Copy-trading has become a very popular trend in recent years. Today, it is one of the favorite ways for new investors to become familiar with the market.
There are many platforms, but the following are without a doubt the best. Choose among our selection and make sure you get a legit copy trading platform.
What are the 5 best copy trading platforms?
The best copy trading platform is eToro. They made social trading a massive success and copy trading therefore a completely new way of facing the world of investments. And that is all thanks to the features of their own copy trading platform.
In fact, their platform offers the usual copy trading tools but adds a few more things that make the platform a lot more interactive. Finally, eToro’s platform is intuitive and user-friendly, making the whole copy trading experience very simple.
FXTM has a dedicated copy trading platform and has been working on making it more and more popular for years. Their system allows for completely manual, semi-automatic, and automatic settings. Their platform also works very well on mobile.
OctaFX is among the most reliable copy trading platform for Forex. In 2019, it was regarded as the best Forex broker.
Zulutrade is one of the most reliable and secure online brokers. Their platform is intuitive and very simple to use, which is perfect for beginner traders. With a strong orientation towards social trading, they offer the necessary tools to set up manual or automatic operations.
Trade360 offers a demo account that allows new users to test the platform before committing to the broker. This always shows how serious a broker is. Trade360 seems to be a popular choice among millennials who opt for a more social approach to investment.
What is copy trading?
Copy trading is a type of social trading, and as its name suggests, it’s when a trader copies operations from another maybe more experienced trader. The whole process can be either manual or automatic.
But copy trading still means that new traders have to research the market they are interested to invest in, as well as the reliability of the trader you’re copying.
How does copy trading work? It’s really very simple. One trader can broadcast their operations and other traders can decide if they want to copy those or not. The idea is that the first trader has more experience in a certain market, while those copying it may not be so confident in that market.
Overall, it’s an educational experience that allows newer traders and beginners to enter the market and work on understanding the ins and outs of the world of investment.
Pros and Cons of copy trading
As with any other approach towards trading, there are pros and cons.
Pros of copy trading
Copy trading is a great option for traders trying to diversify their portfolio, especially useful for traders that may be unfamiliar with certain markets.
Copy-trading doesn’t make risk disappear, but copy trading gives the opportunity of basing your decisions on experienced traders with a long track of reputable operations.
Cons of copy trading
Copy-trading can become a lazy way of approaching the market since it seems to discourage the need to research and become knowledgeable about the market.
Copy-trading doesn’t automatically eliminate the risk of losing money in the market. Copy-trading can be used to influence the market, so researching who you are copying is fundamental.
Even if copy trading has a lot of potentials, it’s not the only investing strategy. The promise of high profits for little effort is alluring, but there is more to it, copy trading requires research, knowledge about the market.