Best copy trading platforms in Canada For 2024
- Standard, raw and demo accounts available
- Competitive spreads [Spreads close to zero on major currency pairs].
- Registered with several regulatory authorities, including the ASIC, FCA,...
- 24/5 support via live chat, e-mail and phone
- Standard and demo accounts available [Free for 14 days].
- Competitive spreads
- Support available 24/5 via live chat, email and phone
- Registered with IIROC
- Difficult for beginners to afford
- Standard accounts available
- Educational resources included
- Earn up to 5% in cash bonuses
- IIROC registered and CIPF covered
- Reputable customer support, available by phone and email
- Standard and demo accounts available
- Competitive spreads .
- Registered with several regulators
- 24/5 support via live chat, e-mail and phone
- Low commission
- Educational resources included
- IIROC registered and CIPF covered
- Chat, phone and email support available weekdays
- Minimum deposit: 1000$
Are you new to the world of trading and want to learn as you make money? Or maybe you want a passive way to invest? If so, copy trading is definitely an option to consider. With little knowledge required to start and a realistic expectation of 5% to 20% in annual returns, copy trading is perfect for beginners.
But how does copy trading work and what are the best copy trading platforms? And most importantly, how risky is copy trading?
You can find that out in this guide that will show you how copy trading works, the best copy trading brokers and how to start copy trading safely.
Copy Trading in Canada: 5 key takeaways
- Copy trading is an investment strategy that involves copying the trades of other traders.
- Copy trading is advised if you are new to trading.
- To get started, you must join a platform that supports copy trading.
- FXPro CopyTrade is the best copy trading platform for forex.
- Binance is the best option for crypto copy trading.
Top 2 best copy trading platforms in Canada
Binance: the copy trading platform for crypto
Binance is the world's largest cryptocurrency exchange platform. Binance Coins are the native asset on Binance Chain, a blockchain software system developed by the company and its community. Although Binance is a prominent cryptocurrency trading platform in Canada and allows users to trade crypto in over 180 countries., it is unavailable for Ontario-based investors due to regulatory issues.
Binance offers copy trading but, it's not directly available on its platform. Investors can use third-party systems like Diabolo or WunderTrading to copy the best traders of cryptocurrencies for free. By partnering with these services, Binance aims to make it easier for its investors to benefit from the expertise of successful traders.
Binance pros
- Solid reputation
- Competitive fees
- 150+ cryptocurrencies available
- Safe and secure integrated wallet
- Software accessible on multiple devices including internet and mobile
- Various payment options
Binance cons
- Fees on credit card payments
- Copy trading only available through third-party
- A centralized exchange platform
- Unavailable in Ontario
FXPro CopyTrade: the forex copy trading platform
FXPro CopyTrade is one of the best copy trading platforms in Canada available for those interested in copy forex trading. Operated by a team of professional Forex traders, FXPro CopyTrade provides a fully automated web-based trade copying system that is perfect for inexperienced traders or those who do not have the time to devote to trading. With FXPro CopyTrade, you can easily monitor trades, adjust your lot sizes, and benefit from a comprehensive suite of forex trading tools.
The FXPro CopyTrade platform offers consistent and reliable trades, making it an ideal choice for those seeking a hassle-free trading experience. The trade copier system handles every aspect of trading, from opening and closing positions to managing stop loss (SL) and take profit (TP) levels. By using FXPro CopyTrade, traders can benefit from the expertise of professional Forex traders without having to develop their own trading strategies. Whether you are a novice or an experienced trader, FXPro CopyTrade is a one-stop shop for all your copy trading needs.
FXPro CopyTrade pros
- Easy to use
- Educational resources for beginners
- 100% automatic after setup
- Experienced forex traders
- Simple subscriptions - no hidden fees
FXPro CopyTrade cons
- No free trial
- Limited number of traders to copy
- Only for forex
What is copy trading?
Copy trading is an investment strategy that involves copying the trades of other traders. Those who copy are known as copy traders. It has gained significant popularity in recent years, particularly in the forex and crypto markets. Forex copy trading involves copying the trades of professional traders who have a proven track record of success. Crypto copy trading is similar but involves copying the trades of successful crypto traders.
To participate in copy trading, traders can use a copy trading platform. These platforms connect traders with successful copy traders, allowing them to copy their trades automatically. The best copy trading platforms provide a range of features, such as risk management tools, advanced analytics, and social trading functionality.
Copy trading is particularly appreciated by people who are new to investing as they can start copy trading without prior experience or knowledge. Thus, novice traders will benefit from the expertise of professional traders while also gaining valuable trading experience.
Good to know
Copy trading is not offered on all trading platforms, so make sure you inform yourself if you plan on copy trading.
If you haven’t chosen a broker yet, use the free comparison tool below to shop around for the one that best suits your needs:
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How does copy trading work?
