Home Forex Brokers Best Copy Trading Platforms and Strategies

Best Copy Trading Platforms and Strategies

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Copy Trading Platforms and Strategies

With the current boom in crypto and other instruments, the financial markets have seen increasing investments from retail traders. Now, with a simple mobile phone and internet, traders worldwide can open a trading account and trade the asset of their choice. The new advancements have led individuals to copy trade from experienced traders and reap the same benefits. 

List of the best copy trading platforms for 2022

  1. TechBerry
  2. ZuluTrade
  3. FBS
  4. NAGA
  5. eToro
  6. PrimeXBT
  7. FXTM
  8. OctaFX
  9. Pepperstone
  10. HotForex

1. TechBerry

TechBerry

Features

  • Support for more than 50 verified Forex brokers.
  • 100% loss reimbursements.
  • Real-time trade monitoring
  • High earnings for both individual newcomers and pro traders.

Key takeaways

TechBerry is a social trading platform that uses Forex data from over 100,000 professional traders. It has been in operation since 2015, with an average monthly performance of 11.2 percent. The platform includes a reimbursement policy that can cover up to 100% of losses. Traders can use the service on a subscription basis, with prices starting at $19 per year.

It is possible to earn up to $500 by sharing your trade statistics with the platform. Subscribers can monitor the trades in real-time. TechBerry has partnered with more than 50 verified forex brokers such as FXCM, AVA, FxPro, etc. regulated by top-tier authorities like FCA, DFSA, ASIC, etc. 

UpsidesDownsides
High average returns of 10%Little insight on strategy
Real-time trade monitoringIntegration is only possible with MT 4/5
Full loss reimbursement
Multiple subscription plans

Best overall. Perfect for automated copy trading

2. ZuluTrade

zulutrade

Features

  • Copy top traders from brokers anywhere in the world. 
  • Portfolio management services with Combo+.
  • Includes several calculators like Margin, Pip, Profit, and Currency converter. 
  • Win rate of above 30%.

Key takeaways

ZuluTrade has been providing services since 2007 from Charlottesville, Virginia, with Tajinder Virk as the current CEO at FinVasia group.

ZuluTrade is a multi-platform service provider that offers Forex, Stocks, Crypto, Indices, and Commodities. The website is available in several languages such as English, French, Spanish, etc. The broker has extensive copy trading software that comes with the ability to backtest the performance of the desired trader. With the help of the social trading network chart, investors can witness the portfolio of multiple signal providers.

UpsidesDownsides
Extensive copy trading features No information on forex spreads
Multiple instruments available for tradingPoor learning section
Zulu guard to protect your account from drawdown
Allows backtesting

Best for: copy trading on multiple brokers

3. eToro

eToro

Features

  • Multi-asset platform with support for Stocks, ETFs, crypto, Indices, etc.
  • Over 20 million community of traders.
  • Free insurance up to 1 million EUR/GBP/AUD.
  • Smart investment portfolios that utilize machine learning and AI.

Key takeaways

eToro has been providing trading services since 2017. It keeps your funds in a segregated account, providing safety, and comes under the regulations of FCA, ASIC, CySec, GFSC, FinCen, and FINRA. You can get $100K on a demo account and trade without any risks to learn about the broker and its offerings.

eToro is a free social trading service with millions of investors in 100+ countries. You can automatically copy the moves of other investors with eToro’s CopyTrader and follow their actions in real-time. Multiple filters are available to scan out the best professional traders. 

UpsidesDownsides
Best copy trading appNo support for MT4 /5 platform
Easy sign-upNo micro or cent accounts
Zero fees on stocks
Fast execution on trades

Best for: crypto copy trading

4. FBS

FBS' homepage

Core features

  • Highest leverage of 1:3000.
  • Wide range of payment systems.
  • 24/7 customer support
  • Multiple account types

Key takeaways

FBS was launched in 2015 and currently provides services in over 150 countries. Different account options are available with the broker, such as cent, zero spread, micro, etc. FBS’s copy trading program includes one-tap investing, performance tracking, no necessity for prior market expertise, and several deposit/withdrawal methods.

