Copytrading is one of the most sought-after tools by novice traders seeking to learn from master traders or experienced investors. It is a trading strategy in which you can copy the portfolio of an experienced trader or user, and all their subsequent trades or changes are reflected in your account, as well.
Therefore, in this article, we will have a look at the best copy trading brokers, taking into account their regulatory status, strategies, and costs.
What is copy trading?
Copytrading is a trading platform feature that enables you to follow the trading strategies of the most successful traders and replicate their transactions. Copy trading has become a highly popular way to invest in the financial market.
It is an incredibly useful tool for novice traders or those who may not have time to implement an active trading or investing strategy. By mimicking the strategies of accomplished traders, novice traders can build successful portfolios with maximum ease. This also allows them to acquire insights into trading practices, making learning more convenient.
Best brokers for copy trading
Here are the best UK brokers for copy trading:
|Broker||Regulation||Minimum amount to invest||Costs for copy trading|
|Darwinex||FCA||£200||20% of the returns|
Now let’s go into detail about each of these brokers and copy trading features.
Is eToro the best copy trading broker?
eToro is one of the most popular social trading platforms in the world. The copy trading tool stands out as its most prominent offering. With a minimum of $200, users can copy any master trader of their choice. Also, the platform provides many options and types of traders, so you can find one that aligns with your own risk and return profile.
eToro does not charge any fees for copy trading. However, you will cover trading fees (such as spreads) whenever new positions are opened or closed, just like you would cover when trading manually.
Check out this eToro review for a full breakdown of how this broker works.
|Type of broker||Real assets and CFDs|
|Number of popular investors||More than 100|
|Minimum amount to invest||$200|
|Commissions for the trader||$0|
|Financial assets||Real crypto and stocks, CFDs on stocks, commodities, bonds, indices, forex, and more|
|Trading Costs||Variable (+1 pip)|
|Platforms||Own trading platform|
✅ Easy to use platform with a demo account
✅ Ideal for beginners
✅ Broker is regulated so it offers security to its investors
❌ The customer service not available via phone (only form and online chat)
❌The withdrawal fees are $5
Is Admiral Markets the best copy trading broker?
Admiral offers a copy trading tool that enables users to track expert investors. Through a straightforward subscription, users can become part of a leading community of traders and investors, allowing them to follow successful individuals.
Users can access valuable information such as profit ratios, ROI, and profit charts of these traders. What sets this tool apart is that it focuses on replicating strategies rather than individual traders, giving users the ability to copy multiple strategies from the same trader.
Additionally, this broker provides weekly webinars, a dedicated training section, and a wealth of free trading and investment courses, articles, and webinars covering many topics.
|Type of broker||Real stocks and ETFs, CFD trading|
|Number of strategies||Over 100|
|Minimum amount to invest||£100|
|Costs||Variable (depending on assets)|
|Financial assets||Real stocks and ETFs, CFDs on many other assets|
|Platforms||MT4, MT5, Admirals phone app|
✅ Rich training section and access to MT
✅ Free demo account
✅ Multiple assets to invest in
❌ There is an inactivity fee
❌ The demo account is only available for 30 days
Darwinex is another prominent broker known for its copy trading tool. It features a capital allocation program called DarwinIA, which employs cutting-edge algorithmic trading. This program incentivises the best traders to join the platform.
Each month, Darwinex allocates capital to 150 strategies for a duration of 6 months, with a maximum amount of 10 million euros. With over 10 years of experience in risk management, Darwinex offers a robust platform for traders and investors.
|Type of broker||CFDs|
|Number of strategies||+150 each month|
|Minimum amount to invest||£200|
|Costs||20% of returns from the copied strategy|
|Financial assets||Forex, indices, stocks, and more|
|Platforms||MetaTrader 4 & 5|
✅ Professional, regulated broker
✅ Access to MT4
✅ Program to attract the most skilled traders
❌ Returns from copy trading are charged with 20%
What criteria must a copy trading platform meet?
If you have made the decision to start investing using copy trading, here are some of the requirements that a copy trading broker should meet:
- Regulations: look for regulated copy trading brokers licensed by the FCA. This will give you the assurance that you are working with a company that complies with applicable legislation.
- A large number of users/strategies to replicate: look for brokers that offer a large number of experienced traders to replicate. This will guarantee that you will have a wide variety of traders to choose from.
- Good performance and reputation: Make sure that the users to replicate have a good performance history. This will help you prevent losses and ensure profitable investment.
- Minimum investment: Another requirement is to find a copy trading broker that offers low minimum investment amounts. This will allow you to invest any amount of money without having to worry about minimum requirements.
- Copy trading costs: Check the commissions charged to replicate portfolios and make sure they are affordable for your budget. This will help you maximise your profits.
- Other features: Look for brokers that offer useful features such as trading alerts, technical analysis, real-time charts, etc. This will allow you to make more informed investment decisions.
- Customer service: Good technical support will allow you to get help when you need it.
- Good platforms: Look for state-of-the-art trading platforms. This will allow you to enjoy a smoother trading experience.
- Product offering: It is important that they have a wide range of products to invest in. This will allow you to diversify your portfolio and get better results.
- Reputation: Look for brokers with a good reputation and experience in the sector. This will allow you to enjoy greater security and peace of mind.
In short, the main advantage of investing with the best brokers for copy trading is that it allows novice traders and investors to replicate experienced users’ returns. This allows you to take advantage of years of experience as a beginner.
It also serves as a means to generate income without the necessity of actively trading or learning the intricacies of trading or investing. If you desire to leverage the potential of financial markets but find yourself too occupied to invest on your own, copy trading is a viable alternative.
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How do I choose the best broker for copy trading in the UK?
hen selecting a broker for copy trading in the UK, consider factors such as reputation, reliability, range of available traders, transparency of performance data, fees, and the user interface of the platform. It’s essential to choose a broker that aligns with your investment goals and provides a secure and user-friendly copy trading experience.
Is copy trading suitable for beginner investors in the UK?
Yes, copy trading can be an excellent option for beginner investors in the UK. By following and replicating the strategies of experienced traders, beginners can learn from their expertise and potentially achieve desired investment outcomes.
Can I copy trade multiple strategies or traders simultaneously with UK brokers?
Yes, many UK brokers that offer copy trading platforms allow users to copy trade multiple strategies or traders simultaneously.