Best Copy Trading Platforms in Canada

Copy trading allows individuals or groups of individuals to follow a financial trader and track their investment performance. It is currently one of the most accessible ways to participate in strategic trading without extensive financial knowledge. Copy trading can be compared to investing in actively managed ETFs or Mutual Funds, but an outside trader determines them instead of a financial team managing investment decisions.

Copy trading is straightforward, but you must also understand how to start and maintain your copy trading strategies. It may require some research because you must find a suitable trader to follow, find an appropriate copy trading platform, connect to your broker, and monitor your positions. A more thorough breakdown of how copy trading works is as follows:

• 1. Choose a Trader to Follow - This is the crucial step in copy trading. Your trader will define your portfolio performance, so you must ensure that the trader’s risk management aligns with your risk profile. It is also important to look at the assets traded. The less liquid the financial asset traded, the less likely your trading broker will be able to execute the trade. You may deviate from the original trading strategy if one of the trades cannot be executed.
• 2. Find a Suitable Copy Trading Platform - Your copy trading platform should be able to execute all trades of the trader you choose to follow. Most copy trading platforms allow you to connect to your broker, which may help bring all the necessary trading resources.
• 3. Allocate Investment Amount - Copy trading possesses unique risks and should not be used as the only way of investing. You should consider how much you want to invest through copy trading. Most copy trading platforms allow you to easily adjust the amount you use for your copy trading strategies.
• 4. Set Up Copy Trading Strategy - Once you have a strategy to follow, you can set up your trading strategy on your trading platform. Depending on the complexity of your strategy, you may need to learn some basic coding, but most copy trading platforms offer a simplified experience for setting copy trading strategies.
• 5. Monitor Your Trades - Depending on your philosophy, you may monitor your trades personally or set up risk management systems to protect your investment from unexpected losses. Most trading platforms have certain risk management tools, such as a stop-loss order. These tools allow you to avoid large losses without personally monitoring your trading.

Most platforms do not charge fees for following copy trading strategies, but the usual fees still apply. The number of trades that happen on your account will determine how much you will have to pay in fees. When you hold ETFs or Mutual Funds, the trades also happen within the security, and the fees are subtracted from the dividends or capital gains. The more passive your trading strategy, the less you spend on trading fees.

Most copy trading platforms offer other services built on the trading platform software. Some software has native support for copy trading, while others may not offer it. If a trading platform does not support copy trading software, it may be difficult to use that platform for copy trading strategies. The following platforms support copy trading and are widely offered among the brokers:

MetaTrader has multiple versions of platforms for trading forex, stocks, and futures. It also has an extensive set of tools for copy trading, providing over 3,200 free and commercial signal providers (lead traders) to copy. MetaTrader’s UI is simple to understand for beginners and allows an easy search and sorting functionality for the signals. It also allows you to be a part of the community and share your own signals with other traders.

ZuluTrade provides a platform for copy trading and a large community of social traders. Social traders follow a similar strategy that has been discussed and agreed upon by the involved traders. ZuluTrade’s copy trading leaders offer automatic solutions that include global securities. The platform is designed to be beginner-friendly and has all the features required by an experienced trader.

DupliTrade offers copy trading and mirror trading tools. Mirror trading is similar to copy trading but is based on a predefined strategy shared among traders rather than the distribution of trading signals. Mirror trading is often more complex because it requires an understanding of the trading algorithm if you are developing a strategy, but it can also be easily set up if you are setting up a readily available trading strategy.

Myfxbook is a platform that provides many research, community, and trading tools. This platform mostly focuses on forex exchange and fx-related tools, but they have a large community and uniquely integrated tools, including economic calendars, news, and recent topic engagements.