Copy Trading For Beginners 2023 The Best Platforms & Software

November 2, 2021

Replicating experienced traders does not eliminate the element of risk. Social traders rely on the trading decisions of others but still bear all of the risk with respect to their brokerage account. Despite not executing any trades themselves, social traders should still understand How To Manage Risk. Follow all the advice I have shared with you above on how to choose a good strategy provider to copy and a good copy trading platform. Your success depends on picking the right trader to follow, and the best copy trading provider. Provides the technology and platform that connects investors with traders.

  • They are able to copy the trading behaviour of successful traders and accelerate the learning process.
  • Only you can decide how to allot your money and how much risk you want to expose yourself to.
  • Copy trading is generally ideal for beginner traders as it allows them to trade way beyond their level of experience or expertise.
  • It’s done in the spirit of social collaboration found with social sites like Facebook.
  • For that reason, it’s important to monitor your account, even if you don’t intend to trade yourself.
  • There are a variety of platforms offering copy trading services, and while some are manual, others are fully automated.
  • With all the available sources for signals, and trading tips, it can overwhelm even the most experienced trader.

You can also copy trades on popular crypto coins, including Bitcoin or major precious metals such as Gold or Platinum. Copy trading is a type of trading where you copy the trades performed by another, more experienced trader. 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. 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 . Once you’ve decided which traders you want to copy from within the copy trading platform, you’ll allocate a portion of your account balances towards each trader to enable copy trading.

With social trading, you will be able to make trades based on information from other traders and you’ll be the one who decides whether or not to trade. Due to your inexperience, if you misread something, you may end up making the wrong move. Risks can be a bit higher with this, and you may lose a great deal in the beginning. Forex trading is easy to start with just a modest amount of capital investment, as tight spreads are available . AximTrade allows you toopen a Forex accountand copy trade for as low as $1, which is impossible to do in other markets such as stocks, futures, and options if you don’t have a large bankroll. Of course, this depends on the trader you are copying and learning from, but in short, yes, it can be profitable.

Recommended Social Trading Platforms

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. Overall, eToro is our top pick for social copy trading and cryptocurrency trading in 2023. Check out our full-length eToro review to see video walkthroughs of eToro’s user-friendly web platform and well-designed mobile app – both of which are great for casual investors and beginners. It’s important to note that not all trading platforms with social features provide copy trading.

The forex market alone moves Six Trillion US Dollars a day – equivalent to the nominal GDP of African and South American countries combined. For an individual who knows how to trade, there is more than enough to make money from forex trading. Your copy trading profits depend on the performance of the what Is a copy trading platform traders you follow. Many traders have achieved triple-digit-percentage profits. However, past results are not indicative of future performance. Trading signals are indicators that describe what market to trade, at what price level to open a trade, and where to place take-profit and stop-loss levels.

We aim to offer readers a trusted, useful, and professional source of education about the best forex brokers in this market as well as other forex-related topics. Experienced traders and replicate their trading behaviour. Although you are replicating the trading behaviour of others, FP Markets copy trading allows you to maintain control. You can activate and deactivate copy trading with the press of a single button.

Best Forex Brokers for Social Copy Trading

Open an investor account with a copy trading provider – from the multitude of copy trading providers, I recommend these three. If ten traders meet your investment checklist, you can spread your capital among the top 5 or all of them. As a starting point, find trading with a low-risk score, profitable, has traded for a long while with a low drawdown and finally has a good commission. A trader with a substantial amount of their own money in the trading account tends to be prudent and disciplined since their money is also on the line. These traders, of course, have the highest returns, but at the risk of losing a lot more money. A trader may be very profitable but experiences huge drawdowns.

Social Trading vs Copy Trading

The most obvious one is that not everybody makes money trading. Social trading platforms have a severe problem at times, with people exploding to the top of the leaderboard and then blowing up. While this is possible for any service, the reality is that social trading platforms tend to attract more of a gambler mentality. Many times, there are forums or information feed that you can follow to help you with your decision-making. Undoubtedly there are traders on copy trading platforms who have performed well and have impressive trading statistics.

