Copy trading is a segment of social trading where the primary trader’s positions are copied by another traders account when opened or closed.
To limit risk and prepare for any losses it is really important to do your own technical analysis on a position, financial instrument or particular market before you commit your real capital to the trade. Remember that when you are copy trading it is your capital that is at risk even though you are following an experienced trader.There are various copy trading platforms and social trading platforms available.
So how does copy trading work?
Copy trading works based on social networks and social trading platforms.This was formerly known as mirror trading but has evolved into social trading.Mirror trading is exactly as it sounds; you are mirroring another persons trades.Copytrading and social trading are much the same.
You can set up an account and then search the copy trading network of your platform for a trader that you like.When those traders open a position they broadcast that information to other traders on the network who then can decide if they want to open the same position – or if you choose the automated, more hands off approach – the automated trading systems do it on your behalf without any further input from the trader.
Due to price movements being so small and frequent forex copy trading is very popular and constant monitoring is required. Copy trading in forex means that an inexperienced trader can copy another professional forex traders positions as opposed to having to scan the fast moving forex market themselves.
There are many trading platforms available that offer software for trading such as MT4 and MT5 for social trading.
One great benefit of copy trading
If you are a trade copier and want to get into forex social trading one great benefit is that the markets are open 24 hours a day.So, you can make money (or lose money) at any time of the day.
Here is a quick explanation from Investopedia:Although markets in many foreign countries are closed when North American markets are open, trading on foreign currencies still takes place. While the majority of trading on a particular currency occurs when its main market is open, many other banks around the world hold foreign currencies enabling them to be traded at times when the main market is closed. For example, the North American markets are open when the Japanese markets are closed, but North American traders are still able to buy and sell Japanese yen through their brokerages and banks. However, the market for Japanese yen is more liquid at times when the Japanese market is open.
Example of copy trading
Let’s say you are based in the United States but there is a domestic market crash in Spain and you wanted to take advantage of this unfortunate situation and make some money.If you have no experience with the Spanish market you could simply find a professional trader on your forex social network platform that is located in Spain and then rely on the expertise of that professional trader and copy their trades.
By finding the best forex traders to copy this allows you to make some money in the market but not have to know too much about the market.It is really a nice way to break into markets that are unfamiliar to you.
Pros of copy trading
You can enter into markets with little to no experience in those markets.
You can choose to follow forex traders and assess their expertise then rely on their knowledge of the seasonal trends, political climate, etc.This way you don’t have to know or understand exactly what is going on but can enter the market somewhat comfortably.
With copy trading you are really researching the best forex traders to follow by viewing their traders profile and making a decision based on their social trading profile and their proven track records.
Cons of copy trading
While copy trading allows you to cut a significant amount of the learning curve it provides no incentive for the copy trader to do their own research and technical analysis. You can always copy a professional trader but in the end are you really taking a shortcut or are you truly learning a skill?
As with trading any financial security you still have risk.Sometimes there are boards that are trying to influence a markets price for their own good.
Copy trading is alluring and can provide someone a quick entry into the market.
What should you do before copy trading?
Do your own market research.Especially if you are unfamiliar with the market.
Depending on where you are in the world may have an effect on what company you choose as your brokerage. We have assembled what the best forex trading platforms from all over the world and made an online forex brokers comparison. Have a look!
Founded in 1995, Oanda is a USA forex broker and one of the oldest forex brokers. The broker offers competitive spreads that start from 0.6 pips on major currency pairs. Powerful trading tools are available and compatible with MetaTrader 4 trading platform.
Oanda is a regulated broker that’s licensed to offer its service in the United States, Canada, Europe, Australia, and Asia-Pacific.
Oanda offers the following financial products to trade on their platform:
Standard and Premium accounts are the available account types to choose from Oanda broker. Both account types are similar, except for minimum account balance, priority service queues, and open order indicators.
Standard account requires no minimum account balance and is a great platform for forex trading for beginners. Premium account types require a minimum account balance of $20,000.
Spreads & Commissions
The commission fee per 1 standard lot is $3.50 or $7.00 per 2 standard lots. Besides the transaction costs, Oanda charges an inactivity fee. A fee of $10 per month if you do not trade for at least 24 months (12 months in the US).
