3 best Forex Brokers & platforms for social trading in comparison
Table of Contents
See the list of 3 best Forex Brokers for social trading:
Broker: | Review: | Social trading: | Regulation: | Assets: | Advantages: | Open account: |
|---|---|---|---|---|---|---|
1. RoboForex  | Yes | IFSC | 9000+ (36+ currency pairs) | + Many awards + Huge diversity + Many account types + 1:2000 Leverage + Bonus program + Low spreads + Low commissions + 9,000+ assets | Live account from $10(Risk warning: Your capital can be at risk) | |
2. OctaFX  | Yes | CySEC | 100+ (28+ currency pairs) | + Leverage up to 1:500 + Supports MT4 & MT5 + Spreads from 0.2 pips + Low commissions + Deposit bonus + Many account types | Live account from $100(Risk warning: Your capital can be at risk) | |
3. Etoro  | Yes | CySEC, FCA, ASIC | 3,000+ (47+ currency pairs) | + Regulated and safe + Social trading + Innovative platform + Userfriendly + Many assets | Live account from $ 5076% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. **Please note that instruments restrictions may apply according to region |
(5 / 5)Some traders spend time learning about different trading strategies. They watch video tutorials, research, and study the market trends to develop expert trading skills. But other traders exist that don’t have the time or patience for all this work. Social trading was invented to cater to the latter.
Social trading, also known as copy trading, has continued to grow in popularity among traders in the last 5-years.
The reason for this is that people put a lot of faith in the system. Traders don’t have to spend time learning and developing trading skills. You can copy an experienced trader and make profits in the forex market for a small fee.
Copy-trading does not only benefit novice traders. Other experienced traders also use it for researching new trading techniques. It saves a lot of time and effort for them. No wonder, the system continues to grow in fame, and many brokers are integrating it into their service.
Among the many brokers that now offer copy trading services, we will recommend three of our best forex brokers for this type of trading.
List of the 3 best Forex brokers with a copy trading service:
1. RoboForex
2. OctaFX
3. Etoro
We give a brief introduction of each broker and what they offer below to help you make the best choice.
1. RoboForex
RoboForex was established in 2009 in Belize. The broker provides a beginner-friendly trading platform and offers its copy trading service through CopyFx. RoboForex is one of the most trusted brokerage firms in the market, operating under CySEC and IFSC licenses.
Its trading service is offered on the MetaTrader 4 and 5, cTrader, and the broker’s proprietary platforms.
RoboForex offers an easy and convenient sign-up process for beginners. All you need is a $100 minimum deposit to use its copy trading service. Most other brokers require much more for copy trading. This is why Roboforex is one of the ideal brokerage firms for beginners who wish to invest in forex through copy trading.
The platform also allows traders to earn extra from promoting the strategy provider. The strategy provider is the experienced trader whose trading techniques are copied.
Roboforex gives traders the opportunity to promote their strategy provider. The trader then receives a commission for each subscriber that comes in through them.
You can select the best strategy provider on the trader rating tab on the platform. Using the filters lets you choose one according to your goals and objectives.
Pros of trading with Roboforex:
1. Easy to begin with CopyFx low minimum deposit
2. User-friendly platforms with easily navigable tabs.
Con of trading with Roboforex:
1. The broker does not display the number of subscribers for the strategy providers. It is tough to find a well-liked/successful strategy provider this way.
(Risk Warning: Your capital can be at risk)
2. OctaFX
Founded in 2011, OctaFX now has more than 7 million clients worldwide. The broker is based in St. Vincent and the Grenadines and is registered with CySEC and SVG.
OctaFX offers a copy trading service through its in-house social trading platform. The app is an award-winning copy trading platform that mimics expert ones and helps new traders manage risks.
The trader from whom others copy is referred to as a master trader. They do all the hard work. The copier simply follows all their moves. After that, a small amount is deducted from the profit for the master trader’s fee.