Copy trading operates through software that automatically triggers all the trades from one trader's portfolio to open in another trader's portfolio in real time. The process has two types of traders: the expert trader and the copy trader.
- The expert trader is the one whose portfolio is being copied. Typically, this is a professional trader or someone with a proven track record of high-performance trades.
- The copy trader is the one who wants to replicate the expert trader's strategies. Usually, copy traders are beginner investors, but experienced traders also copy trade to diversify their portfolios.
Whenever the expert trader places a buy or sell order or sets an automatic order, the same order is automatically executed from the follower's portfolio without the need for any personal intervention.
Although copy trading works automatically, it does not necessarily copy the same amounts as the expert trader. Instead, copy trading software copies proportional amounts, depending on the total capital available on both accounts.
How to start copy trading?
To start copy trading in Canada, it's crucial to first join a trading platform that supports this feature. Although copy trading is increasingly popular, not all trading platforms offer it. Here are the steps you need to follow to get started:
- Choose a copy trading platform that meets your needs and expectations. Keep in mind that not all trading platforms offer the same copy trading experience.
- Open a trading account. You may want to start with a demo account if you're not comfortable starting with a full account. Additionally, you'll need to meet the minimum initial deposit requirement, which varies by platform.
- Select one or more traders to follow. This step requires you to sift through the various traders on the platform. Take your time during this process and conduct research on the traders' performance, number of followers, risk score, and assets.
- Establish your copy trading strategy. Regardless of the strategy you choose, such as using signals, mirror trading, or copy trading, it's important to configure your account to meet your specific requirements.
For example
Here’s how to start copy trading, using FXPro CopyTrade as an example.
- Set up an account with an online broker that supports forex copy trading.
- Select the signals you wish to follow from the offered list. You can review their past performance before deciding.
- Enter payment details for the monthly subscription fee.
- Connect to the trade copier software where you can analyze and invest in follower trading accounts with set lists of signals followed.
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What are the best copy trading brokers?
Although copy trading is a legitimate practice in Canada, it can be challenging for beginners to determine which copy trading platform is most suitable for them.
When selecting a copy trading platform, it's important to consider the following factors:
- Availability in your region
- Robustness of trading and investment services offered
- Availability of the financial instruments you wish to trade
- Compatibility with different software (such as MT4 or MT5)
Whether you are looking to copy trade forex, curious about a specific platform, or simply looking for the best copy trading platform overall, it's important to recognize that there is no single platform that is perfect for everyone.
How much can you make copy trading?
It's important to understand that in copy trading, your performance will correspond to the performance of the trader or traders that you are following. The best traders can perform anywhere from 10% to 300%, but the average is around 5 to 20% annually.
Performance is always dependent on market conditions, though, and it's often wise to compare a trader's performance to a benchmark index. This will allow you to assess their performance across different periods, including both bear and bull markets. Remember the best forex copy trade service should facilitate analyses of their expert traders.
Keep in mind that copy trading is never free. You will have to pay your normal brokerage fees, in the form of spread or commission, but these fees apply regardless of copy trading. Copier signals also carry fees that may be applied in the form of a commission on each transaction or in the form of a subscription.
What is the difference between copy trading and social trading?
Copy trading and social trading share many similarities, but the devil is always in the details.
Copy trading involves identifying and copying a more experienced investor, enabling you to automate your trades and avoid the need to monitor your portfolio constantly. However, if the trader you are copying incurs losses, you will also experience losses.
On the other hand, social trading is a more comprehensive strategy that incorporates social media platforms like Discord and uses notifications that highlight the trades of other traders. Unlike copy trading, social trading is less automated. Instead of copying one singular trader and automating your traders — traders work together to pool their knowledge and share their tips with each other through social media platforms. Rather than relying on single traders and automating your trades, social trading involves a collaborative approach where traders come together to share their knowledge and tips with each other through various social media platforms.
Expert advice
Whether you opt for social trading or copy trading, both methods are legal in Canada and offer excellent opportunities for novices to learn how to trade or for professional traders to acquire new trading strategies.
What other types of trading are there?
When it comes to trading, there are various strategies you can adopt. Some prefer short-term day trading on a platform, while others opt for longer-term strategies such as investing in robo-advisors or index funds.
If you're interested in copying other traders, here are some trading options to consider:
- Trading signals: Receive notifications on stocks, bonds, crypto, and other financial instruments that you want to trade with. Notifications can be sent to your phone, email, or message board.
- Copy trading: Automate your trades by finding an experienced trader or traders to follow. This option is great for beginners.
- Mirror trading: Similar to copy trading, mirror trading involves mirroring the trades of experienced traders move for move.
- Social trading: Share strategies, knowledge, and trading activity with others in a community-based platform.
Have a look at the best brokers in Canada to start trading today:
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