FBS comes under the regulation of CySec and allows traders to trade forex, stocks, commodities, energy, and indexes. It presently supports the MT4, MT5, and FBS traders on Windows, macOS, Android, and the Web. 

UpsidesDownsides
Multiple account optionsA high spread on the standard account
A low minimum deposit of $1Trades can be subjected to slippages
Comes under the eyes of various regulators
Bonus and affiliate programs

5. NAGA

naga

Core features

  • A mobile application on iOS and Android.
  • Automatically copy experts with one tap.
  • Advanced charts and price alerts.
  • 20+ payment methods. 

Key takeaways

NAGA, founded in 2015, is a multi-asset investing app with an integrated social network that allows users to trade worldwide financial markets. Traders can invest in digital currencies and send money using their own NAGA card and payment account.

Naga has a social trading network with more than a million users. It allows you to copy trades from skilled traders with a single tap. Stocks, forex, indices, and ETFs are all supported, and a personal account manager is available for free to answer all your inquiries. You can use the web app or MT4/MT5 to access it from your phone or computer.

UpsidesDownsides
Beginner-friendly mobile applicationPerformance fees can be high for copy trading
Allows trading on numerous cryptocurrenciesLack of account options
More than 1 million traders 
Access to a personal manager

Best for: customer support

6. PrimeXBT

primexbt

Core features

  • 12+ integrated liquidity providers.
  • Earn interest on crypto up to 14% APY.
  • Deposit or withdraw funds easily at any time.
  • Available on the App Store and Google play. 

Key takeaways

At PrimeXBT, you can trade Cryptocurrencies, Stock Indices, Commodities, and Forex from a single account. The platform has been awarded as the best crypto and margin trading app. Beginners can benefit from automatically copying the best-performing strategies, and professionals can earn up to 20% of all profits by providing their settings. 

The broker executes over 12000 trades per second with an average execution speed of fewer than 7.12 milliseconds. A 14% annual percentage yield (APY) is offered on cryptocurrency investments. The webpage support multiple languages, including English, Turkish, Hindi, etc.

UpsidesDownsides
Multiple languages are available on the webpageNo support for MT 4/5 platforms
High referral commission at 50%A limited number of instruments
An intuitive dashboard
High interest in crypto investment

Best for: desktop trading

7. FXTM

fxtm

Core features

  • Trading signals about the markets.
  • Daily market analysis. 
  • Demo trading with virtual money.
  • Easy deposits and withdrawals anytime.

Key takeaways

FXTM enables you to access over 1000 instruments with global markets like forex, stocks, indices, metals, commodities, etc. You can deposit in various popular methods such as Visa, master card, maestro, bank transfer, etc. The broker has over 4 million subscribers across 150+ countries. 

Signing up is easy at FXTM, where you can start trading by registering your email, funding your account, and logging into the Meta trader platform. The knowledge-based section of the website covers all the important market details. It aims at educating beginner traders with blogs and video guides.

UpsidesDownsides
Low spreads and minimal commissionsNo dedicated copy trading section
Helpful guides for beginnersFew deposit methods
Quick sign-up
Multiple online tools are available

Best for: beginners

8. OctaFX

octafx

Core features

  • No commissions on deposits and withdrawals.
  • Multiple deposit methods, including cryptos.
  • A mobile application for IOS and Android.
  • Swap-free trading.

Key takeaways

Launched in 2011, OctaFX provides services in over 150 countries with ten million+ trading accounts. Traders can start trading on 35 currency pairs, gold, silver, three energies, ten indexes, and 30 cryptocurrencies with as little as $100 in deposits. It includes a demo account, copy trading, and other unique features to cater to the needs of all. OctaFX offers to trade on MT 4 and 5 platforms available on Desktop, IOS, Android, and the web.

