Investocopy Social Trading Network ¦Trading in South Africa

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Contents

Social Trading in South Africa

Social trading, a ‘new’ way of trading allows the users to share information in real-time with the rest of the community. In social trading the group (community) needs to be completely involved as it depends on real-time market information. This is the platform where new traders can actually watch and learn from the veteran traders. It lends to a faster learning experience through real-life environment. The beginner will also be able to seek advice from the professional traders during any difficult situation and have a ‘safety net’.

The Popularity of Social Trading in South Africa

Social trading is often considered as the next step of evolution for the platform of social media. It is comparatively a new phase that is rapidly growing in popularity in Europe and other continents. South Africa is becoming a major participant in the arena of social trading. Traders of binary options and forex are going through a completely different experience than the traditional method. The social trading terminology involves following the market closely by knowing the real-time sentiment and historical charts through the power of the internet. They are basically doing trading analysis through the help of the social platforms. Like people do traditional trading with the help of brokers, there are brokers for social trading. In social trading the trader himself does not have to do the technical and fundamental analysis rather, the information is relayed by other users. It is therefore a comparatively ‘easier’ method of trading forex, stocks and binary options. This is a major reason of popularity of social trading in South Africa.

The traders can access these platforms from everywhere. This is another reason why many South African traders are shifting to social trading networks. The South Africans access the social trading platforms that have faster chatting options and also contain blogs for easy communications.

How to Trade

One easy way of doing social trading for a beginner in South Africa is to follow the experienced traders and copying them. But the real experience for the beginner will be when he learns to understand the whys of the trading and learns to analyse the market situations. In social trading, the South African trader has to trust the community and also has to earn the trust of his fellow members. By observing the track record of the experienced traders in the community, the novice social trader should learn the ropes of trading.

The new trader, instead of blindly following another trader should check out which strategy, implemented by the experienced traders in the community, satisfies all his requirements and whether it does proper risk management. The trader also has to check whether there is a probability of getting a good return on the investments.

When doing social trading the trader needs not necessarily turn on his computer. They can simply follow the community posts and blogs from their smartphones and even open or close a position through the devices.

Just as in social networks like Facebook, a user can view others’ profile information; in social trading the user can also see an investor’s portfolio. Just like the Facebook feed the social trader will be able to view what other traders are doing, when they are entering or exiting a trade and what strategy they are using.

As social trading came into existence partly due to the MetaTrader platform and the Forex market, forex social trading is one of the most popular forms of social trading in South Africa as well as in other countries. The advent of social trading into the market of CFDs has exposed the medium to shares, indices, bonds, commodities and interest rates. Therefore, the South African trader can now choose to do social trading in different financial markets.

How to Choose the Right Social Trading Broker

When doing social trading, the relationship no longer simply exists between the two (the broker and the individual trader). One individual trader will be able to communicate with several other investors as well as the broker. Here, the question lies not only in the trustworthiness of the broker but also thousands of other investors present in the community. Therefore, the first criteria that comes in is whether the broker is regulated by the regulatory body of South Africa and secondly, whether the individual wants to a small community of traders or a large community.

Check out the broker website and how experienced the traders in its community are. Sometimes a small group may have the best strategy makers or a large group that the potential user was avoiding due to the number of community members may contain good experienced traders. It is actually difficult to say from the outside as the brokers will always advertise its best features.

Every social trading broker should display risk warning statements. Any broker advertising that it is easy to trade and an individual will always win a trade is absolutely wrong. The trading world is full of uncertainties and many times the fate of a particular instrument has changed at the 12th hour.

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Slippage is another criterion that a trader must check out before choosing a social trading broker. It is the difference in the price that a user gets in his account and the amount the trader he copied received in his account. High slippage means that there can be a great difference between the profits earned by the two traders. A good broker will usually offer low slippage as it will offer the traders with same signals, same spreads and very little time between the copying of the trades. In case, the user is following a trader who is registered with another broker then, there will be a higher slippage.

Regulation (FSB)

The social trading brokers also need to be registered at FSB or Financial Services Board to operate in South Africa. The brokers even when they are registered under other regulatory bodies like CySEC or FSA UK should be permitted by the FSB. Many forex brokers offer social trading in a web-based application. Therefore the individual will have to look out first whether the forex broker offers social trading and whether it is regulated by FSB. The objective of the regulatory board of South Africa is to protect the investors from scams. That’s why there is so much strictness regarding trading.

Demo Accounts

A good broker also offers demo accounts to their clients for social trading. This is essential for those who are trying this approach for the first time in order to understand what it actually involves, how the group communicates and so on. This way the trader will also be able to understand the workings of a particular group and choose it on the basis of that. The broker will usually provide all of their social interaction features in the demo account to have real-time like experience.

Top 10 Best Social Trading Networks 2020 review

A re you looking for the best Social Trading network? Don’t you know which one to choose among the various possibilities?

(Or maybe you want to better understand What is Social Trading and how it works?)

There are many Social Trading sites out there, and the number continues to increase.

Here’s our TOP 10 of the best Social Trading platforms and Copy Trading platforms, with a little review in order to make you understand at a glance the main features of each one, plus some more insights for the most important ones.

There’s something to everyone’s liking.

(Want to take a look instead at some classic forex brokers? See our best forex broker ranking)

Plus, at the end of this post you will find all the free resource we have prepared to help you Social Trade like a real pro with all the Social Trading sites you’ll find just now in our Top10.

Let’s start. Here’s the InvestinGoal Top 10 Best Social Trading Networks in the world.

Top 10 best Social Trading Platforms and Networks

Here are our top 10 best Social Trading Platforms and Networks.

  • Regulations: CySec, FCA, ASIC
  • Minimum deposit: $200
  • Platforms: Proprietary
  • InvestinGoal rank: 4.5/5

62% of retail CFD accounts lose money

1. eToro

The social trading broker eToro maybe has not been the first to delve into this new field, but for sure it has been the company that more than anyone has given shape, awareness and visibility to what we now know as Social Trading.

Today eToro, founded and still run by Yoni Assia, is a truly global investor community, where users have the opportunity to interact with each other as they would with a social network like Facebook. Thanks to news feeds, users can monitor and manually copy their favourite traders. Alternatively, the most interesting eToro‘s feature is surely the Copy Trading one, to copy them automatically in proportion, managing exposures and risk. Another bonus? A completely free and unlimited demo account.

