Copy Trading Platforms UK 2023 Reviews
If you’re a passive investor who wishes to enjoy the gains in the stock market without having to spend years analysing and studying market movements, then copy trading is for you. Through copy trading, you can simply copy more experienced traders and make the same gains as them. Based on their years of trading the market, the trader you choose to copy will then determine what assets you buy and sell.
In this guide, we review some of the copy trading platforms in the UK for 2023 and the process of copy trading.
Copy Trading Platforms 2023 List
There are a variety of copy trading platforms that you can use, and each of them has its own USP. Your choice of a copy trading app will depend on your level of experience and your requirements. A detailed review of each platform, enabling you to analyze and choose from the main UK copy trading platforms, has been given below:
- Zulutrade (via Pepperstone)
- MT5 (via Libertex)
UK Copy Trading Platforms Reviewed
When you are trying to choose the right copy trading platform to suit your needs, there are several things you need to consider.
After reviewing several copy trading platforms that are available, we have identified the main platforms, which can be found here.
If you’re searching for acopy trading platform in the UK, eToro accepts United Kingdom sign ups. They have millions of customers, many of whom utilise the eToro copy trading feature, which is one of the most straightforward processes among copy trading platforms.
Another added advantage of eToro is that they have a large social community that regularly shares insights and advice regarding securities to invest in and copy traders to follow.
It is free to open an account with eToro, and once you have done so you will have access to the thousands of traders who have signed up for the copy trading platform. They have a filter system that will allow you to reduce this sample size by narrowing them down through average gains, asset classes, and the average duration for them holding their trades.
Once you have shortlisted a few traders, you can then begin to research them more in-depth. eToro allows you to look at a particular trader’s portfolio to see how they’re doing on each trade, check what their returns have been on a monthly basis, and also shows you the risk appetite of the trader. It provides you with all the information you need to decide whether or not to invest with a particular trader.
Once you have selected a trader that you wish to copy, then it is as simple as selecting the amount and investing. The minimum amount that you need to invest is $200 (approximately £140).
Nevertheless, eToro allows you to invest with no management fees and charges zero commission, which is why it stands out as a copy trading platform in the UK. They also have an education centre that has PDF guides allowing you to better understand their platform and the stock trading market.
eToro allows you to trade on a variety of asset classes, such as stocks, ETFs, cryptocurrencies, forex, indices, and commodities. You will have to pay a 0.5% forex fee if you choose to deposit money into your account in another currency besides GBP, but all asset classes can be traded with no commission. Once you have created your account, you will then have to verify your identity and address.
You can do these by uploading a copy of your passport and your utility bills/bank statements respectively. Once this is done and your account has been verified, you can add money on eToro through a debit card, bank transfer, as well as most online wallets such as PayPal. eToro is registered with the FSCS and is regulated by the FCA, therefore you can rest assured that your money is safe in their hands.
|Stock trading fee||Free|
|Forex trading fee||Spread, 2.1 pips for GBP/USD|
|Crypto trading fee||Spread, 0.75% for Bitcoin|
|Inactivity fee||$10 a month after one year|
79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
2. MT5 via libertex
The MT5 platform is a younger version of MT4 and therefore, it works in a very similar manner. However, instead of offering just forex tools, it also offers tools that you can use in order to trade CFDs too. However, it still does offer support for EA’s and a wide variety of technical indicators that are used by traders, and it contains several advanced charting tools.
However, MT5 offers a copy trading feature too, in addition to their EA’s. This feature is called mirror trading, and how it works is that you can browse through the traders on the platform, look into their trading style and pattern, and then elect to copy their ongoing trades. There is, however, a monthly subscription fee for this that MT5 charges in exchange for giving you access to the trader’s trading history on an ongoing basis.
Just like MT4, MT5 is also just a trading platform and not a broker, and you will therefore have to find another broker that is compatible with the MT5 software. One of the main MT5 brokers that we have found is the CFD broker Libertex. It allows you to trade commission-free on most CFDs.
if you wish to trade other asset classes, then the commission is usually below 0.1%. You can deposit as little as $100, and this can be done through either your credit/debit card, a bank transfer, or any e-wallet.
|Stock trading fee||Commission. 0.034% for Amazon.|
|Forex trading fee||Commission. 0.008% for GBP/USD.|
|Crypto trading fee||Commission. 1.23% for Bitcoin.|
|Inactivity fee||$5 a month after 180 days|
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 74% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
Avatrade is a broker that is compatible with a variety of trading platforms and allows you to trade on several financial markets on a commission-free basis. They have very light spreads on the major forex pairs such as USD/GBP and EUR/GBP as well as the principal commodities such as gold.
