6 Best Copy Trading Platforms for Social Investing in 2023

Many companies realised the business opportunity and started to build automatic copy trading services, where users could automatically copy the traders of other successful investors. Yes, copy trading is legal in most countries, provided that the broker itself is properly regulated. When investing in the financial markets using a regulated-broker and legalizes your account and the traders carried within them. However, all of these completely depend on your country that you are living in.

You should not initiate exchanges if you do not understand the risks surrounding the nature of these transactions. You already know that buying, selling and trade cryptocurrencies can be done on our platform, right? These algorithms have been built and perfected to execute trades based on many different inputs, and process https://currency-trading.org/education/xabcd-pattern-indicator-suite-for-ninjatrader-8/ these inputs way faster than any human will ever be able to. Because of the algorithmic nature of trading, it also runs 24/7 and is not affected by emotions. Copy trading can also help you get familiar with new strategies, as paying attention to the trades you copy might show you new tricks to use in your own analysis.

What are the pros and cons of copy trading?

Review the platforms below to see which one suits your investing goals. The higher-risk traders you follow, the more like gambling it becomes. If you decide to copy traders with less exciting returns but lower risk scores, then you are more likely to have a positive experience over the long term. The traders with the greatest potential to make you a lot of money quickly are also the ones with the greatest potential to lose you money quickly.

If your own strategy isn’t performing well or you’re finding a lack of trading opportunities, copy trading might make up for some of it. Simply put, copy trading allows you to copy trades placed by other traders. The basic goal is to find another investor with a proven track record, and begin copying their trades. Their success may continue and you will be on the winning side of things but if trades do not go in their favour then you will also be copying their losses. Another option of copy trading is using an automated trading platform.

Copy trading crypto offers greater flexibility

Copy trading has gone a step further, making potentially profitable trading accessible to all. 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. Both MT4 and MT5 are wickedly powerful platforms that are highly regarded by trading professionals. It really excels for forex copy trading due to its speed, reliability, and advanced features. In my opinion, the list of best copy trading platforms should begin and end here.

• On the Trality Marketplace, you’ll have all of the requisite information at your fingertips, ensuring that you can copy trade with complete confidence.
• After deciding on the trader you want to copy, simply click on the “Copy” button.
• You can also decide how much capital you wish to use for these trades and the total risk per trade.
• It was not long ago that trading was something of a hidden field for a select few specialists that had access to sophisticated trading technology.

The performance and management fees are fixed in MetaTrader 5 marketplace. Copy trading requires a powerful trading platform, such as MT4 and MT5. Therefore, traders should first open trading accounts with brokerage firms that possess the right trading tools, financial instruments, and technology. https://forex-world.net/brokers/fxpro-review-is-fxpro-a-scam-or-legit-forex-broker/ Simply put, copy trading aims at discovering successful traders who have a proven trading track-record. When copying other trades, traders copy trades from these providers. Copy trading is valuable for novice traders that lack time to create custom trading strategies or perform extensive research.

Copy Trading vs Mirror Trading and Social Trading

After you have found the trader to copy, everything else is automated. In addition to copy trading tools, eToro allows for community discussion, which helps traders to learn from the traders they copy. There are many different copy trading platforms available, for different kinds of markets. Not only should you make sure that the traders you copy have a solid risk management system, but you should also limit your risk per trade you copy. For example, you could choose to only allocate 3% of your funds to a certain trader or use a stop loss when the trader goes more than 20% into drawdown.

This means that you can place copy trades as per the trader’s behaviour but set your own trade volumes, and put stop loss and exit orders as per your personal preference. After a successful account configuration, one can begin copying the trades straightaway. However, it’s recommended to utilise any education content on the internet before copy trading. Here is where joining one of the many online communities comes in handy as there are many threads and discussions dedicated to the topic of copy trading. It’s worth noting that copy trading originated from mirror trading.

Crypto Copy Trading Platforms

But what exactly is involved in the actual process of crypto copy trading? As a crypto investor, you can copy the trades of experienced investors automatically by renting their trading bots. So, when you as an investor rent a trading bot made by an expert trader, you are effectively copying their trading strategy. And since everything is automated, the entire process saves you time and effort as well as increases the likelihood of a positive return on your investment. A copy trading platform is a financial trading platform that offers retail investors the option to follow and automatically copy the trades of more experienced traders. Meaning, that they will offer a social component to the trader community, where they can communicate and share investment ideas and strategies.

Investors can rent profitable bots tailored to specific risk tolerances (low, medium, and high) and individual investment goals. A full suite of metrics is available, allowing investors to decide on a bot based on clear, quantifiable data. But there are things that you should bear in mind when considering copy trading and profitability. Just as businesses must know their customers, so too should you do your due diligence when picking a reputable trading platform. Copy trading should only be done through a trusted source, and we highlight one of the best crypto trading platforms below. Selecting the right software is as important as choosing the right cryptocurrency trader.

Information is provided ‘as-is’ and solely for informational purposes and is not advice. WallStreetZen does not bear any responsibility for any losses or damage that https://trading-market.org/front-end-developer-vs-back-end-developer/ may occur as a result of reliance on this data. Social investing has opened the door for millions of new investors to get invested in a fun and educational way.