  • Regulations: eToro (Europe) Ltd. authorised & regulated by CySEC (# 109/10); Toro (UK) Ltd authorised & regulated by the FCA (583263); eToro AUS Capital Pty Ltd. authorised by ASIC (491139). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Market Maker
  • Minimum Deposit: Ranges between $200 to $10,000 depending on the region
  • Platforms: Webtrader, mobile (iOS and Android)
  • Headquarters: eToro (Europe) Ltd. is headquartered in Limassol, Cyprus
  • US Customers: Yes, but US clients may have significant limitations
  • Other instruments: CFDs on indices, stocks, ETFs, commodities, bonds; cryptocurrency
  • Read the full eToro Review

62% of retail CFD accounts lose money

  • Regulations: HCMC
  • Minimum deposit: depends on the broker
  • Platforms: Proprietary
  • InvestinGoal rank: 4.5/5

74-89% of retail CFD accounts lose money

2. ZuluTrade

Founded way back in 2007 by Leon Yohai, a well-known greek entrepreneur, ZuluTrade has always been at the forefront in this new sector, especially in Forex Social Trading. Recently it has also introduced the Binary Option Social Trading. Users have access to some social features to interact with Signal Providers, especially to read the comments left by other investors before them.

Where the social trading broker ZuluTrade however excels is in the Copy Trading function. You can search thousands of Signal Providers with a professional and advanced search tool, you can analyse in minute detail their strategy, and above all you can replicate their performance by totally customizing risk and money management. Not sure about it? Clarify your ideas with a free demo account.

  • Regulations: Triple A Experts Investment Services S.A. regulated by the HCMC (no. 2/540/17.2.2020). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Copy trading, social trading
  • Leverage: Leverage will depend on the broker you use
  • Minimum Deposit: Deposit will depend on the broker you use
  • Platforms: Web platform, apps (iPhone/iPad, Android)
  • Headquarters: Triple A Experts Investment Services S.A. is headquartered in Piraeus, Greece
  • US Customers: Yes
  • Other instruments: Instruments will depend on the broker you use
  • Read the full ZuluTrade Review

74-89% of retail CFD accounts lose money

  • Regulations: CySEC
  • Minimum deposit: $1
  • Platforms: Proprietary
  • InvestinGoal rank: 4/5

79.67% of retail CFD accounts lose money

3. Naga Trader (former SwipeStox)

Originally born as an App for smartphones only, SwipeStox, called the “Tinder of Trading”, soon became one of the main players in the Social Trading universe. In 2020, the leaders of the SwipeStox management team began a profound expansion and rebranding plan for all their services. SwipeStox became Naga Trader, one of the platforms of the Naga Group AG.

Naga Trader offers social networking, social trading, copy trading, as well as innovative investment services, such as the NAGA CYBO, or the NAGA Portfolios. The NAGA group is also extremely active in the universe of cryptocurrencies and blockchain, so much so that they even created their own crypto coin, the Naga Coin (NGC). NAGA Coin can even be used as the base currency of your account, with numerous economic advantages, especially at the trading level (lower commissions).

  • Regulations: NAGA Markets Ltd regulated & authorised by CySEC (204/13). (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Market Maker
  • Leverage: 1:200
  • Minimum Deposit: No
  • Platforms: MT4, web platform, mobile apps (iOS, Android)
  • Headquarters: NAGA Markets Ltd is headquartered in Limassol, Cyprus
  • US Customers: No
  • Other instruments: CFDs on stocks, ETFs, indices, commodities, futures, cryptocurrency, gaming items
  • Read the full NAGA Trader Review

79.67% of retail CFD accounts lose money

  • Regulations: FCA
  • Minimum deposit: $500
  • Platforms: MT4/MT5 for desktop, iOS, Android
  • InvestinGoal rank: 4.0/5

77% of retail CFD accounts lose money

4. Darwinex

One of the newcomers in the global landscape of Social Trading, but interesting from the outset. Darwinex is a company founded by the Spanish Juan and Javier Colón Bolea, and Miguel Angel Gonzalez.

The newness that Darwinex introduced is the fact that the traders’ strategies are not shown, but are “hidden” within what is called a Darwin. In essence, the trader’s strategy becomes a real asset that the investor can buy and include in his portfolio. Then, the asset value increases due to earnings generated from the underlying strategy managed by the trader. The Darwins are continuously monitored by Darwinex itself, and the investor has access to sophisticated and automated risk control tools. Very interesting for those who feel themselves more as investors than traders.

  • Regulations: Tradeslide Trading Tech Limited authorised & regulated by the FCA (586466) (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: STP
  • Leverage: 1:200
  • Minimum Deposit: € 500 or $ 500
  • Platforms: MT4, MT5 (both available for Mac, Windows, Linux, iOs and Android)
  • Headquarters: Tradeslide Trading Tech Limited is headquartered in London, UK
  • US Customers: No
  • Other instruments: CFDs on stock, commodities, indices, cryptocurrency
  • Read the full Darwinex Review

77% of retail CFD accounts lose money

  • Regulations: no need, not a broker
  • Minimum deposit: depends on the broker
  • Platforms: MT4/5
  • InvestinGoal rank: 3.5/5

74-89% of retail CFD accounts lose money

5. FX Junction

FxJunction is a Social Trading platform where users can create their own profile and connect their MT4 or MT5 platforms. The primary focus of FxJuction is the traders’ community, a place where to share ideas and trading strategies.

In addition to this, FxJuction also offers a Copy Trading system through which to replicate the performance of the signal providers. FxJunction is not a broker but a cross-platform too, but its connection system is not through supported brokers, but through MT4/5. This means that you can keep your current broker, avoid having to open a new account, and simply connect your metatrader platform.

  • Regulations: FX Junction, LLC is not a broker, regulations are not required. (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Copy trading, social trading
  • Leverage: Leverage will depend on the broker you use
  • Minimum Deposit: Deposit will depend on the broker you use
  • Platforms: MT4, MT5
  • Headquarters: FX Junction, LLC is headquartered in New York, USA
  • US Customers: Yes
  • Other instruments: Instruments will depend on the broker you use

74-89% of retail CFD accounts lose money

  • Regulations: no need, not a broker
  • Minimum deposit: depends on the broker
  • Platforms: almost all
  • InvestinGoal rank: 3.5/5

74-89% of retail CFD accounts lose money

6. Myfxbook Autotrade

Opened in 2020, Myfxbook soon became famous as one of the best communities for professional web trader. In Myfxbook traders can link all their trading accounts under a single personal profile, and keep track of all their trading statistics in a professional and organized manner.

Myfxbook also offers an Autotrading service, called Myfxbook Autotrade. Myfxbook is not a broker, but a cross-broker platform, this means that to use the autotrading service you will have to open a new account with one of the many supported brokers. Technically speaking, Myfxbook Autotrade is more a Mirror Trading service. The strategies to copy from, in order to be admitted, must pass a list of precise requirements that increase their security.

