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Best Copy Trading / Social Trading Brokers 2021

Kate Leaman
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Social trading is based on the social media model. The structure involves traders being able to follow a trader they respect and admire. Some call it using the wisdom of the crowd to enhance your trading. You can then use copy trading to allow you to follow the trades of more experienced traders. This hopefully comes with reduced risk. Many social trading platforms allow for extra analysis too, and the ability to avoid having to spend money to venture out into the world of trading. It’s for that reason that social trading is popular among new traders.

So what makes a great social trading environment? Well, the first requirement is surely about trust and reputation. If the platform is a high quality one, they will have developed trust over time. You’re also looking for social trading brokers that offer the best trading conditions, including the lowest fee structure or spread. There is also a real customer service culture, with questions and problems being addressed very quickly. Regulation is exceedingly important in this era, with a level of trust and protection that comes from that.

We’ve compiled the following list with the help of experts in their field. We sift through huge amounts of data and research in order to compile this list. In addition to this, we also take great care in compiling and incorporating our user feedback.

The brokers below represent the best Social trading features

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BrokerRatingOfficial SiteRegulationsMin DepositMax LeverageTrading PlatformsFoundation YearPublicly TradedTrading Desk TypeCurrenciesCommoditiesIndicesStocksCryptoCommission on tradesFixed spreadsoffers promotionsOfficial Site
eToro
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67% of retail CFD investors lose money

ASIC, CySEC, FCA, MiFID

$200

1:30

eToro Platform

2007

Market Maker, No dealing desk, STP

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67% of retail CFD investors lose money

TMGM
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The information provided on this website is general in nature only and does not constitute personal financial advice. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Investing in CFDs and Margined FX Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You don’t own, or have, any interest in the underlining assets. We recommend that you seek independent advice and ensure fully understand the risks involved before trading. It is important that you read and consider disclosure documents before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use is contrary to the local laws and regulations. Products and Services offered on this website is not intended for residents of the United States.

ASIC, VFSC

$100

1:500

MT4

2013

ECN, STP

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The information provided on this website is general in nature only and does not constitute personal financial advice. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Investing in CFDs and Margined FX Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You don’t own, or have, any interest in the underlining assets. We recommend that you seek independent advice and ensure fully understand the risks involved before trading. It is important that you read and consider disclosure documents before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use is contrary to the local laws and regulations. Products and Services offered on this website is not intended for residents of the United States.

FP Markets
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Your capital is at risk

ASIC, CySEC

$100

1:500

IRESS, MT4, MT5, WebTrader

2005

DMA, ECN, No dealing desk, STP

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Your capital is at risk

Pro Tip: Most of these brokers offer free demo accounts so you can test the brokers and their platforms with virtual money. Give it a try with some play money before using your own cash.

Here’s a list of Best Social Trading Brokers


Note: Not all Forex brokers accept US clients. For your convenience we specified those that accept US Forex traders as clients.

eToro

Regulated By:ASIC, CySEC, FCA, MiFID

Foundation Year:2007

Headquarters:Kanika International Business Center 7th Floor, 4 Profiti Ilia Street Germasogeia, Limassol, Cyprus

Min Deposit:$200

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67% of retail CFD investors lose money

eToro is an online trading platform that was founded in 2007 by the Assia siblings and their friend David Ring in Tel Aviv, Israel. Formerly known as RetailFX, eToro is the pioneering online broker for social trading. Their Openbook social trading platform in fact changed the nature of the way beginner online traders can trade the financial markets.

One of eToro’s most remarkable products which is certainly pioneering is the CopyTrading product. It allows you to copy the trades of other more experienced traders or have them copy you.

Pros: Cons:
  • Highly regulated broker (FCA, CySEC and ASIC)
  • Innovative trading platform
  • Wide range of assets to trade with
  • Ability to earn 2% management fee as an Investor trader
  • Spreads are higher than average
  • Does not have the MetaTrader platform

*Only cryptos are available in US

TMGM

Regulated By:ASIC, VFSC

Foundation Year:2013

Headquarters:Level 28, One International Tower, 100 Barangaroo Ave, Sydney, NSW, Australia

Min Deposit:$100

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The information provided on this website is general in nature only and does not constitute personal financial advice. Before acting on any information on this website you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. Investing in CFDs and Margined FX Contracts carries significant risks and is not suitable for all investors. You may lose more than your initial deposit. You don’t own, or have, any interest in the underlining assets. We recommend that you seek independent advice and ensure fully understand the risks involved before trading. It is important that you read and consider disclosure documents before you acquire any product listed on the website. The information and advertisements offered on this website are not intended for use by any person in any country or jurisdiction where such use is contrary to the local laws and regulations. Products and Services offered on this website is not intended for residents of the United States.

