The Best Copy Trading Forex Brokers

Your entry into forex will be easier and more profitable when you copy trade forex professionals. Even experienced investors with other responsibilities frequently replicate trading signals from reliable traders. In summary, copy trading helps to save time, creates partnerships, and keeps currency trading more exciting.

Copying expert traders may be the best method of learning how the market works. But, you need to choose forex brokers that offer client copy trading platforms because not all brokers provide such an opportunity. Here are seven best copy trading brokers in the trading world.

List of the 7 Best Copy Trading Forex Brokers

eToro

eToro is credited as being one of the first companies to provide copy trading as another form of investing. The company released a ‘model’ of a social trading system for exchanging ideas and replicating transactions.

To find the copy trading platform, open the eToro website. Then, navigate to the left-hand menu and select ‘Copy People.’ The eToro home page contains biographies of the most professional investors, as chosen by the administrators, and eToro computations based on four major metrics. This includes the traders’ technique, total quantity of copiers, ROI, and risk. 

Each has a striking resemblance to a typical social platform in terms of look and information. All dealers have a current picture on their profile. Once you tap on a profile, you will find the investor’s initial and surname (info of the administrators is confirmed) and see postings. Investors often provide market data, but they may also upload personal photographs and videos from time to time. Like any other social network, members may like, publish, and remark on content.

You may examine a trader’s record in-depth for 30 days or upwards to many decades in the Stats page, which includes profits and highest losses monthly, daily, and yearly. Following that, you can see the investment allocation by sectors, as well as the investor’s most recent deals and the overall amount of modest gains.

Other features of eToro include:

  • It provides equal opportunities for all traders. Regardless of the level of expertise. 
  • $200 initial deposit.
  • Brokers fees are solely based on spreads and not extra commissions.
  • Biggest copy trading platform across the world.
  • Licenses from regulatory bodies in Australia, European Union, and the UK.

AvaTrade

AvaTrade is among the world’s leading brokers, offering its clients a wide variety of copy and social trading options. AvaTrade’s excellent qualities include regulation by seven prominent institutions. Ireland’s Central Bank and ASIC (Australian Securities and Investments Commission) are examples of regulatory bodies that have approved AvaTrade.

The brokerage firm also collaborates with MQL5, ZuluTrade, and DupliTrade. These are the three leading copy dealing platforms in the world today. AvaTrade provides one of the finest options for replicating transactions in the marketplace to its clients. And besides, there are hundreds of signal suppliers and tens of thousands of traders on these three sites.

AvaSocial is a brand-new AvaTrade offering. It is a social trading network that debuted in the later part of 2020. It is now undergoing active development and growing in prominence. The social trading platform is a collaborative effort between AvaTrade and Pelican Trading. The latter is a UK-regulated social trading network. 

As determined by an algorithm, the best managers’ ratings are shown on the app’s front display. Spotlight, Top Traders, and Best of the Week are the three main divisions in which they are divided. On the homepage, you may assess a trader’s efficiency.

Here are some of AvaTrade’s main features:

  • Collaborations with major social trading networks
  • Wide range of financial assets to trade
  • Regulated company in Asia, Africa, and Australia.

Pepperstone

Pepperstone provides a variety of copy trading options. MQL5, MyFxBook, and DupliTrade are three prominent copy trading platforms available through the firm.

Begin Pepperstone’s copy trading platform by creating a separate brokerage profile on the MyFxBook. After that, choose and tap on Portfolio’ from the upper menu, then Account from the drop-down menu. Once you’ve used MyFxBook, a screen will appear with a summary of your brokerage account. Choose ‘Add Account’ to create a new profile.

Affordable copy swapping facilities are also supported. For MQL5 users, note that the charges may be wiped off on behalf of the technique suppliers. The commission is collected as a membership fee on the website. The median monthly subscription cost is $50. The other two platforms MyFxBook and DupliTrade, do not collect fees; the system makes money and distributes it to the investors through a collaboration fee paid by the brokers.

Key features of the Pepperstone are:

  • Easy-to-use trading platform perfect for new investors. 
  • Suppliers of technique are chosen with care.
  • CySEC is in charge of regulating Pepperstone.

Vantage FX

For traders that like ECN investing, Vantage FX is the finest broker. Customers have immediate access to financial intermediaries and can reduce money on trading costs as a result. At the same time, the firm provides two kinds of ECN accounts, one for market participants with a big deposit and the other for market makers.

For customers who are mainly engaged in investing, Vantage FX should be the best option. Nevertheless, passive investment alternatives are limited. The firm provides a wide range of forex pairings, and it does not limit investing techniques. As a result, amateur scalpers will be allowed to work here as well. Clients that prefer automatic trading will benefit from the firm.

Investors can choose between two types of commissions: range or fixed charge. To do so, you must first select the proper membership type. The first deposit might be deemed modest in size. Because the broker places a premium on the security of its clients’ finances, withdrawals will be subject to further scrutiny. The customer support service at the firm is effective and fast to reply.