OctaFX Copytrading allows you to automatically replicate top traders and eliminate the need to spend countless hours developing your own trading strategy. The platform offers various tools such as a profit calculator, monitoring, live quotes, etc. 

UpsidesDownsides
No roll over costsLimited account options
Various funding optionsRegulated by a single authority
Excellent rating on TrustPilot

Best for: swap free trading

9. Pepperstone

pepperstone

Core features

  • Spreads as low as 0.0 pips with deep liquidity and no requotes.
  • Access multiple platforms from a single account
  • 24/7 customer support and live chat option.
  • Desktop, tablet, and phone are supported.

Key takeaways

Pepperstone was launched in 2010 and currently offers free access to three platforms, including MT4, MT5, and cTrader. Over 700 products are available to trade across a wide range of asset types, including Forex, CFDs, and commodities. Most orders are processed in under 30 milliseconds, suiting scalpers and clients who run EAs. 

Traders can choose a suitable signal provider on Myfxbook, MQL 5 marketplace, and Duplitrade and link it to their Pepperstone account. The broker has razor-sharp spreads and fast customer support.

UpsidesDownsides
Good customer serviceNo personal copy trading application
Regulated by multiple authoritiesLimited account options
Supports trading on cTrader
Free deposit and withdrawals

Best for: trading with a regulated broker

10. HotForex

hotforex

Core features

  • One-Click trading allows you to execute trades instantly.
  • Free educational resources and live expert webinars.
  • Auto Transfer – instant withdrawals of funds
  • 18 trading tools and over 15 deposit options.

Key takeaways

HotForex is an award-winning forex and commodities broker that provides insurance up to 5,000,000 Euros. With no deposit fees, trades can get over 1000 trading instruments on the MT 4/5 platforms. Over 3500K accounts have been opened on the broker since 2010. The customer service is available 24/7, and investors can withdraw their funds easily anytime. The are no hidden charges or commissions. 

The broker offers four account types, and the minimum deposit starts from $100. It is regulated by several authorities globally, including Financial Conduct Authority (United Kingdom), Financial Sector Conduct Authority (South Africa), Financial Services Authority (Seychelles), etc. 

UpsidesDownsides
Low inactivity feeDoes not accept US clients
A range of trading instrumentsA high leverage of 1:1000 can be risky
Accounts with major banks
5 industry regulations

Best for: multi-asset trading 


What is copy trading?

Copy trading is the technique of copying another trader’s positions via the use of social media platforms, automated systems, and signals. Copy trading is popular among forex traders and is often used in conjunction with prominent third-party platforms, such as MT 4. There is a good chance of generating profits, but there are also certain risks to be taken into account.

Individuals may replicate another trader’s positions when they are opened or closed, either automatically or manually. Traders broadcast their positions through signals on a social network or forum, where followers may replicate their strategies.

The concept of copy trading is related to that mirror trading, except that traders replicate transactions indiscriminately rather than duplicating only the best techniques.

Copy trading involves following trades from a professional trader to generate the same results as them on your portfolio. The pro trader can charge a monthly or a performance fee for offering their positions. The concept of copy trading has gained much light amongst investors due to the developments in the fintech department. 

There are no limits in mimicking executions from other market participants. Investors can copy forex, stocks, futures, options, etc., in a blink of an eye. It potentially allows new traders to generate a handsome income on their portfolios without any financial experience. 

How does copy trading work?

There are multiple ways in which you can choose to use copy trading. Some of them are listed as follows:

  • Manual. Professional traders use social media channels such as Telegram and Whatsapp to send their trades. The receiver then copies these executions onto their account. The stop loss and profit for each position must be precisely copied to avoid any losses.
  • Copier. Forex copiers are aimed at automating your copy trading experience. This software allows traders to copy positions from multiple providers and receive them on their accounts with minimal latency. They can also tweak the stop loss, take profit, price adjustments, lot size, etc.