Spreads start from 0.6 pips on EUR/USD. Cross-pairs and exotic pairs have a higher liquidity on the market, so the spreads can shift very quickly.
Oanda Minimum Deposit
There is no minimum deposit for Oanda. However you can only deposit up to 50% of your net worth.
Oanda broker offers 4 options of trading platforms that you can choose to trade. Trade web, Trade desktop, Trade mobile & tablet app, and MetaTrader4 are the available platforms.
The platforms are available on many devices and offer a full trading experience. With one-click currency trading, you can open and close trade, use analytics tools, protect your trades against unexpected price swings, and more.
Besides the trading platforms, Oanda offers a variety of trading tools. The list of trading tools include:
Forex open position ratios
Forex order book
MT4 open order indicator
Trading performance portal
TradersWay – Best forex broker in the United States
The best MetaTrader 5 forex broker
Tradersway broker offers the best experience for the MetaTrader 5 platform. You can choose 4 account types to trade on different trading platforms. Tradersway broker offers access to 4 trading instruments like forex, metals, energies and cryptocurrencies.
There’s no limitation on the minimum deposit amount and you can trade with tight spreads. The maximum leverage is allowed up to 1:1000 and you can also enjoy bonuses and promotions.
MetaTrader 5 platform
Tradersway forex is one of the best online brokers when it comes to the MetaTrader 5 platform. The platform allows several tradersway account types for trading on multi instruments including forex, crypto, metals and energies. You can use the trading platform to analyze forex charts on a full experience. Many tools are available to draw support and resistance zones, use fibonacci tools and more.
From the time frames, Tradersway platform supports up to 21 time frames and a long list of indicators. Expert advisors (EAs) are allowed so you can set up robots to trade automatically for you. The platform supports all types of orders with a quick expected speed. With a single click you can open buy or sell positions immediately. Tradersway platform supports up to 100 charts in the platform, so you can monitor multiple financial instruments.
As we mentioned, the platform supports multiple time frames including the seconds, minutes, hourly, daily, weekly, and monthly. MetaTrader 5 platform provides access to over 80 technical indicators and analytical objects.
Additional indicators can be added on the platform easily with not a single issue.
The economic calendar will inform you with the latest financial news on the platform itself. News reports from international news agencies and forecasts on currencies and stocks are available too.
Besides the features and many benefits that you get with Tradersway MetaTrader 5 platform, there are other tools and features available. Social trading is available too with a simple platform that allows you to copy trades from other traders.
The copy trading process is very simple, all you need to do is choose the signal provider and complete the process by subscribing to the trader. Once you do that, all the trades will automatically open on your trading account too.
Tradersway offers metatrader for iPhone and Android. Using mobile terminals in daily activities offers a way to keep up with your accounts when you don’t have access to a desktop computer.
Tradersway Minimum Deposit
There is no minimum deposit to get started. For ECN accounts the minimum deposit is only $10.
Tradersway bonus offers a 100% deposit bonus when you deposit funds. The bonus will be automatically credited to your account once you choose the deposit bonus from the drop down list and accept the terms and conditions. 100% deposit bonus is limited to $5,000 per account and cannot be withdrawn.
Pepperstone forex review- Best broker in Australia
Next on our list of best forex brokers is Pepperstone fx. Pepperstone is one of the top forex brokers in Australia. The broker was founded in 2010 and it has more than 50,000 traders registered. Pepperstone is regulated by the Australian Securities and Investments Commission (ASIC) in Australia and Financial Conduct Authority (FCA) in the United Kingdom.
From the trading products, Pepperstone offers a variety of financial products to trade including:
Traders can choose from 2 account types to trade, Standard, and Razor. Both accounts offer almost similar features, the main difference is on the variable spreads and commissions. Standard account provides spreads that start from 1 pip, although the commission does not apply.
Spreads & Commissions
Razor account offers tight spreads that start as low as 0 pips, however the commission applies on trades. A commission fee of $3.50 per 1 lot will apply to all positions opened with the Razor account.
