Best Copy Trading Platforms

What is copy trading?

Copy trading is an investment method that allows individuals to automatically replicate the transactions made by experienced traders in the financial markets.

By connecting their account to that of a professional trader, investors can copy all of the latter's transactions in real time, including buy and sell orders, as well as risk management settings such as stop-loss and take-profit orders. This approach offers investors, especially beginners or those with limited time, the opportunity to participate in the financial markets without requiring in-depth expertise.

However, copy trading involves risks, and a trader's past performance does not guarantee future results.

What is a Copy Trading Platform?

A copy trading platform is an online service that allows investors to automatically copy the strategies and trades of experienced traders. It acts as an intermediary between professional traders and investors who want to benefit from their expertise without managing their investments themselves.

These platforms are generally integrated with one or more brokers, who ensure the execution of orders on the financial markets. Some brokers have their own copy trading solution, while others partner with specialized third-party platforms in this field. The choice of broker can influence transaction fees, access to financial assets (stocks, cryptocurrencies, forex, etc.) and the risk management tools offered to users.

The operation is based on connecting an investor's account to that of a trader they wish to copy. Once this connection is established, all transactions made by the trader are automatically replicated in real-time in the investor's account, in proportion to their available capital.

Copy trading is particularly attractive to beginner traders, who can thus benefit from the knowledge of experts without spending hours analyzing the markets. However, it remains important to choose the platform and the trader to copy carefully, as past performance does not guarantee future results.

Copy trading and social trading: what are the differences?

Copy trading and social trading are two approaches that facilitate investment by allowing traders to draw inspiration from the decisions of other investors. However, these methods have notable differences in terms of operation and user involvement.

What Social Trading Solutions are Offered by Brokers in Canada?

Several copy trading platforms are accessible to Canadian investors, offering the opportunity to automatically replicate the strategies of experienced traders. Here is a list of these platforms:​

How to Choose a Copy Trading Platform?

Choosing a copy trading platform depends on several essential criteria that influence user experience, fees, security, and potential performance. Here are the main aspects to consider before getting started.

Regulation and Security

It is essential to choose a platform regulated by a recognized financial authority, such as the Canadian Investment Regulatory Organization (CIRO) or other international regulators (FCA, CySEC, ASIC). A regulated platform offers more guarantees in terms of fund protection and transparency.

Available Assets

Some platforms allow you to copy traders on various financial assets, such as forex, stocks, cryptocurrencies, indices or commodities. It is important to choose a solution that offers the assets corresponding to your investment objectives.

Fees and Commissions

Copy trading platforms apply various fees:

• Spread and transaction fees (integrated into trading orders)
• Commissions levied on investor profits
• Monthly subscriptions or service fees Comparing these costs is essential to maximizing investment profitability.

Risk Management Features and Tools

A good platform should offer risk management tools, such as:

• Automatic stop-loss and take-profit orders
• Flexible capital allocation based on the copied trader
• Ability to diversify your portfolio by copying multiple traders at once

Available Trader Experience

Before choosing a trader to copy, it is recommended to analyze their performance history, trading strategy, risk level, and length of activity on the platform. Some platforms provide detailed statistics to help with this selection.

User Experience and Accessibility

An intuitive interface, the availability of a mobile application, as well as responsive customer service options can improve the trading experience. Some platforms also offer a demo account to test their services before investing.

What assets can you trade with copy trading?

Copy trading platforms allow you to invest in a wide range of financial assets. However, the offer varies depending on the platforms and traders available. Here is an overview of the main assets accessible via copy trading:

Comment pratiquer le copy trading avec un broker en ligne ?

Le copy trading avec un broker en ligne suit un processus relativement simple, mais nécessite une bonne compréhension des étapes à suivre pour maximiser ses chances de succès. Voici comment procéder :

Étape 1 : Choisir un broker proposant le copy trading

Tous les brokers ne proposent pas de copy trading. Il est donc essentiel de sélectionner un courtier qui offre cette fonctionnalité et qui est régulé au Canada ou à l’international. Vérifiez également les actifs disponibles, les frais appliqués et les outils de gestion des risques proposés.

Step 2: Open a Trading Account

Once you have chosen a broker, the next step is to open a trading account. This generally involves:

• Identity verification (KYC procedure)
• Choosing the account type (standard, pro, demo account, etc.)
• Depositing funds according to the minimum amount required by the platform

Step 3: Access the Copy Trading Section

After activating the account, you need to go to the section dedicated to copy trading. Depending on the platform, this may be a direct integration or access via a third-party application such as ZuluTrade, DupliTrade, or the MetaTrader signals service.

Step 4: Select a Trader to Copy

Choosing the trader is a key step in copy trading. To select the right profile, it is recommended to analyze the following criteria:

• Performance history (past returns, consistency of gains)
• Trading strategy (short term, long term, scalping, swing trading, etc.)
• Risk level (drawdown, capital management, volatility)
• Number of subscribers and capital under management

Step 5: Define the Allocated Capital

Once the trader is selected, you need to define the amount to allocate to copy trading. Some platforms allow you to adjust:

• The percentage of capital allocated to the trader
• Risk management parameters, such as overall stop-loss or limiting the number of trades copied

Step 6: Activate Copy Trading

Once all parameters are defined, simply activate the copy trading function. From then on, all transactions of the selected trader will be automatically replicated on the investor's account.

