Best Copy Trading Brokers 2020

Recently the trend of copy trading is increasing. Most of the people try to work with the best copy trading brokers. But many forex investors or forex beginners are unaware of it. Many questions arise in mind regarding copy trading that what copy trading is? What is its history? Is it legal? How is it beneficial? How to find the best copy trading brokers? Is copy trading a scam?

What is Copy Trading?

Copy trading is to copy the real-time forex trades of other live investors you want to follow. The other experienced traders are provided by the trading platforms. Whenever you trade, you can automatically copy their trades in your brokerage account.

many trading platforms that provide services for research and analysis.

Social media and market analysis promoted it at a fast rate.

It is also called social trading, auto-trading, and mirror trading.

Social Trading:

Social trading is also a kind of copy trading that is a social media-based model and is somehow new and exciting. It generally takes place via social media groups and circles. People share their personal opinions, sentiments, research, findings, and their stances whether to go for a buy or short sell or wait. These opinions are sometimes experienced-based or general analysis. It helps the new traders to trade with low.

Copy Trading, Legal or illegal?

Copy trading is legal. In some countries it is illegal.

But for any online copy trader, he must be registered by the regulator for copy trading.

History of Copy trading

Copy Trading or mirror trading developed from automated trading, in between 2004- 2005. It was an automated trading system where a trader can share their trading data so that others could follow. Tradency, a company of financial technologists was founded in 2005 and is one of the pioneer’s companies to provide services of copy trading or mirror trading.

But it was not commonly known at that time. Copy-trading boomed after 2009 by online financial brokers. Many companies applied to get registered for copy trading.

How does Copy Trading work?

There is a trader commonly known as a signal provider who shares his real-time trades with other users.  By the use of copy trading platform, the users can automatically copy the trades of the signal provider in real-time.

To customize the risk amount or to choose a signal of their feasibility there are optional controls. These are made for the protection of the money of the investor. Traders can customize the capital amount.

Pros & Cons

Everything has advantages as well as disadvantages. Even if you choose the best coy trading brokers, you still may lose some portion of your investment. Copy Trading on its own has also some Pros and Cons. Have a look at them.

Pros
  • Benefit for Beginners: Copy-trading provides a huge benefit to the new forex traders. They can learn how to trade.
  • Low Risk: As you follow experienced copy traders who are eligible of making good trades and income. There is a low risk of your invested money to fall a victim of loss.
  • Winning Commissions: The experienced trader, whom people copy or replicate, can earn commission on their profits.
  • Less efforts: An inexperienced trader when copies trade of the experienced one, then he works only to improve his knowledge or analysis. He is not in the pressure about his trade because he is following the best one.
  • Manage Risks: You can manage risks by following the traders with smaller amounts. There are many successful traders with different trading plans and risk scores on social trading platforms.
  • Relaxing: It is human psychology that he is stressed when he comes to know that he is in a loss. But when he knew about the loss of other people, the rate of his depression and stress is lowered naturally. So, trading alone is tough and depressing but in a circle or a group is quite peaceful.
  • Trading styles: By trading in a group, you can learn different styles of trading that might help you in recovering your loss. Like you can learn about short sell or education about the use of stop loss. These tools help you in your future or next trades.
  • Information: Trading in a group helps you to active about the latest news, data, research, and financial activities all over the globe.
  • Easy to use: Copy-trading platforms are easy to use.
Cons
  • Bad Choices: The forex market involves several regulated and unregulated brokers. Many people still don’t know how they can choose a proper and successful broker. So, if they choose a rookie trader he will gifts you a loss of money.
  • Failures by Wrong predictions: Many people rely on the trading history of a successful broker. But a successful broker can also make a loss on a massive scale. So a forex copy trader must be aware of the risk that is involved in a trade.
  • Risk: Forex market or any investment involves a great risk of lots. Forex is generally laying odds or staking. So there is always a chance to lose. There is no surety or guarantee of your money.
  • Small and Big loss: People in a group never have the same portfolio. Some people have a handsome amount in their portfolio to give back-up in any case of loss like creating a hedge. But some people have average to a minimal amount. So in case of a loss the user having more money can back up his account b some other way, but the user with low amounts lose a big portion.

Can you make money via copy Trading?

The answer is maybe yes or maybe not. Every investment involves a risk. You are not sure about the profit or loss of your money. You cannot predict the result of a topper student. Similarly you can also not aware of the future result of your trades made by a successful broker. Experience and analysis always matter in financial markets. But, sometimes low investment gives you great profits by luck, and sometimes you are bestowed with loss even by a billion dollars of investment.

How to choose the best copy trading brokers?

Choosing the best copy trading brokers is not easy. A single platform provides you many signal traders. So it is very hard to choose the right one in a queue of thousands. By applying some techniques you can find the best one.

  • Always do a good research on the quality brokers.
  • Choose two or three from the queue and then offer them to work with the minimum investments, in this way you can find the best trading style.
  • Adjust your risk parameters with a suitable strategy or plan according to your investment.

Best Copy Trading Brokers

The best copy trading brokers globally according to the ranking of 2020 are as follows.