The most popular online trading platforms, Pepperstone MetaTrader4 and Pepperstone mt5 are available on both account types. Besides MetaTrader platforms, Pepperstone also offers a cTrader and web trading platform. MetaTrader 4 and 5 come with pre-installed indicators and many features.
cTrader is an advanced trading platform that offers a unique design and outstands other trading platforms. WebTrader is an online web platform that allows trading through web browsers such as Chrome, Firefox, Edge, etc.
The recommended pepperstoneminimum deposit to trade is AUD$200 or equivalent. However, you can deposit less than this to get started.
See our Pepperstone sign up below.
IG – Best forex broker in the United Kingdom
IG forex broker has operated since 1974 and it has more than 239,000 clients worldwide. The broker offers over 17,000 markets to trade and with multiple trading platforms supported. IG Group is regulated by the UK’s Financial Conduct Authority (FCA).
IG forex trading offers more than 17,000 financial markets to trade. As a client of IG broker, you can trade:
IG offers only account type but some of the products are limited in some countries. Trading products are fully available to United Kingdom clients. If you’re from the United States, then, you cannot trade CFD products.
Spreads & Commissions
Spreads on forex pairs start from 0.6 pips and can go above that when you trade other currency pairs. When it comes to commission fees, IG applies a price that’s higher compared with other brokers.
Per each standard lot position opened, you’ll be charged $10 per position. Besides commission fees per open trades, IG also charges inactivity fees. Clients that do not trade in a period of 24 months will be charged with a monthly fee of $18.
IG broker of faster and smart trading platforms. One of the most popular trading platforms, IG mt4 it’s available for IG clients. Besides MetaTrader 4, there are other platforms available including custom mobile and desktop trading platforms.
Other tools are available such as technical signals, that give you indicators whether to buy or sell. Algorithmic trading it’s available to use, so you can trade based on your created algorithms. You can also set up alerts when your target prices reach the configured level.
IG Forex Leverage
IG offers a relatively low maximum leverage of 50:1, whereas many other forex providers offer leverage of up to 500:1.
Plus500 – Best trading platform
Plus500 broker based in the UK offers more than 1000 financial instruments to trade. Plus500 offers competitive pricing spreads with no commission and a unique trading platform. The broker is known for its custom advanced trading platform and its features.
Over 2000+ products available
Plus500 provides access to over 2000+ products such as:
Notifications & Alerts
Plus500 trading platform alerts in real-time with notifications. You can configure notifications so you will receive notifications on your phone via SMS, email, or push notifications. Alert notification will let you know when a certain price of the forex market reaches the price that you’ve configured to alert you.
One of the features that is different from other platforms is risk management. Compared to other platforms, Plus500 forex offers an advanced risk management system. The features give you maximum protection from a negative balance.
Risk management system includes these features:
‘Close at Profit’ [Stop Limit] or ‘Close at Loss’ [Stop loss] rates
With these features enabled, you’d guaranteed a risk protection for your account. In scenarios when you’re suffering a huge loss on your trades, risk management closes your trades at the level price that you’ve set.
Besides the negative balance protection, risk management also closed your trades automatically at the price level that you’ve set. So, your take profit level will be executed automatically.
Mobile & Windows compatibility
Plus500 forex trading platform it’s available on Windows 10, Plus500 Android, and Plus500 WebTrader. The platform can be used on the systems that we mentioned and the platforms offer similar functions on all devices.
However, using the trading platform on WebTrader or using the application on Windows gives you a “full experience” of the platform. Some features can be more difficult to use on the Plus500 app on Android. So, using the app on Windows and Android can have a bigger impact on your trading analysis.
Is Plus500 Good For Beginners?
Plus500 is good for beginners and is user friendly. Plus500 minimum deposit is $100 USD.
See the Plus500 bonus by opening an account below.
FxPro – Best cTrader broker
FxPro is one of the best forex brokers for its platform, cTrader. The platform offers a seamless experience to analyze the forex markets and access the foreign exchange market in full-depth. Spreads start from 0 pips and there are no restrictions on stop/limit levels.
Fast Order Execution
cTrader platform it’s known for its complexity and fast order execution. FxPro offers a cTrader platform to its clients ensuring there’s a low latency and fast execution of trades. cTrader server offers under 1ms latency with data centers located on major locations.