  • Regulations: Myfxbook Ltd. is not regulated as it is not a broker. (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Market Maker, ECN, STP
  • Leverage: Leverage will depend on the broker you use
  • Minimum Deposit: $ 1,000
  • Platforms: MT4, AutoTrade (web platform), mobile app (Android, iPhone, iPad)
  • Headquarters: Myfxbook Ltd. is headquartered in Ashdod, Israel
  • US Customers: No
  • Other instruments: Instruments will depend on the broker you use

74-89% of retail CFD accounts lose money

  • Regulations: no need, not a broker
  • Minimum deposit: depends on the broker
  • Platforms: Mirror Trader
  • InvestinGoal rank: 3.5/5

74-89% of retail CFD accounts lose money

7. Tradency Mirror Trader

One of the absolute pioneers of this world, even before ZuluTrade and eToro. Tradency has launched the world of social trading, showing everybody how it was possible for users to automatically copy the strategies of other traders, without having to personally operate in the markets.

Tradency, however, has chosen not to travel the road that saw other brokers, like eToro and ZuluTrade, becoming actual real Social Networks. Tradency focused solely on what they call Mirror Trading and the related Mirror Trader platform. With the Mirror Trader users can access several automatic strategies (based on algorithms) generated by professional traders from around the world, and can decide, after assessing the performance, to replicate the signals into their own account. The only aspect that could be considered “social” is the possibility to show and share each user’s portfolio of strategies.

  • Regulations: Tradency Inc. is regulated by the Japanese FSA. (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Social trading
  • Leverage: Leverage will depend on the broker you use
  • Minimum Deposit: Deposit will depend on the broker you use
  • Platforms: Mirror Trader, Robox, Smart Investor, Smart Investor CFD
  • Headquarters: Tradency Inc. is headquartered in the British Virgin Islands
  • US Customers: Yes
  • Other instruments: Instruments will depend on the broker you use

74-89% of retail CFD accounts lose money

  • Regulations: NFA
  • Minimum deposit: $49/month or $299/year
  • Platforms: Proprietary
  • InvestinGoal rank: 2.5/5

Trading is risky. You can lose money.

8. Collective2

Collective2 is one of our featured best forex brokers for social trading. They are a top choice for those based in the US who may be interested in copy or social trading. When it comes to regulation, they are overseen by the well-trusted NFA in the US. This broker differs from many others in the sector since it does not charge a fee for forex trading. Instead, traders can choose from one of four monthly plans. The prices of these range from $49 to $299 a month and you can save as much as 15% by opting for an annual plan. Within each tier of plans, the higher your investment, the more forex trading strategies will be made available to follow. These strategies originate from the trading platform itself where they are trader reviewed as opposed to directly copying other traders.

  • Regulations: Collective2 LLC is a member of the National Futures Association (NFA); (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Copy/social trading platform
  • Leverage: N/A
  • Minimum Deposit: $49 if billed monthly, or $390 if billed yearly
  • Platforms: Webtrader
  • Headquarters: Collective2 LLC is headquartered in New York, USA
  • US Customers: Yes
  • Other instruments: Strategies

Trading is risky. You can lose money.

  • Regulations: CySEC
  • Minimum deposit: $500
  • Platforms: MT5, Webtrader
  • InvestinGoal rank: 2.5/5

63.04% of retail CFD accounts lose money

9. Trade 360

Trade 360 are another of the top social trading brokers in the industry. They are fully regulated and ESMA compliant with their HQ based in Cyprus. They are another social trading broker that offers a range of account choices to you as a forex trader. You can choose from a total of 6 distinct account types. This includes an account type which is specifically designed to facilitate trading in gold. With Trade 360, you will also find that the minimum deposit ranges from $500 to $50,000 depending on the account type. Forex trading spreads start from 3 pips ono many of the forex currency pairs available and there is a wide range in choices of CFDs, with more than 100 open to trade. Trading with this broker takes place on MT5 or WebTrader platforms.

  • Regulations: Crowd Tech Ltd is authorised and regulated by the Cyprus Securities and Exchange Commission (CySEC) with licence number 202/13; (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
    Type: Copy/social trading platform, Market Maker
  • Leverage: 1:400
  • Minimum Deposit: $500
  • Platforms: MT5, Webtrader
  • Headquarters: Crowd Tech Ltd is headquartered in Limassol, Cyprus
  • US Customers: No
  • Other instruments: CFDs on stocks, commodities, metals, ETFs

63.04% of retail CFD accounts lose money

  • Regulations: NFA
  • Minimum deposit: Variable
  • Platforms: Proprietary
  • InvestinGoal rank: 2.5/5

Past performance does not guarantee future results

10. iSystems

iSystems are a European copy and social trading platform that has the ability to facilitate automated trading for traders who are operating under brokers where the platform and its technology is employed. The iSystems platform mainly focuses on trading of stocks and futures and therefore is mainly featured among brokers who offer trading in these markets as a primary product to traders. With that said, they have gained a lot of traction and popularity within the industry. As a trader, you can now utilize the iSystems platform or its technology with more than 30 top stock brokers. These major brokers include the likes of NinjaTrader and Halifax among others. If you are trading stocks or futures, it is likely you will come across the iSystems platform.

  • Regulations: iSystem is not regulated because it’s not a broker. (You do not own or have any rights to the underlying assets. Please refer to the Disclosure documents available on the website.)
  • Type: Copy/social trading platform
  • Leverage: It depends on the broker chosen
  • Minimum Deposit: It depends on the broker chosen
  • Platforms: MT4, web platform, mobile apps (iOS, Android)
  • Headquarters: iBroker Global Markets SV SA is headquartered in Madrid, Spain
  • US Customers: No
  • Other instruments: It depends on the broker chosen

Past performance does not guarantee future results

How to Social Trade Like a Pro with the best Social Trading brokers

Now that you know all the best Social Trading sites where you can start to Social Trade, it’s time to discover how you can best do it.

Do you want to professionally Social Trade and increase your chance of success?

Well, here’s the deal.

InvestinGoal is simply full of contents, strategies and tools to help you Social Trade like a real pro with all the Social Trading sites we mentioned above.

Here you can find:

  • an eToro guide
  • a ZuluTrade guide
  • an Ayondo guide
  • a list of the best Social Traders
  • other guides in the Learn Section that will help you really make the best out of Social Trading
  • a Social Trading blog to really go beyond the Social Trading meaning
  • an in-depth Social Trading review section
  • …and much more, like our SlideShare for example ��

Best 10 Social Trading Sites 2020

What if you could start earning from forex without the need to dedicate a lot of time and resources, and to learn how each strategy works? What if you didn’t have to choose between your day job and forex trading? Well, social trading lets you do this more and more. Social trading in its most simple form is a type of trading software that provides you with the opportunity to mirror the strategy of pro traders.

