The ForexBrokers.com annual forex broker review (four years running) is the most cited in the industry. With over 50,000 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 propagate 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. This way, every time they trade, you can automatically replicate (copy) their trades in your brokerage account.
Best Forex Brokers for Social Copy Trading
Based on over 105 different variables, here are the best forex brokers for copy trading.
- eToro - Best overall platform for copy trading
- Pepperstone - Numerous copy trading platforms
- FXCM - FXCM App store for automated trading
- Darwinex - Unique social copy trading community
- AvaTrade - Multiple copy trading platforms
- HotForex - Full MetaTrader suite
- FxPro - Full MetaTrader suite
Best overall platform for copy trading
eToro is a winner in 2020 for its easy-to-use copy-trading platform where traders can copy the trades of other users across over 1,900 instruments, including CFDs on popular cryptocurrencies. Read full review
Numerous copy trading platforms
Pepperstone offers a small set of tradeable products but provides forex and CFD traders with competitive pricing, excellent customer service, and one of the largest selections of third-party platforms, including numerous options for social copy trading. Read full review
FXCM App store for automated trading
While its range of tradeable markets is narrow and pricing is just average for everyday trading, FXCM caters to multiple trader types. High-volume traders, algorithmic traders, and, overall, traders that appreciate robust trading tools alongside quality market research will find FXCM to be a good fit. Read full review
Unique social copy trading community
Darwinex provides forex traders with a unique social copy trading community that enables investors to buy and sell trader-developed strategies. Copy trading aside, while Darwinex also offers the full MetaTrader suite, the offering is just average. Read full review
Multiple copy trading platform options - Visit Site
While AvaTrade provides multiple platforms for algorithmic and social copy-trading, the broker's overall client experience trails industry leaders. Customer service is terrible, pricing is just average, less than 1000 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, a trader would need to monitor their account continually for signals to manually copy. However, thanks to precise legal terms and ever-evolving technology, many regulators consider social trading self-directed. In almost every jurisdiction, copy-trading is self-directed because the client must decide who to copy, even if the copying happens automatically (for each signal). 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 a broker, for example.
Best Copy Trading Platforms
From the 30 international forex brokers we reviewed for copy trading, eToro, is our top pick for 2020. The broker 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. eToro continues to lead the industry forward and almost exclusively focuses 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.
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.
Trading Platforms Comparison
Taken from our forex broker comparison tool, here's a comparison of the trading platforms for the best forex brokers for copy trading.
|
Feature
|
eToro
|
Pepperstone
|
FXCM
|
Darwinex
|
|
Proprietary Platform |
Yes |
No |
Yes |
Yes |
|
Desktop Platform (Windows) |
No |
Yes |
Yes |
Yes |
|
Web Platform |
Yes |
Yes |
Yes |
Yes |
|
Social Trading / Copy-Trading |
Yes |
Yes |
Yes |
Yes |
|
MetaTrader 4 (MT4) |
No |
Yes |
Yes |
Yes |
|
MetaTrader 5 (MT5) |
No |
Yes |
No |
Yes |
|
cTrader |
No |
Yes |
No |
No |
Closing Thoughts
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.
Read Next
Methodology
For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers. Each broker was graded on 105 different variables and, in total, over 50,000 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.
Best Copy Trading Brokers in 2020
Steven Hatzakis | February 21st, 2020
The ForexBrokers.com annual forex broker review (four years running) is the most cited in the industry. With over 50,000 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 propagate 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. This way, every time they trade, you can automatically replicate (copy) their trades in your brokerage account.
Best Forex Brokers for Social Copy Trading
Based on over 105 different variables, here are the best forex brokers for copy trading.
Best overall platform for copy trading
eToro is a winner in 2020 for its easy-to-use copy-trading platform where traders can copy the trades of other users across over 1,900 instruments, including CFDs on popular cryptocurrencies. Read full review
Numerous copy trading platforms
Pepperstone offers a small set of tradeable products but provides forex and CFD traders with competitive pricing, excellent customer service, and one of the largest selections of third-party platforms, including numerous options for social copy trading. Read full review
FXCM App store for automated trading
While its range of tradeable markets is narrow and pricing is just average for everyday trading, FXCM caters to multiple trader types. High-volume traders, algorithmic traders, and, overall, traders that appreciate robust trading tools alongside quality market research will find FXCM to be a good fit. Read full review
Unique social copy trading community
Darwinex provides forex traders with a unique social copy trading community that enables investors to buy and sell trader-developed strategies. Copy trading aside, while Darwinex also offers the full MetaTrader suite, the offering is just average. Read full review
Multiple copy trading platform options - Visit Site
While AvaTrade provides multiple platforms for algorithmic and social copy-trading, the broker's overall client experience trails industry leaders. Customer service is terrible, pricing is just average, less than 1000 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, a trader would need to monitor their account continually for signals to manually copy. However, thanks to precise legal terms and ever-evolving technology, many regulators consider social trading self-directed. In almost every jurisdiction, copy-trading is self-directed because the client must decide who to copy, even if the copying happens automatically (for each signal). 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 a broker, for example.
Best Copy Trading Platforms
From the 30 international forex brokers we reviewed for copy trading, eToro, is our top pick for 2020. The broker 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. eToro continues to lead the industry forward and almost exclusively focuses 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.
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.
Trading Platforms Comparison
Taken from our forex broker comparison tool, here's a comparison of the trading platforms for the best forex brokers for copy trading.
Closing Thoughts
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.
Read Next
Methodology
For our 2020 Forex Broker Review we assessed, rated, and ranked 30 international forex brokers. Each broker was graded on 105 different variables and, in total, over 50,000 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.
About the author: Steven Hatzakis Steven Hatzakis is the Global Director of Research for ForexBrokers.com. Steven previously served as an Editor for Finance Magnates, where he authored over 1,000 published articles about the online finance industry. Steven is an active fintech and crypto industry researcher and advises blockchain companies at the board level. Over the past 20 years, Steven has held numerous positions within the international forex markets, from writing to consulting to serving as a registered commodity futures representative.