Is Copy Trading Legal for 2020

We found 11 online brokers that are appropriate for Trading Copy Brokers.

Is Copy Trading Legal Guide

Is Copy Trading Legal?

There have been many tempting stories coming from the self-proclaimed successful traders who used copy trading as their main strategy when trading on financial markets.

If you have been around trading for a while, there is a chance you have heard about it too.

Is it legal? But before going further, we need to understand what copy trading is.

Defining Copy Trading

Copy trading is the strategy of investing or trading wherein the trader automatically copies the trades activities of other successful traders.

In the copy trading platform, the brokerage usually posts the information about the successful traders so that the users can copy the trading automatically and replicate the success of the users.

The users or traders whose trading is copied is called a signal provider. These users are a part of anonline trading brokerage community.

Actually, copy trading is not a new thing. It has been around since 2005. Back then, the first platform which introduced this strategy was Tradency. However, back then it was still Mirror Trading.

The original copy trading software which automatically runs was developed by the Fintech firm called ZuluTrade. They introduced this copy trading back in 2007. However, the popularity of copy trading rose significantly because of the eToro platform in 2010.

Both ZuluTrade and eToro have been dominating the world with their resilient copy trading offers.

Nowadays, copy trading practices have become more common amongst the sole traders.

The participants of the trading brokerage can view the statistics on other traders and determine the copy by their decision.

As the trader, you will have the freedom to choose which trader strategy you will want to copy.

In common cases, you will be able to see the signal providers statistics and performance in their profile.

The variables to see are the trading history, average ratings, total profits, trades to date, percentage of winning, average profit, best and worst trade, followers number, leaderboard ranking, and so on.

These statistics will help you to decide whether or not to copy the strategies of the brokers.

Is copy trading legal?

Now, lets get down to the meat of the article.

As others might have also been wondering: is it legal?

First things first, lets talk about its legitimacy.

For many traders, copy trading might seem unethical. But some people who want to make the profits might also think that it is too good to be true.

There must be a catch, right? Obviously! If we are talking about the trading opportunity, all financial instruments and strategies should also come with certain risks.

Although you copy from the most successful traders, theres still a chance to lose your money somehow. The profits are not guaranteed. Every unpredictable thing can happen in the financial markets and most of the time we can not avoid it.

If you are questioning about the copy trading legitimacy, you can rest assured that it is legit. But you will want to make sure that you are working with the trustworthy copy trading platforms which have good fee structures and incredible services.

If we are talking about the legality, then YES it is completely legal, although there are restrictions in some countries.

It is also crucial to know that not all online trading brokerages can legally offer copy trading services for their clients.

Beware some trading brokerages operate copy trade platforms without a license.

Make sure that the trading brokerages you choose for copy trading have licenses which are regulated by your government or a major European country like the UK or Germany.

There are some regulatory authorities which can authorize the copy trading brokerages such as FCA, CySEC, SEC, CFTC, and so on.

Each country might have different regulatory authorities. The reason why you must see their licenses is to protect you from getting scammed or frauded.

The regulatory authorities which we mentioned above are highly reputable. They will not let the self-proclaimed brokerages slide easily if there is any violation or mishap.

So, it does not hurt to seek the licensed brokerage for copy trading which has the licenses issued by these authorities.

Copy Trading Perks

Copy trading has an enormous number of perks. The copy trading is a simple system for the traders with less to zero experience.

If you have just started, copy trading can be one of the best choices for you to make good money from trading.

Instead of learning how to trade and spend hours for it, you could select the signal provider and copy their successful trading strategy. You can sit back after copying the trading.

It is also a great way to make passive income. The signal provider will help you to grow your capital. And the best of it, you do not even need to put a lot of effort in it.

Do understand that as with any investment you may lose money as well as profit. Educate yourself and be aware of the risks.

We've collected thousands of datapoints and written a guide to help you find the best Is Copy Trading Legal for you. We hope this guide helps you find a reputable broker that matches what you need. We list the what we think are the best Copy Trading Brokers below. You can go straight to the broker list here.

Reputable Is Copy Trading Legal Checklist

There are a number of important factors to consider when picking an online Copy Trading Brokers trading brokerage.

