For example, you might want your chosen trader to have made at least 30% over the past two years. In entering your requirements, eToro will only show you traders that meet this criterion. This option is potentially more suited for those of you that wish to copy trade in a more controlled manner, as opposed to automating the entire process. Or, the robot will go long on a crypto-asset if it rises by more than 10% in a 24-hour period. Either way, your chosen copy trading robot will function 24 hours per day. The main concept here is that the robot will trade in a fully automated manner.
With that said, MT4 isn’t just suited for experienced pros – as the platform offers a number of copy trading features. Prudent beginners will analyze all available performance metrics when deciding whether or not to copy a particular trader. For example, understanding a given signal provider’s risk tolerance is just as important as measuring their average profits or their overall results. Many of the copy trading platforms that we reviewed today make it somewhat difficult to assess how much risk you are taking by selecting an investor. Sure, you might have access to the maximum drawdown percentage, but this in itself doesn’t give you a clear idea of how much risk the respective trader typically likes. Once you have connected your ZuluTrade account with AvaTrade, met the minimum deposit of £500, and selected a trader to copy – there is nothing else for you to do.
With that said, we found that Duplitrade has a broader scope of strategies on its platform – making it ideal for diversification purposes. Although ZuluTrade claims to be transparent with its fee structure – we had to do a bit of digging to locate the respective commission rate. For example, if you invest $1,000 and your chosen trader makes 50% in month 1 – this amounts to gains of $500. Of this figure, the ZuluTrade will keep $100, which leaves you with net gains of $400. Getting can get started at eToro should take you no more than a few minutes.
For example, if the trader has an average trade duration of 6 months – then you know that they are a long-term buy and hold investor. If the individual has an average trade duration of just 5 hours, then you know they are a day trader. Another key metric that we like when selecting a copy trader is that of the average trade duration. This is because you can assess the specific strategy that the trader takes.
Overall, eToro is the best broker for social copy trading and cryptocurrency trading, and is our top pick for both categories in 2022. Furthermore, eToro offers a user-friendly web platform and mobile app that is great for casual investors, including beginners. Fees will vary from provider to provider and you might need to pay this on two fronts.
How Much Do Copy Trading Platforms Charge?
The key to success is picking the right strategies at the right time, and then allocating enough capital to each strategy, in addition to setting any risk/reward thresholds depending on your needs. It is crucial to align your risk parameters with the strategy that best suits your investment goals. For example, a more conservative investor may choose a system with a lower average loss per trade, relative to the average profit.
This in itself is a major advantage, as human traders will only be able to dedicate a certain amount of time per day. On the flip side, the main drawback with automated robots is that they are somewhat intransigent. This is because they can only follow pre-programmed code – so have no understanding or knowledge of financial news or fundamental analysis. That is to say, you will be 'copying’ another trader that is actively involved in the financial investment scene. In more simplistic terms, if your chosen trader decides to go long on AUD/USD – you will do the same. Duplitrade offers a similar service to Mirror Trader, insofar that you will have access to a wide variety of trading strategies – all of which you can copy like-for-like.
To give you an idea of some of the strategies offered by Duplitrade, one option that you might consider is the 'Major’ system. As the name suggests, this focuses exclusively on major currency pairs like EUR/USD and GBP/USD. This copy trading strategy makes buy and sell decisions through technical indicators such as the RSI, ADX, and Parabolic SAR. It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses.
To do your own copy trading, start by selecting the traders whose trades you want to copy. Then, you’ll just need to decide whether you want to copy just their existing trades or begin copying their new trades going forward. You’ll also want to set your own limits and/or thresholds for risk management purposes. For cryptocurrency copy trading, your broker must be a registered Money Services Business and licensed by FinCEN. In legal terms, copy trading is typically treated as a self-directed account. It’s important to note that not all trading platforms with social features provide copy trading.
Is Copy Trading Good For Beginners?
The good news is that you can spread this $5,000 across as many copy trading strategies as you wish. This allows you to take a more risk-averse approach to automated trading. Once you have chosen an investment what is copytrading strategy to follow, you can then set up risk-management tools to suit your financial goals. For example, you can elect to apply leverage on your positions or set a maximum stop-loss price.
We have covered everything from copy trading brokers, automated robots, signals, and third-party platforms like Mirror Trade and Duplitrade. While all of the providers discussed today are worth considering – we found that the overall best copy trading platform is eToro. There are no fees charged by Pepperstone to use cTrader, which is great. In terms of actual trading commissions, this depends on the account you decide to open – of which there are two to choose from. The 'Standard account is commission-free, with all fees built into the spread.
How Do You Copy A Trade?
This allows you to automate your trading endeavors based specifically on your desired strategy. This will see the copy trading tool place dozens of low-risk buy and sell positions throughout the day when an asset is stuck in a tight pricing range. Once you have selected a trader to copy, it’s then just a case of deciding how much to invest.
This CFD trading platform offers everything from forex, stocks, and cryptocurrencies to metals, energies, and bonds. Each year we publish tens of thousands of words of research on the online forex brokerage industry, and we evaluate dozens of international regulator agencies . Yes, copy trading really works, and you can verify the proof by checking the results of the best-performing traders.