OctaFX copy trading service is one of the best in the market. With zero forex trading skills and a minimum deposit of $25, anyone can start trading and copying an expert.
The master rating tab shows you the best traders as they are all arranged according to their performance.
OctaFX has now introduced a risk score, which shows potential copiers how risky a master trader’s strategy can be. The score is determined based on the master trader’s order amount, the stability of the strategy, and the average profit. In addition to the trust score, copiers can also choose a master trader based on their popularity and number of successful trades.
Advantages of trading with OctaFX:
1. OctaFX offers an award-winning social trading platform with practical features to enrich users’ experiences.
2. The broker makes it easy to begin forex copy trading with a low minimum deposit of $25.
The disadvantage of trading with OctaFX:
1. Copy trading service is not available in all the regions.
(Risk Warning: Your capital can be at risk)
3. eToro
**Please note that instruments restrictions may apply according to region
Etoro is one of the pioneers of social trading in the forex market. The company started as a social trading service provider but later changed into a brokerage firm.
Its copy trading service is among the best and most enduring ones in the market.
Interested users or copiers can choose an expert trader by looking at their performance, the asset they trade, the risk score, and their annual profit.
Once you have chosen a trader and invested funds, eToro automatically copies the trader’s moves for you. If the trader places an order, the same happens in your account.
The only fee that applies is the specified charges paid to the expert that you copied for their service. Anyone can be copied and earn money.
When you develop your trading skills, you can also join the eToro investor program and get paid to be copied. The broker is a well-known and safe company for forex and CFD trading. eToro is licensed by CySEC, FCA, ASIC. This makes it one of the best and safest choices for new traders who wish to start forex copy trading.
Benefits of eToro brokerage account:
- Copy trading platform which is userfriendly.
2. The broker provides a convenient means to start forex trading through the low minimum deposit and the auto-copy feature.
The drawback of the eToro brokerage account:
1. The broker charges $5 per withdrawal.
Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk.
What is copy trading?
Copy trading is a service that allows new traders or investors to mimic the trading moves of successful old-timers. It works by simply copying another trader’s strategy and applying it to your trades. The goal is to make the same profit as the successful trader you’re copying from. This is why most platforms have a system of rating traders and displaying their performance, risk, and trading style. It helps the user select the most suitable expert to copy based on their own objectives.
Some brokers require you to manually follow the successful trader’s techniques by opening or closing trades when they do. You will have to watch your strategy provider in this case and do as they do.
But other brokers have automated this process. You only have to choose your preferred expert and fund your wallet. The system then takes it from here by opening and closing your trades based on what the master trader does.
Copy-trading helps new traders settle well into forex trading. They can learn valuable trading skills by studying the master trader’s move. Given a little time, they’ll be able to trade on their own.
3 simple steps to copy trading
Copy-trading involves three important steps. They include:
1. Sign up with a broker that supports the service.
Not all brokers offer a copy trading service. You need to look for one who does. As we explained earlier, some may provide their in-house platform for this service, such as Etoro and OctaFX. Others may offer the service through an independent third-party company. Both options are great, as long as the broker is regulated and has a good track record.
2. Deposit funds for trading.
Using the service requires a higher minimum deposit than a normal trading account with most brokers.
The user will have to fund their account with at least the minimum figure to access the service.
3. Choose a successful trader and imitate their trading approach.
You don’t have to do any market analysis on your own. Once your account is funded, and you’ve chosen a trader, simply do what they do.
But make sure you choose a successful trader. Check their performance, profit, and stability before you follow them.
How to use copy trading
Copy trading is suitable for all market instruments but is most popular with currency trading. Below, we explain how to use the service in six (6) simple steps.
Step-1. Determine your trading goals.
Decide on how much you wish to invest and the currency pairs you want to focus on. Think about the amount of risk you can handle at this stage. In simple words, set a trading goal. This would determine your next step.