Once you have created and verified your account, the minimum deposit that you need is £500. After that, you need to select a trading platform, find a trader to copy, and then sit back. Your chosen trader will then buy and sell assets, and the profits of this trading will be reflected in your own account.
The main trading platform to use with Avatrade is ZuluTrade. It is quite similar to eToro and is very suitable for newbies. The process is also quite similar, as you have to choose a trader to copy from a selected list of traders. They provide a host of information that will assist you in selecting the trader whose trading patterns match your financial goals. There are more than 10,000 copy traders to choose from.
The major drawback of using Avatrade through ZuluTrade is that it is not a regulated trading platform, so your capital might be at some risk.
ZuluTrade also has a profit-based commission that you have to pay, which means that in case you suffer a loss, you will not have to pay any fees. Excluding certain mitigating circumstances, this is generally 20% of the profits earned. For example, if you invest £1,000 and make 10% on your investment, that would be a profit of £100. 20% of this would be £20, and therefore you would have net gains of £80.
|CFD trading fee||Variable spread|
|Forex trading fee||Spread. 0.9 pips for EUR/USD|
|Crypto trading fee||Commission. 0.25% (over-market) for Bitcoin/USD|
|Inactivity fee||$50 per quarter after three months of inactivity|
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IG Markets offers perhaps the widest choice of financial instruments that you can trade on. With other 16,000 shares from companies across different countries and sectors combined with commodities, currencies, indices, and cryptocurrencies, they offer the opportunity to invest in assets worldwide.
Their copy trading service works in much the same way as eToro, wherein you can create an account, deposit money through your credit/debit card or bank transfer, and then you are presented with a list of traders that you can copy.
After researching the traders, you can then select the one that matches your needs, and begin trading. The minimum investment required on IG Traders is £250. They also allow you to set up a demo account and see how you would perform with a particular strategy or trader without investing real money. They have minimum commissions on most asset classes, and the IG platform is compatible with MT4 as well.
|Stock trading fee||Commission. 2 cents per share for US stocks, 0.10% for UK and EU stocks.|
|Forex trading fee||Spread. 1.4 pips for GBP/USD.|
|Crypto trading fee||Spread. 36 pips for Bitcoin.|
|Inactivity fee||£12 a month after 24 months.|
Copy Trading Platforms Comparison
A table showing the available assets and fee structure for each of the platforms discussed above has been given here for ease of reference:
|Asset Classes||Stocks, Cryptocurrency, Forex, Commodities, Indices||CFDs, Forex, Commodities||CFDs, Forex, Commodities, Cryptocurrency||Stocks, Cryptocurrency, Forex, Commodities, Indices|
|Fee for trading Amazon||Commission, 0.034%||Variable Spread||0.6 pips|
|Fee for trading USD/GBP||Spread, 2.1 pips||Commission, 0.008%||Spread, 0.9 pips||0.6 pips|
|Fee for trading BTC||Spread, 0.75%||Commission, 1.23%||Commission, 0.25%||Commission, 2.58%|
What is Copy Trading
Copy trading is exactly what its name suggests: it is a mechanism that allows you to copy another trader. For example, if the trader you are copying decides to buy stocks such as Facebook shares, your portfolio will buy Facebook shares too. The amounts will differ in direct proportion too.
Basically, copy trading is a way for you to actively trade without being an active trader because you outsource research, market analysis, and placing orders to another trader, and enjoy all the profits from their analysis. This is done in the same proportion as the trader’s portfolio. For example, suppose you invest $2000 in a copy trading platform with a trader.
If that particular trader invests 10% of their portfolio going long on Facebook, the same proportion will be applied to your account. Hence, you will spend $200 going long on Facebook. If there is a 20% gain on this trade, you will have gains of 20%*200 = $40.
What Assets Can You Use for Copy Trading
Since copy trading is literally just copying another trader’s trades, there is no restriction on the assets that you can use for copy trading. Whatever assets are available at your copy trading platforms can be used for this purpose. Most copy trading platforms allow you to trade forex, whereas most have stock and crypto options too.
Forex Copy Trading
Most people who wish to trade forex do so through the MT4 and MT5 platforms, and therefore it stands to reason that forex copy trading also happens through these platforms. Through the use of MT4 or MT5 platforms, you can either get an EA, a bot or simply copy trade any trader that you think is proficient at what they do and matches your criteria.
Stock Copy Trading
Very few platforms allow you to trade actual stocks through copy trading, and eToro is among them. Most other platforms such as Avatrade just offer stock CFDs. Stocks copy trading works the same way as any other copy trading, and the commissions are generally lower because of the high level of liquidity.
Crypto Copy Trading
Crypto copy trading is less common, and only more frequently found on platforms such as eToro. This is usually associated with the highest margins or commissions due to there being fewer such platforms, increasing regulatory requirements, and lower levels of liquidity.