The past few years have seen a surge in the number of forex brokerage firms incorporating different social trading features. Most of these have either resulted in developing proprietary software while others have adopted what are widely considered to be the leading social trading platforms on the market.

In this guide, we have tested various social trading environments and come up with a list of what we consider to be the ten best social trading programs for 2020.

On this Page:

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How does social trading work?

Social trading is a form of networking that brings traders, investors, and analysts into one interactive environment. Here, they get to share ideas and insights about the industry while others get to collaborate in forex trading projects.

Inexperienced traders get to learn from the pro-traders by watching how they analyze markets, identify viable trade positions, and create winning strategies. These beginner traders can then copy suggested trading strategies and replicate them in their trading accounts.

There is a caveat though when it comes to social trading. Not every self-proclaimed trader/analyst is worth copying from. To help you identify the best traders to copy, social trading websites have come up with professional trader qualifications.

The qualification touches on such aspects of their trade as the percentage of wins posted by the trader, maximum drawdown, portfolio diversification, and invested amounts.

What are Pros and Cons of Social trading?

Pros

    You don’t need in-depth forex industry knowledge: You don’t need to be an experienced forex trader to benefit from social and copy trading. You only need to register a trading account with a broker that supports the practice and choose the copy trading option. Great source of passive income: Given that social trading can be automated; you don’t have to be actively involved in the trade. You only need to set the basic trading features like the frequency of trades and percentage deposit to use. Saves you time: Technical and fundamental analysis, that form the backbone of every successful trade can be time-consuming. Copy-trading lets you save time by copying the analysis and resultant trade settings of a pro trader. Presents inexperienced traders with a chance to make money: Beginners and relatively inexperienced forex traders often have the hardest time making money here. Copy-trading, however, helps fast-track the profitability of their investments.

Cons

    It is not a free service: By committing to copy other people’s trade settings, you also commit to sharing a portion of the revenues gained. Different brokers have varied remuneration schemes for the pro-traders. Most, however, involves sharing a percentage of profits realized from the copied trade strategies. It is not immune to risks: Even pro traders make mistakes in reading the markets that can result in massive losses. You should, therefore, brace for either when copying the strategies.

What Criteria are used to Rank the Best Social Trading Sites?

  • Pro-trader qualifications
  • Copy-trading commissions
  • Ease of registration and use
  • Number of trading instruments
  • Minimum deposit
  • Consumer experience
  • Level of copy trading automation

Best Social/ Copy Trading Platforms for 2020

1. eToro – Best overall for all traders

eToro describes itself as the ‘world’s leading social trading platform’ – and for a good reason. It was one of the first forex brokerage firms to perfect the art of social trading by providing its clients with an automated copy trading option. This gives beginners, slightly experienced, and part-time forex traders an opportunity to profit from this highly lucrative market.

Others factors making eToro a market leader in the social trading world include its expanded world presence in several countries around the world. We also liked their pro-trader qualification criteria. This takes into account such aspects of their trading history as their biggest downturn, minimum deposit amounts, and hourly-risk score. Most importantly, they have two different types of copy portfolios. The first, allows you to copy elite traders while the market portfolio will enable you to copy best performing pooled fund/ trading portfolios.

What is Social Trading? Best Social Trading Platforms 2020

Whether you’re a new trader looking to make some extra profit from the online markets, or an experienced financial trader with decades of experience under your belt, social trading can help you. In this guide we have reviewed the top social trading platforms for 2020 and found that ZuluTrade is by far the best social trading exchange out there. Getting started with them is fast, easy, and free. Read on to find out how to get started.

Forex.com : Best U.S. forex platform

  • Spreads from just 1.2 pips
  • Regulated by US bodies
  • More than 90 forex pairs

What is Social Trading? Understanding the Online Trading Phenomenon

Social trading is not entirely new. In fact, the idea behind social trading has been around for decades. However, the mix of online financial markets and social networks has birthed an entirely new wave of possibilities where platforms can allow for facilitated ‘copy trading’. Exchanges such as ZuluTrade enable the possibility for social trading, and external third-party sites allow for the sharing of strategies, ideas, trade concepts, and much more, which enables any beginner trader to understand ideas and get the hang of things a lot faster than they otherwise would be able to.

This guide will dial in on Social Trading, conducted on a variety of financial markets.

Social trading is a concept; it involves using other traders and investors and their decisions as a base model in making decisions in your own investing or trading techniques. As a result, it is more of a mindset, which can be translated into a process for both new and veteran traders and investors.

Understanding what social trading is isn’t difficult. It is simply looking at one trade, completed by user 1, and using that information on judgment for one’s own trade. The process is commonly cross-referenced as ‘copy trading’ as well. An example can be used to understand the process even deeper. Take the following into consideration:

User 1 sees a profitable opportunity in buying Apple (AAPL) stock. User 1 links his account to a social trading platform that posts his trades when they’re made. User 1 buys Apple stock, and the trade is immediately posted to the social trading platform. User 2, who is an avid user of the platform sees that User 1 has made many profitable trades in the recent past and decides to also buy Apple stock. This process is known as copy trading, otherwise referenced as social trading.

User 1 and User 2 have both successfully engaged in social trading by doing this. Why is this important? There are multiple reasons for this, namely, because if you’re not knowledgable in trading, or a beginner, you can immediately get guidance in your trades from other more experienced people. Social trading is done specifically different using various terms on every platform, however, fundamentally the core process is traditionally the same on each platform.

Social trading contains a few pillars to it as well. You can create an online account that other users can follow, and you can use this account to share different ideas, strategies, and more. You have the option to build a following; it enables you to partake and interact with a community of like-minded traders and investors that are also trying to maintain profits in the markets. The concept of ‘social trading’ is really a multi-structured facet, one that we’re here to help you understand.

What’s the Usefulness of Social Trading?

Many traders and investors are unaware of the benefits that social and copy trading can yield. There are a few large benefactors to utilizing these platforms, those of which tend to both new market participants and those who are experienced.

. Insight

– Having the ability to see other people’s trades and decisions in the markets can give you further understanding of assets or prices. Social trading allows for this by showing you where, when, how, and in many cases why a trader or investor decided to do something. This is important and can increase you knowledge of certain aspects.

. Market Sentiments

– Although this should be taken with a grain of salt, community-based trading and investing can help you see the broader picture when it comes to market overviews and to see the amount of people buying or selling something.

. Ease and Automation

– Due diligence and research plays a large part in making a certain trading decision. Analysts and mathematicians sometimes spend days or weeks deciphering where they’d like to make a trade or how/when they want to enter the market. Social trading lets you follow reliable traders, and base your decisions off of other researchers and those who have already deducted exactly why a trade is reasonable.