Smart Stop Out
One of the main features of the FxPro cTrader platform is the “smart stop-out”. This feature is designed to provide maximum to the forex trader’s accounts. Smart stop out uses a much more advanced algorithm that improves the way of stop out.
In situations where the margin level falls below the smart stop out level, positions will start to close partially. Positions will continue to close until the margin level goes above the smart stop out level.
FXPro Minimum Deposit
The FxPro MT4 and MT5 have an FxPro minimum deposit of $500.
Besides an advanced design and seamless experience, the FxPro cTrader platform offers other features such as:
Real-time forex and CFD quotes
No restrictions on limit orders
Expanded symbol display
Funding and withdrawing options
Full market depth
Open a FXpro demo account below
eToro – Best copy trading broker
eToro forex copy trading offers a unique trading platform that’s different from other brokers. If you want to become a copytrader then copy trading is the inbuilt platform that has made eToro one of the leading brokers for copy trading. The unique innovative system allows forex traders to trade by copying other traders.
The etoro copy trade feature allows you to view other professional traders and copy their traders instantly. The copy trading feature is automatic and you can copy trades within a couple of seconds. eToro does not charge hidden fees and management fees known as inactivity fees.
To copy trades from other professional traders, all you need to do is search for traders. You can search traders by performance, assets, risk score, and other options. Once you select the trader, you’ll need to choose the amount that you wish to trade by copying the trades. Then, all you have to do is hit the “Copy” button and the copy trading will begin automatically.
eToro’s copy trading platform allows traders to copy up to 100 traders. When you start copying trades, the stop loss and take profit will be the same according to the trader that you are copying. If the trader adjusts the stop loss or take profit, that will affect your stop loss or take profit too.
A minimum deposit of $200 is required so you can start investing by copying trades. The maximum amount that you can invest by copying trades is limited to $2,000,000. Besides copying other traders, you can also allow other traders to copy your trades. To do that, you’ll need to become part of “eToro’s Popular Investor Program”.
eToro social trading is similar to social media sites. eToro has created a social news feed style that is unique by allowing traders to explore. With social trading, you’ll be able to interact with other members of eToro by starting discussions, replying, posting your updates, and more.
You’ll be notified when other users that you’re following post a new status or update, and add assets to the watchlist. Notification will appear on web platforms and mobile devices with push notifications. eToro’s social trading platform allows you to create a profile that can be viewed by other members. From your profile, you will be able to show your social activity including posts, comments, trades, and more.
eToro offers free stock trading. On the negative side, forex trading fees are high and there is a fee charged for inactivity or withdrawal.
AxiTrader – Best MetaTrader 4 broker
AxiTrader was founded in 2007 and it offers its service in more than 100 countries. AxiTrader is one of the best MetaTrader 4 brokers that offers low spreads with a $0 deposit.
MetaTrader 4 platform
AxiTrader offers only the axitrader mt4 as the forex trading platform to trade. MetaTrader 4 is one of the most used platforms by traders. The platform is customized and comes with customizations and features. Traders can download MetaTrader 4 on PC, Mac, Android, iPhone, and iPad.
Besides these devices, MT4 WebTrader is available and can be used to trade directly from a web browser. MetaTrader 4 offers flexibility in forex trading with different tools to analyze the forex market. Real-time charting allows you to view the market with live charting options. AxiTrader offers over 150 products traded on the MetaTrader 4 platform.
AxiTrader offers an artificial intelligence analytics platform for traders. PsyQuation is built using AI and machine learning that’s designed to identify strengths & weaknesses. The analyzing platform works as a private trading coach known as “mentor”. Artificial intelligence will analyze your forex trading history to improve your profitability of the trades.
The platform will alert you for potential trading mistakes based on past trading behavior. PsyQuation platform will also analyze your performance and trading style by comparing it with the latest data. PsyQuation score ranks your skill on a table that will help you to track your progress and predict future performance.
Axitrader Minimum Deposit
Axitrader has no minimum deposit. Axitrader also has an axitrader demo account you can open for free below.