- Copy Trading Update - Etoro- 01/March/2019
- Best Forex Brokers for Social Copy Trading
- The Rise of Copy Trading
- Copy Trading History
- Why eToro Does Not Accept USA Residents
- Best Copy Trading Platforms
- How to Choose the Best Copy Trading Platform
- Closing Thoughts
- Read Next
- Open trading account
- Forex Risk Disclaimer
Copy Trading Update - Etoro- 01/March/2019
The ForexBrokers.com annual forex broker review (three years running) is the most cited in the industry. With over 60,000 words of research across the site, we spend hundreds of hours testing forex brokers each year.
How we test.
The ascent of copy trading – also known as social trading, mirror trading, or auto trading – has been ongoing for over a decade. Thanks to social media and an increasingly faster web, financial news and market analysis are shared at lightning speed.
The idea of copy trading is simple: use technology to copy the real-time forex trades (forex signals) of other live investors (forex trading system providers) you want to follow, so every time they trade you can automatically replicate (copy) their trades in your own account.
Best Forex Brokers for Social Copy Trading
Based on over 81 different variables, here are the best forex brokers for copy trading.
- eToro - Best overall platform for copy trading
- Pepperstone - Multiple copy trading platform options
- FXCM - FXCM App store for automated trading
- Darwinex - Unique social copy trading community
- AvaTrade - Multiple copy trading platform options
Best overall platform for copy trading - Visit Site
eToro is popular for its powerful copy trading platform on which traders harness the results of the crowd to find opportunities and copy the trades of other real-time users across over 1,400 instruments, including CFDs on popular cryptocurrencies.
(75% of retail CFD accounts lose money.) Read full review
Multiple copy trading platform options - Visit Site
Pepperstone offers a narrow selection of tradable products but provides forex and CFD traders with competitive pricing and one of the largest selections of third-party platforms, including social copy trading, all under a trusted global brand.
(73.6% of retail CFD accounts lose money.) Read full review
FXCM App store for automated trading
While its range of tradeable markets is narrow, FXCM caters well to high-volume traders, algorithmic traders, and traders that appreciate robust charting tools and quality market research. Read full review
Unique social copy trading community - Visit Site
While not known for its self-directed forex offering, Darwinex, through its Darwin Exchange, provides forex traders a unique social copy trading community that enables investors to buy and sell trader-developed strategies.
(59% of retail CFD accounts lose money.) Read full review
Multiple copy trading platform options - Visit Site
AvaTrade - While AvaTrade is regulated and provides multiple platforms for algorithmic and social copy-trading, the broker left us unimpressed.
The Rise of Copy Trading
Customer service is terrible, pricing is just average, less than 300 instruments are available to trade, and research is underwhelming. (71% of retail CFD accounts lose money.) Read full review
Copy Trading History
Without social trading technology, the act of copy trading would be considered a managed account and require a power of attorney, or in other cases, require a trader to constantly monitor when a signal is generated in order to manually copy it.
However, thanks to careful language and ever-evolving technology, many regulators consider social trading self-directed, as the client must decide who to copy, even if the copying happens automatically thereafter (whenever a signal is generated).
It’s important to note that not all trading platforms with social features provide copy trading.
Many of the early pioneers in social trading technology started out first as third-party platform developers, such as Tradency, ZuluTrade, and eToro. While some of these firms are still independent service providers (ISPs), eToro became its own broker, for example.
Why eToro Does Not Accept USA Residents
Best Copy Trading Platforms
From the 30 international forex brokers we reviewed for copy trading, eToro is our top pick for 2020, as it has continued to innovate within its next generation eToro platform, which delivers an impressive user experience packed in a modern web-based user interface.
Overall, the eToro platform experience sets the bar high for social trading and is again the clear winner in 2020, leading the industry forward as a broker that is almost exclusively focused on social copy trading.
Indicative prices for illustration purposes.
Indicative prices; current market price is shown on the eToro trading platform.
Pepperstone took second place this year as it offers a comprehensive range of third-party social copy-trading platforms, in addition to the native forex signals market available in MetaTrader 4 (MT4) and Spotware Systems’ cMirror platform.
The firm also offers the ZuluTrade platform, AutoTrade by Myfxbook, Tradency’s MirrorTrader platform, in addition to the developer’s RoboX solution.
FXCM followed in fourth place with several options available for social copy trading, including the web-based ZuluTrade platform, and the native signals market available in the MT4 platform.
How to Choose the Best Copy Trading Platform
Darwinex, our fourth-place finisher, provides traders access to nearly 1,200 trader-developed strategies that are traded like securities (ticker symbols) on the Darwinex platform.
The best performing strategies on the platform receive funding from the broker itself, which allocates $4.5 million among the most successful traders, during each competition period.
AvaTrade came in fifth place for its array of social copy-trading platforms such as ZuluTrade and Tradency, and including its most recent addition of DupliTrade.
Understanding how social copy trading networks calculate trading performance is an essential aspect as it affects the ordering of trader rankings.
The method used to measure and track profit and loss also influences trade copiers.
Instant backfill bias is just one example of the challenges social trading technology developers face if they permit traders to instantly upload their entire trading history at the click of a button.
Such challenges have been known for years, and thanks to broker procedures, regulation, and robust technology, these concerns are mostly non-issues, especially for top-rated fx brokers.
Nonetheless, if in doubt, it’s always prudent to check and ask questions.
Bottom line, for 2020, the above forex brokers provide traders the tools and capabilities they need to confidently copy trade.
For our 2019 Forex Broker Review we assessed, rated, and ranked 28 international forex brokers.
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Each broker was graded on 81 different variables and, in total, over 60,000 words of research were produced.
While encouraged, broker participation was optional. Each broker had the opportunity to complete an in-depth data profile and provide executive time (live in person or over the web) for an annual update meeting.
All data submitted by brokers is hand-checked for accuracy.
Ultimately, our rigorous data validation process yields an error rate of less than .1% each year, providing site visitors quality data they can trust. Learn more about how we test.
Forex Risk Disclaimer
"There is a very high degree of risk involved in trading securities. With respect to margin-based foreign exchange trading, off-exchange derivatives, and cryptocurrencies, there is considerable exposure to risk, including but not limited to, leverage, creditworthiness, limited regulatory protection and market volatility that may substantially affect the price, or liquidity of a currency or related instrument.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable, or that they will not result in losses." Learn more.