. Continuing Your Learning

– Both beginner and veteran traders must continue to learn and expand their knowledge base when it comes to trading the markets. Social and copy trading allows you to do just this. It allows you to expand your knowledge on not just the markets as a whole, but expand your understanding of traders and individual people/traders as well.

What is a Social Trading Platform?

As we’ve discussed, social trading is the process of utilizing a platform where the application or website allows us to merely copy other people’s trades. The process of social trading and copy trading is different per each platform, as not all are the absolute same. Each have their own traits and distinctive qualities; some offer incentives such as bonuses and discounts to be the one that is copied, while others do not.

Here are some of the best and vetted social trading platforms to get started immediately and start learning and expanding your knowledge in the markets:

What Are The Best Social Trading Platforms?

The Naga Group, who launched an ICO to raise funds for their own “NAGA” coin, are a powerful financial company that purchased ‘Naga Trader’ from its original owner to deliver one of the most interactive social trading platforms. The trading site, and subsequent mobile application, can be downloaded for free and you can get immediately involved in the Naga ecosystem. With Naga you can even compete amongst other traders in self-made competitions with wagerly winnings. This incentive is new for social trading and lets you add customizability. Naga Trader, despite launching a cryptocurrency, is a social trading platform for all global markets.

Pros:

    Regulated exchange Set competitions amongst other users Multi-market supported High-end user interface is integrated Enabled in a variety of jurisdictions, integrates cryptocurrency to a new level

Cons:

    Verification required for extended usage Support team can be laggard in response

ZuluTrade takes on social trading in a new aspect and has subsequently made a name for itself as one of the most promising and reliable platforms in the atmosphere. ZuluTrade works a bit differently than most social trading platforms; to work on ZuluTrade, you trade using one of the supported platforms and traders are then subsequently ranked based on customized criteria set forth by the presiding company. ZuluTrade records your overall strategy, aggression in trading, and categorizes them. Investors then, as a result, select which types of strategies and overall markets they want to target and can then select traders to copy. The platform is very innovative.

Pros:

    Registered broker/exchange within the Forex sphere Margin is enabled for traders, and to get started the minimum deposit isn’t very much Customization within your copy trading methods is enabled; you tailor your own strategy Trading portal is easy to use, GUI is very straight-forward and good for beginners

Cons:

    Verification has been reported as lengthy Can be a complex platform to get the hang of at first Forex markets are the only current supported markets

Another strong contender when it comes to prospective social trading platforms is Darwinex. The platform was built by a registered UK brokerage firm and serves as an exchange to allow for incentivized market movement. Darwinex enables better pip pricing and fees for those who are successful in their trades. Darwinex additionally lets you copy trades and do what is called ‘invest in traders’. This can be customized to tailor certain traders that only use a particular strategy but can range to select your own individual traders. Regardless, Darwinex is a great social trading platform for both veteran users or newer traders.

Pros:

    Regulated and registered with the FCA Emphasis on safety/security Ability to switch between trading and investing. These are two different methods you can maintain and separate from one another Mobile trading support; fast deposits enabled

Cons:

    Barriers to entry for beginners can be difficult Higher relative fees if you’re starting out on the platform without success

TD Ameritrade – Ameritrade, ran by the popular retail bank “TD”, is one of the most trusted trading platforms in the financial ecosystem. The platform is overseen by a plethora of different regulatory bodies and maintains a level of market safety that many other exchanges seem to lack. Since the exchange is operated by an actual registered bank, it offers a level of safety with traded funds that many other exchanges simply legally cannot provide. This edge is very attractive, especially to prospective Forex traders.

Pros:

    Ran by a registered/regulated bank Emphasis on safety/security is very high TD runs a variety of audited and validated trading pairs Interactive mobile trading support

Cons:

    Verification can be long Higher fees

What to Look For When Choosing a Social Trading Platform

Using a social or copy trading platform can yield some very advantageous and opportunistic angles within the market, however, the platform in particular that you choose can stifle or excel your ability to exist in a market.

When choosing a social trading broker you should look for various factors, however, the main goal is to select a social trading platform or exchange that is tailored in your image and preference most specifically. Here are some important factors to assess and what to look for when choosing a social trading platform.

. Low fees

Look for low fees, and if fees are nonexistent, look to see why that is. Some social trading platform incurs fees in other areas such as withdrawals and deposits instead of directly on the trades. Find the additional fees that these platforms apply to the users of the platform, and then apply it appropriately.

. ‍⚖️Regulated platform

Find social trading platforms that are regulated and registered with existing legislative or jurisdictional law bodies. This will ensure that all your activities on the site are legal and overseen by a legislative body. Otherwise, you don’t know if your funds are truly safe.

. Large following on social media

A large following on a social trading platform is good; this means that there are more traders to choose from, and therefore more strategies and potential profit methods to choose from.

. Security

Ensure that the platform you’re using has a level of security and cyber protection added to it; many times social trading platforms can succumb to things such as DDoS and other cyber-like attacks.

How to Set Up An Account for Others to Copy

Social trading is a growing industry that has been reaching all corners of the globe; as a result, companies and exchange providers have flocked to incentivize trading on a copy-based platform. Creating an account to trade so that others can copy your trades does have some benefits, depending on the platform you’re using. Conceptually, by instantiating a platform where users can come and copy your trades if you succeed, you can emphasize your brand name and others will see that you’re a particularly smarter or well-versed trader. So how do you create a trading account for others to start copying?

Step 1: Choose your social trading platform

First, start by choosing a platform that you’re comfortable with using. We recommend any of the previously mentioned exchanges or providers as they’ve been previously vetted and have demonstrated reliability within the space. You’ll have to create an account, in the same manner, that we previously mentioned as well, however, in this instance, you do not have the choice for verification or deposit linkage. On most, if not all platforms, you cannot use a demo account as a standard for other traders to copy. As a result, follow the aforementioned tutorials, and if all is well, proceed to verify and link a deposit method.

Keep in mind each platform for social trading and getting your own copied-account set up is different. We’ll walk through the case of ZuluTrade; in ZuluTrade’s case, you want to create a ‘popular investor’ profile. This can be done by navigating to the ‘popular investor’ section of the site located here. For ZuluTrade, you can even get paid to get copied. In this case, though, you’ll need to apply. The application process can be started by clicking ‘Apply’ and following these criteria:

Step 2: Submit your application for review

If you match the previous criteria, you’ll then be able to submit your application to ZuluTrade for further review. You’ll get the following confirmation message if everything is correctly input:

Upon review, the customer service team will then look over your new application.

If successful, you’ll then be able to link all of your trades to a ‘custom popular investor profile’. This profile is your hub where other users can login, click ‘copy’ on your profile, and then follow each and every one of your market movements.

