Best copy trading platforms in Canada For 2024

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.

Top 2 best copy trading platforms in Canada

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.

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.

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.

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:

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:

1. 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.
2. 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.
3. 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.
4. 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.

Not sure which broker is right for you?

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.

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:

Contracts for difference (CFDs) are complex instruments. The nature of leverage means that they are high-risk investments with the potential to lose money quickly.

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Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.