HERE IS A LIST OF FOREX AND CFD PLATFORMS THAT SUPPORT COPY TRADING
Best Copy Trading Platforms
Many people are drawn to forex trading for the chance to make big profits. But for those new to investing, figuring out how it all works can be confusing. This is where copy trading becomes a goldmine. Copy trading lets you follow the trades of successful investors on a platform. Basically, you copy their moves so you can potentially make money just like them. However, selecting the right broker for copy trading can also be a challenge.
In this guide, we'll look at some of the best copy trading platforms (brokers) in South Africa. We'll explain how it works on each platform, what you can trade, and which features are most important. This way, you can easily find the right broker for your own specific needs.
How Does Copy Trading Work?
Copy trading lets you automatically copy the trades of experienced traders. It’s like following their lead in the market. Basically, you choose a trader based on their past performance, how much risk they take, and their trading style. Their trades are then mirrored in your account and adjusted to your available funds. This is a great way for beginners to get started in forex trading. It is also a great tool for people lacking the time to analyse the market themselves. Both these parties can benefit from the expertise of others without needing to spend time analysing the market themselves.
Ready to find a copy trading broker in South Africa? Let's then take a look at some of the best copy-trading brokers available for South African traders.
Best Copy Trading Platforms in South Africa
HFM
HF Markets offers copy trading through its program, HFCopy. Regardless of your skill level, HFCopy allows you to follow the trades of successful investors on the HF Markets site. Getting started is easy. Traders can apply for an HFCopy account through a link on the website or the Client myHF area. HFcopy allows investors to participate as either followers or strategy providers. As a Follower, a trader can benefit from the experience of others by copying the trades of successful Strategy Providers. This eliminates the need for in-depth market knowledge. Alternatively, Strategy Providers can potentially earn money if others choose to follow their trades.
Notably, HFM allows its traders to access a wide variety of market products. With this broker, clients can trade CFDs on forex currency pairs, indices, stocks, metals, energies, commodities, bonds, ETFs, and cryptocurrencies. There are three main trading platforms that traders can use when investing which include MetaTrader 4, MetaTrader 5, and HFM Platform.
The spreads on HFM depend on the account a trader is on. They start from as low as 1.2 pips on the premium and the cent accounts. On the top-up bonus account, they start from 1.4 pips. On the other hand, the pro account features a spread that starts from 0.5 pips for major currency pairs. Further, the pro-plus account has spreads from 0.2 pips* on major currency pairs. All these five accounts do not charge commissions on forex trading. Meanwhile, the zero account allows traders to trade with spreads from as low as 0.0 pips plus a commission as low as $0.03 per 1k lot.
Finally, let’s see how this broker is regulated. It operates under the supervision of the FSCA in South Africa, the CMA in Kenya, the FSC in Belize, and the FCA in the UK, among others.
Exness
Exness is a well-established broker in South Africa that allows copy trading via the Exness Trade app. This process involves an investor copying the strategy of a Strategy Provider, adjusted by a copying coefficient. There are two scenarios in this process. First, a trader can start copying a strategy with no open trades.
When the copying begins, the system calculates a copying coefficient, and any new trades opened by the strategy provider are immediately copied to the investor’s account at the same opening price. The second scenario is when the strategy already has open trades. When copying begins, the system calculates a different copying coefficient, accounting for the spread cost of the strategy provider’s open trades.
Exness provides two specialised accounts for copy trading which include the Social Standard and the Social Pro accounts. The Social Standard account requires a minimum deposit of $500 and offers spreads starting at 1.0 pips with no commission. In comparison, the Social Pro account requires a minimum deposit of $2,000 but offers tighter spreads starting from 0.6 pips, also with no commission fees. Both accounts support trading in forex, metals, and cryptocurrencies only.
Now let’s see how this broker is regulated. Exness operates under the supervision of the FSCA in South Africa, the CMA in Kenya, and the FCA in the UK, among others.
Peppestone
Pepperstone is another reputable broker that offers copy trading services to South African traders through three different platforms. These include MetaTrader Signals, DupliTrade, and Signal Start. MetaTrader Signals allows traders to access thousands of real-time trading signals from expert traders. Additionally, traders can use DupliTrade and benefit from the expertise of seasoned professional traders. Pepperstone has also partnered with Signal Start, a user-friendly platform that allows traders to easily replicate trades from various signal providers with just a few clicks. To utilise these copy trading programs, traders need to have an MT4 or MT5 Pepperstone account.
Beyond copy trading, Pepperstone offers a vast selection of over 1,200 tradable instruments. South African investors can trade CFDs on a wide range of markets, including forex, stocks, commodities, cryptocurrencies, ETFs, and indices. When it comes to trading costs, Pepperstone is within market standards. Spreads start from a low 1.0 pip on their standard account with no commission required. However, the Razor account offers spreads from 0.0 pips but charges a commission. This commission is $3.5 per side per lot on most platforms (MetaTrader, TradingView, and Pepperstone Trading Platform), with a slightly lower $3 commission on cTrader.
Similar to the other brokers on this list, Pepperstone holds regulatory licenses from a variety of organisations. These include the FSCA, the CMA, the FCA, and the ASIC, among others.
XM.com
XM.com is a reputable broker in South Africa that lets traders copy the moves of other traders on its site. As such, there is no need to spend hours glued to charts. A trader can simply copy the trades of successful investors whose approach aligns with their preferences. With a vast client base exceeding 10 million, XM offers a wealth of strategies to follow.
