Best Copy Trading Platforms 2020
Here you will find our best copy trading platforms in 2020, according to the trading brokers team. We have selected these as what we consider to be the best copy trading platforms after conducting countless hours of detailed research, testing and analysis across hundreds of online copy trading platforms. Upon completion of this thorough research, each copy trading platform was reviewed and assigned an unbiased rating according to the quality of their services.
The best rated online copy trading platforms are listed on this page. Some of the most important factors that contribute towards a good copy trading platform have been considered including the platform features, markets, tools, fees, funding options, usability, tutorials, customer service and more.
Having the best copy trading platforms based on our findings listed in one place can help save time for those traders who are looking for the best copy trading platform according to their own requirements.
Top 5 Copy Trading Platforms 2020
ASIC, BVI, CBI, FFAJ, FSA, FSCA
Min $100 Deposit
ASIC, FCA, DFSA, SCB, CySEC
Min $200 Deposit
ASIC, FCA, CySEC
Min $200 Deposit
Min $1 Deposit
Min $500 Deposit
Each of our best copy trading platforms have undergone and passed our stringent trading platform reviews with flying colours, based on what the trading brokers team consider to be amongst the most important considerations. These online copy trading platforms are under strict regulation from some of the most respectable regulatory authorities and are well-established within the online brokerage industry, providing top copy trading platforms to traders across the globe.
What is a copy trading platform?
Online trading can be very complicated, especially for beginners who have no previous trading experience. Learning to trade with consistent results can take many years of studying and practice. Some aspiring traders simply do not have enough time to become a professional full-time trader and may consider using a social trading platform instead.
A copy trading platform effectively enables anyone to trade the financial markets by copying traders. Copy trading is simply when investors copy the trades of other traders on the platform, giving them access to diversify their trading portfolios and to see the trading skills of others in action. It can be a useful tool for beginners to gain insight into effective trading strategies, while continuing their forex education.
How does a copy trading work?
Copy trading is a popular method of automated trading where trade positions are copied from one trading account to another. Copy trading is actually quite straightforward for traders, especially when compared to some more complex forms of investing. Traders can add their desired investment amount, select a trader to copy, and then the copy trading platform will replicate all the selected trader’s positions into their trading account. The 3 main components of copy trading are:
A signal provider is someone who makes their trading account and activity available on a copy trading platform for other traders to copy. Signal providers are usually compensated for the trading activity they bring to the broker who is providing the platform. Some will also get a success fee depending on how well their trading signals perform.
A signal follower can join a copy trading platform and choose from the signal providers for those who they wish to copy trades from. As a follower, you can choose to copy trades of one or multiple providers and also set your desired risk level. You should be able to add or remove signals at any time.
Copy trading platform
The key component that brings the signal provider and signal followers together, is the copy trading platform. This is where the providers can share their trading signals and where the followers can find traders to copy. Some copy trading platforms will have a handful of signal providers and others may have thousands. You should be able to filter signal providers according to various factors such as how long they have been trading, returns, drawdowns, risk, instruments traded, trading style and more. If you wish to copy trades, you will need to ensure that the broker supports copy trading on their platforms.
What are the types of copy trading?
There are various brokers who offer copy trading functionality – some are semi-automated, automated, or manual.
Automated copy trading
Fully automated copy trading is when you select the traders to follow according to your personal trading requirements and risk preferences. From then on, all positions from the traders that you are following, will be copied into your own trading account without any human intervention.
Semi-automated copy trading
Semi-automated copy trading involves adding an extra step to the process. In this instance, you are able to decide in real time if you would like to copy each trade, or not. On the traders that you do decide to copy, you are free to manage and close them at anytime in which you wish to do so. Alternatively, you can let them run and they will still be managed automatically by the signal provider.
Manual copy trading
This method of copy trading is the closest to normal trading, with the addition of access to the knowledge and strategies of other traders. You can analyse their previous trading experience and get some insight in to what factors prompted them to enter or exit trade positions. You can then decide who you would like to manually follow and which of their trades you would like to copy for yourself.
Why is copy trading so popular?
In recent years, copy trading platforms have gained increasing popularity amongst retail traders all around the globe. This is primarily due to the advancements in technologies that have enabled numerous brokerage firms to offer copy trading services to their clientele.
It presents a way for users of all experience levels to trade the financial markets without needing to allocate the time to do it themselves. However, copy trading is not just a solution for beginners. Even the more experienced investors can copy traders in order to diversify their portfolio and learn new trading strategies from other traders.
Advantages of copy trading
With so many traders choosing to use copy trading platforms and follow signal providers, there are clearly some advantages to doing so. Some of the main advantages of copy trading are as follows:
- Trade various financial markets online without needing the time, knowledge or skills usually required.
- Copy trading can free up time for those who have another career or wish to allocate time to learning how to trade online
- Copy trading allows traders to choose signal providers with a trading style that suits their own individual risk tolerance and trading goals.
- Copy trading could also be considered a way to diversify an overall trading portfolio. You can still trade manually if you wish to do so and also follow signal providers juts for some inspiration for your own trading activity. When copy trading, some traders may select different signal providers in order to hedge trading risks in case different trading strategies become successful in different market conditions.
Risks of copy trading
On the surface, copy trading may seem like a way to trade online by taking advantage of others experience. However, there are significant risks involved with copy trading that all aspiring traders need to be aware of. Some of the inherent risks associated with copy trading include:
- As with any trading or investment strategy, you can lose all of your capital. Copy trading is considered high risk with absolutely no guarantees of past performance repeating itself. You should never take historical results as an indication of future results as anything can happen in trading. It is imperative that you have a clear understanding of the significant risks involved with trading online and never ever risk more than you can afford to lose.