TMGM is authorised and regulated in various jurisdictions including the Australian Securities and Investments Commission (ASIC) and the Vanuatu Financial Services Commission (VFSC). It also holds an Australian Financial Services Licence and segregates client funds from its own, holding them with tier 1 Australian banks Westpac and National Australia Bank.

With TMGM, users can trade on more than 15,000+ financial CFD instruments covering 7 asset classes including Forex, Metals, Energies, Cryptocurrencies, Commodities, Indices and Shares from the US, Australia and Hong Kong. This can be done from 2 types of trading accounts. The Edge Account offers commission-based trading of $7 per round turn and raw spreads from 0 pips while the Classic Account offers commission-free trading with spreads from 1 pip.

Pros: Cons:
  • 15,000+ financial instruments to trade on
  • Commission-free trading available
  • ECN trading accounts
  • MT4/MT5 and IRESS trading platform
  • 24/5 customer service
  • Limited trader research and education resources.

FP Markets

Regulated By:ASIC, CySEC

Foundation Year:2005

Headquarters:Level 5, Exchange House 10 Bridge St Sydney NSW 2000, Australia

Min Deposit:$100

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Your capital is at risk

FP Markets was founded in 2005 and is regulated by the Australian Securities and Investments Commission (ASIC), offering segregation of client funds and top tier liquidity. FP Markets is a group of companies that includes First Prudential Markets Ltd which is authorised and regulated by the Cyprus Securities and Exchange Commission.

The broker offers the ability to trade on more than 13,000+ financial instruments covering Forex, Equities (Share CFD’s), Metals, Commodities, Indices and Cryptocurrency CFDs. Users have access to a range of accounts including the Standard Account (commission-free) and Raw Account (commission-based) for MetaTrader users, both offering ECN pricing and maximum leverage of 500:1. Users can also access Iress Accounts which are commission-based.

Pros: Cons:
  • ASIC regulated.
  • ECN pricing and DMA trading available.
  • 10,000+ tradable financial instruments.
  • Wide range of trading platforms and trading tools available.
  • Excellent customer support and education tools.
  • The volume of choice of markets and accounts may be overwhelming for beginner traders.

What is Social Trading?

Social trading is a new and exciting way to delve into the world of online trading. It’s said to be the most recent evolution of online trading and offers a unique take on the analyzation of financial data and conducting trades. Social trading utilizes social networking trading platforms to exchange financial information, compare and copy trades, techniques, and trading strategies of fellow investors. Social trading allows both novice and experienced traders the opportunity to more easily overcome the learning curve and benefit from the best and most experienced traders. The idea of social trading was first brought into effect in 2004 by the company called Tradency. Due to the increased use in social networks, there became an increasing desire to utilize social networks in trading platforms. Hence the evolution of numerous social trading platforms. Now, more than ever social trading has become very popular among investors of all levels.

Social trading sites provide their users with a variety of community based tools to share and further develop their knowledge for making more informed trading and investment decisions. Such tools and features include; the ability to view other users’ portfolios, analyze their trading history, current trades, and overall performance. You can read their news feeds and see where they pull their information from. You can communicate on forums, ask questions, exchange insights and strategies, and even develop important investment relationships. All this transparency can be very useful in developing your own strategies and making informed trading decisions. But not only can you learn from all this, you can strait up copy a trader’s every move if you choose with a feature called “copy trading”. This allows you to experience first hand which strategies work, what to invest in, and how to become a successful trader yourself.

How Can Forex Social Trading Benefit You?

Social forex trading can be especially beneficial to a new and inexperienced trader. As a novice trader in the forex market, it can be very difficult to learn the ins and outs of trading forex. There is a very steep learning curve and it can be a daunting task to delve in and start trading on your own. Therefore, social trading is such an attractive and beneficial option to new traders and investors. It gives them the ability to learn what works from other traders, and provides you with all the necessary information in an interactive, community based platform. Besides this, I’ve outlined some key beneficial factors below.

  • Traders of all levels can benefit from a social trading platform – You now know how a novice investor can benefit from copying the trades and learning from a more experienced trader, but they’re not the only ones who benefit. Traders who are followed receive commissions on their winnings from those who copy them. So why not trade forex on a social trading platform right? Also, even successful traders can learn and copy other traders to expand their expertise or delve into areas they are interested in, but not well educated about.
  • You can benefit from various trading styles and methods – On social trading platforms, you can choose to follow and copy whoever you want. You may take a riskier approach copying trades with high volumes, or be more conservative with smaller volumes traded less frequently. The traders risk level, success, and history is all available for you to make an informed decision based on your needs.
  • Social trading offers more informative analysis – Instead of analyzing data and trends yourself to predict the market, you have a whole group of people sharing their thoughts and tactics with you. You can ask questions in forums, and engaging users will be happy to shine light on any thoughts you have.
  • Forex trading can be somewhat mundane, but Social forex trading is fun – Trading can be lonely and mundane, but trading on a social network with like minded people, interacting, providing insight, showing off techniques, and making money is an exciting way to trade forex. Some of these social trading platforms offer competitions and tournaments to add another level of excitement and fun to trading forex.