As a result, if others are copying your profile movements, all of your movements will then be replicated equally on their profile as well. If you have ‘followers’ in this sense, and also make profitable trades, you’ll then additionally be rewarded for your actions. ZuluTrade has even gone as far as creating ‘tiers’ for those who are now considered to be popular investors. The following table indicates how increasing your presence and success on ZuluTrade can yield immense rewards:

Keep in mind, that this is not the standard for all social/copy trading platforms, this is only the reward structure for ZuluTrade. Other websites/applications will follow different types of tiers and structures, while some social trading exchanges won’t even reward profitable or successful copied trades.

What are the Different Types of Social Trading Accounts?

Social and copy trading have a few different types of accounts (Regardless of your platform of choice), so it’s important to keep yourself up to date with some of these changing fundamental account structures. Social trading accounts can differ and vary based upon the actual market you’re trading on (As discussed before).

Above is an example on a standard broker of differentiation between 2 types of trading accounts that are then able to be linked to the social trading aspect.

(Forex)Standard Accounts
Standard accounts are used in the Forex markets. These accounts enable you to trade lots in their standard form, which is equivalent to $100,000 per lot. Traders copying these sorts of accounts will be engaged strictly in the Forex market.

(Forex)Mini Accounts
Mini accounts are a niche type of Forex account. These accounts allow for trading of Forex in what is referred to as lots in their ‘mini’ form; otherwise, denominations of $10,000 per lot.

CFD Accounts
Depending on which broker or exchange you’ve chosen, the use of margin in combination with the utilization of registered or regulated financial products may potentially be enabled. CFDs are contracts for difference, financial products that enable the trading of an asset without actually ever touching the asset in question.

Copy Accounts
These accounts refer to accounts in the social trading atmosphere that are the ones opting to copy other investors and traders movements in the markets. In a ‘copy’ account, you’re not doing any actual trading, simply copying other movements within the markets.

Copied Accounts
‘Copied’ accounts are accounts within social trading that are being replicated or imitated. On platforms such as ZuluTrade, copied accounts are rewarded based upon how many people are copying their trades relative tot he success their trades are generating.

Social Trading Terminology

The following are basic terms that will come up frequently in social and community trading settings.

Copied/Popular Investors – Traders and investors who are being copied by other people, serving as a ‘benchmark’ for other investors and traders, are referred to many times as copied or popular investors. These are the traders and investors that you’ll be copying if you’re in the social trading market to have others make the trades and market decisions for you.

Performance & Return – Copied or popular investors/traders will subsequently either be very good or bad at what they’re doing. Subsequently, their performance and returns are how well their trades or market movements are. If a traders performance is high in terms of percentage, it means that they’ve done well in the markets. When copying a trader or investors base strategy, you generally want to look for consistent returns or performance, meaning they’ve been able to make positive and profit-yielding trades/profit in a consistent manner.

Copiers – Copiers are simply the users that are replicating the trades or base of each individual person. If you are a user that opts to let another trader or investor make decisions for your portfolio on a social trading platform, your categorization is then a ‘copier’.

Risk – Risk is the amount of downward pressure that a trader or investor is undertaking in order to obtain positive performance. Traditionally, the best methods are those with lower risk and higher rewards, but this is rarely the case. Risk is a certain tolerance for a loss that you can undertake. High risk means you’re putting a lot on the line; low risk means the opposite. A copied trader that is taking a lot of risk in their strategy is putting a lot on the line (Or essentially putting a lot in the markets) in order to make the returns they’re generating. You can take various levels of risk when it comes to your investment.

Holding Time – When you’re trading, there is a certain amount of time that you’re holding your positions for. Essentially, what this means is that you’re buying an asset or market position and not selling it for x amount of time. From the time you buy an asset to the time you sell that asset, is equivalent to your ‘holding time’. A copied trader with an average holding time of 7 days means that the trader traditionally holds whatever position they’re entering in for about 7 days on average.

How to Make Money with Social Trading

Despite your initial intentions, your most probable overall goal when it comes to social trading is to generate profit, or make money that you otherwise wouldn’t be able to. So how do you actually make money when social trading?

The goal in profiting with social trading isn’t to select winning markets; it’s to select winning traders. Social/copy trading is just as is traditional trading, based on strategy and has winners and losers. The overall intentions of social trading is to essentially select traders that are going to win, since after all, your money is just automating everything that your selected trader does. Here are some tips on how to make money with social trading:

  • Select a trader that has demonstrated future potential in the financial markets, has had previous success/profitable trading, or has a quality you believe will yield positivity in the upcoming markets.
  • On your platform of choice, select the ‘copy’ functionality with the desired amount of funds.
  • The copied trader will trade and anything they do, will be parallel to your own portfolio. Await for them to make profitable trades; assuming they make profitable trades, your position size will increase along with the trade.
  • You can choose to disable the copy-function which will withdraw your funds, or you can allow the account to function on its own. Either way will work. Then, your account value will have grown; if done successfully, you’ll have made money with social trading.

Well, what’s the catch? The downside is that you never for sure on any social trading platform which traders will be 100% correct; you need to be subjective. Vet your candidates for social trading very carefully.

The following example will walk through an example of a trader making money while social trading:

User 1 signs up for ZuluTrade (Or any other social trading application/website) –> User 1 deposits $1,000 to ZuluTrade and finds 2 traders (Trader 1 and Trader 2) that they are very fond of and who have shown consistent results in their trading –> User 1 selects the option to ‘copy’ traders 1 and 2 –> Traders 1 and 2 both profit; as a result, User 1 also profits

Tips for Social Trading

✅For Copy Traders & Investors (Copiers)

Identify Your Investment and Trading Goals

Figure out your own investment strategies and intended goals. Seek out which financial markets you’d like to target and for what relative time periods. Creating a plan in regards to your goals beforehand is very important as it will help you refine your process as you go along. Knowing your own comfortable criteria will also help you select a trader you’re comfortable in copying.

Filter Using the Criteria Available

Different trading platforms and exchanges have different filtering and siphoning options. For example, ZuluTrade lets you filter and identify the most optimal traders to copy in accordance to return relative to risk. You can also filter according to markets and things such as longest shown consistency. Parameters such as these can be invaluable when looking for traders to copy.

An example of filtering being applied to social trading on ZuluTrade.

Look for High Performance As Well As Consistency

Identify traders that have shown high performance in their trading returns, but don’t allow for this to deceive you in your selection. High performance can just as equally mean luck. It’s entirely possible that a trader could have gotten lucky on a single trade. Look for investors and traders that are showing consistent returns as well as higher-based averages. A trader that has returned 25% over the course of 300 trades in a year’s time period is subjectively a much better choice than a trader that has returned 40% over the course of 2 trades in just a week’s time.

