To start copy trading, you need to choose a trusted broker that meets your trading requirements. Below, we have recommended the best copy trading platforms in the UK. They have all undergone hours of multiple testing, and we guarantee you that they will make your trading experience worthwhile.
Essence
- Copy trading allows individuals to replicate others’ trades in their own trading accounts, essentially mirroring the actions of experienced traders or investors.
- Copy Trading is prevalent in a wide range of financial markets, but notably more common in forex trading due to its higher liquidity and accessibility.
- Opt for a copy trading platform that suits your specific trading preferences, ensuring a satisfying and tailored experience.
- UK traders should prioritise copy trading platforms regulated by esteemed financial authorities.
- Acknowledge the inherent risks that come with copy trading. Past performance does not guarantee future success. Losses can occur in copy trading.
- At TradingGuide, our experts conduct meticulous research before recommending any copy trading platforms, guaranteeing reliability and credibility for our users.
List of the Best Copy Trading Platforms in the UK 2024
- eToro – Overall Best Copy Trading Platform in the UK
- AvaTrade – The Latest Top Copy Trading Platform in the UK
- Pepperstone – Best Copy Trading Platform for Beginners in the UK
- FP Markets – Best Copy Trading Platform for MetaTrader Users in the UK
- FXTM – Best Copy Trading Platform With Low Minimum Deposit Requirement
How We Choose Copy Trading Platforms
At TradingGuide, our approach to selecting copy trading platforms is grounded in thorough research and meticulous testing. We understand the importance of choosing a reliable platform for copy trading, which is why we take our research process seriously.
We start by casting a wide net to identify as many copy trading platforms as possible in the UK market. We prioritise platforms that are secure and regulated by the Financial Conduct Authority (FCA) or equivalent regulatory bodies. This provides our readers with the peace of mind that their investments are protected and that the platform operates in accordance with industry standards.
Once we have identified potential platforms, we proceed to test their performance and features by signing up for demo trading accounts. This hands-on approach allows us to assess the platform’s usability, functionality, and reliability firsthand.
In addition to our own testing, we supplement our findings by analysing user testimonials from Google Play, the App Store, and Trustpilot. This ensures that our recommendations are informed not only by our experiences but also by the real-world experiences of other users. So rest assured that TradingGuide has your back when recommending the best copy trading platforms in the UK.
In this guide
Best Copy Trading Platforms in the UK
- List of the Best Copy Trading Platforms in the UK 2024
- Compare the Best Copy Trading Platforms in the UK
- Brief Overview of Our Recommended Copy Trading Platforms’ Fees and Assets
- What Do Other Traders Say?
- What is Copy Trading?
- Copy Trading History
- How to Choose the Best Copy Trading Platform in the UK
- How To Start a Copy Trading Account in 5 Steps
- Copy Trading Risk Management
- What Assets Can You Use for Copy Trading
- What is Social Trading?
- Social Trading Vs Copy Trading
- Some Final Tips Before You Start Copy Trading
- FAQs
- Conclusion
Compare the Best Copy Trading Platforms in the UK
Our team of experts spent more than 150 hours testing various copy trading platforms in the UK. We must admit that it wasn’t an easy process, but the results are rewarding. We mainly based our research on the following metrics:
Additionally, we reviewed honest user ratings from Google Play, the App Store, and Trustpilot. Take a look at our findings from these reviews.
Compare brokers
Brief Overview of Our Recommended Copy Trading Platforms’ Fees and Assets
Copy trading relies on the right platform to replicate successful trades. Explore the tables showcasing essential insights on fees and assets across our recommended copy trading platforms. Use this information to make astute decisions that resonate with your copy trading strategies and financial ambitions.
