunities for traders. Interacting with like-minded professionals fosters collaboration, knowledge sharing, and the potential for new business ventures. Establishing relationships within the trading community can enhance a trader's overall market insights and growth prospects.
Time-saving: Copy trading, a feature offered by prop firms, saves traders significant time. Instead of spending hours developing their own trading strategies, traders can simply select successful traders to copy and allow the platform to handle the rest. This time-saving advantage enables traders to focus on other important aspects of their trading activities.
Diversification: Copy trading facilitates portfolio diversification for traders. By copying trades from successful traders who specialize in different currency pairs, traders can broaden their exposure to various markets and potentially mitigate risk through a well-diversified portfolio.
Glossary for novice traders
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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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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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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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Prop trading
Proprietary trading (prop trading) is a financial trading strategy where a financial firm or institution uses its own capital to trade in various financial markets, such as stocks, bonds, commodities, or derivatives, with the aim of generating profits for the company itself. Prop traders typically do not trade on behalf of clients but instead trade with the firm's money, taking on the associated risks and rewards.
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Diversification
Diversification is an investment strategy that involves spreading investments across different asset classes, industries, and geographic regions to reduce overall risk.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
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).