For more than a decade, Forex copy trading, also known as social trading, mirror trading, or auto trading, has grown in adoption and general appeal. Industry information, financial news, and market analysis are being spread at breakneck speed, thanks in part to social media and a speedier web experience. These features, along with crowd power and enhanced sentiment data, combine to power social copy trading platforms, and their popularity has skyrocketed as investors develop trade signals and enter the market with new positions that people wish to imitate.
Here, we’ll give you reviews on the best copy trading platforms available.
What is Copy Trading?
The concept of copy trading is straightforward: employ technology to replicate the real-time forex trades (forex signals) of other live investors (forex trading signal providers) you wish to emulate. You can then automatically replicate (copy) their deals in your brokerage account whenever they trade.
Best Platforms for Copy Trading
#1. 3Commas
3Commas is a platform that offers users basic to advanced bot trading options. Users can deploy 21 highly configurable bots across 16 cryptocurrency exchanges. It enables users to run several instances of trading bots, as well as imitate professional traders’ deals and integrate their techniques into the bots they are operating.
Users can use 3Commas to monitor their crypto portfolios, configure them to rebalance automatically or via a bot, manually rebalance them, and monetize them as they see fit. They can, for example, connect all of their wallets on several exchanges and track the performance of their portfolios while determining how to invest in each coin.
From the dashboard, you may also establish a portfolio of your favorite coins. You may name the portfolio whatever you wish, connect it to your favorite exchange, add or delete tokens from the portfolio, and set the ratio of each currency in the portfolio.
#2. NAGA
This website allows users, particularly beginners, to duplicate the trades of over 9,000 advanced users or method providers who have been thoroughly and severely selected through numerous levels of selection. The Most Traded page displays the most traded financial instruments on the platform, which can be added to one’s favorite instruments by clicking a star beside them.
In terms of copy trading, the platform allows you to examine transaction and trader statistics to select who to mimic.
Profitability, whether the trader is buying or selling, the amount of pips, take profit orders, stop-loss orders, and so on are among the characteristics. You can see how many people follow them, their win rate, who they follow, their profile and loss profile, who visits their profile, and who they copy.
#3. eToro
eToro allows you to trade and invest in cryptocurrency in addition to transmitting and managing it. It allows you to trade 20+ cryptocurrencies for fiat and purchase, sell, or withdraw using a variety of payment options. Debit and credit cards, bank accounts, PayPal, Sofort, Rapid Transfer, Skrill, Wire Transfer, Neteller, WebMoney, and others are examples.
It is the world’s largest and most popular copy-trade platform.
#4. FX2
FX2 is a trading platform that provides traders with the tools and data they need to trade in whatever currency they desire using their favorite trading style. What makes FX2 so tempting to traders is that it provides real/live capital for traders to begin with. Most prop trading organizations provide demo accounts to their traders, but not FX2.
After completing a simple evaluation exam, you will be able to trade on a live account with a real track record. You will also be able to seek further funds. FX2’s trading rules are very appealing to us. The period of time is limited. The platform supports weekend holding and news trading, making it easier to pass and receive funding.
#5. OKX
OKX’s copy trading social platform contains various skilled traders who share their trading abilities with others in order to earn money. Beginner traders take advantage of the functionality to generate money from trading quickly and effortlessly.
This is not as simple as it sounds because a new trader needs to invest time in determining which abilities and tactics to employ, even though crypto trading techniques are not guaranteed in terms of profits. There will be days when you profit and days when you lose from copied deals. Nonetheless, if you are inexperienced with the skills required to construct your trading methods, this is an excellent place to start.
Furthermore, individuals who want (or are out to have) their trades duplicated work hard because it multiplies their revenues if as many people profit from the copied trades as possible.
Traders can see each other’s portfolio breakdown, transaction history, risk levels, profit, and losses and can imitate their tactics utilizing such knowledge and analytics. Expert traders who sign up as lead traders will receive a 12% profit share from everyone who copies their trades.
#6. TradingFunds
TradingFunds is a brand-new prop trading company on the market. It enables traders with the necessary technology, infrastructure, and funds to trade in financial markets. In the short time it has been in business, the organization has swiftly gained respect for its professional development programs, competitive payout structures, and helpful trading community.
TradingFunds does not place time constraints on its traders. You are not required to follow stringent minimum or maximum trading day rules. When you reach your profit target, you are free to increase your trading activity. You can also quickly take your winnings every two weeks. There are also no restrictions on daily drawdown limits.
#7. AvaTrade
AvaTrade, founded in 2006, provides research and investor education in addition to copy trading. Because it is extensively regulated in tier 1 and 2 jurisdictions, it is one of the safest platforms. AvaTrade, WebTrader, AvaOptions, and social trading platforms ZuluTrade and DupliTrade are among the company’s five proprietary platforms.
It enables users to trade bitcoin and other assets using CFDs, or contracts for differences, which lets them speculate on future market price movements. A user does not need to acquire, hold, or manage cryptocurrency or a portfolio directly, but instead simply speculates on future price movements and profits from the difference.