Fees
| Best Copy Trading Platform | Fees | Minimum Deposit Requirement | Transaction | Inactivity |
|---|---|---|---|---|
| eToro | 2 pips | $100 | $5 withdrawal | $10 monthly |
| AvaTrade | 0.03 pips | £100 | Free | £50 quarterly |
| Pepperstone | From 0.0 pips | £500 | Free | None |
| FP Markets | From 0.0 pips | £100 | Free | None |
| FXTM | From 0.0 pips | £10 | £0 | £5 monthly |
Assets
| Best Copy Trading Platform | Forex | Stocks | Commodities | ETFs | Options |
|---|---|---|---|---|---|
| eToro | Yes | Yes | Yes | Yes | No |
| AvaTrade | Yes | Yes | Yes | Yes | Yes |
| Pepperstone | Yes | Yes | Yes | Yes | Yes |
| FP Markets | Yes | Yes | Yes | Yes | No |
| FXTM | Yes | Yes | Yes | No | No |
1. eToro – Overall Best Copy Trading Platform in the UK
One of the reasons that make eToro popular in the UK is its ability to offer a world-class copy trading platform. It was the first broker to launch the copy trading feature, and this has set the bar high for eToro, making it successfully register more than 10 million traders globally.
Since Its launch in 2007, eToro continues to provide its CopyTrader feature that allows you to locate expert traders that match your trading requirements and copy their trades. The CopyTrader is flexible and will enable you to stay in control of your portfolio.
If you are an expert trader, eToro will compensate you for every trade copied through its popular investor program. This does not mean that the newbies will pay an extra fee for the CopyTrader feature since eToro offers it free of charge.
For you to receive notifications about expert traders’ new trades, eToro offers the social news feed feature. You can use it to post your trading ideas, comment on other traders’ posts, and learn their strategies to improve your trading skills.
Ultimately, eToro has a minimum deposit requirement of approximately $100 for you to start investing. You can trust this broker with your investment capital since it is regulated by the UK’s FCA.
✔Low minimum to fund an account and begin investing
- CopyTrader feature that lets you automatically copy trades from the experts.
- Expert traders to receive rewards for every trade copied.
- Stock trading is commission-free.
- Allows various payment methods, including bank transfers, debit cards, and e-wallets.
- Customer support is only available five days a week.
- High financing costs for open overnight positions.
| Types | Fee |
| Minimum Deposit | $100 |
| Conversion Fee | depends on your payment method, currency, and eToro Club level. |
| Overnight Fee | vary according to the value and direction (BUY or SELL) of your position |
| Withdrawal Fee | all withdrawal requests are subject to a $5 USD fee |
| Inactivity Fee | monthly inactivity fee of $10 USD (charged after 12 months) |
2. AvaTrade – The Latest Top Copy Trading Platform in the UK
AvaTrade recently took its focus on automated trading to the next level when it launched the AvaSocial app, an advanced automated trading application. Similar to other copy trading platforms, this AvaTrade app will connect traders from all over the world and give them the tools they need to learn from each other. Then you can use that information to automate your trades following other more successful traders.
In the words of AvaTrade, this new copy trading platform will take copy trading to the next level. And anyone who’s ever used the AvaTradeGo app will know that this is a broker best used on mobile devices.
Since the platform is new, we expect it to be improved on and updated quite frequently, but we still think it’s well worth it.
✔ Quick deposits and withdrawals
- It will make it easier to learn the ins and outs of trading
- A Groundbreaking social trading app
- Allows traders from all over the world to communicate
- Was developed by one of the leading mobile brokers in the industry
- 24/7 trading and hundreds of assets
- Still quite new and we expect certain features to be improved on
- There is still not as many users as we would prefer and it limits the functionality a bit
| Type | Fee |
| Minimum Deposit | £100 |
| Inactivity Fee | USD Account: $50 EUR Account: €50 GBP Account: £50 |
| Administration Fee | USD Account: $100 EUR Account: €100 GBP Account: £100 |
| Deposit Fee | $0 |
| Withdrawal Fee | $0 |
3. Pepperstone – Best Copy Trading Platform for Beginners in the UK
If you are a novice trader looking for an easy-to-use trading platform in the UK that is easy to navigate, Pepperstone tops the list. Its trading platform performs seamlessly on all devices, and you can also download its WebTrader app on your desktop for easy accessibility.
