Copy trading is a popular trading approach where people follow and imitate trades of more experienced traders. While the strategy is common among new traders, many professional traders use it as a way of diversifying their income. It is also a popular approach for people to automate their trading processes and make passive income.
Copy trading has been made possible by the advancement of technology that make it easy for people to assess the performance of other traders. Today, many brokers have advanced features that let people analyze pros and allocate capital according to their risk preference.
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What are the best copy trading platforms?
TechBerry is a financial platform that uses big data and other technologies to analyze data and execute trades. It offers its services to traders, financial institutions, and individuals. The platform provides guaranteed monthly returns of about 11.2%. Customers select various tiers that are priced from $19 to $499 annually.
Traders, on the other hand, earn from $500 per month by just sharing their data with TechBerry. It then uses the data it collects to come up with trading calls.
- Real-time trade monitoring for advanced packages.
- Traders make money sharing their trading data.
- Trading losses reimbursement.
- Personal manager for advanced subscribers.
- Free trial.
TechBerry uses advanced security tools to ensure the safety of customers’ funds. Since it was established in 2015, TechBerry has not been accused of a security breach.
TechBerry has seven packages. There is a free trial that does not have a fee. The green package costs $19 while the silver, gold, and platinum cost $99, $199, and $299. Finally, the diamond and infinite packages cost $399 and $499, respectively. In addition to these costs, there is a service fee that starts at 50% for the trial account to $15% for the infinite account.
Pros & Cons
TechBerry has numerous pros. It is easy to set up, has been around for more than a decade, and has a long track record. Additionally, it enables traders to make money in the market by just sharing their data. It also has real-time monitoring and its accounts are safe.
The only con is that its service is not cheap. In addition to the annual cost, the service charge is a bit high. The upside is that TechBerry takes this fee only when it makes a profit.
eToro is a leading company that has over 10 million traders and investors globally. The firm is best known for introducing copy trading features to the market. Its top markets include cryptocurrencies, forex, stocks, ETFs and indices.
- Advanced copy-trading tools.
- eToro money account, which simplifies how people move money.
- eToro investment portfolios.
- Demo account.
- Quality customer service.
eToro has invested heavily in security, which has helped it avoid hacks in the past 15 years.
eToro charges no fees for people to buy stocks in its platform. It then charges just 1% for all cryptocurrency purchases. For CFDs, eToro uses a spread approach. Spreads for popular currency pairs start at 1 pip. eToro does not charge a fee for its copy trading feature.
Pros & cons
The pros of using eToro are that its fees are reasonable, it is a pioneer in copy-trading, it is a safe platform, and has multiple ways of moving money. The only con for using eToro is that the service is not available in some countries and US states for regulatory reasons.
FXTM is a leading regulated broker that provides forex, indices, stocks, and commodities. It is a company that has served more than 4 million customers globally.
- Copy trading features.
- Multiple calculators like pip, profit, and margin.
- Low spreads.
- MT4 and MT5.
FXTM has features to ensure that accounts are safe. Like the others, it has never been compromised by hackers.
FXTM has a simple and transparent pricing based on spreads. Its Advantage account offers low commissions from $0.4 to $2 per $100,000 notional value.
Pros and cons
FXTM offers multiple assets like forex, stocks, indices, and commodities. Further, the broker has free calculators to help traders simplify their trading. Finally, it has a popular copy-trading feature.
The only con is that FXTM is not incorporated in TradingView.
PrimeXBT is an online broker that focuses mostly on cryptocurrency trading. In addition to crypto, the service has several other products like forex, commodities, and indices. Its average daily volume is over $500 million.
- Ability to buy Bitcoin, Ethereum, USDC, and USDT.
- Margin trading cryptocurrencies.
- Trading contests.
PrimeXBT is a safe exchange. However, its main risk is that it is not regulated. Traders are always recommended to use exchanges or brokers who are regulated by credible agencies.
PrimeXBT’s spreads start at $0 although these ones depend on the asset and overall market conditions.
Pros and cons
First, it is available on a 24-7 basis. Second, it has extra-low commissions for all its assets. Further, it enables one to make money when an asset is rising or falling. It also has copy-trading tools.
On the other hand, it is not a regulated broker, which is risky. Also, it has limited tradable assets.
OctaFx is a leading forex and CFD broker that is regulated by the CySEC. It supports multiple languages and offers MT4 and MT5 platforms.
