Forex copy trading platform reviews: Over time, copy trading became a popular way for investors to easily duplicate the trades expert traders have been making. Copy trading is an easy way into the forex market since it means that one does not have to go through the rigor of studying every minute detail in the forex market, making it easier for small investors to benefit from the expertise of professionals. In this review, we look at some of the best forex copy trading platforms for small investors and what makes them stand out in the markets today.
Definition of Forex copy trading?
Forex copy trading enables traders to replicate trading strategies or decisions made by another more experienced trader automatically in real-time. Quite simply, whatever move a trader makes in the market, the same is conducted into your account. Automatically, you benefit from their experience and knowledge without you yourself having to make independent trading decisions. In particular, this could appeal to newer or smaller investors that don’t have the time or experience to trade themselves.
Features of Forex Copy Trading Platforms
It is important to understand what constitutes a very good copy trading platform before actually going into the platforms themselves. When selecting a platform, here are some of the features you want to see:
- Ease of Use: Ease of use, or simplicity and intuitive interfaces, is really important for beginners.
- Performance History: Complete records of traders’ past performances will facilitate investors’ selection of the right professional whose trades they wish to copy.
- Low Minimum Investment: Most of such platforms catering to the small investor have low minimum deposit requirements.
- Risk Management Tools: This would include stop-loss settings and the ability to diversify by copying a number of traders.
- Transparency: Investors need transparency in terms of fees, trader performance, and account management.
Top Rated Copy Trading Platforms
Let’s look at the top-rated copy trading platforms which meet these criteria for a small investor.
1. eToro
eToro is one of the most well-known and widely used copy trading platforms in the world. It is particularly appealing to beginners with its simple interface and variety of features for copy trading.
- Social Trading Network: eToro has options to be used as a social trading network where you will be able to interact with various traders and share strategies to learn more about markets.
- Performance Tracking: On eToro, you get detailed history regarding any trader’s performance. You, therefore, can choose the best traders according to your goals for investment and risk appetite.
- Diverse Markets: Besides forex, eToro offers a broad range of stocks to invest in besides forex, along with cryptocurrencies and other commodities.
Pros of eToro
- Highly intuitive design
- Transparent pricing
- Huge variety of markets
- Great social trading capabilities
Cons of eToro
- Region-based availability
- High non-trading fees, like withdrawal and inactivity fees
2. Zulutrade
ZuluTrade was one of the very first copy trading platforms, and it remains today one of the more viable options for traders, especially those involved with forex. It connects its users with some of the best traders from around the world by enabling you to copy their strategies.
Key Features:
- Risk Management Tools: It boasts some of the best risk management tools, including the ability to put a certain amount of risk per trader that you copy to safeguard your investment.
- No Minimum Deposit: The great thing about Zulutrade is that there is no minimum deposit required to begin investing, which is very good for small investors.
- Trader Ranking System: Their ranking system of traders by performance lets you immediately identify which traders fit your risk and return expectations.
- Multiple Broker Integrations: You are able to link up Zulutrade with your broker of choice. For anyone who might already have a relationship with a broker, this will provide quite a bit of flexibility.
Pros of Zulutrade
- No minimum deposit required
- Partners with a range of brokers
- Thousands of traders to follow
Cons of Zulutrade
- Confusing fee structure
- Some of the features may be difficult for absolute beginners.
3. AvaTrade
AvaTrade is an extremely well-known forex broker that provides copy trading functionality through its in-house software known as AvaSocial. Its regulation in multiple jurisdictions makes it a provider of peace of mind for investors in terms of security and compliance.
Key Features
- Minimum Deposit: AvaTrade provides copy trading functionality with as low as $100 minimum deposit, thus making it accessible to the small investor fraternity.
- AvaSocial is AvaTrade’s fully functional mobile app for AvaSocial. You will be able to have full control over your portfolio, chat with traders, and monitor the markets using your smartphone.
- Free Copy Trading: AvaTrade has no additional fees when it comes to its social trading activity. You will still notice some normal spread and commission charges depending on the trade.
Pros of AvaTrade
- Low minimum deposit
- Strong regulatory oversight
- Easy-to-use mobile app
- No additional fee for copy trading
Cons of AvaTrade
- Only open to AvaTrade clients
- Relatively fewer investors compare to some other platforms
4. NAGA
NAGA is a social trading platform that combines excellent copy trading features with a strong social community. Besides, it supports a wide range of markets, making it an exciting option for those who would like to diversify beyond forex.
Key Features:
- Social Trading: There is a strong social aspect within NAGA. You get the ability to follow not only individual traders but also community sentiment and trending strategies.
- Auto-Copy Function: Having selected a trader to copy, NAGA takes care of the rest, automatically mirroring their trades into your account in real time.
- Built-In Cryptocurrency Wallet: NAGA incorporates a crypto wallet, making it even easier to diversify into digital assets.
Pros of NAGA
- Offers trading in a variety of assets outside of currency
- Lively community for social trading
- Autocopy trading available
- Offers cryptocurrency trading within the platform
Cons of NAGA
- Higher minimum deposit amount than some other brokers
- Over time, platform fees can be excessive
5. Pepperstone
The highly-rated forex broker Pepperstone provides copy trading through third-party platforms, including Myfxbook and DupliTrade. It also has very tight spreads and sophisticated trading tools.
Key Features:
- Advanced Analytics: Advanced analytics by Myfxbook and DupliTrade are one of the great ways to deeply analyze the performance of traders.
- Copy Trading: No Additional Commissions Beyond the spreads and commissions that you will be paying for regular trading, there are no additional fees charged when you avail of the copy trading services at Pepperstone.
Pros of Pepperstone
- Tight spreads and low trading fees
- Access high-quality analytics tools
- No extra commission taken off for copy trading
- Reputed broker with good regulations
Cons of Pepperstone
- More suited toward professional traders
- Has to make use of a third-party platform for copy trading
Frequently Asked Questions (FAQs)
What is Forex Copy Trading?
- Forex copy trading is a method of automatically copying the trades of advanced traders. When one of them buys or sells currency, exactly the same trades are executed in your account in real-time. That enables new or less experienced investors to benefit from professional strategies without manual trading.
How to choose the right trader to copy?
- Picking the right trader to copy will entail studying historical performance, the level of risk taken, the general trading strategy applied, and what their win rate has been. Most platforms give very detailed statistics about each trader, which include how much profit they’ve made in the past, their drawdowns, and the number of trades they execute. Look for a trader that has shown consistency over time, whose risk profile is aligned with your investment objectives.
Can I copy more than one trader at a time?
- Yes, most copy trading platforms allow you to copy multiple traders at the same time. In fact, this is encouraged because it allows for some diversification and lessens the risk to you for your reliance on one trader. You can offset losses through one trader with gains from another by way of diversification.
How can I monitor the performance of the trader I am copying?
- The performance dashboards within the copy trading platforms are remarkably deep, which means that you can track most of the different traders you are copying. You could monitor items such as a trader’s win rate, their historical profits, current open positions and their overall risk level. You will be able to check on them on a regular basis, and make changes as you need to.
Can I lose money in copy trading?
- Yes, you can lose money in copy trading. Whichever forex market is volatile, even the experienced traders too make losing trades. Whatever losses the trader you are copying incur, your account will too. Therefore, proper risk management should always be practiced, and you should never invest money which you cannot afford to lose.
