Forex copy trading has been pretty much ongoing for a decade now. You may know it by another name, ‘social trading’ or automatic copy trading, but either way this use of technology is very simple and effective for those that want to perform forex trades and receive live signals too, from other investors. However, thanks to social media, we have seen great connections and financial news which propagate and help your trading now more than ever.
Within this article we hope to educate you on what copy trading is, if you did not already know, and guide you to great decisions for 2021 on selecting the best forex brokers in the market right now.
What is Copy Trading?
Copy Trading is pretty simple; maybe the word overcomplicates things a little bit. Copy trading is the use of technology to copy live trades and forex signals, from live investors that you wish to follow in pursuit of. Every time investors leap to create a trade, you will copy the trades using your account and the funds in there. Makes sense?
What are the best Copy Trading Brokers?
The best trading platforms are very hard to pick from, as there are many in the market right now that will do the job very well for you and your career in copy trading. However, we have preselected a couple that we want to mention down below, so make sure you continue reading, to know why we decided to select them and what they can contribute to your trading life.
- XM Group
- IC Markets
- Vantage FX
XM group is a MetaTrader broker which gives you the complete service and upgrades of what a traditional MetaTrader provides you. The experience is enhanced with many custom indicators that you can apply to your account. We also do not want to forget to mention that the XM Group’s Research offering has huge variety and is really in depth, which most definitely challenges some of the biggest industry leaders of the moment, such as Saxo Bank for example. You are most definitely in safe hands using this one.
This trader provides you with MetaTrader 5 and cTrader platforms to work on. In addition to this, if you happen to upgrade to the pro account, you will be able to nab yourself some low-cost forex trading across multiple markets. This platform certainly nails it for what you are looking for, especially when you compare to industry leaders out there for the present now. This platform also lags a little bit in terms of comparing it to the industry, for educational resources within its platform, however it makes up for that in terms of pricing that it offers to traders.
IC Markets provides an exceptionally great algorithm for traders, with its commission account integration users. The trading tools available are third party, however they are pretty much number one for this resource in 2021. IC Markets provide low costs that fit traders who are running their trades based on strategies derived from algorithms. All in all, it is considered an average risk platform, and very much worth considering looking into.
Vantage FX offers a regulatory two-tier status, and one tier jurisdiction which means that you can have safe brokerage, with average risk when you wish to trade CFDs and Forex. In addition to the MetaTrader, you will have Smart Trader access, that provides social copy with pro tools for trading. You will need to deposit at least $1k however. Despite all of this, this trader broker is probably one of the best on the market right now and that is why we had to include it within our lists at present.
Pepperstone is a smaller entity in comparison to the brokers which we have listed. However, despite the small options when it comes to tradable products, there is a large selection of platforms within it, operated by third parties. This includes social copy trading (obviously). You will also find features which enhance your MetaTrading offers, meaning it is up there for being better than most average brokers in the industry at the moment.
Avatrade has been around for almost a decade and a half. In all that time, you will find that they have managed to regulate a tier 1 and tier two jurisdiction, meaning it is quite low risk for traders. Preferably an option for beginners, no doubt. In addition to the MetaTrader that it provides, you will have access to the platforms of WebTrader, AvaOptions and AvaTrade too, for the copy trading. This was actually the best for the previous years to pass, and for that reason AvaTrade holds great competition for that recognition within brokerage. In comparison to the industrial leaders at the moment, you will find that AvaTrade provides the best commission and fees at the moment.
eToro has been founded since 2007, and has managed to provide to its community a low risk platform, due to the one and two-tier jurisdictions. This broker is a safe one for beginners to start on. Alongside that, they also provide social copy trading with cryptocurrency too like Bitcoin, meaning you can pick both categories to trade in, for 2021. The app and website in general is very user-optimal, meaning as a beginner you should have no trouble finding your way through and across the establishment. Beginners will feel relieved when checking this one out for themselves no doubt.
Answers to some of your questions
Is copy trading legal?
Copy trading is legal in most countries today, however it is important to make sure that you are using a platform that is properly regulated, to ensure that you are protected and the procedures are to the standards of the market. Before opening a broker account, you will need to ensure that it is legal for the area that you live in and the country of residence.
How does copy trading actually work?
Copy trading gives you real and live time trades of other investors who are using the platform. Using a copy trader will essentially allow you to copy other traders and use their signals of their provider. You will be able to customise the amount of capital that you wish to risk however, it will not be exact, in terms of the capital of other investors, so do not worry about that.
How do you copy an actual trade?
Copying an actual trade is a pretty straightforward process. You will find that there are strategies which you can compare side by side, and you can actually see the history of returns that have been made, and the performance linked to the trades too. So, it is definitely a good idea to open a copy trader account, especially as a beginner for example.