What makes Pepperstone one of the best copy trading brokers is its third-party social trading platforms including, myfxbook, MetaTrader Signals, and DupliTrade. You can use these platforms to share trading ideas and strategies. Pepperstone also lets you mirror expert Traders’ trades and increase your chances of making good profits. With this advantage, it will be easier for you to automate your trading activities and learn trading strategies to improve your overall experience.
Other than the social trading platforms, Pepperstone also has the TradingView, cTrader, MetaTrader 4, and MetaTrader 5 platforms, which are user-friendly and highly customisable. They come with multiple built-in technical indicators, expert advisors, and charting tools to help you efficiently analyse the markets and stay on top of your trading activities.
Additionally, these platforms are loaded with a plethora of educational materials, including tutorial videos, webinars, and articles. These can be of great assistance in helping you to quickly understand the trading market. There is also a risk-free demo account on Pepperstone. You can use it to test how this copy trading broker works before you start investing your capital.
✔ No dealing desk intervention
- Various trading platforms to choose from, which are user-friendly and fully-customisable.
- Social trading feature for copy trading.
- Heavily regulated by the Financial Conduct Authority (FCA) in the UK.
- Plenty of educational and research materials.
- Minimum deposit of £200, which is relatively high compared to other brokers.
- Financing costs for open overnight positions are high.
| Type | Fee |
| Minimum Deposit | $200 |
| Withdrawal fee | $0 |
| Deposit fee | $0 |
| Inactivity fee | No |
| Account fee | No |
4. FP Markets – Best Copy Trading Platform for MetaTrader Users in the UK
FP Markets offers a top-notch copy trading platform for MetaTrader users in the UK. The platform is designed for traders of all levels and provides a user-friendly interface with a wide range of tools and features to help traders make informed decisions. You should take advantage of this broker’s copy trading feature to follow and copy the trades of successful traders. This is especially if you are a new MT4 or MT5 user looking to learn from experienced traders.
FP Markets’ copy trading platform is also suitable for traders who want to diversify their portfolios without having to do all the research and analysis themselves. The platform provides a range of customisation options, allowing you to select the professional traders you want to follow based on their performance, risk tolerance, and trading style. Moreover, FP Markets doesn’t limit the number of traders you can follow and copy, making it easier for you to identify suitable trading systems.
✔Accounts can be opened fast and easy
- Offers a wide range of instruments, including forex, shares commodities, cryptocurrencies and indices for copy trading
- You get to choose the most experienced traders to copy from, thus quickly boosting your learning experience
- Fast trade execution and minimal slippage
- Low trading fees
- Automated forex trade mirroring via the Myfxbook AutoTrade platform
- You can only access the copy trading feature via the MT4 and MT5 platforms
- Support service can be improved (not very responsive)
| Type | Fee |
| Minimum deposit | $100 |
| Overnight fee | $0 |
| Deposit fee | $0 |
| Withdrawal fee | Depends on payment method |
| Inactivity fee | $0 |
5. FXTM – Best Copy Trading Platform With Low Minimum Deposit Requirement
FXTM stands out as the best copy trading platform with an impressively low minimum deposit requirement of just £100. During our comprehensive testing, we found its account setup process seamless, taking only a few minutes to complete. FXTM excels in minimising trading charges, allowing us to trade efficiently without significant expenses.
What truly impressed us was the flexibility FXTM offers in copy trading. Users can choose to manually or automatically replicate their preferred traders’ positions, and trading fees are incurred only when strategy managers generate profits. Beyond its outstanding copy trading feature, FXTM’s MT4 and MT5 platforms offer extensive resources tailored for advanced traders. With over 1000 trading instruments encompassing forex, stocks, commodities, and more, the platform caters to diverse trading preferences. We, therefore, give it a 4.6-star rating.