Step-2. Choose the trader to copy.
Your trading goals should determine the trader you choose to follow. But ensure that they are a profitable investor.
As we’ve said, it’s vital that you check their performance rating. Look at their annual profit and the stability of the trading approach. To make sure the trading style aligns with your goals, you also need to check their risk score.
All these will help you choose the suitable trader to copy.
Step-3. Fund your wallet.
Once you’ve set a goal and chosen a master trader, it is time to trade live.
Brokers who offer their in-house platform would have a tab on the platform that lets you do this easily.
If the copy trading platform is a third-party app, you may have to fund your account by directly signing in on your broker’s website.
Multiple options would be available for you to deposit with, such as bank wire, Master and visa cards, Neteller, etc.
If your broker is a good one such as the three we mentioned above, funding would be easy and fast. The money will appear in your balance within minutes.
Step-4. Copy your strategy provider.
Once the money appears in your account, you can start trading.
Some social trading service comes with a demo that lets you do a test before trading live. We recommend you take advantage of this if available.
If not, we advise you to begin with the minimum deposit required. Let that be your test. You can increase your investment as your confidence in the master trader increases.
Note that with some brokers, you will be required to copy manually. This means when the master trader opens a trade and selects a forex pair, you have to do the same.
Some brokers have set this process on auto. In this case, your account simply imitates what the strategy provider does. You don’t have to manually place the trades.
Both options are good since the latter is more convenient, but the former ensures that you participate in the trade. This helps you develop your skills faster, especially if you’re a kinesthetic learner.
Step-5. Withdraw your profits.
Choosing a successful strategy provider that matches your objectives can almost guarantee profit.
Once you have accumulated some earnings, you might want to transfer the funds.
This should be easy to do, whether the platform is a third-party one or belongs to the broker.
We advise you to use the same method for withdrawal that you did for deposits. This way, there would be no complications in the system.
On the broker’s platform, the FUND MANAGER tab usually houses this function. Click on the tab and select the option for withdrawal.
Fill in the appropriate fields in the form that appears and click on submit.
Your account or card will receive the funds after it has been processed. This should take no longer than 48-hours.
Step-6. Reinvest funds. Increase your deposits.
After your first withdrawal, your confidence in that master trader would be solid. It is time to add more funds to your investment. The more you invest, the more you earn. Remember that this also implies you have more funds to lose if the trade fails.
We should mention that some copy trading platforms try to protect copiers from losing strategies. This might come as a special feature and may attract additional costs.
The risks of social trading:
Social trading quickly gained popularity after it began in 2010. It provided a social network for traders and investors, bringing them together to share knowledge, communicate, and help each other.
Copy-trading was added to the mix after some time. Expert members of the community can earn money and status by allowing new and inexperienced traders to subscribe to their signals.
Though the system is highly beneficial to users, there are some risks to be aware of:
1. Signals have no guarantee of success.
The major risk with the system is that it is difficult to tell if a strategy will be as profitable as it used to be. An approach that worked last week may not work this week. This can lead to losses for both the clueless copier.
2. Scammers with fake signals.
Another problem with social trading is bad actors. A few of these platforms have reportedly had to deal with scammers. As it is social media, people can put up fake profiles and strategies to deceive users into bad investments. It’s easy for a newbie to fall for this.
It is easy to keep your eyes open and avoid failure if you’re aware of the risks.
Advantages:
Copy trading is an added feature of social trading. Not all social trading platforms offer copy trading. This might be because it comes with its own drawbacks despite the many benefits.
We will first examine the advantages of copy trading before looking at the drawbacks.
1. New traders can trade the market.
Copy-trading allows anyone interested to go into forex trading. There’s a lot to learn before one can succeed in the trade. This can discourage a lot of people. But with copy trading, anyone can start trading and making a profit sooner than they expect.
2. Saves time and effort.
Copy-trading in its automated form does not require the copier to do any work. Their account is set up to mimic the master trader. So the account acts accordingly without them performing any task. This saves a lot of time and effort.
