Copy trading is a type of trading where you copy the trades performed by another, more experienced trader. Today, the best traders in the world can share their winning strategies and allow you to copy their moves. Find a trader with a strong track record, set up your trade sizes and other criteria, and start “outsourcing” your trading.

In entering your requirements, eToro will only show you traders that meet this criterion. As you can see from the above, you are copy trading in a semi-automated manner because you first need to decide whether or not you wish to act on the signal. Then, you will need to head over to your chosen broker and place the suggested orders manually.

Allot a lower amount to traders with a high-risk profile that can generate high returns and a larger amount to lower-risk traders that will produce lower returns but are less likely to lose your money. How much money you need to start copy trading varies between different brokers. Some brokers require as little as $10 in your account for you to be able to start trading. Other brokers require a little more, but the amount is seldom more than a couple hundred dollars. The definition of copy trading is closely linked to mirror trading, although the difference with copy trading is that traders blindly copies rather than replicate top strategies.

The FSA Japan licenses ZuluTrade and works with other regulated brokers globally. The platform is intended to be user-friendly, emphasizing community engagement, which is key to the social trading paradigm. NAGA offers a variety of support choices, including live chat and email, and its huge and active community is a key component of the platform. The platform charges fixed spreads, and some signal providers also charge fees. Beginners should analyze all available performance metrics when deciding whether to copy a particular signal provider. Understanding a given signal provider’s risk tolerance is just as important as measuring their average profits or their overall results.

Importantly, look for a copy trading platform with an intuitive interface, easy access to the broker’s highest-performing traders, and straightforward tools to compare signal providers. Copy trading is replicating another trader’s positions using a copy trading platform. It can be a great way for beginners to start trading and learning with minimal effort, as it allows them to observe first-hand the actions of more experienced traders. However, it also involves risks and some loss of control, so while there are many success stories, it’s not guaranteed to work for everyone all the time.

Furthermore, it is a platform that links both experienced and beginner traders. Users may utilize TraderWagon to identify, follow, and mimic transactions done by the world’s best traders. Copy trading is the process of mirroring your trading strategy to that of another trader or algorithm. That is to say, you will be ‘copying’ another trader who actively places trades that align with your strategy. So, if your chosen trader decides to go long on AUD/USD – the same position will be automatically opened under your trading account. As such, it is essential to carefully research and evaluate signal providers before committing to a copy trading strategy.

This website is using a security service to protect itself from online attacks. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. 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 forex brokers. Nonetheless, if in doubt, it’s always prudent to check and ask questions.

copy trader platform

Another key metric to look at when choosing a trader to copy is risk level. Often, traders with the most impressive returns take more risk to achieve these outcomes. On the other hand, traders who generate modest profits may have a lower risk score. On the downside, losing trades will also be reflected in the investor’s account, so selecting good traders to copy is essential. An example of one of the first automatic trading systems for copy trading was called Mirror Trader.

After all, you’ll want to be copying traders who have a proven record of profitable trades. Although copy trading allows you to take a hands-off approach to invest, you still need to put a little bit of groundwork in. This is because you need to spend some time researching the many copy traders that your chosen platform offers.

  • Another important consideration copy traders need to make before choosing a solution is the historical reliability of each platform.
  • This flexibility allows traders to copy trades from a broader selection of professionals.
  • Laws that restrict trading usually regulate brokers,  not individual traders who want to start trading.
  • As a result, it can be difficult for traders to decide who to follow.
  • NAGA primarily appeals to modern, tech-savvy investors who want to apply copy trading to cryptocurrencies (you can accomplish this and more on eToro).

The main concept here is that you can actively trade without needing to spend a lot of time on research and analysis. This is because your chosen trader will conduct the required research for you and make decisions accordingly. This includes the end-to-end process of analyzing the markets, performing research, and placing orders. See our list of copy trading platforms to find out which broker is ranked #1 in your country.

Fundamentally, it levels access to financial markets, providing new and seasoned traders commensurate benefits from the cumulative insight of an active trading community. Yes, copy trading really works, and you can verify the proof by checking the results of the best-performing traders. The key to success is picking the right strategies at the right time, and then allocating enough capital to each strategy, in addition to setting any risk/reward thresholds depending on your needs.

copy trader platform

You can check out our article on the 9 best crypto copy trading platforms here. The platform is designed to support the easy management of large client bases on the part of the signal provider. Signal Magician offers customizable signals, including entry points, stop loss, take profit levels, and other key trade parameters. Providers can use these tools to create and send signals that are specially tailored to their trading strategies, helping forex copiers to stay ahead in the markets.

You can filter through providers based on these criteria, and, once you choose a trader, you can set an amount that you want to trade. Copy trading brokers provide a platform that connects aspiring investors with experienced traders, enabling them to mirror positions and strategies in their own accounts. Any form of trading in financial markets carries risk, and forex and CFDs are high-risk investments regardless of your preferred trading method. It’s important to realize, however, that no copy trading signal providers can guarantee successful returns. The top 3 offer a comprehensive set of copy trading tools to suit the needs of copy traders and signal providers alike.

copy trader platform

The trade will be replicated with the same stop loss (SL) and take profit (TP) as the original trade. The transaction price will be mirrored as exactly as the market conditions allow. The transaction price can sometimes vary slightly in fast-moving markets. The purchased instruments will be held in your account until the master account chooses to close his position or until the stop loss (SL) or take profit (TP) is triggered. The platform is user-friendly, particularly for beginners, with an easy-to-navigate layout. The support staff is noted for responsiveness despite the platform’s limited community tools for social trading.