Our team have listed brokers that match your criteria for you below. All brokerage data has been summarised into a comparison table. Scroll down.

Our brokerage comparison table below allows you to compare the below features for brokers offering Copy Trading Brokers.

We compare these features to make it easier for you to make a more informed choice.

Top 15 Copy Trading Brokers of 2020 compared

Here are the top Copy Trading Brokers.

Compare Copy Trading Brokers min deposits, regulation, headquarters, benefits, funding methods and fees side by side.

All brokers below are Copy Trading Brokers. Learn more about what they offer below.

You can scroll left and right on the comparison table below to see more Copy Trading Brokers that accept Copy Trading Brokers clients

Broker eToro IC Markets Pepperstone FXPrimus AvaTrade Axitrader Swissquote forexmart phoenixmarkets ezinvest ETX Capital
Rating
Regulation Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC) Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217 Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID) Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI) Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA) Financial Conduct Authority (FCA) Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC) Cyprus Securities and Exchange Commission (CySEC) Financial Conduct Authority (FCA)
Min Deposit 200 200 200 100 250 No minimum deposit 1000 1 500 500 100
Funding
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
  • Bank transfer
  • Credit Card
  • Paypal
Used By 12,000,000+ 60,000+ 10,000+ 10,000+ 200,000+ 10,000+ 300,000+ 10,000+ 10,000+ 10,000+ 10,000+
Benefits
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Allows scalping
  • Allows hedging
  • Allows scalping
  • Allows hedging
  • Offers STP
  • Low min deposit
  • Offers Negative Balance Protection
  • Allows scalping
  • Offers STP
  • Allows scalping
  • Offers STP
  • Allows hedging
  • Low min deposit
  • Guaranteed stop loss
Accounts
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Zero spread account
  • Raw Spread account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Managed account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Mini account
  • Standard account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Standard account
  • ECN account
  • Islamic account
  • Demo account
  • Micro account
  • Mini account
  • Standard account
Spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
  • fixed spreads
  • variable spreads
Platforms Web Trader, Tablet & Mobile apps MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps MT4,WEB,desktop MT4,mac,Android.iPhone/iPad MT4,mac,Android.iPhone/iPad MT4, Mac, Mirror Trader, Binary, Tablet & Mobile apps
Support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
  • Live chat
  • Phone support
  • Email support
Learn More Sign Up with
etoro
Sign Up with
icmarkets
Sign Up with
pepperstone
Sign Up with
fxprimus
Sign Up with
avatrade
Sign Up with
axitrader
Sign Up with
swissquote
Sign Up with
forexmart
Sign Up with
phoenixmarkets
Sign Up with
ezinvest
Sign Up with
etxcapital
Risk Warning 75% of retail investor accounts lose money when trading CFDs with this provider. Losses can exceed deposits CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% 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 Losses can exceed deposits 79% of retail investor accounts lose money when trading CFDs with this provider Losses can exceed deposits Losses can exceed deposits Your capital is at risk Your capital is at risk Your capital is at risk Losses can exceed deposits
Demo eToro
Demo
IC Markets
Demo
Pepperstone
Demo
FXPrimus
Demo
AvaTrade
Demo
Axitrader
Demo
Swissquote
Demo
ForexMart
Demo
Phoenix Markets
Demo
EZINVEST
Demo
ETX Capital
Demo
Excluded Countries US, IR, KP, BE, CA, JP, SY, TR, IL, HK AF, GN, SL, BW, IR, SY, MM, IQ, TG, KH, LS, YE, CI , LR, ZW, CU, LY, TZ, CG, ML, BO, LR, NE, AO, GM, NG, AG, GH, KR, KG, GN, SN, NA BR, KR, IR, IQ, SY, JP, US AF, CI, CU, IQ, IR, LY, MM, KR, SD, PR, US, AU, SY, DZ, JP, EC. BE, BR, KP, NZ, TR, US, CA, SG US, JP US BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL BE, CA, IR, JP, KP, US, BA, ET, IQ, UG, VU, YE, AF, LA, TR, SY, IL US, BE, CA , SG, BE

All Copy Trading Brokers in more detail

You can compare Copy Trading Brokers ratings, min deposits what the the broker offers, funding methods, platforms, spread types, customer support options, regulation and account types side by side.

