Forex Prop Firms that Allow Copy Trading
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If you're too busy to read the entire article and want a quick answer, the best Forex prop firms that allow copy trading is Hola Prime. Why? Here are its key advantages:
- Is legit in your country (Identified as United States
) - Has a good user satisfaction score
- Аdvanced risk management tools
- Profit split can be increased to 90%
Top 5 prop firms with copy trading are:
- Blue Guardian Capital - Minimum trading limits (no min trading days, copiers and martingale allowed)
- Ment Funding - Instant funding for successful traders with up to 80% profit share
- PipFarm - Offers flexible profit-sharing and evaluation plans for forex and crypto traders
- FundedNext - Beginners-friendly offers (free trial, trade copier software is allowed)
- Lark Funding - Provides forex and crypto funding with instant funding and growth opportunities
The trading landscape is ever-evolving, with new strategies and technologies constantly reshaping the industry. One of the most exciting developments in recent years is copy trading, which allows traders to automatically mirror the trades of successful investors. This approach enables traders to leverage the expertise of top performers to enhance their own trading results.
While copy trading has been popular on retail trading platforms, it's now making its way into the realm of proprietary trading firms—a rare and intriguing trend.
Do prop firms allow copy trading?
In proprietary trading firms (prop firms), copy trading is a nuanced feature designed to enhance efficiency and risk management within the firm. Here’s a breakdown of how copy trading typically works in prop firms:
Internal Copy Trading
Closed Ecosystem: Prop firms generally operate within a closed ecosystem. Traders can copy trades between their own accounts, but copying trades between different traders’ accounts is usually not allowed. This helps maintain the integrity and confidentiality of trading strategies.
Master and Slave Accounts: Copy trading setups often involve a master account (the source of trades) and multiple slave accounts (the recipients of copied trades). When a trade is executed in the master account, it is automatically replicated in the slave accounts. This setup is particularly useful for managing multiple accounts efficiently and ensuring consistent application of strategies across accounts.
Trade Automation: The process is automated, which reduces manual errors and saves time. It allows traders to focus more on strategy development and market analysis rather than on repetitive trade executions across accounts.
Best prop firms that allow copy trading
| Copy trading is supported | Funding Up To, $ | Profit split up to, % | Min. Price, $ | Instruments | Open account | |
|---|---|---|---|---|---|---|
| Yes | 2 000 000 | 85 | 50 | Currency pairs, cryptocurrencies, indices, commodities, and gold | Open an account Your capital is at risk. |
|
| Yes | 5 000 000 | 90 | 250 | Forex, metals, indices, and oil | Open an account Your capital is at risk.
|
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| Yes | 600 000 | 95 | 50 | Currency pairs, cryptocurrencies, indices, oil and metals | Open an account Your capital is at risk.
|
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| Yes | 4 000 000 | 95 | 32 | Currencies, indices, cryptocurrencies, commodities and futures | Open an account Your capital is at risk. |
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| Yes | 600 000 | 90 | 60 | Forex, indices, cryptocurrencies, metals | Open an account Your capital is at risk.
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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
- Cons
- 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.
- 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.
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.
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.
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:
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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).
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.
Cryptocurrency is a type of digital or virtual currency that relies on cryptography for security. Unlike traditional currencies issued by governments (fiat currencies), cryptocurrencies operate on decentralized networks, typically based on blockchain technology.
An investor is an individual, who invests money in an asset with the expectation that its value would appreciate in the future. The asset can be anything, including a bond, debenture, mutual fund, equity, gold, silver, exchange-traded funds (ETFs), and real-estate property.
Swing trading is a trading strategy that involves holding positions in financial assets, such as stocks or forex, for several days to weeks, aiming to profit from short- to medium-term price swings or "swings" in the market. Swing traders typically use technical and fundamental analysis to identify potential entry and exit points.
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.