Crypto Trading Systems
Reading our reviews above of the different kinds of platforms where you can copy trade, you may have noticed that there are several different ways to go about the process. A brief description of each of the different copy trading systems has been given below.
All-in-one Copy Trading Brokers
The biggest and only true “all-in-one” trading broker is eToro, which allows you to buy, sell, and trade assets, all without commission. It is a broker as well as a trading platform, therefore you do not need to combine it with anything and can use it as is. All you need to do is simply set up your account, select a trader, and begin trading. Other copy trading platforms often only provide the platform and require you to combine them with another broker, such as MT4 and MT5 which are only platforms.
Robots and Algorithmic Software
Another way of copy trading is not to copy trade a person, but instead, use a bot or an EA designed by a trader in order to execute your trades. There are several types of such algorithmic copy trading software that have been discussed above in detail. Basically, here a bot is given control of your portfolio and is allowed to trade on your behalf under certain constraints.
This is a much more moderate method of copy trading and one that is not so frequently used except by very experienced traders. In this system, if a trader spots an opportunity, they will then indicate that there is this opportunity to other traders on a group, usually online or on Telegram. The other traders will then analyse this to see if it is an opportunity, and then they have the choice to either trade or not trade.
A similar form can also be set up in trading platforms, where the platform itself will notify you whenever a certain combination of conditions has reached. Then, you can analyse this to see whether or not you wish to trade on this signal.
UK Traders to Copy
There are thousands of traders that you can choose from in order to copy on the eToro platform, however since you are risking your money, it is important for the trader you choose to be experienced and have a track record of profitability you’re satisfied with.
Jay Edward Smith
One of the most copied traders on eToro, Jay Edward Smith has among the highest average returns on the platform. HIs 2021 returns are close to 20.77%. He has an AUM of over $5 million, and over 28,000 people are copying him as of now.
While you can begin copying him with as little as $500 and withdraw your money at any point in time, he suggests that you invest at least $2,000 and keep it in for 2 years or more in order to get the optimal returns on your investment. He invests in a combination of stocks, commodities, cryptocurrencies, and indices, however, his primary focus is on stocks. He’s known for not using a lot of leverage and trading with a combination of technical, fundamental, and sentimental analysis.
Olivier Jean Andre Denvel
One of the most popular forex traders on eToro, Olivier has his portfolio made up almost entirely of currencies.
Since the returns on forex trading are not very high, he aims for a profit of 1% every month, which would give an annual 12.6% return. With close to 8,000 copiers and more than $5 million in AUM, Olivier has a very low-risk rating, which means he is a risk-averse trader. His minimum copy suggestion is $500, and he suggests holding it for at least a year so that you can get optimal gains.
With over 21,000 copiers and a return of 18.37% in 2021 so far, Heloise mainly dabbles in stocks, with them making up 98.29% of her portfolio. The rest is divided between ETFs, indices, commodities, and cryptocurrencies. She has a very specific niche, and she mainly only trades pharma and tech stocks. Due to her specialised knowledge, she is able to employ advanced technical analysis to reduce risk in the market. Her minimum copy-trade suggested amount is $1,000, and she managed over $5 million in AUM.
How to Copy Trade
To begin copytrading is a simple process:
Step 1: Create an account
Sign up for a free account with a copy trading platform UK investors are accepted at.
At a regulated broker, you will need to enter your information and your contact details.
You will also have to provide your ID and address proof. For your ID proof, you can use any form of government-issued ID. For address proof, you will need to either upload your utility bill or a bank statement.
Step 2: Deposit funds
The next step is to deposit funds which you can add through your debit/credit card, bank transfer, or any e-wallets. Other than a bank transfer, both the other means will ensure that the funds are visible in your bank account immediately. The minimum investment per copy trader is $200.
Step 3: Select a trader
The next step for you is to select a trader that you wish to copy. Click on the “Copy People” button, and begin filtering based on your requirements. For example, you could choose to only look at people who trade cryptocurrencies or have a minimum gain of 8% p.a. in the past 5 years. There are thousands of traders to choose from, and by clicking on any trader you can get more insights into how their trading history and pattern.
Step 4: Invest
The last step once you have identified the trader(s) that you wish to copy, is to simply invest. By clicking on the invest button, you can decide what amount you wish to invest with them, and then sit back and enjoy your gains.
This guide has reviewed the main copy trading platforms UK traders are accepted at, from those that just provide a platform to those who are also brokers. They have been judged on the basis of the asset classes they offer, the fees they charge, and the number of traders they offer.
Many are FCA regulated with over 20 million users, which offers you a lot of trader options to copy. They have a simple deposit and withdrawal process, alongside a helpful community and educational guides.