Best Copy Trading Forex Brokers in 2022

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Best Copy Trading Forex Brokers in 2022



The ascent of forex 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.To get more news about Forex Mirror Trading, you can visit wikifx.com official website.

These factors, together with the power of crowd and advanced sentiment data, help to power social copy trading platforms, as investors generate trading signals and enter the market with new positions that people want to copy.
What is copy trading?
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.

Copy trading history
Thanks to precise legal terms and ever-evolving trading technology, regulators in nearly every jurisdiction consider copy trading to be 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.

Fun fact: Many of the early pioneers in social trading technology started out as third-party platform developers, such as Tradency, ZuluTrade, and eToro. While some of these firms are still independent service providers, or ISPs, eToro became a broker, for example.
What is the best copy trading platform?
Our testing found that eToro is the best copy trading platform available in 2022, compared to the range of platforms available from brokers and third-party provides such as ZuluTrade, cTrader, the MetaTrader Signals market, DupliTrade, and Myfxbook.

Overall, eToro is the best for social copy trading and cryptocurrency trading, and is our top pick for both categories in 2022. Furthermore, eToro offers a user-friendly web platform and mobile app that is great for casual investors, including beginners.

Is copy trading legal?
Copy trading is legal in most countries, as long as the broker itself is properly regulated. When investing in financial markets through a regulated broker, there are procedures in place during the account opening process that should ensure it is legal for you to trade (depending on your country of residence).

Is copy trading legal in the U.S.?
Yes, copy trading is legal in the U.S. provided that your broker is properly regulated by either the Commodity Futures Trading Commission (CFTC) in the case of forex; or the Securities and Exchange Commission (SEC) for stocks. For cryptocurrency copy trading your broker must be a registered Money Services Business, or MSB, and licensed by FinCEN. Copy trading is typically treated like having a self-directed account.

Before copy trading existed, a power of attorney was required to authorize a fund manager to trade on your behalf; but today, individual investors agree to a Letter of Direction, or LoD, which authorizes the broker to copy other trades automatically based on your explicit instruction.

Fun fact: The LoD (which is now incorporated in the platform terms and conditions) was a crucial piece of the innovation that helped legalize copy trading in the U.S., making it largely indistinguishable from a regular self-directed brokerage account. That said, in certain countries, there are still restrictions. In the U.K., for example, additional money-management licenses are required for copy trading.

How do you copy trade?
With copy trading, a trader (signal provider) shares real-time trades with other traders (users). Using a copy trading platform, users can automatically copy the trades of the signal provider in real-time. Each copy trading platform provides optional controls to protect investors. For example, traders can customize the amount of capital they are risking, and which signals to copy.

How do you copy the best traders?
Select the traders whose trades you want to copy, set any limits and thresholds for risk management purposes, and then decide whether you want to copy their existing trades or only new trades going forward.

The best traders typically have the most followers, as well as an established track record of performance (i.e., history of monthly trading results) along with consistent risk-adjusted returns and above-average overall results. Also, depending on your goals, it's important to find the right balance of diversification.

Pro tip: Look at more than just the absolute returns when comparing the best traders to copy, such as by reviewing additional performance metrics — average profit and loss, the number of trades placed, and average trade duration — when making your decision.