Copy Trading

Copy trading is an amazingly innovative feature in the world of social trading. It’s what attracts so many users to the social trading platforms. Unlike mirror trading, copy trading allows traders to automate their trades by copying the movements another investor makes in real time. If they make a trade, you trade; if they win, you win; and if they lose, so do you. You set the amount of funds you want to allocate to this copied trader and the trades they make are proportionate with the amount of money you attach to them. It’s a very useful feature for traders who don’t necessarily have the time to trade as a traditional forex trader. You can simply fund your account, leave it alone and hope to see it grow, or you can monitor and learn how they trade.

When copying a trader, you do have some flexibility and can set your own stop losses/take profits, choose what positions the trader has you want to copy, and choose to discontinue copying if you please. There may be different rules and regulations pertaining to copy trading depending on the platform you use.

This is a new form of trading, and is becoming increasingly popular with many people creating full “people-based” portfolios. Instead of watching trends in stocks or forex, they create a portfolio based on the people they copy and follow. It’s similar in a sense that you still should analyse graphs, their historical data, risk score, and strategies used. Like other portfolios, you need to keep up with the latest trends and what your investors are doing. If you are not happy with someone, you can drop them and move your funds somewhere else.

Pros and Cons of Social Trading

Social trading is such an attractive option, with all the transparent information between successful traders. Their strategies, insights, and everything out in the open, how could you go wrong? By now you’re probably thinking, “Wow…social trading seems amazing! All I have to do is copy a successful trader and watch my money grow…It’s so easy!” Well, yes it can be very profitable and a viable solution for an inexperienced trader looking to break into investing, but like all investment platforms, there are advantages and disadvantages to trading on platforms like these. See below our complete list of the pros and cons of social trading.

Pros

  • It’s possible to make money without too much effort on your part. That is, if you take the time to make an informed decision on who to copy. If you do find a viable trader to copy, there is much potential to make money with little to no more effort, (passive income).
  • You can join in and start trading with very little knowledge of the market. For inexperienced traders, they can learn from being active in the platform, copy other traders, ask questions, read news feeds, and study all the viable information available via the social platform.
  • It can be better than making those tough decisions yourself. If you are an emotional trader who can become very stressed, lose a lot of sleep, or breakdown from the wrong decision. It can be best to let someone else do this and copy their positions without thinking much of it.
  • You can manage risks more effectively by following a diverse number of traders with smaller amounts. There are many successful traders on social trading platforms with various strategies and risk scores to choose from.
  • Social trading platforms are generally simple to use and have intuitive interfaces with access to everything you need with their magnificent level of transparency.

Cons

  • Whether you’re trading manually or copy trading, its still very risky. Especially in the forex market-its pure gambling.
  • Finding a reputable and successful trader to copy can be a daunting task in itself. There are many trending and successful traders out there, that still might be a bad option to copy. There is still risk involved in copying even the best traders.
  • Past performance is not indicative of future performance. Therefore, a trader who has a very successful trading history may lose large on one trade, or change up their strategy and become riskier. You must always be aware of the risks involved, nothing is 100% safe while investing.

Social Trading Platforms and Brokers

With the popularity of social trading in recent years, there has been an increase in these types of platforms. Many of the best platforms out there offer the same types of services such as copy trading, and the ability to communicate with one another. Since social trading platforms thrive on being social, the best platforms have the most active users with an engaging trading community. As well, they offer efficient copy trading capabilities and proper analytical analysis of how successful a trader is. Below is a list of the 5 most popular social trading brokers.

  • Trade360
  • eToro
  • CMS Trader
  • ZuluTrade
  • FxPro SuperTrader

Conclusion

There you have it, a comprehensive overview of social trading and everything it has too offer. The evolution of trading and social networking has led to the innovative trading platforms that is social trading. It has so much too offer and is a true spectacle of modern trading technologies. The level of transparency, communicative aspect, and copy trading features are what set social trading apart from all other platforms. With careful insight and knowledgeable use of social trading, as an investor there is much potential to further your skills, or sit back and create passive income.   Below you’ll find the list of the very best social trading platforms.

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