3. The new trader can develop their risk assessment skills.
Before choosing a trader, the copier has to evaluate the master trader by checking their performance, risk score, strategy, etc. With this, they unintentionally learn the trade and increase their risk assessment skills.
4. Experienced traders can research new strategies.
Experienced traders can learn new trading strategies and test them through copy trading. This helps improve their skills and make them better till they become experts.
Disadvantages:
1. No guarantee on the strategies.
As we have explained, strategies that worked before may not work again. So if a copier chooses a successful trader and their strategy fails due to market changes, the copier loses. And this might be truly discouraging for the new trader.
2. Added cost of trading.
The master traders or signal providers have to be paid for their services. This fee is often taken from the copier’s profit. This adds to the cost of trading for the new trader. And if you are starting with small investments, the profit might be insignificant because the cost already lowered your earnings.
3. Constant monitoring of the account.
If the copy trading is manual, you have to be able to access the account at all times. This way, you can place trades when your master trader does.
The account must stay logged in for automated copy trading whenever your master trader is online. You need to keep track of all their trading moves. That way, you can pull out if it becomes necessary.
Conclusion – Copy trading is a useful feature, especially for those who are getting started
Copy trading is an excellent way for new traders to get into forex trading. Fortunately, the service is free with a lot of reputable brokers. Though some may require a higher minimum deposit to allow the use of the service.
The service makes a lot of sense. But remember that trading carries risk. Even the expert from whom you copy is not immune to those risks.
The brokers we recommended are all safe and require relatively low initial capital to copy trade on their platforms. With $100 or less, any clueless person can get into the forex market and learn the trade as they go along.
Therefore, apply your own risk measures by investing only what you can afford to lose. Begin with the minimum, and increase your investment as you gain confidence in the trade.
We hope this article has explained all you need to know about copy trading. We recommend thorough research before you begin. You should also call your desired broker and ask questions for full clarification before signing up.
FAQ – The most asked questions about Forex brokers for social trading :
What is the meaning of social trading?
Social trading is a type of investment that brings traders and investors together to connect, share knowledge, and help each other succeed in trading assets in the financial market.
What is copy trading?
Copy trading is one of the main features of social trading. It is a kind of investment that lets traders and investors monitor the trading style and techniques of others. The goal is to imitate the trading approach of others so as to make a profit when they do.
Is social trading free?
Social trading is free with a lot of brokers. It may require additional deposits, but the service itself does not attract any fees.
Is copy trading legal?
Copy trading is legal in most parts of the world. Though it may have special regulations depending on the region. It is a legal way to copy successful traders as you get to pay for the service if you earn a profit.
Why is copy trading required in a forex broker?
Copy trading is a service that enables beginner traders or investors to imitate the trading strategies of seasoned professionals. It functions by simply implementing another trader’s technique into your trades.
The aim is to make the same amount of money as the successful trader you are copying from. For this reason, most platforms have a system for evaluating traders and showing their success, risk, and trading approach. Following their own goals aids the user in choosing the most appropriate expert to replicate.
How can I use copy trading in a forex broker?
Copy trading is appropriate for all market instruments, although it is most common in currency trading. Here we outline how you can use the copy trading services in six steps.
Step 1- Identify your goals.
Step 2- Select the trader you want to copy.
Step 3- Add money to your wallet.
Step 4- Copy your strategy provider.
Step 5- You can withdraw your profits.
Step 6 – Reinvest to increase the amount of money in your wallet.
How can I get benefits from copy trading with a forex broker?
Remember one thing, not all social trading platforms will offer copy trading. Before opting for this, know the advantages you can gain.
Newbies can start trading.
Reduces your effort.
It saves you time.
Can improve risk assessment skills.
Can learn new trading strategies.
Last Updated on January 3, 2024 by Andre Witzel