Main features of Vantage FX include:

  • 250+ fx pairings and CFDs are just a few of the trading tools available.
  • Four respectable regulators have granted the broker licenses.
  • Traditional trading facilities, as well as a customized smartphone app, are available.
  • Traders may get free trading indicators irrespective of the sort of account they have.
  • It has a fantastic bonus scheme and referral program rules.

IC Markets

IC Markets is a prominent global broker based in Australia founded in 2007 and now serves clients in large parts of the world. The brokerage is regarded as trustworthy since it is licensed in Australia and the European Union.

The active trading platform comes with excellent benefits, including some of the slightest changes in the industry and high order processing quality. In addition, the firm offers outstanding prospects for investment income. IC Markets’ copy trading services are typically collaborative with prominent social brokerage firms like MyFxBook and ZuluTrade.

The minimal commissions at IC Markets set it apart from the competition. The cost is just $3.5 per transaction, provided that you are operating the Raw Spread program. This program is one of the finest deals on the marketplace, with the average range for EUR/USD at 0.1 pips. Investing opportunities with ZuluTrade is not as favorable.

Operating with copy trades is only possible with the Basic individual account, which has a one pip mean margin. The margin is also subject to a 1.5-pip charge. As a result, the median margin for EUR/USD is 2.5 pips, which may be significantly greater for other currency pairs.

Other features of IC Markets are:

  • Affiliation with two of the most well-known copy trading service firms
  • A $200 least deposit is required.
  • A large number of derivative contracts are available.
  • Regulations in Australia and the European Union

OctaFX

OctaFX is a global online brokerage with headquarters in Saint Vincent as well as the Grenadines. The company also has operations in over 100 nations. CFDs and Currency trading are the firm’s specialties. Their copy trade service has been offered as a feature of their smartphone app since 2014.

OctaFX Copy Trading refers to the online brokerage of OctaFX’s copy trading platform. Their smartphone app provides access to the service.

The company’s copy trading platform, which was launched some years back, is still in the background when contrasted to their primary financial institutions. Let’s ignore the truth that OctaFX Copy Trading is only accessible through their smartphone device, which is designed only for traders using Android phones. Clients who want to participate but have iPhones or iPads with iOS applications face a significant challenge.

The platform is based just on a copy trading idea, which allows inexperienced investors to save effort and perhaps money by imitating the methods of more professional ones. They have profiles for individuals who want to observe and duplicate and clients who wish to remain signal suppliers.

Start by logging in and creating an OctaFX profile. Irrespective of your selected job, there are a few phases to the procedure, including identification confirmation. You can also use your Facebook and Google credentials to log up.

Once you’ve opened your profile as a copier, then go to the Dashboard (Masterboard) and start picking the operators and tactics that best fit your objectives. 

Nevertheless, because the site permits Master feature administrators to create numerous Master profiles for different tactics, it’s difficult to pinpoint the accurate figure of signal suppliers.

You may add techniques to the inventory once you’ve decided which ones are best for your investing needs. Once you do so, the program will go into the automated mode. Every time an experienced trader creates a trade, the algorithm will initiate a position in your wallet within the following five minutes.

Other features of OctaFX include:

  • $25 initial deposit. 
  • Copiers can cease replicating market participants at any moment with a minimum investment.
  • Professionals can adjust the revenue rates for each method in the list.

XM Group

XM is among the world’s leading Forex as well as CFD operators. The company has offices in 190 nations and tens of hundreds of clients. XM’s copy trading services are accessible on MT4 & MT5 interfaces. These platforms are the broker’s major passive revenue source.

You must first enroll on the website and install the firm’s trading system before beginning your journey with XM’s copy trading. Let’s have a look at the procedure utilizing the MetaTrader 5 interface as an illustration. The feature is only accessible on the Windows desktop. There are two stages to XM duplicate trading.

Go back to the Signals section if the company has approved you. Choose a trader you’re interested in and tap on their profiles.

The program will allow you to examine the signals provider’s details. Afterwards, you will be required to Click the Subscribe’ tab to become a subscriber to the individual. You may also find out what other customers think of the trade. To see the evaluations on the XM MQL5 framework, go to the primary menu and select the ‘Reviews’ icon.

XM copy trading has the potential to make you successful. You may not only earn extra money by utilizing the copy trading program. However, you can likewise acquire market knowledge by observing the transactions of skilled traders. The return amount is based on the method’s average risk, your amount paid, and the market regulation of the trader you’re mimicking.

With XM, you may copy trade for free. Copies of transactions do not incur any extra charges. The same fee is payable for copy trading as it is for conventional deals. For instance, if you’re replicating trades on EUR/USD, the typical spread would be 1.7 pips. This is a substantial amount.

Other features of XM Group include:

  • A strategic alliance with a significant signal source
  • The minimum investment is $5.
  • A large number of financial products are available.
  • Regulatory in the United Kingdom, the European Union, and Australia

How Copy Trading Works in Forex

Copy trading is the process of using the same trades as someone else. The person with the trade will use their position in the market to profit while you place your order. This is beneficial in that it allows you to avoid paying commissions when making trades. 