- A 50% bonus for new customers.
- MT4 and MT5 support.
- Advanced copy trading features.
- Demo account.
- Negative balance protection.
OctaFx is a secure company that has not had any major security events in the past. The company has incorporated technology features that prevent these attacks. It also uses segregated accounts that separate customer accounts from its balance sheet.
OctaFx uses a spread payment option. Its minimum spread for the EUR/USD pair is 0.6.
Pros & Cons
OctaFx pros include its negative balance protection features, copy trading, and easy-to-use trading platform. Additionally, it does not have overnight swap charges. The main con is that it offers a limited number of assets. For example, its stocks and cryptocurrency collection is relatively small.
Pepperstone is an Australian company that provides forex and CFD brokers to customers from around the world. Its assets are forex, shares, ETFs, indices, commodities, and currency indices.
- Daily market analysis.
- MT4, MT5, TradingView, and cTrader.
- MyFxBook mirroring.
- Thousands of assets.
- Duplitrade feature.
Pepperstone is a global company that is regulated by various reputable regulators. It has also used its finances to invest in security features that protect customer accounts.
PepperStone charges no commission. Instead, it uses the spread model. For currency majors like EUR/USD, the standard spread is 0.77.
Pros and cons
The pros of PepperStone are that it has tight spreads, a wide variety of assets, strong security features, and friendly customer care offices. It also has strong user reviews and ratings and is available in multiple platforms. On the other hand, it does not have negative balance features.
AvaTrade is one of the biggest forex and CFD broker. It serves thousands of customers from around the world. Its assets include forex, cryptocurrencies, bonds, commodities, ETFs, and indices.
- MT4 and MT5 platforms.
- AvaTrade Go platform.
- Options trading.
- Regulated by multiple regulators.
- Multiple automated trading features.
AvaTrade has highly advanced features to ensure funds and data security for its customers. It has never been hacked.
AvaTrade does not charge commissions for trading and investing. Like other forex and CFD brokers, the company makes money through spreads. Its EUR/USD spread is about 0.50. It also charges $50 for inactive accounts. It also has a $100 administration fee for inactive accounts.
Pros and cons
AvaTrade has several pros. First, it is a global broker that has higher leverage in some countries. Second, it has bond features, meaning people can make money by trading bonds. Third, it has several copy trading features like DupliTrade and ZuluTrade. The only cons are that the firm has high dormant fees and it is not available in TradingView.
Naga Markets is a fast-growing company used by over 1 million customers. The company gives users access to thousands of assets like forex, commodities, stock CFDs, indices CFDs, futures, and ETFs. It has almost 1,000 assets.
- Advanced social trading features.
- Advanced charting features.
- Daily news and signals.
- NFT marketplace.
- Naga Pay.
Naga is a large German company that is listed at the Frankfurt exchange. As such, it has invested heavily in security. Like the other companies, it has not been hacked in its existence.
Naga does not charge commissions. It makes money through a spread. The typical spread for the EUR/USD pair is 1.2, making it more expensive than other companies.
Pros and cons
First, Naga is a safe company to use in trading. Second, it has advanced copy trading features. Third, you can make money by being copied. On the other hand, Naga’s $250 minimum deposit is a bit high. Also, its fees are a bit high as well.
Final thoughts on reviews
In doing this review, we tested the eight platforms and we believe that TechBerry has the best features for copy trading. It is an advanced platform that uses artificial intelligence and big data analysis to analyze markets and predict future price action. Other great platforms for copy trading are eToro, AvaTrade, and OctaFx. However, we have worries about PrimeXBT since it is not a regulated company.
Copy trading: what is it?
Day trading has become a popular way for people to make money in the financial market. Its popularity grew during the Covid-19 pandemic as more people stayed at home and financial assets like cryptocurrency prices surged.
Unfortunately, trading is a risky affair considering that over 80% of all people who get into the industry fail. Therefore, copy trading provides a solution to this challenge since it lets people take advantage of the experience and expertise of profitable traders.
It works by creating a platform where people can analyze the performance of other traders and then mirror their trades. The cost of this copy trading is usually a small fee to the professional trader.
How does copy trading work for traders?
Copy trading works in a simple way. A trader will typically sign up with broker that provides copy-trading services. After doing that, they will select whether they want to trade manually or automate by copying other traders.
If they select the latter, the trader will assess the performance of pro traders and their charges. After this, the trader will allocate cash to the pro. Finally, all trades initiated by the pro will be mirrored to the trader.