Step 7: Monitor and Adjust Your Strategy

Even though copy trading is automated, it is recommended to regularly monitor the performance of the copied trader and adjust your strategy if necessary. It is possible to:

• Stop copying a trader if their performance deteriorates
• Diversify by copying multiple traders to better distribute risk
• Adjust fund allocation settings based on the results obtained

What are the fees of brokers offering copy trading?

Brokers offering copy trading apply various fees that can impact the profitability of investments. These fees vary depending on the platform used, the assets traded, and the compensation method of the copied traders. Here's an overview of the main fees to consider:

Is Copy Trading Suitable for Beginners?

Copy trading is often presented as an ideal solution for beginners looking to invest in the financial markets without in-depth trading knowledge. By automating the reproduction of strategies of experienced traders, it allows novice investors to access the markets with minimal effort. However, this approach also has limitations that are important to know before getting started.

Benefits of Copy Trading for Beginners

• Simplified access to markets: No need to have expertise in technical or fundamental analysis to start investing.
• Progressive learning: By observing the strategies of copied traders, beginners can understand how the markets work and refine their knowledge.
• Automation of decisions: Orders are executed automatically, which avoids stress and human error in decision-making.
• Portfolio diversification: Possibility to copy several traders and strategies to better spread the risks.

Limites et risques du copy trading pour les débutants

• Lack of control: The investor completely delegates their decisions, which can be risky if the copied trader changes their strategy or suffers significant losses.
• Performance not guaranteed: A trader's past results do not necessarily predict their future performance.
• Hidden fees: Some brokers charge high fees that can reduce the profitability of investments.
• Risk of over-confidence: The automated aspect can encourage some investors to underestimate the risks and allocate too much capital without a real management strategy.

What Strategy with Copy Trading?

Copy trading allows you to adopt different strategies based on the investor's profile, financial goals, and desired level of risk. Here's an overview of the main approaches used in copy trading.

Choosing a copy trading strategy depends on the desired level of involvement, risk appetite, and investor goals. A beginner will often prefer a passive approach, while a more experienced investor may opt for active and selective management of their copied traders.

How to become a trader to follow for social trading?

Becoming a trader to follow in social trading means being copied by other investors and potentially generating additional income through commissions or profit sharing offered by some platforms. To achieve this status, it is essential to follow several steps and adopt a professional approach.

A trader being followed must demonstrate consistent performance and rigorous risk management. It is recommended to have a clear strategy (scalping, swing trading, algorithmic trading, etc.), adapted to market conditions and validated over a long period.

The most followed traders are those who display a transparent and verified performance history on a real account. Social trading platforms often highlight key statistics, such as the success rate, drawdown, and overall profitability.

Several platforms allow traders to offer their services as experts:

• ZuluTrade and DupliTrade (focused on automated copy trading)
• eToro (social trading with public profile and accessible statistics)
• MetaTrader (MT4/MT5) Signals (subscription to trading signals)

It is important to check the eligibility criteria, which may include a minimum seniority and a minimum capital in the account.

Investors who follow traders look for performing strategies that are also low risk. An excessive drawdown or an overly aggressive risk-taking approach can deter new subscribers. It is therefore recommended to adopt a prudent capital management and limit leverage.

Being active on social trading platforms and sharing analyses can attract more followers. Some traders provide regular updates on their strategies and interact with their community to build investor confidence.

What is the taxation on income from copy trading in Canada?

In Canada, income generated from copy trading is subject to tax, and its tax treatment depends on the nature of the trading activity. According to the Canada Revenue Agency (CRA), this income may be considered either capital gains or business income, depending on various factors.

Capital Gains vs. Business Income

• Gains en capital : Si le copy trading est pratiqué de manière occasionnelle, avec l'intention d'investir à long terme, les profits réalisés sont généralement considérés comme des gains en capital. Dans ce cas, 50 % du gain est imposable et doit être inclus dans le revenu imposable de l'année. ​
• Revenus d'entreprise : Si le copy trading est exercé de manière fréquente, avec une intention claire de générer un profit à court terme, l'ARC peut considérer cette activité comme une entreprise. Les profits sont alors entièrement imposables en tant que revenus d'entreprise.

Determination Criteria

Several factors are taken into account in determining the nature of income from copy trading, including:​

• Transaction frequency: A high volume of transactions may indicate business activity.
• Asset holding period: Positions held for a short period suggest an intention to profit in the short term.
• Intention at the time of purchase: If the purchase is made with the intention of making a quick profit, it may be considered a business activity.
• Time spent on the activity: A significant time commitment to managing transactions may indicate a business.

Tax Obligations

Canadian taxpayers must report all income from copy trading on their annual tax return, classifying it correctly as either capital gains or business income. Accurate and detailed record-keeping of all transactions is essential for compliant reporting and to justify the tax treatment adopted in the event of verification by the CRA.​

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.