- Choosing a consistent trader to copy is not an easy task. A trader who is having a good streak at the moment, may hit a rough patch. If you are not careful, drawdowns can catch you off guard and result in big losses.
- Copy trading does not take into consideration your personal financial circumstances or investment goals. You are effectively relying on a third party for trading decisions but absorbing full liability and responsibility in the case something was to go wrong.
- There are also signal provider risks. The signal provider may discontinue their copy trading service without notice, or get margin called by their broker, and this could inconvenience you if you so not have an alternative plan in place. The trader you have chosen to copy may also change their strategies to become more aggressive, and this could mean riskier trades without your knowledge.
- If the broker providing the copy trading platform was to go out of business, you may not be able to copy trading signals like you were before.
How to choose the best copy trading platform?
Hopefully you now have a clear understanding of what copy trading is along with the pros and cons involved. In this section we are going to look at some of the key things you may wish to consider when looking for a copy trading platform to invest in.
Copy trading platform regulation
Regulated copy trading platforms can give investors some protection in the case something was to go wrong and the peace of mind that they are using a company who can be trusted. Regulation also means that they must follow strict rules and guidance to ensure they are conducting business in the correct manner. Most experts and professionals would only trade with a regulated broker. If you use an unregulated broker and something went wrong, there may be no recourse.
Some of the most significant government regulatory authorities to look out for are the Australian Securities and Investment Commission (ASIC), Cyprus Securities and Exchange Commission (CySEC) and the Financial Conduct Authority (FCA) in the United Kingdom.
Copy trading platform instruments
Each platform will have a choice of financial instruments across various markets. This can include Forex, Commodities, Cryptocurrency, Stocks, Shares, Indices, Metals, Energies, Bonds, ETFs and CFDs. You should consider what asset classes you wish to trade and if they are available. It may be worth considering if you place to branch out into other markets in the future as well.
Copy trading platform users
Some platforms will have a handful of signal providers whereas others will have hundreds or even thousands. The more signal providers there are, the more choice you will have to find trading signals to copy that fit within your preferred trading style and objectives.
Copy trading platform tools
The platforms built-in trading tools can be useful to assist you with filtering signal providers, adding/removing signals, analysing markets, managing account and more. The more trading tools available, the more comprehensive the overall copy trading experience can be.
Copy trading platform fees
When using a copy trading broker, you will likely need to pay a commission fee for each trade that you copy and/or the spread. There can also be swap fees for holding trades overnight, inactivity fees, funding fees and other fees. As broker fees can vary and change, it is important that you check and are clear about all of the fees involved.
Copy trading platform usability
Whilst most copy trading platforms tend to have a sleek and modern user interface, some are more intuitive than others. You may wish to try and a few different platforms to see which layout and features you prefer the most. Some will be more complex than others with an abundance of tools in addition to copy trading. Then there may be those that are strictly for copy trading whereas others may also allow you to trade manually. Also consider if the platform is available for desktop, web and mobile devices. Which platform you choose, will depend on your own personal needs.
Copy trading platform leverage
Leverage allows traders to take a position size larger than they would be able to without it. For example, if you had an account balance of $5,000 and leverage of 1:30, you would be able to open a position size of $150,000. Whilst this may seem tempting and can increase potential profit, it can also greatly increase the risk. It is therefore of the upmost importance that you have a clear understanding of leverage and how it works before trading leveraged positions. If you require a certain leverage level, you should check to ensure that the copy trading broker provides it.
Copy trading platform education
Some copy trading brokers will include educational resources to help teach users not just about how to use the platform but also trading in general. These can include trading guides, videos, blogs, eBooks, webinars, quizzes and more. If you are new to trading online, you may wish to use these to increase your knowledge and skills.
Copy trading platform minimum requirements
There are copy trading brokers who will have a minimum deposit requirement in order to be able to use their platform. Whilst some brokers have a minimum requirement of just $1, others can require $200 or more. Most brokers tend to also offer demo trading accounts which can be a good way to practice using the copy trading platform before investing.
Signal providers also need to be wary about the minimum requirements. If you are planning to offer trading signals, the broker may require you to provide historical results over a sustained period of time on a real live trading account. This can help to filter out the professional and novice signal providers.
Copy trading platform funding
Each broker will have a variety of funding options available to deposit and withdraw funds. Whilst most will tend to offer wire transfer or credit/debit card, some also offer online payment processors such as Skrill, Neteller and PayPal. These methods may be more convenient for some traders. It is therefore worth considering what payment options are available and if they meet your needs.
Copy trading platform customer service
It can be frustrating to require support and have to wait forever for an answer. It is therefore important to check how responsive the brokers customer support team is. You could check what time zone and hours they operate along with the ways in which they can be reached. Most brokers will have email and telephone support whereas online chat support can be especially useful in some circumstances. Not only should they be quick to respond, they should also be polite and clear in their responses.
How to join a copy trading platform?
If you have made it this far, you should now have a clear understanding of copy trading and what to look for in a copy trading platform. You may be ready to open a copy trading account in order to start following signal providers, or to provide your own signals. This can be a quick and easy process that involves the following steps:
- Choose a copy trading platform
- Open a copy trading account
- Start following or providing trading signals!
It is that simple! Although, please always keep in mind the risks involved with copy trading online that we discussed within this article.
Need help choosing from the best copy trading platforms in 2020?
If you are still unsure which is the best copy trading platform for you then you can use our free online broker comparison tool to quickly compare brokers based on trading instruments, minimum deposit, regulations, leverage, funding options and more. You can also read our broker reviews and choose from our best brokers, best trading platforms, best copy trading platforms, best social trading platforms and best trading apps. If you would like to look for the best trading brokers in a particular country, we have pages dedicated to our best brokers USA, best brokers UK, best brokers Australia, best brokers South Africa and best brokers Canada.
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