Copy trading makes it easy to automatically copy another trader´s actions on a trading platform. There are many different brokers and trading platforms to chose among online that support copy trading.
Copy trading exists for a wide range of assets, but has become especially popular among forex traders oline.
Be picky when selecting a broker
Today, a lot of brokers and platforms are available that makes copy trading very easy. It is therefore no reason to stick with a broker and platform that doesn´t work well for you and your preferences. Be a picky consumer and select the right broker and platform for your needs, rather than remaining with the first one you happened to try out.
All the brokers in the list below will allow you to open a free Demo Account. That way, you can check out their offer for free, using play-money. Don´t buy a pig in a poke – check out the broker and the platform before you decide if you want to make a deposit and start copy trading using real money.
- FP Markets
- Global FX
- Global Prime
- IC Markets
- ICM Capital
- IFC Markets
- LH Crypto
- MultiBank FX
- TP Global FX
- Trader’s Way
How does it work?
On a trading platform that supports copy trading, you can elect to automatically copy another trader´s positions when they are opened and closed. Many platforms also allow you to copy other elements, such as stop loss and take profit orders.
Copy trading is not exactly the same thing as mirror trading, but the two concepts are closely related. With mirror trading, you are mirroring a strategy. With copy trading, you let the program copy another trader´s actions automatically.
In essence, copy trading permits you to connect a part of your trading portfolio with someone elses, and their actions will be copied in your portfolio.
When you set up your portfolio to copy a certain trader, you will adjust factors such as how much to risk. You don´t have to copy exactly the amounts that the master trader is using. Therefore, a small-scale hobby trader can copy a trader with a huge bankroll without having to put the same amount of money into the trading account or use leverage.
Important: Past succcess can not guarantee future success. Following a successful trader is not risk-free trading. You can still lose very penny you risk. Do not risk money you can not afford to lose.
Is copy trading only for forex?
No, copy trading exists for a wide range of assets, such as:
- Company shares (stocks)
- You can also use copy trading to speculate on indices.
Tip! Copy trading using Contracts for Difference (CFD) makes it possible to gain exposure to underlyings without ever owning them.
Copy trading software
There are a lot of trading platforms that support copy trading. We recommend that you try them out using play-money (open a free Demo Account). That way, you can find out which copy trading software that suits you best, without losing any real money in the process.
Two of the most famous trading platforms that support copy trading are MetaTrader4 (MT4) and MetaTrader5 (MT5). They are well known because they are not linked to any specific broker. Instead, a wide range of brokers online give their clients access to these trading platforms.
There are also trading platforms available online that have been tailormade for a specific broker and only available through that broker. That is for instance the case with eToro.
What are copy trading signals?
Copy trading signals are a typ of indicators that master-traders send out and follow-traders can use. It is a kind of trade alert, notifying the signal reciever of a possibly good opportunity.
Signal trading is slower than automatic copy trading, giving the follow-trader a chance to edit their preferences before any action is taken on the market. The follower can for instance edit position size and put in a stop loss order.
Typically, a trading platform that support trading signals will contain both free signals and signals that require a paid subscription.
Is cryptocurrency copy trading possible?
Since copy trading is so popular among forex traders, it comes as no suprise that it is a favorite among cryptocurrency traders as well. Platforms are available online that support cryptocurreny copy trading, both crypto-to-crypto and currency pairs where one of the currencies is a traditional currency, such as USD or EUR.
Examples of places where you can do copy trading for cryptocurrencies are eToro, Coinmatics and 3Commas.
Please also remember that you can gain exposure to cryptocurrency without actually owning cryptocurrency. One method is to use Contracts for Differences (CFD), and copy trading is available for CFDs.