✔ Well-established broker
- Low minimum deposit requirement to access the copy trading platform
- A user-friendly copy trading platform perfect for newbies
- Excellent selection of learning materials
- Support MT4 and MT5 third-party platforms
- Limited asset offerings compared to its peers
- Charges withdrawal and inactivity fee
| Type | Fee |
| Minimum deposit | $10 |
| Overnight fee | $5 |
| Deposit fee | $0 |
| Withdrawal fee | $3 |
| Inactivity fee | Yes |
What Do Other Traders Say?
Exploring unfiltered user feedback is essential when considering copy trading platforms. Below, we present insights gathered from real traders for some of the top copy trading platforms in the UK. These diverse experiences aim to guide your decision-making process in choosing a copy trading platform aligned with your trading preferences.
1. eToro
Users praise eToro for its innovative social trading platform and ease of use in copy trading. The ability to copy successful traders and the platform’s diverse range of instruments available for copy trading receive positive feedback.
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“Good reliable platform for investing in various asset classes and also for day trading. The assigned RMs are proactive and available to give guidance as needed. The RM follows up until the query is resolved.” – Ankit
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“Really I think it is amazing app” – AmirFerdos
2. AvaTrade
Traders commend AvaTrade for its comprehensive copy trading options and user-friendly interface. The platform’s accessibility and the array of available instruments for copy trading are highly regarded.
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“Extremely fast response ,I was assisted by Alev Nazli who was very helpful and professional , notified me of AVAPROTECT and giving me advice on using the mobile app AVATRADEGO. Great experience all round.” – Hendik
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“Very smooth and clean, educational videos to support your understanding of the system and trading in general. Interactive customer service that actively try to support you as best they can, very friendly and understanding” – Jaundre Koekemoer
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“Application is easy to use. The customer services is very helpful. And it’s a great way to learn and trade with professional help alway their to assist” – Stefan Strydom
3. Pepperstone
Pepperstone receives acclaim for its efficient copy trading infrastructure and low-latency execution. Users value the availability of multiple trading platforms and competitive spreads offered by the broker.
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“Best user experience. Broker who really cares about a customer. All question can be solved in just a few minutes via helpdesk. I’m also getting calls time to time just to ask if I have any struggles or questions.
All the best to pepperstone stuff.” – Paulius Svoba -
“I’ve used many trading platforms, and this is my favourite. Took me a while to get used to it, as it was slightly different from what I was used to, but now love it & all its features.” – Jana from Gold Coast
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“Easy to open. Easy to use. Easy to add money. Easy to withdraw money. Good customer service. Fast execution. Less spreads. Just learn how to trade and have fun.” – Pruthviraj Rathod.
4. FP Markets
FP Markets earns praise for its robust copy trading infrastructure and competitive pricing. Users highlight the platform’s reliability and execution speed, which are crucial in copy trading environments.
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“Customer support is really marvelous, my problem was taken seriously and solved within no time. Thanks to the team for their efforts. Great!” – Tariq
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“The app is user friendly. Even for beginners, it is easy to use, and the customer service live chat is quick in replying.” – Wayne K
5. FXTM
Users commend FXTM for its user-friendly copy trading platform and access to various markets. However, some users suggest improvements in customer service and additional educational resources focused specifically on copy trading strategies.
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“Having used the FXTM mobile app a short while now, it’s quick and simple to navigate. The UI is very intuitive and efficient. It has some great features and FXTM is top of the list when I recommend trading apps. I look forward to using FXTM Trader for the foreseeable future!” – James Ventris
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“So far I have nothing to complain. The customer support is very high trained” – Duc Tien
What is Copy Trading?
Copy trading is convenient for initiating your trading journey, especially if you lack the time or expertise to develop trading strategies independently. It allows you to automatically replicate the trades of seasoned investors, leveraging their experience and knowledge to potentially generate profits. This approach is applicable across various markets, including forex, shares, commodities, cryptocurrencies, and more.
While copy trading offers opportunities for profit, note that it also carries significant risks, necessitating thorough research and understanding before full commitment. To engage in copy trading, you must sign up with a reputable broker offering copy trading services like the ones we recommend. Then, select a trader whose strategies you wish to follow and adjust settings to manage risk effectively. This streamlined process facilitates access to the expertise of successful traders, providing a pathway for you to confidently engage in the financial markets.