Place Limitations As Well As Ration-Indications On Your Account

Your account when copying traders should be limited and regarded with high due diligence. Putting your entire account in the hands of a singular trader that you’re not entirely knowledgable of can be an awful decision at times.

Choose a Platform Tailored for Your Own Methods

Certain exchanges and platforms offer intuitive tools, additional aids, and even monetary incentives for building up a trading following and still continuing to be successful. Analyze the available exchanges and platforms and try to match them relative to your own styles. If you’re looking simply to keep track of your own trades, then it’s recommended you put less regard to things such as incentives.

Apply a Unique Strategy

Keep in mind there’s a lot of traders looking to acquire copiers, especially on platforms that provide rewards and incentives, which means it’s competitive and therefore it’s more difficult to acquire more copiers. As a result, approach the market in a unique way. Provide unique strategies to investors and traders and give them a different reason to copy your trades instead of anyone else’s. When you have a subsequent edge over other traders, you’re giving copiers a reason to follow you instead of others.

Aim for Consistency

Showing traders and potential copiers that you can profit is one thing, but showing them that you can trade and make a profit in a consistent manner is an entirely different thing. Most professional and institutional level traders are looking for consistency when it comes to their trades. Therefore, try to start small and aim for trades you’re more than likely sure of. This way, you create an almost repeatable methodology that others can copy.

Don’t Rush Trades

The idea of earning income based on others copying your market movements can be very enticing. However, keep in mind that large-scale mistakes that are made early in your community trading career can be harder to repair; therefore, don’t rush. Plan your trades and carefully approach the markets.

Can you get rich social trading?

Absolutely – you can get rich by trading social trading, but you’ll need to assess what the realistic possibilities are. It’s definitely possible; the following example demonstrates someone making a large profit off of social trading: The user copies a trader that has shown above average and consistent profit in their trades, and as a result, allocates $10,000 on ZuluTrade to mimic their investments. Over the course of a month, the trader knocks it out of the park, and returns over 200% for their portfolio; since you’re latched onto their investor profile, (Minus fees) you’ve also just made 200% on your investment. As a result, you’ve made $20,000 profit. The key here is to relate your account size. Keep in mind, this is not always the case, and there is no sure bet that you’ll continue to generate profit.

What’s the most profitable social trading platform?

The current social trading platform with statistically the best payouts in regards to letting people copy your trades (If you’re looking to be copied), is generally ZuluTrade because of its 2% AUM structure. The incentive works relative to how much copied capital you’re carrying and the profits you generate for the copied trades. It’s a unique structure and is currently amongst the top standards. As far as looking for platforms that offer the highest profit to those who are trying to copy other’s trades, there’s not a real indicator for this, at least at the moment. However, Naga Trader, for example, maintains a customizable competition-based structure where people can create pools of capital and whoever trades the best for other social participants essentially is rewarded the capital. The key tip here is to expand your horizons as far as what platform you use.

Which markets are the best to copy?

The largest market at the moment for social/copy trading right is the Forex market. This is arguably because the foreign exchange market maintains the largest overall volume of any market at the moment. More liquidity means faster, more precise execution, so as a result the Forex market has been argued to be the best option for social & copy trading. Additionally, if you’re thinking about it conceptually, the market with the most traders will have a higher chance for a profitable/high-return basis. As a result, the Forex market has been looked at as the best option for social trading.

Can I use a social trade platform in my jurisdiction?

The act of social trading is currently not legislatively recognized as ‘illegal’ or ‘legal’, however, you should always check on a relative basis depending on your native residence. Laws are constantly changing, and if you ever have any doubts or concerns in regards to the legal outlook of social trading it’s always best to consult with a lawyer, accountant, or equivalent. Additionally, social platforms like ZuluTrade are regulated and their job is to govern users registering from certain jurisdictions. In other words, exchanges, and platforms that are regulated/registered with governing bodies have an obligation to allow/disallow your participation in social trading. However, if they’re not regulated or registered, they’re not obligated; keep that in mind.

What is Forex trading used for?

Trading Forex, although adopted in recent decades as a niche type of market for trading, has also been used primarily in markets for hedging against market positions. The Forex markets enable you to engage in trading of global economies despite holding additional positions in singular markets such as American equities or derivatives.

Is Metatrader Able to Integrate with All Brokers?

Most Forex brokers have enabled Metatrade integration; if they haven’t, there is traditionally a third party bridge platform that the broker has worked with to allow integration with Metatrader. Using these bridges can yield seamless adding to Metatrader.

How do I get better at trading Forex?

A great trick that you can use to improve your Forex trading skills is utilizing a demo account in the form of paper trading. Paper trading is the trading of a ‘fake’ account. Real-time values and price action is utilized, however, the account value is not real. This allows you to practice trading in a real-time setting. It’s a great trick for any prospective trading looking to improve their skills. Improving your forex trading strategies is all about consistency and practice. Learning how to trade Forex for beginners, can be especially hard. However, you can only get better by learning, practicing, and actually doing. Within no time, forex trading for profit can be done easily.

What are the best Forex trading strategies?

Learning what your strengths and subjective talents are when it comes to trading are what will allow you to excel in trading. Learn those strengths, and perfect them. FX trading is only what you make it. For those wondering can you trade Forex 24 7, the answer is particularly, yes; however, these markets are not entirely active until their respective economic activity times.

How much do I need to start social trading?

Copying traders only need to have a relative minimum amount equivalent to how much the trader they’re copying is requiring. This changes per trader. This also depends relative on your platform that you’ve chosen. Certain platforms require a certain amount be deposited to get started, while others do not. Generally, we recommend a $250 starting account for those who are new to social trading, just so that you can maintain a handle on the process. However, this is entirely relative to your own account.

Best Copy Trading Brokers in 2020

The ForexBrokers.com annual forex broker review (four years running) is the most cited in the industry. With over 50,000 words of research across the site, we spend hundreds of hours testing forex brokers each year. How we test.

The ascent of copy trading – also known as social trading, mirror trading, or auto trading – has been ongoing for over a decade. Thanks to social media and an increasingly faster web, financial news and market analysis propagate at lightning speed.

The idea of copy trading is simple: use technology to copy the real-time forex trades (forex signals) of other live investors (forex trading system providers) you want to follow. This way, every time they trade, you can automatically replicate (copy) their trades in your brokerage account.

Best Forex Brokers for Social Copy Trading

Based on over 105 different variables, here are the best forex brokers for copy trading.

