7 Best Copy Trading Platforms in the USA: Choose the Best Copy Trader
Copy trading is a popular form of online investing that allows you to automatically follow and replicate the trades of other traders. It can be a great way to learn from experienced traders, diversify your portfolio, and save time and effort. However, not all copy trading platforms are created equal. In this article, we will review some of the best copy trading platforms in the USA and provide some tips on how to use them effectively.
Consider reading: How to Buy Tesla Stock on eToro
Page Contents
Best Copy Trading Platforms in the USA
| Platform | Broker | Assets | Features | Fees |
|---|---|---|---|---|
| eToro | eToro USA Securities | Stocks, forex, cryptocurrencies, ETFs, commodities, indices | Social trading network, CopyTrader, CopyPortfolios | No commission on stocks and ETFs, variable spreads on other assets, withdrawal fee of $5, inactivity fee of $10 per month after 12 months |
| ZuluTrade | AvaTrade | Forex, cryptocurrencies | Social trading network, ZuluRank algorithm, ZuluGuard risk management tool | No commission, variable spreads on assets, performance fee of 20% for profitable traders |
| MetaTrader 4 | Libertex | Forex, stocks, commodities, indices, cryptocurrencies | Expert Advisors (EAs), MQL4 programming language, MetaTrader Market | No commission, variable spreads on assets, subscription fee for some EAs and signals |
| MetaTrader 5 | FinmaxFX | Forex, stocks, commodities, indices, cryptocurrencies | Expert Advisors (EAs), MQL5 programming language, MetaTrader Market | No commission, variable spreads on assets, subscription fee for some EAs and signals |
| Mirror Trader | AvaTrade | Forex, commodities, indices | Manual, semi-automatic and automatic trading modes, strategy filters and ratings | No commission, variable spreads on assets, performance fee of 20% for profitable traders |
| cTrader | Pepperstone | Forex, commodities, indices | Algorithmic trading with cBots and cAlgo, cTrader Automate API | Commission of $3.76 per lot per side on Razor account, no commission on Standard account, variable spreads on assets |
| DupliTrade | Pepperstone | Forex, commodities, indices | Automated trading with multiple strategies and providers to choose from | Commission of $3.76 per lot per side on Razor account, no commission on Standard account, variable spreads on assets, performance fee of 25% for profitable providers |
What is Copy Trading and How Does it Work?
Copy trading is a type of social trading that involves copying the trading actions of another trader, usually through a dedicated platform or software. The copy trading platform connects your account with the account of the trader you choose to follow and automatically executes the same trades in your account in real time. You can choose how much money to allocate to each trader and stop or pause the copying at any time.
Copy trading can be done on various financial markets, such as forex, stocks, commodities, indices, cryptocurrencies, and more. Some platforms also allow you to copy multiple traders at once, creating a diversified portfolio of different strategies and styles. Copy trading can be suitable for both beginners and experienced traders, depending on their goals and preferences.
How to Copy Trade Using eToro
One of the best copy trading platforms in the USA is eToro, which is a regulated broker that offers a wide range of assets and features. eToro has over 13 million users worldwide and boasts a unique social trading network where you can interact with other traders, share ideas, and access market insights. eToro also has a patented CopyTrader™ feature that allows you to copy any trader on the platform with a few clicks.
To start copy trading on eToro, you need to follow these steps:
- Open an account with eToro and verify your identity. You can sign up with your email address or social media account.
- Deposit funds to your account using one of the available payment methods. The minimum deposit amount is $50 for US residents.
- Browse the Copy Discover page, where you can find thousands of traders to copy based on various criteria, such as performance, risk score, asset allocation, popularity, and more.
- Select a trader that matches your goals and risk appetite. You can view their profile, portfolio, stats, and feed to get more information about their trading style and history.
- Click on the COPY button and choose how much money you want to invest in copying that trader. The minimum amount is $200 per trader.
- Confirm your choice and start copying the trader’s trades automatically. You can monitor your progress on your portfolio page, and adjust or stop the copying at any time.
Key Things to Keep in Mind While Using Copy Trading Platforms
Copy trading can be a rewarding and convenient way to invest online, but it also involves some risks and challenges. Here are some key things to keep in mind while using copy trading platforms:
- Do your research before choosing a trader to copy. Don’t rely solely on their past performance or popularity, but also consider their risk level, strategy, consistency, portfolio diversification, and feedback from other copiers.
- Don’t put all your eggs in one basket. It’s advisable to copy more than one trader to reduce your exposure to a single strategy or market condition. You can also allocate different amounts of money to different traders based on their risk-reward ratio.
- Be aware of the fees and commissions involved in copy trading. Some platforms may charge a fixed or variable fee for using their services, while others may include spreads or markups on the trades you copy. Make sure you understand how much you are paying and how it affects your returns.
- Don’t expect to make money overnight or without any effort. Copy trading is not a get-rich-quick scheme or a substitute for learning how to trade yourself. It still requires some time and attention to monitor your portfolio, evaluate your results, and make adjustments as needed.