Pros & Cons of Copy Trading
Like any other form of trading, copy trading has its pros and cons. Below, we have summarised a few to give you a better understanding.
- A good option for beginners: As a beginner, it is best to note that it takes time for you to familiarise yourself with how trading works. Therefore, with copy trading, you can imitate expert investors’ trades and increase your chances of earning profits.
- It is rewarding: If you are an expert investor, copy trading allows you to participate even more in the trading market. Most brokers will reward you for every copied trade, making you open positions more frequently.
- Trade on diverse markets: No matter what your preferred market is, copy trading allows you to trade on a wide variety of instruments, including forex, stocks, commodities, among others.
- Creates a social community: While you can imitate trades, copy trading also brings you closer to other investors through a chat platform. You get to interact with each other and exchange trading strategies, hence improving your trading experience.
- Risky: Note that even the expert traders have bad days they lose. Therefore, in case the trader you are copying loses, you also go down the drain.
- Limits your performance: Since you will entirely be depending on another trader’s strategies, you will have less control of your trading activities.
- Provides traders with little incentive: A trader can become too comfortable with copy trading and stay demotivated from conducting market research and improve their own strategies.
Copy Trading History
Copy trading is a relatively new phenomenon that has recently gained popularity. The concept of copy trading dates back to the early days of social trading when traders began sharing their strategies and insights online. As social trading platforms evolved, traders began to experiment with copying the trades of successful traders automatically.
The first copy trading platform was created in 2005 by a company called Tradency. The platform, called Mirror Trader, allowed traders to automatically copy the trades of other traders in real-time. Mirror Trader was a revolutionary platform that paved the way for the development of other copy trading platforms, such as ZuluTrade, MetaTrader 4 copy trading and eToro.
Today, copy trading has become an established part of the online trading industry, with millions of traders using copy trading platforms to follow the strategies of successful traders. As copy trading platforms continue to evolve, we hope to see even more innovative features and tools that make it easier for traders to learn from each other and improve their trading results.
How to Choose the Best Copy Trading Platform in the UK
Choosing the best copy trading platform in the UK is challenging. You need to identify a platform that meets your trading requirements to increase your chances of being successful.
Below are the factors to consider during this process:
Following the UK’s trading laws, the best copy trading platform must be under a broker that is licensed and regulated by world-class authorities, including the Financial Conduct Authority. Confirming a copy trading platform’s credibility is one way of securing your investment capital.
When looking for a copy trading platform, you probably know the markets you wish to invest in. Not all brokers will let you copy trade on all market assets. Therefore, choose a copy trading platform according to your trading needs.
Copy trading on most broker’s platforms is free. However, you will still incur the usual trading charges before you open a position. For this reason, the copy trading platform you choose should offer trading charges that you can afford.
The best copy trading platform in the UK should have a customer support system that you can rely on in case of any trading issues. You should reach them through various communication channels, including phone, email, and live chat.
When making deposits and withdrawals, you will need a flexible payment method for your trading needs. Our recommended brokers above offer a wide range of payment methods, including bank transfers, debit/credit cards, and e-wallets.
Read more about the best trading platforms in the UK and best Bitcoin trading platform in the UK in our other guides.
How To Start a Copy Trading Account in 5 Steps
If you want to start copy trading you first need to find a broker that offers a copy trading platform, then you have to register an account. The registration process is universal and created following FCA regulations. Therefore, you can use the following 5 steps to register an account with any copy trading broker in the UK.
First, you use the links on this page to get directed to the broker that you have picked. Brokers allow you to register an account on any device that you prefer with an internet browser such as a laptop or smartphone.
In some rare cases, you might have to download a trading app from the broker before you can get started. But today most brokers offer browser-based platforms.