We also have an indepth Top Copy Trading Brokers for 2020 article further below. You can see it now by clicking here

We have listed top Copy Trading Brokers below.

Is Copy Trading Legal List

eToro
(4/5)
Min deposit : 200
eToro was established in 2006 and is used by over 12000000+ traders. 75% of retail investor accounts lose money when trading CFDs with this provider. eToro offers Stocks, Commodities, Forex, CFDs, Social Trading, Indices, Cryptocurrency

Funding methods

Bank transfer Credit Card Paypal

Platforms

Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Cyprus Securities and Exchange Commission (CySEC)
IC Markets
(4/5)
Min deposit : 200
IC Markets was established in 2007 and is used by over 60000+ traders. Losses can exceed deposits IC Markets offers Forex, CFDs, Spread Betting, Share dealing, Cryptocurrencies

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mirror Trader, ZuluTrade, Web Trader, cTrader, Mac

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Cyprus Securities and Exchange Commission (CySEC)
Pepperstone
(4/5)
Min deposit : 200
Pepperstone was established in 2010 and is used by over 10000+ traders. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78.6% 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 Pepperstone offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, Mac, ZuluTrade, Web Trader, cTrader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA), Pepperstone Markets Limited is incorporated in The Bahamas (number 177174 B), Licensed by the Securities Commission of The Bahamas (SCB) number SIA-F217
FXPrimus
(4/5)
Min deposit : 100
FXPrimus was established in 2009 and is used by over 10000+ traders. Losses can exceed deposits FXPrimus offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC), The markets in financial instruments directive (MiFID)
AvaTrade
(4/5)
Min deposit : 250
AvaTrade was established in 2006 and is used by over 200000+ traders. 79% of retail investor accounts lose money when trading CFDs with this provider AvaTrade offers Forex, CFDs, Spread Betting, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Central Bank of Ireland, Australian Securities and Investment Commission (ASIC), Financial Services Authority (FSA), Financial Stability Board (FSB), British Virgin Islands Financial Services Commission (BVI)
Axitrader
(4/5)
Min deposit : 0
Axitrader was established in 2007 and is used by over 10000+ traders. Losses can exceed deposits Axitrader offers Forex, CFDs, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA), Australian Securities and Investment Commission (ASIC), Dubai Financial Services Authority (DFSA)
Swissquote
(4/5)
Min deposit : 1000
Swissquote was established in 1999 and is used by over 300000+ traders. Losses can exceed deposits Swissquote offers Forex, Social Trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, MT5, ZuluTrade, Web Trader, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)
forexmart
(4/5)
Min deposit : 1
ForexMart was established in 2015 and is used by over 10000+ traders. Your capital is at risk ForexMart offers Forex trading, CFD trading, Social trading, Share Dealing, Crypocurrency trading

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,WEB,desktop

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
phoenixmarkets
(3/5)
Min deposit : 500
Phoenix Markets was established in 2013 and is used by over 10000+ traders. Your capital is at risk Phoenix Markets offers Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,mac,Android.iPhone/iPad

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
ezinvest
(3/5)
Min deposit : 500
EZINVEST was established in 2008 and is used by over 10000+ traders. Your capital is at risk EZINVEST offers Forex trading, CFD trading, Spread Betting, Social trading, Share Dealing

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4,mac,Android.iPhone/iPad

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Cyprus Securities and Exchange Commission (CySEC)
ETX Capital
(3/5)
Min deposit : 100
ETX Capital was established in 2002 and is used by over 10000+ traders. Losses can exceed deposits ETX Capital offers Forex, CFDs, Spread Betting

Funding methods

Bank transfer Credit Card Paypal

Platforms

MT4, Mac, Mirror Trader, Binary, Tablet & Mobile apps

Customer support

Live chat Phone support Email support

Account Types

Micro account Standard account Islamic account VIP account
Regulated by Financial Conduct Authority (FCA)