The best part? You can copy trades from anywhere, whether you're using their web platform or mobile apps. Positively, Strategy Providers on XM.com can earn up to 50% in profit share for sharing their strategies. To participate in copy trading, a trader simply signs up as an investor or a Strategy Provider after creating an account on XM.com.
XM.com offers a wide selection of over 1,000 tradable instruments. This includes CFDs on popular markets like forex, indices, stocks, cryptocurrencies, energies, and precious metals. When it comes to trading costs, XM keeps things competitive. Spreads start from as low as 1.0 pip on their standard and mini accounts. But if you're looking for even tighter spreads, the XM Ultra Low account offers them from just 0.6 pips, with no commission fees.
Finally, the regulatory status of this broker is in good standing. XM.com operates under the oversight of the FSC in Belize, the FCA, the CySEC, and the ASIC.
FP Markets
FP Markets offers copy trading with a twist. On this broker site, traders get more control over the trades they copy. It allows you to find, follow, and automatically copy successful traders through MetaTrader 4 and MetaTrader 5. You can leverage the built-in copy trading features within MT4 and MT5 to automatically replicate the moves of other traders on the platform.
Alternatively, investors can use Signal Start which provides a one-stop turnkey solution for both signal providers and followers. However, to access Signal Start's basic features, there's a $25 monthly subscription fee. This includes a list of professional signal providers with a breakdown of their percentage gain, drawdown, and profits. On top of the platform fee, each signal provider sets their own monthly subscription fee, typically ranging from $30 to $100. This allows you to choose a signal provider that aligns with your budget and trading goals.
FP Markets offers a vast selection of over 10,000 tradable instruments. It gives traders the flexibility to invest in a wide range of markets, including forex, indices, stocks, metals, cryptocurrencies, ETFs, commodities, and even bonds. Spreads start from a low 1.0 pip on the broker’s standard account with no commission. For tighter pricing, the Raw account offers spreads starting at 0.0 pips but charges a commission fee of $3 per side per lot.
Regulatory oversight is important when trading. FP Markets is regulated by several reputable authorities, including the FSCA, the ASIC, and the CySEC. This ensures they operate under strict financial guidelines to protect investments.
Skilling
Skilling holds regulatory licenses from the FSA in Seychelles alongside the CySEC in Cyprus. For copy trading, this broker has one of the biggest social trading communities among forex brokers. They offer over 400 different trading strategies. With Skilling Copy, traders can automatically copy trades and strategies based on performance statistics. Traders can easily see how the past trades of strategy providers performed and pick a strategy that fits their style.
Interestingly, copy trading is available on the Skilling cTrader web application. This system uses the equity-to-equity model, where the size of copied trades is based on the ratio of the provider's equity to the follower's equity. For example, if a trader has $1,000 and the provider has $10,000, the copied trade will be 1/10th of the provider’s trade.
Skilling lets investors trade a wide variety of instruments to diversify their portfolios. In total, the broker avails more than 1,200 different assets including CFDs in forex, shares, commodities, indices, and cryptocurrencies. Spreads start from 1.0 pips on the standard account and from 0.1 pips on the premium account. The premium account, however, charges a commission starting at $30 per million traded.
FXTM
Trading Forex and CFDs entail risk.
Your capital is at risk.
FXTM is a regulated broker in multiple jurisdictions. It is regulated by the FSCA in South Africa and the CMA in Kenya. Additionally, it is regulated by the FCA in the UK and by the CySEC in Cyprus. While regulations alone are never enough, they are a good sign on a broker site.
FXTM (Forextime) offers South African traders copy trading without requiring a specialised trading platform. Only strategy managers need to use the Advantage Plus MT4 account to invest and provide strategies. Traders can start copy trading with FXTM by creating an FXTM Invest account and depositing at least $100. Although the broker accepts a minimum deposit of $10, at least $100 is needed to participate in the FXTM Invest program. Traders can choose which strategy manager to copy based on their track record, strategies, and risk level.
Additionally, FXTM offers a wide range of market products with ECN execution and low spreads. Traders can find a wide variety of products including forex, metals, commodities, indices, forex indices, stocks, stock baskets, and stock CFDs. On FXTM, the Micro and Advantage Plus accounts have spreads starting from 1.5 pips with no commissions. In comparison, the Advantage account offers spreads from 0.0 pips, with commissions based on trading volumes, averaging between $0.4 and $2.
Advantages of Copy Trading
Whether you're a complete beginner or a seasoned trader, copy trading can be a game-changer. Here's how:
Limitations of Copy Trading
While copy trading offers many benefits, it also has some drawbacks. Let's look at the disadvantages:
The South African forex market is booming with copy trading options, perfect for traders of all experience levels. Copy trading is a fantastic way for beginners to jump into forex. It lets you mimic the trades of seasoned investors, allowing you to learn the ropes and potentially make profits while you do. But remember, it is not a perfect system. Before diving in, be aware of the downsides. You'll be following another trader's decisions, so their success is your success, and their losses are yours too. Choosing the right signal provider is crucial. So do your research.
Ultimately, copy trading is a valuable tool in modern trading. It offers convenience, potential profits, and opportunities for portfolio diversification. As the forex market evolves, so will the landscape of copy trading.