Forex Brokers with Copy Trading

Richard Montana | November 8, 2022

Copy trading lets you duplicate the trades of other forex traders onto your own forex account. This can be a good solution for those of you who might not have the skills required to trade manually or if you just don’t have the time to learn how to trade by yourself. There are many forex brokers that support copy trading which give you plenty of choice, but it is important to know what to look for in a copy trading broker. You should also understand the pros and cons of forex copy trading before you start. This is what we will be covering in this guide.

What is forex copy trading?

Copy trading is when you choose a forex trader whose traders you would like copied into your own forex account. The person whose forex strategy you are copying is known as the signal provider whereas you are the signal follower. You can choose to follow one trader or multiple accounts at the same time. You can also add or remove forex accounts at any time depending on your circumstances and the performance.

What is a copy trading forex broker?

A forex broker with copy trading gives you a platform where you can duplicate the trades of other forex traders who have an account with that broker. Some traders will sign up to a copy trading forex broker simply to provide their strategy to other traders for them to copy so they can make some extra income if they are successful. Other traders might sign-up just for the convenience of copying other traders as they don’t want to trade by themselves.

How to choose a copy trading broker?

A good forex copy trading broker should provide you with hundreds of trading accounts which you can choose to copy. They should make available all of the important statistics for you to analyse, including profit, loss, drawdown, profit factor, risk, leverage, duration, stop loss, take profit, etc. This should give you a feel for the forex strategy being used and if it is something that fits within your trading style.

How to copy other forex traders?

Once you have chosen a forex broker for copy trading, the process is pretty simple. You just need to open a trading account and you will then be able to access the signal providers on the platform. You can browse through all of the statistics to see who you want to follow and who you want to favourite for later. After you have made your selection, all of the buy and sell forex signals from the traders you choose to follow will be copied onto your own account with the risk level that you allocate.

Forex copy trading vs forex social trading

Forex copy trading is a subset of social trading that allows users to mimic the trades of other investors. While social trading lets you see other traders’ investments, copy trading means that your account will make whatever trades theirs does. If they buy, you buy. If they hold, you hold. With social trading, you don’t need to copy other traders directly. Instead, you can discuss and share ideas with each other which can help you to learn more and become a better trader in the long run.

Does forex copy trading work?

Yes, the process of copying forex signals does work. However, that does not mean you are guaranteed to get good results. Even if you choose to follow a forex signal provider who has an exceptional track record, nobody can predict what will happen in the future. Historical performance is by no means any indication of future results.

You also need to think about what happens if a trader you are copying with some success decides to stop providing their forex signals. You might need to start from scratch which is why I feel nothing can beat learning how to trade yourself. That way you can make informed decisions, learn from your mistakes and not blame anyone else.

Is copy trading good for beginners?

It can be if you use it correctly and have realistic expectations. Copy trading is relatively easy to setup and there are lots of professional forex traders with years of experience that you take advantage of. However, if you are blindly copying signals, you will not be increasing your own knowledge of the markets and therefore cannot become a better trader yourself.

If you are a beginner, you should also be careful with which traders you choose to copy. This is because some forex signals may look good on the surface but they could be using dangerous money management or grid trading strategies which can eventually cause large drawdowns and blown accounts if you are not careful.

Advantages of copying forex signals

  • Hands-free way to trade forex
  • Copy a great selection of forex strategies
  • Build a diversified portfolio
  • Follow and unfollow signal providers at anytime
  • Access to historical data to analyse performance

Disadvantages of copying forex signals

  • Lots of bad signals to sift through
  • No guarantee on the quality
  • Some have risky money management
  • Do not improve your own trading skills
  • Need to pay the broker and trader a fee

Best Forex Brokers for Copy Trading

When it comes to choosing a forex broker for copy trading, there are a few big names in the industry that stand out from others in eToro and AvaTrade. Things to look for are the amount of forex traders they have providing signals for you to copy, other financial instruments, minimum investment, commission fees, regulation and customer support. You can see a selection of our best forex copy trading brokers in the table below.

Broker
Rating
Regulated
Min. Deposit
Founded
Max. Leverage
1.
AvaTrade Review

ADGM FRSA, ASIC, BVIFSC, CBI, FFAJ, FSCA, IIROC, JFSA

$100

2006

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
2.
eToro Review

ASIC, CySEC, FCA

$200

2006

1:30

68% of retail investor accounts lose money when trading CFDs with this provider.
3.
Pepperstone Review

ASIC, BaFin, CMA, CySEC, DFSA, FCA, SCB

$200

2010

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
4.
ZuluTrade Review

HCMC, Japan

$100

2007

N/A

All investments involve risk and the past performance does not guarantee future results.
5.
Darwinex Review

FCA

$500

2012

1:200

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
6.
NAGA Review

St. Vincent and the Grenadines

$250

2018

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
7.
IC Markets Review

ASIC, CySEC, FSA, SCB

$200

2007

1:500

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
8.
FXTM Review

CySEC, FCA, FSC, FSCA

$10

2011

1:300

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
9.
Axiory Review

IFSC

$10

212

1:777

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.
10.
FXPIG Review

VFSC

$500

2010

1:400

Between 74-89% of retail investor accounts lose money when trading CFDs with this provider.

Conclusion: is forex copy trading worth it?

Yes, if you do not have the time or knowledge required to trade, then forex copy trading can be a solution worth considering. However, it is important to manage your expectations and not expect miracles. There will always be good and bad forex signals. Therefore, make sure you do your research and only copy forex traders with strategies that match your trading style and risk preferences.

About the Author

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Richard Montana
Richard has many years of experience in broker research, testing, analysis and reviews. He knows what to look for through years of trading himself with different brokers and listening to the feedback of others.

Review Methodology

For all of our broker reviews, we research, validate, analyse and compare what we deem to be the most important factors to consider when choosing a broker. This includes pros, cons and an overall rating based on our findings. We aim to help you find the best broker according to your own needs. You can read more about our review process.


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