Most new investors don't know where to start. Fortunately, popular trading platforms offer multiple features to assist in your investment journey. Imagine being able to execute the same trades as professional traders. You can achieve this through copy trading.
In this guide, we'll explore how to replicate expert financial strategies and generate passive income without spending hours researching every investment.
What Is Copy Trading?
Copy trading involves mirroring trades executed by experienced traders. Many platforms offer automated copy trading, opening positions automatically when the referenced trader does. Services often include filters to select traders based on metrics like profit/loss statistics and capital limits.
For example, if a trader buys gold using 5% of their account size, the same trade appears proportionally in your account. Risk-averse users can set per-trade risk limits.
Where to Practice Copy Trading?
Platforms simplify filtering results from seasoned traders, making it easy to match your risk tolerance and style. Below are top platforms offering this service.
Key Platforms Compared
| Platform | Spot Fees (Maker/Taker) | Futures Fees (Maker/Taker) | Leverage |
|---|---|---|---|
| BloFin | 0.1%/0.1% | 0.02%/0.06% | Up to 1:30 |
| Libertex | N/A | N/A | Up to 1:30 |
| OKX | 0.1%/0.1% | 0.02%/0.05% | Up to 100x |
| ByBit | 0.1%/0.1% | 0.01%/0.06% | Up to 100x |
| BingX | 0.1%/0.1% | 0.02%/0.05% | Up to 150x |
👉 Compare top copy trading platforms
BloFin Highlights
- AI-driven copy trading with performance analytics.
- Pros: Intuitive interface, automated execution.
- Cons: Limited control over individual trades; steep learning curve.
Libertex Features
- Global platform with 250+ assets.
- Pros: Low capital entry, demo account.
- Cons: Slow first-time withdrawals; EU restrictions.
OKX Advantages
- Derivatives & spot trading with 100x leverage.
- Pros: Extensive educational resources, Proof of Reserves.
- Cons: Not available in the U.S.
ByBit Benefits
- 10% profit-sharing with lead traders.
- Pros: Insurance fund coverage.
- Cons: Unverified trading volume.
BingX Perks
- Social trading with 150+ cryptos.
- Pros: No KYC required for trading.
- Cons: Limited crypto-to-crypto pairs.
Benefits of Copy Trading
- Leverage expertise without needing market analysis skills.
- Passive income by replicating proven strategies.
- Diversification across assets managed by professionals.
How to Choose a Trader to Copy?
Consider these criteria:
- Experience duration and success rate.
- Open positions and average holding time.
- Preferred assets (crypto, stocks, commodities).
Tip: Index strategies may suit long-term goals better than high-frequency trading.
How Copy Trading Works
- Browse traders filtered by performance metrics.
- Select a trader and review detailed stats.
- Enable copy trading, set investment amount/stop-loss.
- Monitor/exit trades anytime.
FAQs
Is copy trading profitable?
Yes, but profitability depends on the trader you follow.
Is it legal?
Generally yes, but regulations vary by country.
What’s the best platform?
Top choices include OKX, Bybit, and BingX. Research fees, leverage, and regional availability.
How safe is it?
Safe, but you inherit the risks of copied trades. Always assess traders’ historical performance.
Disclaimer: This content is for educational purposes only. Conduct independent research before investing.