Mirror trading vs Copy trading vs Social trading

Reink Media Group is compensated if you access certain of the products or services offered by eToro USA LLC and/or eToro USA Securities Inc. Any testimonials contained in this communication may not be representative of the experience of other eToro customers and such testimonials are not guarantees of future performance or success. 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. Now that you’ve seen our picks for the best forex brokers for copy trading, check out the Overall Rankings. We’ve evaluated over 60 forex brokers, using a testing methodology that’s based on 100+ data-driven variables and thousands of data points.

Each one of the operations is copied automatically and configured in the account of the trader that replicates the strategy. Joey Shadeck is the Content Strategist and Research Analyst for He holds dual degrees in Finance and Marketing from Oakland University, and has been an active trader and investor for close to ten years. An industry veteran, Joey obtains and verifies data, conducts research, and analyzes and validates our content.

For example, if you are copying a trader who buys 100,000 units of the EUR/USD currency, you will see the same proportionally-sized trade in your account – depending on how much you allocate. The trade size in your account may be smaller or larger, depending on how you configured your account when initially subscribing to copy each investor). Overall, copy trading can have its place for beginners – so long as they take full responsibility for managing their choices.

You can search the trading history of other traders and learn from their mistakes as well as their accomplishment. By this way, you can reduce your learning time and lessen the risk of lost. On the other hand, you just want to make quick money, so copy trading could be an easier way for you.

Social trading vs copy trading

This means that you can receive tips and notifications on-the-go, wherever you may be trading from. If you want to open a Copy trading account, simply click on the button below. If you want to learn more about Copy trading, read the full article.

Knowledge sharing within the community also helps learn about the Forex market and get a profit instead of loss. So, copy trading is like a warm bath that helps a junior trader to adapt to the market with minimal loss. When opting for social trading, you are left on your own with your decision and there is no one to blame but yourself in case of a failure. With copy trading, you are backed by the expertise of the introducing broker supported by a track record of successful traders and time in the market. Besides, if you are looking for maximum strategy optimization with high-performance and hands-off experience, copy trading is definitely the one to choose.


Copying any information on this website, as well as using JustMarkets Brand Characteristics, is allowed only with the express written permission of JustMarkets. Social and copy trading are new words that many people do not completely understand and can use. Keep in mind that trading with margin may be subject to taxation. PrimeXBT shall not be responsible for withholding, collecting, reporting, paying, settling and/or remitting any taxes which may arise from Your participation in the trading with margin. At the end of the day, they tend to be less professional but can be helpful to at least measure overall trader sentiment. Chart patterns are one of the most effective trading tools for a trader.

Social Trading vs Copy Trading

Now it’s time to open an account on an automated trading platform. This can be done from your browser or mobile device just by downloading AvaSocial app. Here at AvaTrade, we also offer other well-known copy trading options, like ZuluTrade and DupliTrade.

Making money in forex is easy if you know how the bankers trade!

Following the trades of other people with more experience is a common feature of both social trading and copy trading. Copy trading offers access to a trader market profile with financial information on risk, success, margin allocation. And much more rather than depending on the reliability of a social network.

Copy Trading main FAQs

However, not everyone will find one or the other to be ideal. Nonetheless, the ideal situation is to follow the proper strategy and to let that strategy work over the longer term. Because of this, copy trading is preferable in the long run because this allows you to step away and take advantage of a strategy that already works without interfering with it. It certainly seems that inflation is taking a bit of a back seat for now. Additionally, getting ready for copy trading does not require much time. You just need to take into account some baseline factors to avoid common mistakes and gain success.

Social traders use this data to base their decisions on the available intelligence. Newbie traderswho are interested in learning the basics of trading without risking their money. It gives them the knowledge and confidence to follow other traders and learn from their insights. Traders and investorswho have little to no time to trade are more appropriate for automated trading. If you’re new to Forex trading and want to learn from the experience of others by interacting with them, social trading is a good way to do it. Copy trading can also be costly if you pay commissions for frequent traders.

Leave a Comment