- Be prepared for losses as well as profits. Copy trading does not guarantee success or eliminate risk. Even the best traders can have losing streaks or make mistakes. You should only invest what you can afford to lose and use proper risk management tools such as stop-losses and take-profits.
Is Copy Trading Legal in the USA?
One of the first questions that you may have is whether copy trading is legal in the USA or not. The answer is yes, copy trading is generally considered to be legal as long as it is done through a regulated broker or trading platform.
The main regulatory agency for the financial industry in the United States is the Securities and Exchange Commission (SEC), which has jurisdiction over securities trading. The SEC requires brokers and platforms to register with them and follow certain rules and standards to protect investors and ensure fair and orderly markets.
Some of the rules and standards that apply to copy trading platforms in the USA include:
- Providing accurate and transparent information about the traders that you can follow and copy, such as their performance, risk level, strategy, portfolio composition, fees, etc.
- Ensuring that the trades that you copy are executed in a timely and accurate manner, without any delays, errors, or slippage
- Maintaining adequate capital, liquidity, and risk management systems to safeguard your funds and prevent any losses or fraud
- Keeping your personal and financial data secure and confidential, and complying with anti-money laundering and anti-terrorism laws
- Resolving any disputes or complaints that you may have with the platform or the traders that you copy in a fair and efficient manner
If you are interested in copy trading in the USA, you should always check the regulation and reputation of the broker or platform that you choose to use. You can verify their registration status with the SEC on their website, or look for other signs of credibility such as customer reviews, awards, ratings, etc.
Best Ways to Use Copy Trading Platforms to Get Maximum Gain
Copy trading can be a powerful tool for enhancing your online investing experience, but it also depends on how you use it. Here are some best practices for using copy trading platforms to get maximum gain:
- Use copy trading as a learning opportunity. By copying other traders, you can gain valuable insights into how they analyze the market, execute trades, manage risk, and adapt to changing conditions. You can also ask them questions or join discussions on the platform’s social network.
- Use copy trading as a diversification strategy. By copying different traders with different assets, strategies, time frames, and risk profiles, you can create a balanced portfolio that can withstand various market scenarios and reduce your overall volatility.
- Use copy trading as a time-saving solution. By copying other traders, you can save time and effort that you would otherwise spend on researching, analyzing, and executing trades yourself. You can also benefit from the expertise and experience of other traders without having to spend years developing your own skills.
- Use copy trading as a complementary tool. Copy trading does not have to be your only way of investing online. You can also use it alongside your own trading or investing activities, or combine it with other features such as copy portfolios, social trading, or automated trading.
Consider using our Stock Average Calculator Tool to check your average prices for your trades.
Closing Thoughts on Best Copy Trading Platforms in the USA
Copy trading is a popular and innovative form of online investing that allows you to automatically follow and replicate the trades of other traders. It can be a great way to learn from experienced traders, diversify your portfolio, and save time and effort. However, it also involves some risks and challenges that you need to be aware of and manage accordingly.
Before choosing a trader to copy, you should do your research and consider their performance, risk score, asset allocation, popularity, and more. You should also copy more than one trader to reduce your exposure to a single strategy or market condition. You should be aware of the fees and commissions involved in copy trading, and how they affect your returns. You should also be prepared for losses as well as profits and use proper risk management tools.
It is clear from this article that eToro is one of the Best Copy Trading Platforms in the USA and is famous for its copy trader functionality. You can Try eToro or any other broker mentioned in this article to copy trades.
Copy trading can be used as a learning opportunity, a diversification strategy, a time-saving solution, or a complementary tool. By following some best practices for using copy trading platforms, you can get the maximum benefit from this powerful tool for online investing.
Please note that this article is for informational purposes only. Please do thorough research before making any investment decisions.
FAQs on Best Copy Trading Platforms in the USA
Which is the Best Copy Trading Platforms in the USA?
eToro is one of the Best Copy Trading Platforms in the USA. eToro is a global sensation with over 13 million users. It stands out with its one-of-a-kind social trading hub where you can mingle with fellow traders, exchange thoughts, and tap into market wisdom.
Is copy trading allowed in USA?
Yes, copy trading is allowed in the USA as long as your broker is regulated by the CFTC for forex or the SEC for stocks. It is important to ensure that your broker is properly regulated to engage in copy trading activities.
What is the best trader for copy trade?
The best trader for copy trade is eToro. Known as the leading platform in the world, eToro offers top-notch copy trading services. With its user-friendly interface and a wide range of tradable assets, eToro allows users to easily copy the trades of successful traders and maximize their investment potential.
Is eToro copy trading available in the US?
Yes, eToro copy trading is available in the US. As per current regulations, all eToro users, including US clients, have full viewing access to any public profile on the platform. However, US clients can only copy other US users due to existing regulations. Make the most of eToro’s copy trading feature and explore opportunities within the US market.
Is copying trades worth it?
Yes, copying trades is worth it as it saves time and can be profitable. However, it is crucial to choose the right traders to follow and diversify by copying multiple traders with different strategies to minimize potential losses.