There are two main approaches to trading using copy trading: automated and manual. You can log on to a computer application through your brokerage account with automated copy trading, which automatically places your trades for you. Alternatively, the manual is when you enter each trade yourself by hand with no broker interface involved. If you want a broker that offers both forms of copy trading, look for one that is just beginning its platform’s expansion into multiple markets or has a large number of traders already signed up on the platform.

Importance of Copy Trading

Copy trading is important to any trader as it avoids paying fees and uses less capital. Copy-trading also allows you to take advantage of moves in the market that you would not be able, or willing, to place your own order for. Automated copy trading provides a convenient interface for traders on multiple markets. In contrast, manual copy-trading does not offer an interface but can still provide price movement based on how it works. Here are five major benefits of copy trading:

1. Time-Saving

You can tap into the moves of other traders without having to place your trades or follow the markets. This allows you to focus on other trading areas, like analyzing charts and making predictions based on trends. Also, you do not have to pay commissions on the trades you make since doing copy-trades lets you take advantage of someone else paying them for you.

2. Market Knowledge

Automated copy trading provides a one-stop location for viewing multiple markets simultaneously, but manual copy trading can provide market knowledge based on price movement alone. Using historical price movements, you can determine whether an instrument will go up or down based on that movement before placing your trade-in on that market. In addition, automated copy trading can provide a deeper look into an instrument’s performance by simply looking at the current position being held by another trader rather than looking at the current price movement.

3. More Control

Automated trading provides a convenient interface for many traders on a single terminal, but manual copy trading gives you control over your trades. Instead of placing a trade through a screen, you can place it manually with your broker. You will know how to read price movements and if that instrument is under pressure from other traders by using this method and automated copy-trading.

4. Using Leverage to Maximize Profits

If you are new to copy trading, you may want to go with the automatic method because it provides more control over your trades. If you work with discretionary or risk-based funds in your brokerage account, you can use leverage when making manual copy trades. By using leverage, the trade’s size is multiplied (it becomes bigger) if the corresponding value increases (if it increases by 2%, then your trade will become larger).

5. Quick Access to Profitable Market Moves

Sometimes you do not have time to place your trades, but you want to profit from the movements of other traders. For these times, automated copy-trading can allow you to place a profitable market move in your account quickly. This is ideal for Forex traders because they can use automated copy trading when an instrument they follow hits a specific price point. When that instrument hits the target price point, it will automatically be traded for you and bring in a profit that you would not have made without automated copy trading. Many retail brokerages offer this service through their platforms and mobile applications. 

Choosing the Best Copy Trading Broker

When selecting copy trading algorithms, there are several variables to examine. Here are a few key considerations to consider when looking around for the best copy trading broker in 2021.

1. Investment Safety

It is essential to ensure that the company you choose is regulated and has a solid and secure reputation. Make sure it’s registered with a reliable regulatory body and can give you details of any complaints made against it. As well as this, look at the level of security they offer, ensuring that your money is kept safe with them. It may help you to ask about common complaints regarding the broker before signing up.

2. Quality of traders featured

Choose a reliable and reputable broker that features top-tier traders. You need to ensure that they have active and profitable traders and that they earn a significant amount of money every month. The best broker will also offer you plenty of choices regarding how you can manage your account.

3. Transparency in Choosing Traders

Be very clear about how you can choose the traders you want to use for copy trading. Some of them will ask that you trust their choice of traders, while others will allow you to pick your favorites. 

4. Minimum Deposit

It is worth finding out the minimum deposit when opening an account with a copy trading platform, as the amount required could differ from one company to another. It is especially crucial to check this information if you plan to use a broker who is not regulated.

5. Risk Management and Capital Protection

It is essential to read up on any risk management and capital protection procedures that the broker has in place. If they don’t have these in place, you could lose all of your money and be held liable for any debts which the traders incur. A good broker will protect your capital, as well as offering a risk-free trading experience.

Conclusion

For a beginner investor, copy trading is a great starting point. It helps in sharing other people’s achievements and disappointments and benefit from their errors. It’s a beautiful way to get started in the financial markets, but it’s not without danger.

Based on how much supervision you desire over the processes, you should be extremely cautious while selecting a system. You must also exercise caution when deciding on a trader. This is because, in reality, you are handing a portion of your wealth to an unknown individual.

FAQ

What is copy trade in forex?

A copy trader is a trader who trades in a market by quoting a trading system that shares the same trading style as a top expert. The expert is a trader who follows a good trading style and has been successful in the past, and this trading strategy is copied to make profits.

Is there Copy Trading in forex?

Yes. Some forex brokers offer copy trading. However, there are also several who don’t. Not all brokers will offer this trading style because they may not have the expert traders you are looking for. It is therefore essential to find a broker that features the right traders before you start copy trading.

Is copy trading legal?

Yes. In most nations, copy trading is allowed as long as the brokerage is legally licensed. The registration process guarantees you lawfully trading in your country whenever you participate in the money markets via a registered broker.

What is the risk of copy trading?

There is a chance that the copy trader you choose will lose all of their profits if they don’t have a successful strategy. Likewise, the chances are higher that you will lose money through copying a bad trader, but it’s also possible for you to make a profit.

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