You will be asked to provide information that will lay the ground for your account, similar to when opening a bank account or registering on a social media platform. Information that you will need to provide includes your full name, date of birth, address, email, and phone number.
In the next step, you will have to verify this information so make sure that you provide accurate and up-to-date information. Also, since you will get access to financial services, you have to clarify your financial situation.
As mentioned, you are now going to verify your identity and prove to the broker that you are you. This is done by submitting two different documents. The first is a copy of your ID such as a passport, ID, or driver’s license, this is to prove your identity. The next document is either a recent utility bill or a bank statement with your address on it, this is to verify where you live.
Make sure that you follow the instructions carefully, otherwise, you might have to repeat the whole process or provide supporting documents.
The last step required before your account is fully opened is to make an initial deposit. Your first deposit has to match the broker’s minimum deposit level which can vary from nothing to a few hundred pounds.
Once you’ve made your first deposit, you are allowed to deposit any amount you want to.
With money in your copy trading account, all that’s left for you is to start copy trading. Try to spend a while studying and analyzing different traders before you decide on which or who you’re going to copy.
By preparing, you increase your chances of making a profit as a copy trader.
Copy Trading Risk Management
As with any form of trading, developing and maintaining a risk management strategy is essential when copy trading. Copy trading can be a great way to get started in the investment world. However, without proper risk management, your next trade could potentially end your trading journey.
Risk management is the specific measures you take to safeguard your trading account from potential losses by setting strict limits on the amount of money you can lose in a single trade.
With that in mind, let’s take a closer look at three risk management tips that will help you get started with copy trading.
1. Do adequate research
Before you start copy trading, it’s essential to thoroughly research and understand how the process works. Study various investment strategies and risk profiles, and be aware of the potential risks and rewards involved.
2. Be disciplined
One of the biggest challenges of copy trading is being disciplined enough to follow your plan. Establish a schedule for yourself and remain committed to it, even if something unexpected comes up.
Avoid impulsive decisions when managing your portfolio, such as rushing to sell an asset that has started to lose value or investing more than you had planned in an asset that is performing well. This can help you to manage your investment portfolio effectively and consistently generate profits.
3. Diversify your portfolio
When copying trades, it’s crucial to spread your risk around by diversifying your portfolio. This includes copying trades of several traders and distributing your investments across different asset classes. Diversifying your portfolio will reduce the potential impact of poor performance by any single trader you copy. Consider a mix of high-risk and more conservative traders for a well-rounded portfolio.
4. Keep a close eye on your investments
Copy trading does not mean you can completely neglect your portfolio. Make sure to monitor it closely and be ready to make adjustments as needed. This includes regularly evaluating the performance of your investments and the trader you are copying. If a trader you follow employs a strategy with clear errors that could lead to losses, do not hesitate to make changes to your portfolio.
What Assets Can You Use for Copy Trading
There are numerous assets that are traded daily in financial markets. Fortunately, it is possible to copy most of them, but it mostly depends on the broker you choose. Let’s take a look at some of the most common assets you can copy trade.
- Forex – Forex trading, also known as foreign exchange trading or FX trading, is the buying and selling of currencies with the goal of making a profit. Forex is by far the largest and most liquid financial market in the world. It is possible to copy currency pairs like EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, NZD/USD, and AUD/USD.
- Stocks – Historically, trading stocks has been a meaningful way to achieve financial success. A stock represents an ownership stake in a company, including the right to a share of its assets and earnings.The easiest way to buy and sell stocks is through an online broker. After opening and funding your account, you can copy trade stocks of companies like Apple, GameStop, Tesla, Sainsbury’s, Unilever, Tesco, and more.
- Indices – Indices are financial assets that track multiple assets. There are many indices you can copy trade. Examples include the S&P 500, FTSE 100, Dow Jones, Nasdaq 100, DAX index, CAC 40, and Nikkei 225.
- Commodities – A commodity is any physical good traded on the commodities market, similar to other financial markets. Commodities can be bought and sold in both the physical market and as derivatives. Some of the commodities that you can copy trade include crude oil, gold, silver, copper, tin, palladium, wheat, corn, and soybeans.
