If you are a beginner or have been in the stock market for a while and you are finding it difficult to make a consistent profit, it is a good idea to consider copy trading.
Copy trading will go a long way towards helping you make consistent profits. Aside from that, you will gain a solid understanding of how the forex markets work because you will be in constant contact with expert traders who will provide you with market analysis.
Certain factors should be considered in finding the best copy trading platform. A lot of scammers have evolved in the name of offering copy trading signals to beginners, and you don’t want to fall prey to them.
So in this post, we will guide you through the top-ranked copy trading platform and provide you with some of the factors that will help you choose it for yourself.
Without further ado, let’s get started
Table of Contents
What is copy trading?
Copy trading is the process of replicating the market position of experienced traders using automated tools and signals or through social media outreach. This means that, as these experts place their own trade, you go along with them and place your own.
Before copy trading, it is very important to note that nobody is 100% sure of the market movement. Chances are that these experts will lose the market, and it is very important for you to know that if they do, you will lose with them.
Copy trading can be done in a variety of markets, including forex, stocks, options, and contracts for difference (CFDs). You can also copy trades on major crypto-currencies such as Bitcoin (BTC) and precious metals such as gold and platinum.
Best 8 copy trading platforms.
The best copy trading platform is the one that satisfies trust, usability, low fees, education, and good customer service. Apart from that, there are lots of other factors that contribute to the ranking of different copy trading platforms.
Here is the list of the best copy trading platforms and the features that earned them those positions.
- Etoro: Overall winner
- AvaTrade: a large number of investors who want to be copied
- Naga: There is a low copy trading fee.
- PrimeXBT: a wide range of markets
- FXTM: numerous account types
- OctaFX: large number of strategies
- Pepperstone : a large third-party copy trading platform.
- Vantage: ideal for MetaTrader.
Etoro:
eToro is the best copy trading platform. It allows traders to copy the trades of other investors across over 2000 instruments, including CFDs, exchange-traded funds, forex, and popular cryptocurrencies.
Pros:
- Highly trusted (regulated by CIF, CySEC, FCA, MiFID, AFSL, ASIC).
- Minimum deposit is $50.
- Offer a demo account.
- It allows you to trade and invest in top stocks and exchange-traded funds (ETFs).
- It allows you to build a crypto-based portfolio.
- It allows you to access your investors.
- Platforms include a web trader, tablet apps, and mobile apps.
- Account Types: Micro account, Standard account, Islamic account, VIP account
- Platforms include a web trader, tablet and mobile apps.
Cons:
- There are no trading strategies that are automated.
- Stops, limits, and trades are mandatory.
- Research trails competitors.
- It does not have the MetaTrader platform.
AvaTrade:
AvaTrade is a well-known global company that provides traders with a diverse range of trading platforms. According to research, AvaTrade is excellent for copy trading, competitive for mobile, basically in line with the industry average for price and research, and a winner for investor education.
Pros:
- Minimum deposit is $100
- A wide range of copy trading platforms are available.
- low market spreads.
- Rich educational resources.
- Trade crypto as CFDs and enjoy 24/7 trading.
- Platforms supported: MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile Apps, Tablet & Mobile Apps.
- Payment methods include bank transfer, credit card, and PayPal.
- Very good customer support.
Cons:
- small range of markets.
- A demo account is limited to only 21 days.
Naga:
Naga Trader is regulated by the FCA and CySEC, ensuring that you as a stock trader are protected. Together with eToro, they are renowned as one of the best copy trading platforms, and they feature a particularly nice range of crypto assets.
Cryptocurrency deposits are accepted, and the Naga Trader minimum deposit is quite modest, making it ideal for beginning traders who want to test the waters with the broker.
Pros:
- Minimum deposit is $0.
- It supports demo accounts.
- The Australian Securities and Investments Commission (ASIC) regulates the industry.
- Complete market access.
- Messenger for sharing updates.
- It is an easy-to-use platform both for investors and copy traders.
- Regulated by CySEC and the FCA
- Low copy trading fees
- Good educational resources.
- Good customer support
- a large numbers of traders to copy
- Supported platforms: iOS and Android.
Cons:
- Withdrawal fee
- Overnight charges
PrimeXBT:
PrimeXBT is a copy trading platform that serves both experienced and inexperienced traders. It allows professional traders to earn money by allowing others to copy their trades.
