Here are the Top 5 Copy Trading Platforms in the United Kingdom

It is now possible for every trader to make profits thanks to copy trading. Are you in the United Kingdom? This article explores some of the top platforms you can use to copy the trades for experienced traders to realize profits as well.

eToro

There is a good chance you have heard of eToro. If not, this is one of the most popular brokerage firms, boasting more than 10 million users in over 100 countries. eToro supports copy trading through its “CopyTrader” function.

Unlike most brokers, eToro does not charge users to copy trades. Instead, it allows copied traders to collect commissions from every successful trade. Note that you can replicate trades using a demo account. This helps you understand how the CopyTrader feature works before investing actual money.

Through CopyTrader, you can trade various financial instruments, including cryptocurrencies, forex, and CFDs. The downside is that eToro charges higher fees ($5.8) on CFDs than most competitors. However, if you wish to trade forex, the fee tends to be slightly lower than that charged by most brokers.

In terms of minimum deposit, eToro users can deposit as low as $10. However, keep in mind that you will incur a $5 withdrawal fee.

Pepperstone

Pepperstone is regulated by the Financial Conduct Authority. So users are ensured of their funds’ safety. You can copy trade over 1,500 CFDs, multiple crypto assets, and 65 currency pairs. But first, you have to make a minimum deposit of $200. Unlike eToro, this broker does not charge withdrawal fees. Copied traders take a cut on every trade, usually 10% or more.

AvaTrade

AvaTrade’s copy trading feature, “AvaSocial,” connects you with thousands of successful traders. Not only do you copy their trades, but you also interact with them through AvaTrade’s chatroom. To get started, you must deposit at least $100.

Here are the trading fees charged by the broker: $5.2 for CFDs, 0.25% commission on cryptocurrencies, and $8.9 for forex. Note that you do not incur a withdrawal fee on AvaTrade.

IG

IG has been in business since 1973, solidifying its position as a reputable broker. Like AvaTrade, IG’s copy trading feature comes with a chatroom, letting traders interact with each other.

In terms of non-trading charges like withdrawal and inactivity fees, IG users incur fewer costs than those of other brokers. However, many will find the broker’s trading fees to be a bit higher than its competitors. For instance, CFDs and forex attract $11.4 and $10.2 in fees, respectively.

The commissions charged by copied traders range between $9 to 50%.

FXTM

FXTM’s copy trading feature, “FXTM Invest,” debuted in 2016, giving inexperienced traders a chance to follow the trading strategies of successful traders. FXTM Invest has a chatroom where traders interact and share trading and investing ideas.

Another aspect that makes the FXTM copy trading feature exciting is the managers who help users determine the right traders to follow based on their financial objectives and risk appetite.

To get started with FXTM Invest, create an account and then deposit $50 or more.

You don’t pay a subscription fee to copy trades. However, you will be charged a commission on every trade. Moreover, you will incur a $9.4 fee on CFDs and $7.8 on forex.

Factors to Consider Before Copy Trading

Fees – Before signing up with a broker, go through its fee structure to determine whether the charges applied are affordable to you. You don’t want to use a broker that will take most of your profits.

Research the Traders – To be on the safe side, take your time to examine the performances of various copied traders. Choose the ones that have shown consistency in generating profits over a long period of time.

Amount of funds to risk – Copy trading carries the same risks associated with other trading strategies. So, invest an amount you’re ready to lose.

Final Thoughts

With copy trading being legal in the United Kindom, the brokers mentioned above give every trader in the UK an opportunity to generate profits from financial markets. However, not all are suitable for you. Check out their fees and the supported financial instruments to determine which broker suits your specific needs.