- Cryptos – Cryptocurrencies such as Bitcoin and Ethereum are highly volatile and prone to sudden free falls that make them risky. If you enter the crypto market without knowledge and a clear strategy, you may be making a gamble. But if you don’t want to wait until your learning curve is over, you can explore options like crypto copy trading or trading bots. You can jump into the crypto market instantly and begin growing your cryptocurrency portfolio by copying the trades of expert traders.
Read about the crypto apps in UK and the best ECN brokers in our other guides.
What is Social Trading?
Social trading is whereby traders use brokers’ integrated chat groups and collaborative tools to interact with each other, share insights, and learn from each other in real-time. Note that social trading provides access to plenty of information and resources that can be used to make informed investment decisions. These include real-time data feeds, news and market analysis, and trading signals, which can help you identify opportunities and mitigate risks. You can also engage in discussions with a group of global traders and share insights on trading strategies, market trends, and investment opportunities.
Overall, social trading provides an opportunity for novice traders to learn from experienced traders and experts in the field. By following successful traders and observing their strategies, newbies can gain valuable insights into the markets and improve their own trading skills. Unfortunately, not all brokers support social trading, so be sure to conduct thorough research to identify one or select from our recommendations above.
Social Trading Vs Copy Trading
Social trading and copy trading are often used interchangeably, but there are some things that set the two apart.
Social trading is simply a way for new or inexperienced traders to learn and invest by interacting with other traders, including those with more experience, on various social media platforms. When social trading, you connect and engage with your preferred traders or peers, observe the trades they execute, and gain insight into their reasoning.
After that, you can make your own decision based on all the information you have gathered. Some social platforms also provide additional resources, such as forums or news feeds that you can follow to help you make informed decisions.
On the other hand, copy trading is stricter and more limiting than social trading because it binds your account to that of another trader and automatically copies the trades the trader executes. For example, if the trader buys a GBP/EUR currency pair, your account does the same. If they sell Bitcoin, your account will as well.
Social trading is best for beginner traders who want to learn the basics of trading without putting their accounts at risk. You gain confidence and knowledge by following other traders and learning from the insights shared. Additionally, this strategy can be used by people who trade as a hobby mainly for the purpose of interacting with other traders.
On the other hand, copy trading is best for beginners who are interested in learning the basics of trading by copying other traders and making profits at the same time. It is also a suitable strategy for traders who have little time to trade.
Learn about best share dealing platform in the UK and how to trade options in the UK in our other article.
Some Final Tips Before You Start Copy Trading
We’ve listed some useful tips that can help you get started with copy trading. They are definitely aimed at beginners, but even more experienced traders that are trying our copy trading for the first time can probably find some use in them.
Don’t Put All Your Faith in the Person You’re Copying
There are countless benefits to copy trading, and the main one is that it requires a lot less work than regular trading. It’s great for people that lack the time or that don’t want to master all the necessary skills on their own.
With that being said, you cannot trust the trader that you’re copying to the teeth. It is still your trading and you’re responsible for any profit or loss that you make. So even though you can save time on the analytic work, you should not avoid it completely. Always know what you are trading and why.
Keep a Close Eye on All Positions
To follow up on the section above, you can not leave your open positions and hope for the best. Even though you’re copying someone that is more experienced than you, it’s still your responsibility (as said) to keep an eye on your positions at all times.
You might notice trends that the trader you’re copying misses, meaning you have the option to close positions in better conditions than whoever you’re copying. Never trust anyone but yourself, and even if you use alarms and stop-loss orders, you have to keep track of everything.
Try Trading and Investing on Your Own Accord
Lastly, we don’t want you to put all your eggs in one basket. Despite all the advantages of copy trading, we do recommend that you also trade on your own. This means that you have to analyze markets, find potentially lucrative opportunities, and make the necessary steps to close a profitable trade.
Also, by trading yourself, you will gain useful knowledge that you can apply to your copy trading strategies. In other words, trading will make you better at copy trading, the same way copy trading can improve your regular trading skills.