  • AvaTrade
  • oeTor
  • Pepperstone
  • FXCM
  • Darwinex
  • OctaFX

AVA Trade:

This Irish company has been working since 2006.
Min. Deposit: $100
Max. Leverage: 1:400
Min. Leverage: 1:30
Trading Platforms: MT4, MetaTrader 5, Webtrade
Asset: CFD, Forex, Crypto, Stocks, Options

CMC Markets

This old company was born in 1989 
Min. Deposit: $100
Max. Leverage: 1:500
Min. Leverage: 1:30
Trading Platforms: MT4, MetaTrader 5, Web trader
Asset: CFDs, Spread betting, Forex, Cryptos, Commodities, Stocks, Treasuries, Custom indices

FXTM:

FXTM has a high ranking in the list of top 10 forex brokers. The company “Forex time” was founded in the year of 2011.
Min. Deposit: $10
Max. Leverage: 1:200
Min. Leverage: 1:25
Trading Platforms: MetaTrader 4, Desktop Trading platform
Assets: CFDs, Commodities, Cryptos, Forex, and Stocks

XM:

This broker has been working since 2009. Due to its outclasses services in the past years, this broker successfully entered in the listing of the top 10 ten forex brokers.
Min. Deposit: $5
Max. Leverage: 1:888
Min. Leverage: 1:1
Trading Platforms: MetaTrader 4,Web Trading platform
Assets: CFDs, forex, cryptos and stocks

FX Pro:

This broker is quite old. It is operational since 2006. The reason for its placement in the top ten brokers is the result of the uncomparable services for the professional forex traders.
Min. Deposit: $100
Max. Leverage: 1:500
Min. Leverage: 1:2
Trading Platforms: MetaTrader 4
Assets: CFD,Cryptos,Futures,Indices,Shares, and Forex

IG

This broker is quite old. It is operational since 2006. The reason for its placement in the top ten brokers is the result of the uncomparable services for the professional forex traders.
Min. Deposit: $0
Max. Leverage: 1:50
Min. Leverage: Less than 1:50 (vary from asset to asset)
Trading Platforms: MetaTrader 4, Progressive Web App, L2 Dealer
Assets: CFD, Forex, Crypto, Stocks, Digital Options, Futures, and Options

AXI TRADER

This Australian broker is operational since 2007. But it was placed in the top forex brokers since the recent years.
Min. Deposit: $0
Max. Leverage: 1:400 (avearegly)
Min. Leverage: 1:2 (cryptos), 1;50
Trading Platforms: MetaTrader 4, MetaTrader 5, and MT4 Next Gen( For prfessionals)
Assets: CFDs, Forex, and Cryptos 

Plus 500

The foundation year Plus 500 is 2008.   
Min. Deposit: $100
Max. Leverage: 1: 300
Min. Leverage: 1:2 (cryptos), 1:10
Trading Platforms: PLUS 500 Trading platform.
Assets: CFD, Cryptos, Forex, Stocks, and Options

FXCM

FXCM is also one of the top ten forex brokers. The foundation year of FXCM is 1991. It is a competent broker with excellent track history.  
Min. Deposit: $360 for Europeans, $50 for non-Europeans
Max. Leverage: 1: 30
Min. Leverage: 1:2
Trading Platforms: MetaTrader 4, Ninja Trader, Zulutrade, Trading Station
Assets: CFD, Cryptos, and Forex.

Exness

The foundation year of this company is 2008.
Min. Deposit: $1
Max. Leverage: 1: 2000
Min. Leverage: 1:30
Trading Platforms: MetaTrader4 and MetaTrader5
Assets:Forex, CFDs, Stocks, Indices, Metals, Energies.

e-Toro

  • Founded by: Yoni Assia, Ronen Assia, David Ring
  • Regulated By: FCA, CySEC and ASIC
  • Foundation Year: 2006
  • Deposit: 200$ 

e-Toro is ranked first in the competition of best copy trading brokers. e-Toro provides a wide range of assets to trade with. Its trading platform is innovative, modern, and web-based equipped with all the latest needs.  But, it has some problems. It does not have a MetaTrader Platform. And if we say about its spread rates then it is considered as its drawback that heir spreads are very high more than the averages.

Pepperstone

  • Founded by: Owen Kerr, Joe Davenport
  • Regulated By: FCA and ASIC
  • Foundation Year: 2010
  • Min. Deposit: 200$

Pepperstone is said to be the first runner up in this list.

Their trading platforms are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). For copy-trading, it has the ZuluTrade platform, AutoTrade by Myfxbook, Tradency’s MirrorTrader platform. Its spread rate is as low as 0.0 pips. Pepperstone has the best customer services. But it has some cons too. They don’t provide any guarantee about negative balance protection. They have a bit high minimum deposit.

Darwinex

  • Founded by: Juan Colón
  • Regulated By: (FCA)
  • Foundation Year: 2012
  • Deposit: 100 EUR/USD/GBP.

Darwinex is one of the best copy trading brokers also. It has excellent strategies on the platform. But, it has limited assets to trade with. And low stuff of educational material.

OctaFX

  • Founded by: Drew Niv
  • Regulated By: CySEC
  • Foundation Year: 2011
  • Deposit: 5$

It has a wide range of trading accounts for beginners and advanced traders. Its trading platforms are MT4, MT5, and cTrader across Desktop, Web, and Mobile. OctaFX offers bonus promotions. It offers a vast range of research tools. But, it has limited commodity markets and has no individual Stock CFDs.

You can only withdraw your money by Neteller, Skrill, or Bitcoin.

So the above mentioned are the best copy trading brokers. Choose your broker for copy trading. But, if you find it difficult to choose your broker or you are interested in copy trading, contact us directly. Our website contains a lot of research on the best brokers according to your interest.