Pros:
- Access to a wide range of markets
- Minimum deposit is $60.
- Support leverage.
- It has a feature that allows you to set a stop loss or take a profit.
Cons.
- You can only deposit ETH, BTC, USDC, and USDT.
- Poor user-interface
FXTM:
Another popular copy trading platform is FXTM. This is an international ECN broker that is most active in Asian and African markets. They provide a large variety of account types to choose from.
You can start by copying great traders at FXTM with a deposit of $100. This makes copy trading easy and accessible.
Pros:
- Minimum deposit is $10.
- Demo account is supported
- FSCM regulates the market.
- There is no deposit fee.
- It features many account types.
- It’s easy to deposit and withdraw.
- It provides educational resources.
Cons:
- Reduce your product portfolio.
OctaFX:
OctaFX provides traders with a mostly standard MetaTrader and cTrader trading platform. Apart from its European license in Cyprus, OctaFX is unregulated in major jurisdictions, putting it at a significant disadvantage in comparison to other reputable forex brokers.
Pros:
- Minimum deposit is $25.
- highly trusted
- large number of strategies.
- Demo account is supported.
Cons:
- Only 50 trade symbols are supported.
- not licensed in major financial centers.
- There are few educational resources.
Pepperstone:
While Pepperstone has a limited number of tradable products, it has one of the most extensive third-party platform options, including several social copy trading options.
Pros:
- Minimum deposit is $200.
- large, third-party copy trading platforms.
- It supports demo accounts.
Cons:
- small selection of markets.
Vantage:
Vantage trails industry leaders in key areas such as mobile apps, research, and education, despite offering forex and CFD traders the MetaTrader platform suite, multiple social trading platforms, and a proprietary mobile app.
Vantage trails industry leaders in key areas such as mobile apps, research, and education, despite offering forex and CFD traders the MetaTrader platform suite, multiple social trading platforms, and a proprietary mobile app.
Pros:
- Minimum deposit is $200.
- One of the best for MetaTrader.
- highly trusted
Cons:
- Trails are industry leaders in apps and research.
- Education falls short.
What is the best copy trading platform?
The best copy trading platform in the year 2022 is eTroro. This is because it has a user-friendly web platform and mobile app for casual investors, including beginners. Aside from that, eToro is good at providing educational resources that will help beginners in their learning process. You can read more about eToro in our review above.
Is copy trading legal?
Yes, as long as the broker is properly licensed in your country, copy trading is legal. When you invest in the financial markets through a licensed broker, your account and the traders within it are legalized.
All of this, however, is entirely dependent on the country in which you reside. You can find a broker licensed in your country by using the Broker Check tool.
How Can I Do Copy Trading?
You can do copy trading by using technology to copy the real-time market signals of other live investors (stock trading system providers) you want to follow. This way, you can automatically copy their trades into your brokerage account whenever they trade.
When choosing a trader to copy, it’s important to look at the performance statistics for each system, such as the amount of risk taken (maximum drawdown), average trade size, duration, and frequency of trades. You must bear in mind that copy trading is risky. Never invest more than the amount you can afford to lose.
Can I learn Forex through copy trading?
Yes, while copying the trading activities of experienced traders, some of whom have years of experience and know-how, You can learn from their success by replicating it and developing your own trading strategy.
You can open a demo account with any broker and start implementing some of the strategies that your boss gave you and find ways to implement the ones that work for you.
Is copy trading a good idea?
Yes, copy trading is one of the most profitable ways to invest in 2022. Copy trading, when done correctly, can help you diversify your investment portfolio, and the best copy trade brokers have the most tools. Because copy trading is considered self-directed, it requires active account management as opposed to a set-it-and-forget-it investment fund or other passive investments.
Conclusion
There are a lot of factors to consider before choosing your best copy trading platform. The one that I deem best may not be the one you prefer. As we provided the features of the different copy trading platforms, it is very important that you go through them and use those factors in determining your preference.
For a clearer overview of the best copy trading platform, having good knowledge of the best broker plays a role. To do that, you can check out our post on the Best Bitcoin Brokers for Beginners in 2022. Cheers
Disclaimer
Everything in this article is based on information we found online, personal experience, and books we’ve read. Before making any major decisions, always conduct your own research. Any and all digital marketing decisions you make are solely your responsibility.
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