As such, you will need to find a suitable online broker that not only offers support for MT4 and forex EAs – but heaps of markets and competitive fees. In this respect, Libertex is arguably the best MT4 broker in the industry. This is especially the case if your chosen forex EA takes a day trading strategy. After all, Libertex charges tight spreads – so the EA can target modest but frequent gains without getting hammered by indirect fees.
Crucially, this allows you to spend some time assessing whether or not the investor has what it takes to trade on your behalf. AvaTrade is a trusted global brand best known for offering traders an extensive selection of trading platform options. Our testing found AvaTrade to be great for copy trading, competitive for mobile, mostly in line with the industry average for pricing and research, and a winner for investor education. Once you select a trader that you would like to copy, you need to decide how much you wish to invest .
How To Get Started With The Best Copy Broker
You can easily deposit funds with a debit or credit card, as well as e-wallets like Paypal, Skrill, and Neteller. Your capital is in safe hands at all times at eToro – as the broker is regulated on three fronts. EToro is also registered with FINRA and if you’re UK-based – you’ll be covered by the FSCS. Make no mistake about it – if you’re looking for the best https://xcritical.com/ copy trading platform for 2022 – eToro wins hands down. After all, the platform is now home to over 20 million clients – many of which utilize the provider’s innovative copy trading feature. An experienced media professional, John has close to a decade of editorial experience with a background that includes key leadership roles at global newsroom outlets.
Using our forex brokers comparison tool, here’s a summary of the trading platforms offered by the best copy trading brokers. In fact, the vast majority of investors that sign up for a copy trading program engage in day trading strategies. This means that by copying them, you can day trade in a fully automated manner.
What Is The Best Copy Trading Platform?
The exact commission depends on the underlying currency of the asset you are trading. Pepperstone is also a great choice as the platform has been around since 2010 and is regulated by the FCA. There is no minimum deposit at this free trading platform and you can fund your account with a debit/credit card , bank transfer, or Paypal. Other assets come with a commission that typically sits below 0.1% per slide. The minimum deposit is $100 at Libertex and you can fund your account with a debit/credit card, e-wallet, or bank account transfer. With that said, it’s also worth using the Libertex demo account facility first and then linking this to MT4.
- Of course, not all trades like the example above will result in financial gain.
- When it comes to fees, Mirror Trading itself doesn’t charge anything to use its copy trading tool.
- Many modern copy trading forex platforms contain hundreds or even thousands of signal providers.
- Once you have opened an account, you will then have access to tens of thousands of verified traders that have signed up for the copy trading program.
- In legal terms, copy trading is typically treated as a self-directed account.
Then, anything that the trader buys or sells will be mirrored in your own brokerage account like-for-like. As such, this allows you to follow the investments of a trader that has a long-standing track record in the online trade arena. This regulated broker – which is home to over 20 million clients, allows you to choose from thousands of copy traders without paying any commission.
How Do You Copy The Best Traders?
To ensure you are able to find a suitable trader, eToro offers a useful filter system. For example, you can narrow your search results down by average annual gains, preferred asset class, average trade duration, and more. Blain Reinkensmeyer has 20 years of trading experience with over 2,500 trades placed during that time. He heads research for all U.S.-based brokerages on StockBrokers.com and is respected by executives as the leading expert covering the online broker industry. Blain’s insights have been featured in the New York Times, Wall Street Journal, Forbes, and the Chicago Tribune, among other media outlets.
Meta Trader 5 Via Finmaxfx
Now based in Malta, Kane writes for a number of platforms in the online domain. In particular, Kane is skilled at explaining complex financial subjects in a user-friendly manner. Kane has also written for websites such as MoneyCheck, InsideBitcoins, Blockonomi, Learnbonds, Buysharesand the Malta Association of Compliance Officers. Required documents include a government-issued ID and proof of address . Unlike other trading platforms in this space, eToro will verify your documents pretty much instantly.
Copy trading can be good for beginners, provided they learn the basics and approach copy trading the same way they would any other self-directed trading account. Adjust your parameters and subscriptions as conditions change (such as signal provider performance, or your own market expectations. Once you are comfortable with the settings you have configured, click to copy trade the traders you have decided to follow.
Latest Trading News
Forex copy trading — also known as social trading, mirror trading, or auto trading — has been growing in adoption and general popularity for over a decade. Industry information, financial news, and market analysis now all propagate at lightning speed – thanks in part to social media and an increasingly faster web experience. For example, a high-risk rating would be assigned to a trader that focuses on volatile assets like Bitcoin and oil, alongside an above-average maximum drawdown. At the other end of the scale, a low-risk rating might be assigned to a trader that focuses on blue-chip stocks and index funds through a diversified portfolio. Although copy trading allows you to take a hands-off approach to invest, you still need to put a little bit of groundwork in. This is because you need to spend some time researching the many copy traders that your chosen platform offers.
Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. A forex industry expert and an active fintech and crypto researcher, Steven advises blockchain companies at the board level and holds a Series III license in the U.S. as a Commodity Trading Advisor . All websites and web-based platforms are tested using the latest version of the Google Chrome browser. Our Desktop PCs run Windows 11, and we use MacBook Pro laptops running macOS 12.5 to test copy trading on the go. Here are the Overall rankings for the 39 online brokers who participated in our 2022 Annual Review, sorted by Overall ranking.