In most cases, traders using the copy trading approach usually copy from multiple traders in a bid to diversify their income.
What’s the importance of finding reliable traders to copy?
Copy trading is not a risk-free approach of making money in the forex, stock, and cryptocurrencies market. Still, for most inexperienced traders, copy-trading is a better option than using a DIY approach.
Therefore, it is highly recommended that a copy trader allocates funds to experienced and reputable traders. Reliable traders with a long track record have several benefits. First, they have experience in analyzing and executing trades. Second, they know how to reduce risks in the market.
Most importantly, working with a reliable trader gives copiers peace of mind knowing that their trades are being executed by someone who is experienced.
Is copy trading only for experienced traders?
Copy trading can be used by both experienced and inexperienced traders. Newbies benefit by copying trades from people with experience. By doing this, they reduce their probability of losing money within a short period.
Experienced and active traders can also use the copy-trading technique. Most of them allocate a portion of their funds to their personal accounts and then distribute the rest to experts. Having these segregated accounts helps them to have diversified income. Because of their experience, they can also enrol their accounts to let other people copy.
Is copy trading an automated process?
Copy trading is an automated process that one can implement within a few seconds. Brokers have made it easy for one to find professional traders, see their performance, analyze their historical trades, and start following them. Your account will start trading right away.
The professional traders who you follow apply multiple trading strategies. Some use automated trading strategies where they use robots to trade. On the other hand, some traders use manual trading approaches like scalping and pairs trading.
Why copy trading?
Copy-trading has become popular among traders, which explains why most forex brokers are integrating this approach to their platforms. It is a relatively easy method to make money in the market and the overall cost of the strategy is relatively low. Here are other benefits of using this trading approach.
It is time saving
One of the top benefits of using copy-trading approach is that it is a time-saving strategy of making money. As a new trader, you don’t need to spend months learning to trade and testing new strategies. Instead, you can create a new account, analyze the best-performing professionals, and then allocate your funds to them.
Further, regardless of your trading skills, you can let other people make money for you as you focus on other activities like work and sports.
Entry to global markets
The financial market has continued growing as the number of new assets increase. One of the best ways to take advantage of the market is to become a day trader. Unfortunately, statistics show that most people who start their day trading careers fail.
Therefore, copy-trading is an excellent way to enter the global markets and benefit from the volatility of assets like currencies, stocks, and cryptocurrencies.
Copy trading is one of the best ways to learn more about the financial market. Instead of learning more about theories, copy trading lets you see trades being executed in real-time. Some trading companies lets you ask your professional trader questions about trades and why they are executed. Therefore, you can learn new strategies and even experiment them in your end using a demo account. Most importantly, it is possible to connect with the professionals directly.
Another benefit of copy-trading is that it provides portfolio diversification to both experienced and inexperienced traders. Experienced traders can decide to allocate funds to multiple high-performing professionals.
There are several benefits of doing this. First, they will achieve uncorrelated returns in the market. Second, allocating funds to traders is a good way for long-term traders to leverage short-term market moves. Finally, holders of assets like stocks and bonds can benefit by having a pro in other assets like forex and crypto.
Easy way to grow your income
Copy trading is an easy way to grow your income. For one, companies that provide these services give you an opportunity to select traders with the best performance. They also provide adequate data on the traders’ historical performance.
Further, copy-trading is a simple process to implement. As such, if you have a day job, you can still be making money. Additionally, you can grow your income on a 24-hour basis by selecting professionals from different countries.
Pros & cons of using copy trading
There are several benefits of trading using the copy trading approach. First, copy trading is a good approach to diversify your income. You can do this by allocating your funds to multiple professional traders who will manage your account for you.
Second, it is a good way for inexperienced traders to make money fast since they don’t need to spend a lot of time reading and coming up with strategies. Third, copy trading is an easy method to trade multiple financial assets, including forex and commodities. Further, it is a good way for people with a full-time job to make money in the market. It is also a good way of finding mentors who have been in the industry for a long time.
On the other hand, there are several cons of using the approach. First, it is an expensive process since you will pay a commission to traders. Some traders charge as much as 30% of all profits they generate. Second, it is not a guaranteed way of making money since historical performance is not a guarantee of future success.
Third, by relying on professional traders, you will not learn more about how to trade in the market. This is important since as a DIY trader, you will continue improving your skills as you grow.