  • eToro – Best overall platform for copy trading
  • Pepperstone – Numerous copy trading platforms
  • FXCM – FXCM App store for automated trading
  • Darwinex – Unique social copy trading community
  • AvaTrade – Multiple copy trading platforms
  • HotForex – Full MetaTrader suite
  • FxPro – Full MetaTrader suite

Best overall platform for copy trading

eToro is a winner in 2020 for its easy-to-use copy-trading platform where traders can copy the trades of other users across over 1,900 instruments, including CFDs on popular cryptocurrencies. Read full review

Numerous copy trading platforms

Pepperstone offers a small set of tradeable products but provides forex and CFD traders with competitive pricing, excellent customer service, and one of the largest selections of third-party platforms, including numerous options for social copy trading. Read full review

FXCM App store for automated trading

While its range of tradeable markets is narrow and pricing is just average for everyday trading, FXCM caters to multiple trader types. High-volume traders, algorithmic traders, and, overall, traders that appreciate robust trading tools alongside quality market research will find FXCM to be a good fit. Read full review

Unique social copy trading community

Darwinex provides forex traders with a unique social copy trading community that enables investors to buy and sell trader-developed strategies. Copy trading aside, while Darwinex also offers the full MetaTrader suite, the offering is just average. Read full review

Multiple copy trading platform options – Visit Site

While AvaTrade provides multiple platforms for algorithmic and social copy-trading, the broker’s overall client experience trails industry leaders. Customer service is terrible, pricing is just average, less than 1000 instruments are available to trade, and research is underwhelming. (71% of retail CFD accounts lose money.) Read full review

Copy Trading History

Without social trading technology, the act of copy trading would be considered a managed account and require a power of attorney. Or, in other cases, a trader would need to monitor their account continually for signals to manually copy. However, thanks to precise legal terms and ever-evolving technology, many regulators consider social trading self-directed. In almost every jurisdiction, copy-trading is self-directed because the client must decide who to copy, even if the copying happens automatically (for each signal). It’s important to note that not all trading platforms with social features provide copy trading.

Many of the early pioneers in social trading technology started out first as third-party platform developers, such as Tradency, ZuluTrade, and eToro. While some of these firms are still independent service providers (ISPs), eToro became a broker, for example.

Best Copy Trading Platforms

From the 30 international forex brokers we reviewed for copy trading, eToro, is our top pick for 2020. The broker has continued to innovate within its next-generation eToro platform, which delivers an impressive user experience packed in a modern web-based user interface.

Overall, the eToro platform experience sets the bar high for social trading and is again the clear winner in 2020. eToro continues to lead the industry forward and almost exclusively focuses on social copy trading.

Indicative prices for illustration purposes. Indicative prices; current market price is shown on the eToro trading platform.

Pepperstone took second place this year as it offers a comprehensive range of third-party social copy-trading platforms, in addition to the native forex signals market available in MetaTrader 4 (MT4) and Spotware Systems’ cMirror platform. The firm also offers the ZuluTrade platform, AutoTrade by Myfxbook, Tradency’s MirrorTrader platform, in addition to the developer’s RoboX solution.

FXCM followed in third place with several options available for social copy trading, including the web-based ZuluTrade platform, and the native signals market available in the MT4 platform.

Darwinex, our fourth-place finisher, provides traders access to nearly 1,200 trader-developed strategies that are traded like securities (ticker symbols) on the Darwinex platform. The best performing strategies on the platform receive funding from the broker itself, which allocates $4.5 million among the most successful traders, during each competition period.

AvaTrade came in fifth place for its array of social copy-trading platforms such as ZuluTrade and Tradency, and including its most recent addition of DupliTrade.

Copy Trading Platforms Comparison

Using our forex brokers comparison tool, here’s a summary of the trading platforms offered by eToro, Pepperstone, FXCM, and Darwinex.

Feature eToro Pepperstone FXCM Darwinex
Proprietary Platform Yes No Yes Yes
Desktop Platform (Windows) No Yes Yes Yes
Web Platform Yes Yes Yes Yes
Social Trading / Copy-Trading Yes Yes Yes Yes
MetaTrader 4 (MT4) No Yes Yes Yes
MetaTrader 5 (MT5) No Yes No Yes
cTrader No Yes No No

What is the best copy trading platform?

Our testing found eToro to have the best copy trading platform for 2020. eToro is regulated in countries across the globe, offers over 1,700 different instruments for copy trading, and provides a robust trader community. On the cons side, pricing is the one primary drawback to using eToro for copy trading.

Copy trading is legal in most countries, pending the broker itself is properly regulated. When investing in the financial markets through a regulated-broker, procedures during the account opening process help ensure it is legal for you to trade, depending on your country of residence.

How does copy trading work?

With copy trading, a trader (signal provider) shares their real-time trades with other traders (users). Using a copy trading platform, the users can, in real-time, automatically copy the trades of the signal provider. Each copy trading platform provides optional controls to protect investors. For example, traders can customize the amount of capital they are risking and which signals to copy.

Can you make money copying trades?

Like any investment, you can make money or lose money copy trading. The idea with copy trading is that you can assess the profitability of each trader before choosing which signal provider you want to follow. However, as the market adage goes, “Past performance is not indicative of future results.” Copy trading is risky, and many traders lose money. Only invest what you are willing to lose, start with a small amount of capital, and do thorough research before committing to a strategy.

How do I choose the best trading system to copy trade?

The best trading system to copy isn’t necessarily the most profitable. 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. On the other hand, a more aggressive investor may choose a strategy which has higher volatility, which means higher risk for losses.

Many modern copy trading forex platforms contain hundreds or even thousands of signal providers. As a result, it can be difficult for traders to decide who to follow. Thus, it is always important to do research, start with a small amount, and never risk more than you are willing to lose.

Closing Thoughts

Understanding how social copy trading networks calculate trading performance is an essential aspect as it affects the ordering of trader rankings. The method used to measure and track profit and loss also influences trade copiers.

Instant backfill bias is just one example of the challenges social trading technology developers face if they permit traders to instantly upload their entire trading history at the click of a button.

Such challenges have been known for years, and thanks to broker procedures, regulation, and robust technology, these concerns are mostly non-issues, especially for top-rated fx brokers. Nonetheless, if in doubt, it’s always prudent to check and ask questions.

Bottom line, for 2020, the above forex brokers provide traders the tools and capabilities they need to confidently copy trade.

Methodology

For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers. Each broker was graded on 105 different variables and, in total, over 50,000 words of research were produced.

While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.

All data submitted by brokers is hand-checked for accuracy. Ultimately, our rigorous data validation process yields an error rate of less than 1% each year, providing site visitors quality data they can trust. Learn more about how we test.

Forex Risk Disclaimer

“There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument. 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.” Learn more.

About the author: Steven Hatzakis 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. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.

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