Other than this, traders can also invest in the PAMM accounts available with multiple brokers. Their funds are allocated to the professional trader who charges a specific performance fee agreed upon beforehand.

Is copy trading automated?

As mentioned before, the current developments in the financial and internet sectors have allowed traders to copy trade with zero delays. Some advanced systems can even copy trade scalpers that enter/exit the market for a short term.  

Can you make money with copy trading?

The profitability of copy trading will depend on the expertise of the signal provider. It is possible to generate a passive income on your portfolio without any market experience. The service is beneficial for both professionals and beginners. The former earns a good income while selling their trades, while the latter enjoys pro trading.

Is copy trading legal?

Copy trading is not a financial service that requires thorough scrutiny and checks by regulators. Traders from all over the globe can participate in sending and receiving signals. The only point to note is that the broker accepts clients from your country.

Is copy trading good for beginners?

Copy trading can be extremely beneficial for those making their way into the financial markets. There is no need for any market experience, and it saves novice investors from the initial losing curve. Some experienced traders also use copy trading to teach beginners via their trades.

What is the difference between copy trading, social trading, and mirror trading?

Since its inception, following trades from other investors have seen a major revolution. Now it is possible to divide this discipline into three factors. i.e., copy social and mirror trading. While they may sound similar, the differences are striking. 

Copy-trading

Copy trading solely involves following trades from a single other investors. Participants have the choice to allocate a specific portion of their capital to one or multiple individuals. It is best for beginners and time-constrained investors who cannot contribute a significant amount of their working hours to trading.

Social trading

As the name indicates, social trading involves investment decisions made after thorough discussions with your colleagues. Multiple professional traders can build a strong presence on social media channels and offer their expertise to the general community. This form of trading is considered more of a hobby to communicate and grow your portfolio.

Mirror trading

Mirror trading is a fully automated procedure that uses algorithmic strategies to make trade decisions and then copy them onto the receiver’s account. There is no human intervention involved, and it requires traders to put forth their investment goals so that the EA can apply them.

How to choose the best copy trading platform?

There are multiple factors that traders should consider before investing in any copy trading platform. Traders must go through each of them with a deep eye and select the service provider accordingly. 

Security and regulation

The broker offering copy trading services should come under multiple regulations from top-tier financial authorities. This may include Financial Conduct Authority, Cyprus Securities and Exchange Commission, Australian Securities and Investments Commission, Federal Reserve Systeme, etc

Number and quality of traders you can copy

The copy trading platform should include a portfolio of multiple traders from which you can select and copy trades. This can help you filter out the one that matches your needs. There should be a scrolling filter to aid in witnessing the providers according to their performance and drawdown.

Traders transparency

The provider’s portfolio should depict their market experience, whereabouts, and contact information. Detailed certificates with accurate performance tracking reports are a sure way to select the best copy trading platform.

Choose traders with the highest ROI

A good ROI can be judged by looking at the overall gain and then contrasting it with the drawdown value. A portfolio with a downside of 50% and a monthly output of 10% gives a poor risk: reward for copy trading. Filters can help you sort out the noise and get the best portfolios in seconds.

Is copy trading a good idea?

Copy trading is definitely an excellent idea for investors of all levels. It allows market participants to create a wealth of income if they find a successful professional trader to copy. The only thing required from the subscribers’ end is to witness all the performance records and select an account that matches their needs. It can help diversify your capital as you can follow multiple providers from a single portfolio.

How to create an account for copy trading

  • To establish a copy trading account, you must first open a live trading account with your preferred broker. Always verify your broker’s regulatory status before trading since this will dictate the degree of security and fund protection offered.
  • Traders must first deposit money into their account before they can make an investment in another account. Depending on your platform, after you get your login credentials, you may need to connect your copy investing system to your real account. Typically, the broker will give instructions on how to do so.
  • After you’ve established your accounts, you may begin duplicating transactions.

