As the cost of living keeps risings, more and more people are looking for ways to increase their income. At the same time, the internet has made trading in forex and securities accessible to everyone. As a result, many people looking for ways to supplement their income are turning to trade. As a result of this, some of the best copy trading platforms are starting to take off,
However, the truth is that most of those trying their hand at trading are novices who do not have a good understanding of financial markets, which means that the risk of losing money is high.
Please remember that your capital is at risk when engaging in online trading.
To make it easier for these people to make – rather than lose – money through trading, many trading companies and brokers have introduced a copy trading concept.
Copy trading is a new trading style that allows amateur traders to copy the trades of more experienced traders. More experienced traders have a better understanding of the market and do a thorough analysis before entering into a trade. By tapping into seasoned traders’ experience and knowledge, amateur traders can also make money like seasoned traders.
Also, amateur traders learn from seasoned traders’ strategies and become better traders themselves.
If you are looking to get into copy trading but are confused about what platform you should use look here. We have reviewed some of the best copy trading platforms for you. Let’s check them out.
eToro Is The Safe Choice
eToro is the best copy trading platform. It is trendy and highly rated among established copy traders. eToro’s emergence as the leading copy trading platform is no surprise, considering that copy trading and social trading are their core focus.
One of the factors that makes eToro such a great platform for copy trading is that it makes it so easy for users to implement copy trading.
You cannot just copy any trader. Instead, a trader has to indicate that they are willing to have their trades copied. Also, traders willing to have their trades copied have to follow certain risk-control rules affected by eToro.
This reduces the likelihood of copy traders losing their money, copying the strategies of traders who are not sure of what they are doing.
Another great feature of eToro is that it allows users to copy trades manually. With many copy trading platforms, copy trading is done automatically.
Once you decide to follow a specific trader, all their trades are automatically replicated on your account. On eToro, you have the option to choose which trades you want to copy and which ones to ignore, which gives you greater control over your account and your money.
Finally, eToro provides a demo trading account where you can mimic seasoned traders’ trades without risking your real cash. Once you are confident about the trader’s strategies, you can then put your hard-earned money on the line.
AvaTrade Copy Trading
AvaTrade is another amazing copy trading platform, as evidenced by its huge following in Europe and its monthly transaction volumes.
The broker offers the copy trading feature through a partnership with two third-party platforms, ZuluTrade and DupliTrade.
One thing we like about AvaTrade’s copy trading feature is the fact that you can not only copy a trader’s position, but you can also copy other trade actions executed by the copied trader, such as stopping losses, taking profit positions, and so on.
Also, AvaTrade has low minimum copy trading amounts compared to most other copy trading platforms.
Finally, most copy traders also love the fact that AvaTrade has a user-friendly, easy-to-use, and intuitive user interface. The platform also offers a ton of learning resources that amateur traders will find to be quite useful.
FXCM
FXCM is another excellent copy trading platform. Copy-trading on FXCM is possible when you use the Mirror Trader platform. Through this platform, users can follow the trading strategies and signals of more seasoned traders.
Alternatively, users can receive information about the best-performing currency pairs based on market conditions, as well as signals on when to enter and exit trading positions.
FXCM also provides a demo account where you are provided up to $50,000 in virtual money to practice.
Using virtual money makes you acquainted with copy trading before you stake real funds.
Like the other platforms covered in this article, FXCM also comes with an extensive resources section where novice traders can learn more about copy trading and general market information.
Pepperstone
Pepperstone is an excellent copy trading platform enjoying a client base of more than 57,000 copy traders. The trading platform has an average of daily transactions valued at $12.50 billion. This speaks volumes for Pepperstone as a copy trader.
For copy trading, Pepperstone offers its users the RoboX platform from Tradency and Mirror Trader. The RoboX platform will provide myFxbook for MT4 and the ZuluTrade platform. The RoboX platform will be an addition to the native signals markets from MT4 and cTrader. All these third-party platforms allow users to copy trades from established traders and take advantage of their knowledge and expertise.
Before choosing a trader to follow, Pepperstone allows you to look at their trading history to determine if their strategies are successful. Pepperstone also allows you to use several strategies from different traders at the same time.
Additionally, Pepperstone offers the cTrader platform, allowing strategy providers to broadcast their trading strategies in return for a fee from copy traders. The fact that Pepperstone uses the ZuluTrade interface, which is well-known by most traders, is also a huge plus.
Wrapping Up
Copy trading is a relatively new trading concept that allows novice traders to pick an experienced and successful trader and copy their trades.
The hope is that by leveraging the skills, knowledge, and strategies of the seasoned trader, the novice trader can also make money in the forex market, despite being inexperienced.
Observing and copying the seasoned trader’s trades and strategies also shorten the novice trader’s learning curve. This can help them to become better traders themselves.
If you want to start copy trading but do not know where to start, you can rest assured that you won’t go wrong with one of these four copy trading platforms.