#8. B2Broker
Users can trade forex, CFDs, and bitcoin on this clone trading platform. It is mostly used for B2B institutional trading and investing operations, as the name implies.
However, it also makes individual-based training and investing possible. The Russian-based startup was launched in 2014. It houses brokers from many trading categories, such as cryptocurrency, forex, crypto exchanges, social trading, wealth management, and bonds/futures/stocks.
There are liquidity providers, trading tool providers, white label solutions, CRMs, regulators, affiliate programs, and websites among the institutional B2B broker trading categories.
There are three types of social trading supported by exchanges and brokerages. These include trading pools in which a person can contribute and earn a portion of the trading profits, multi-account managers, and copy trading.
#9. ZuluTrade
ZuluTrade has over one million users from all over the world with a trading volume of more than $800 billion. Because it was founded in 2014, it is quite competitive to eToro in terms of copy trading because there are many users with proven track records. ZuluTrade gives skilled traders the opportunity to earn money by sharing their trades with other users.
Those interested in copy trading on the platform can view other users’ profiles, the amount of money they have opened for copy trading by other users who follow them, the amount of money held by those who follow them, and the annual ROI.
Can You Make Money Through Copy Trading?
Copy trading is similar to any other investment in that you can either win or lose money. Which traders you follow, as well as the timing of when you copy their trades, influence your profitability. All of these elements will affect any resultant gains or losses.
Before deciding which trader to imitate, consider their profitability. Also, keep in mind that just because a trader is profitable at a given moment does not indicate it is the optimal time to copy them.
According to the market proverb, “past performance is not indicative of future results.” Because copy trading is hazardous (and many traders lose money), only invest what you can afford to lose. Begin with a small number of funds and conduct extensive research before committing to a strategy.
How do I Choose The Best Copy Trading Platform?
The finest trading system to emulate isn’t always the most profitable. It is critical to match your risk tolerance to the plan that best meets your investment objectives. A more conservative investor, for example, may prefer a system with a lower average loss per transaction in comparison to the average profit. A more adventurous investor, on the other hand, may opt for a strategy with higher volatility. This means a higher chance of loss — but also a higher relative potential reward.
Hundreds, if not thousands, of signal sources, may be found on several modern copy-trading forex platforms. As a result, traders may find it challenging to pick who to follow. As a result, it is always crucial to conduct research, start small, and never risk more than you are willing to lose.
Is Copy Trading Suitable For Beginners?
Copy trading can be beneficial for novices if they master the fundamentals and approach copy trading in the same manner as they would any other self-directed trading account. Beginners should always start small before moving on to greater sums. Also, it’s always a good idea to learn how to use the software with a sample account before delving into actual trading of any type.
It’s worth noting that copy trading still involves active account management; it’s not a quick fix or an easy way to generate money. Copy trading should be viewed as a supplement to your portfolio and existing trading tool set.
Copy trading is a good choice for you based on your preferences, trading goals, and risk tolerance. You must define various risk/reward criteria, maximum drawdown thresholds, and which providers to clone (if any).
When selecting whether to replicate a specific signal source, beginners should consider all relevant performance measures. Understanding the risk tolerance of a certain signal provider is just as crucial as assessing their average profits or overall outcomes. It’s also vital to consider a signal provider’s trading volume and regularity, as well as if their trading style is appropriate for your account balance, profit goals, and risk tolerance.
Is Copy Trading Effective?
Yes, copy trading works, and you can see for yourself by looking at the outcomes of the best-performing traders. Similarly, some traders lose money when copy trading. The key to success is selecting the proper strategies at the right moment, assigning sufficient capital to each strategy, and establishing any risk/reward thresholds based on your needs.
Copying a trader with a strong track record or a history of positive returns is no assurance that you will succeed. However, it can help boost your chances of generating money when compared to copying a trader with a terrible track record.
Can You Make Good Money With Copy Trading?
In short, copy trading can be quite successful. However, keep in mind that there are risks involved, and not all traders will succeed. Still, for those willing to accept the risk, copy trading can be an excellent strategy to profit in the financial markets.
In Conclusion
Understanding how social copy trading networks calculate trading performance is critical for successful copy trading since it influences trader ranking ordering. The mechanism used to calculate and track profit and loss has an impact on trade copiers.
Instant backfill bias is only one of the issues that social trading system developers would confront if they allow traders to upload their full trading history with the press of a button.
Such difficulties have been recognized for many years, and thanks to broker protocols, regulation, and powerful technology, these worries are largely non-issues, particularly for top-rated forex brokers. Nonetheless, if in doubt, it’s always a good idea to double-check and ask questions.
- WHAT IS FOREX TRADING? Detailed Guide
- Trading Apps: Definition, Types Examples.
- COPY TRADING: Everything You Need To Know To Get Started
- 7 SMALL BUSINESS BRANDING IDEAS THAT WILL YIELD YOU MORE PROFIT
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