Software used in copy trading

Copy trading may be provided through proprietary software or a third-party platform such as those mentioned below, depending on the broker.

MT4 

MetaTrader 4 was designed to enable investors to replicate the trades and techniques of experienced traders. From inside the site, choose the Signals option to get access to free and paid forex signals from leading forex suppliers. 

Because traders are rated according to their performance, it’s fast and simple to pick a service provider and set your criteria. After that, you may begin replicating transactions in both live and demo environments.

MT5

On the MT5 platform, you may automatically replicate the transactions of others in a manner similar to that of MT4. It is not necessary for masters and followers to be registered with the same broker.

Clients choose how much money to devote to mirroring a specific trader and have the option of copying several providers at the same time.

DupliTrade

DupliTrade is a market leader in automated copy trading. Users have the option of scaling up, or down the percentage of transactions they want to replicate. Those interested in selling their trades must go through a thorough audit process, while customers are provided with all the information and statistics necessary to make an educated choice.

 cTrader

Another prominent platform is cTrader. After customers create an account, they may go to the Copy area to learn about various strategies and compare providers’ history, risk tolerance, and costs. Clients choose how much money to devote to mirroring a specific trader and have the option of copying several suppliers simultaneously.

Copy trading strategies

It is critical to evaluate how similar your trading strategy is to the strategies of the service providers you want to imitate. This will assist in ensuring that there is no significant difference in risk tolerance, for example.

Key critical strategic concerns include the following:

  • Risk – Quantify your risk tolerance – how much market volatility are you prepared to tolerate, and what risk management alerts and solutions are you going to implement?
  • Marketplaces – Which financial markets are you interested in investing in? Popular markets include forex, stocks, indexes, commodities, and cryptocurrency. 
  • Static or flexible — What level of control do you want over your capital? Mirror transactions will be quick and hassle-free with fully automated and fixed copy systems. Those seeking more influence and control may choose a more open and adaptable structure.
  • Due diligence – One risk associated with copy trading is that customers may fail to do enough thorough research before investing significant amounts of money. Not only should research providers be thoroughly searched before you join up but also track trade their performance 
  • Leverage – Leveraged copy trading enables you to raise the size of your positions with a modest initial investment. This implies that by replicating the transactions of several suppliers, you may enhance your profit potential.

Pros

There are many benefits to copy trading; the following are just a few:

  • Assists new traders in being acquainted with the financial markets and developing the confidence to trade
  • Allows more experienced traders to participate in the market even when they are too busy to spend the time and research required for trading.
  • Establishes a community of traders, both novice and experienced, who can share ideas and work together to better their trades.

Cons

  • Risk: If a strategy fails, the risk will be transferred to the accounts of those who have followed it, potentially resulting in a financial loss for them.
  • Compromised control: A major drawback of duplicating an account is the lack of control that a trader will have once they begin doing so; traders are basically putting their whole portfolio in the hands of someone they don’t know.
  • Fees: Copy trading may include fees, depending on the broker. Customers often pay a masters’ fee that is set on an individual basis and may depend on trading volume. Additionally, a minimum investment amount may be required. 
  • Not accessible in the US: Copy trading is usually unavailable to citizens of the United States of America owing to the Dodd-Frank Act, which imposed limitations on lenders in order to protect US customers from unscrupulous activities.

In summary

Copy trading is an essential tool for forex traders if they want to increase their advantage in trading. However, you still need to understand how trading works, to help you comprehend the specific trading strategy chosen by your copy trading master. Also, copy trading doesn’t guarantee a profit, and you have an ultimate say on whether to follow the guidance given.

Copy trading systems are indeed the new future of crypto, forex, stock, etc., trading. More traders are willing to sign up with brokers that offer intuitive privileges while copying portfolios. It is vital to analyze the performance of any portfolio before choosing to start copy trading. A good provider will set you up for a decent income for a lifetime.

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