And let’s be honest, it is much more fun to trade based on your strategies than it is to copy someone else.
FAQs
Absolutely. Copy trading is a practical means of potentially increasing your chance of earning profits. Just note that we say potentially because there are no guarantees in online trading regardless of which platforms or tools you use.
In short, copy trading is an efficient way of limiting the amount of time that you have to spend keeping track of your positions or potential trades. It is not a way to improve your profits or completely stop trading and analyzing markets. In order for copy trading to work as good as possible, you still have to put the time into setting the right parameters for your copy trading platform.
Because of this, we kindly ask you to learn how to copy trading actually works and the risks it carries before engaging in it. This way, you will improve your chances of using a copy trading broker in the most efficient way possible.
Yes, you can make money from any form of trading. However, there are also always risks involved and when there is profit to be made, there are also losses to be had. This is why it is extremely important that you learn the ins and outs of online trading and copy trading before you get started.
Also, since you will be imitating the trades of expert investors, you will make money only when they execute successful trades. And even the most experienced traders lose money on some trades.
*Up to 80% of all retail traders lose money in the long run, even when using copy trading platforms.
Copy trading is a form of trading that allows you to imitate the trades of professional investors. It is an advantage to novice investors who are still familiarizing themselves with the trading markets.
By copying another, more experienced trader you can limit the amount of time you need to spend analyzing assets and markets. In many ways, this makes trading easier, especially for beginners. However, it does not guarantee that you will make profits since there are never any guarantees in online trading and investing.
In addition, copy trading is a great way to learn how to trade since you can follow the strategies and plans of another trader with more experience.
Yes. Copy trading is legal in most countries across the world, including the UK. Note that you can only copy trade on brokers that are licensed and regulated by tier-one authorities, including the Financial Conduct Authority (FCA).
Please ensure that you know the applicable trading rules in the country and/or jurisdiction where you reside before you start trading. For example, what qualifies as a “legal online broker”, which type of tools are you allowed to use to analyze markets, and what are your obligations to pay taxes on your profits. All of this is your responsibility.
Copy trading allows you to mimic the trades of expert traders automatically. On the other hand, social trading lets you interact with other traders and share trading ideas and strategies to improve your trading activities. When it comes to mirror trading, it slightly differs from copy trading by allowing you to copy trades executed by automated trading and signal services. It is best suited for advanced investors.
Conclusion
Novice traders in the UK should note that copy trading is not a sure-fire way to make profits. You need to learn how to strategise, manage your trading activities, and choose a suitable broker for your trading requirements. We advise you to consider our recommended brokers that have been tested and proven to deliver the best service there is.
How we test?
Our test process is really based on two different aspects: our independent tests and research, as well as user reviews from Google Play, the App Store, and Trustpilot, etc.
The first thing we do when testing is to check every detail and test every tool and instrument. Our experts spend more than 200 hours on every article. We pay special attention to the specific function or the criteria that we’re comparing during the comparing stage. This means that we must determine which broker is more suited for beginners, and which is better suited for experts, for example. Find out more about our test process here.
I think you should add Avatrade to the list. They offer really great copy trading opportunities, don't they?
AvaTrade does offer a great selection of platforms and copy trading features. However, its selection of assets is rather limited, thus AvaTrade did not qualify for this specific guide.
With that being said, we have recommended AvaTrade in several other articles and guides, including in “The Best Automated Trading Platforms”
eToro has been my choice for copy trading, and it's been fantastic. The platform is incredibly user-friendly. The platform's supportive community make it a standout choice for anyone entering the world of copy trading. I'm really satisfied with my experience on eToro.
I wanted to find out if copy trading is legal and if it's possible to make money with it. I found the answers to these questions. I learned that copy trading is completely legal and can be an effective tool for earning, especially for beginners. I was also pleased to see that the article emphasizes the importance of discipline and independent analysis even when using copy trading. Thanks for the clear and helpful guide!