5 Forex Brokers with the Best Copy Trading System
|Published: 31st December 2020 12:37|
Forex traders nowadays are blessed with many tools that can help reach their highest earning potential. One of these tools that has caught the attention of many is the copy trading system.
In this blog, let’s delve deeper into this concept, and discover the available Forex brokers in the market that stand out in the copy trading conversation.
Did you ever copy answers from your classmates during an exam when you were still a student? Copy trading actually operates like that, except it's not called cheating!
Copy trading legally allows you to mimic the trades performed by your chosen trader to the platform offered by a Forex broker. The principle is simple: you too benefit when their trades turn to be profitable. And when they lose, you lose as well.
Copy trading is such a useful tool particularly for anyone with little knowledge of Forex, or who do not have much time to spend to track the market. All they gotta do is find a trustworthy broker to deliver a secure copy trading scheme.
When talking about copy trading, another concept comes to mind - mirror trading. Are these two tools just the same?
These two concepts are quite similar, but there’s one big difference. In copy trading, part of your account must be linked to the account of the trader you wish to copy. Meanwhile, mirror trading doesn’t require such a thing. You only completely mirror (copy) your chosen trader’s positions.
Platforms provided by Forex brokers don't operate in the same manner. In order to remain ahead of the competition, brokers develop special features to meet the needs of traders of all levels.
When looking for a good platform, you may want to consider the things that we’re about to discuss:
Forex brokers invest a lot of money in developing straightforward and simple to use trading platforms that allow their clients to navigate through them without any fuss. This feature is highly important. It’s only common sense to use a platform that offers a simple interface especially if you’re a noob. This way, there’s no need to spend much time learning how the platform actually works.
If a copy trading platform has a large network of expert traders, this only goes to show that many traders trust it, and that you can trust it too.
Often, if a copier, you 'd like to be able to scroll through a list of traders who employ different trading schemes or techniques under different market conditions. It's your duty, of course, to learn and understand why they're making their moves.
It’s not the minimum deposit to open a broker account we’re discussing here. We're talking about the minimum sum you need to bring into the portfolio of an experienced trader so you can mimic their trades, and this varies from one broker to another.
One of the best aspects of a good platform for copy trading is that it doesn't enforce minimums that compel copiers to copy from only one or two professional traders.
This is probably the most important feature that you must look for. Scams and frauds have always surrounded the Forex industry, and it’s really not possible that you won’t ever be a victim. But if you are using a platform with a properly licensed Forex broker, you will lessen the damage should this happen.
Regulated brokers usually have some form of security policy to ensure customers transact in a secure setting. Today some brokers need two factor authentication to add an extra layer of security to the accounts of their clients.
Now that we already know the stuff that you must consider when choosing a copy trading provider, it's time to reveal the providers that meet the above criteria.
With approximately 13 million users from 140 different countries, eToro is probably the most popular and largest social trading network today. Etoro is the only Forex broker with copy trading that accepts US traders.
Aside from Forex, this broker also offers trading on stocks, ETFs, commodities, and even cryptocurrencies.
The minimum deposit required by eToro for a copy trading account is $200. Users can expand this capital with its leverage of up to 1:30 on major currency pairs and 1:20 on minor pairs.
What’s good about eToro’s social trading is that it allows investors and traders to start forums and create discussions regarding their trading strategies, and exchange ideas that enable them to learn from each other. And you can automatically copy or replicate the efficient traders' trades via its CopyTrader system.
The CopyTrader system of eToro offers inexperienced traders the opportunity to explore the lucrative world of Forex while allowing skilled traders to gain commissions to share their trading skills and knowledge.
Did you know that HOT in HotForex means Honest, Openness, and Transparency? This Forex broker lives by these values. True enough, they’ve proven to be one of the most reliable brokers in today’s age. HotForex boasts several advanced trading platforms, and a leverage as high as 1:400 on their copy trading system known as HFcopy.
HFcopy allows users to trade not just Forex, but also bitcoin. In the system, you can either be a follower, or a strategy provider. A follower is the one who copies trades, while a strategy provider is the one who lets followers copy his or her trades in exchange of a fee.
A follower and a strategy provider need to deposit at least $100 and $500, respectively, to get started.
You can access HFcopy through the MT4, WebTrader, and HotForex's very own mobile app.
A performance table is provided to followers to check the top-performing strategy providers. The table displays the number of followers, gain, maximum drawdown, risk score, and return.
Vantage FX is an Australia-based Forex broker. Having been authorised by ASIC and UK’s FCA, both reputable international financial regulators, Vantage FX has maintained a strong reputation among traders worldwide.
Vantage FX doesn’t have its own platform for copy trading. Instead, they have partners that carry out the transactions: ZuluTrade and MyFXBook Autotrade. Users of ZuluTrade are given access to over 120 currency pairs and CFDs. It also provides one of the highest copy trading leverages of 1:500, which can substantially raise the initial capital requirement of $200. In addition, the site provides a dynamic network of over 10,000 traders.
MyFXBook AutoTrade is an interesting tool because it eliminates any accounts that don't work well on the site. This way, users can only copy trades from experienced traders who profit consistently. It's also very easy to use, as you can trade directly on your browser.
Next in our list is FXTM, which was established in 2011. Over the years, this FCA-regulated FX company has grown into a trusted broker serving over 2 million clients in 150 countries.
Like the brokers mentioned earlier, FXTM is dedicated to providing its clients only the best trading tools to help them achieve their trading goals. This is why their own copy trading platform, called FXTM Invest, was born.
FXTM Invest suits both newcomers and professional traders alike. For newcomers, they can be investors and copy the positions of experienced traders (called strategy managers). If you don't have much time in your hands to learn trading, FXTM Invest is a must-try option for you to try your hand at the Forex arena. Getting started is as easy as ABC! Open an FXTM account, deposit funds, and select your strategy manager!
Traders can expect fast execution of trades because of the company’s ECN technology. Also, a leverage of up 1:200 can be used to amplify profit possibilities.
The minimum deposit requirement is $100 for investors, and $200 for strategy managers.
Another Australian Forex broker, Pepperstone has been providing its clients from around the globe with top-notch trading solutions for many years now.
Apart from the famous trading platforms MT4 and MT5, Pepperston also provides users with access to cTrader, a powerful platform with more advanced features.
Pepperstone also allows newbie traders to copy trading deals from professional traders to stay in the game. This is through its numerous programs that allow copy trading like Myfxbook, and DupliTrade.
If you're relatively new to the trading world, you may find it difficult to be profitable, particularly if you have a full time job. But the emergence of trading tools like copy trading gives you a chance to participate in the world’s largest financial market, even without much knowledge or time in your hands.
But be reminded that before using such a platform, you will still need to understand its concept and be meticulous in choosing the traders to copy positions from. Every trader implements different investment parameters, so take note of that.
Moreover, before investing real money, it’s best to open a demo account first with any of the brokers we listed above, and see if their trading conditions suit your needs.