Top Copy Trading Platforms in Australia – Best Picks for 2023

Copy trading is an effective way for novice traders to enter the financial markets. That’s because it does not require them to have vast trading experience. The copy trading concept is simple: An inexperienced trader copy trades for a seasoned trader, thus benefiting from the latter’s trading experience.

This article takes a look at the leading copy trading platforms in Australia. We will also teach you the criteria for selecting the right copy trading platform. Moreover, you will find out whether copy trading is legal in Australia.

Understanding Copy Trading

As mentioned, copy trading involves an investor replicating a position opened by a skilled trader. In most platforms, the investor is known as a “Follower,” while the proficient trader is called a “Strategy Provider.”

The majority of copy trading platforms allow Followers to make adjustments to the opened trades, such as setting stop loss or take profit levels. Additionally, the Followers retain the power to close trades or stop copying the Strategy Providers.

So, how are skilled traders compensated for allowing investors to copy their strategies? They usually collect monthly subscription fees or commissions after executing profitable traders.

Factors to Consider When Selecting a Copy Trading Platform in Australia

Regulation – Before registering an account with a copy trading platform, confirm if it is regulated by the Australian Securities and Investments Commission. You don’t want to copy trade on an unregulated platform because you risk losing money.

Wide Range of Skilled Traders to Follow – A good trading platform is one that gives users access to a wide pool of seasoned traders who have a proven success record.

Ability to Set Parameters – Always check if the copy trading platform you want to sign up with gives you power over the trades opened by the Strategy Provider. The right platform will let you set trading parameters like take profit, stop loss and even allow you to close trades.

Binding Period – Any copy trading platform that tries to bind users to Strategy Providers must be avoided. Ensure to register with a platform that lets you stop copying a trader whenever you wish.

Fees – Avoid copy trading platforms that attempt to exploit users by charging unreasonable fees. Always compare the fee structures of various platforms before signing up with any of them.

Top Copy Trading Platforms in Australia

eToro is a pioneer of copy trading. Its many years of existence make it a reliable platform for copy trading. Among the aspects that make eToro a beginner-friendly trading platform is the availability of a wide range of educational resources. Moreover, its user interface is easy to understand, allowing anyone to navigate it without help. Through eToro, you can copy trade various financial instruments like cryptocurrencies, stocks, and Forex. Note that the platform comes with a chatroom, allowing investors and skilled traders to interact.

ZuluTrade

One of the major reasons Australian traders consider ZuluTrade a top copy trading platform is its proper risk management system. This lets you customize risk parameters for every trade you copy based on your risk tolerance. In addition, ZuluTrade gives users access to thousands of skilled traders, allowing them to select those who meet their requirements.

Darwinex

Darwinex offers a unique copy trading service, which allows users to invest in best-performing traders through “Darwin ETF.” This ETF gives you an opportunity to diversify your portfolio by investing in a group of leading traders instead of just one. Another aspect that makes Darwinex a top copy trading platform is that it is regulated by a top-tier financial regulator, the Australian Securities and Investments Commission.

AvaTrade

Besides offering users access to thousands of skilled traders, AvaTrade provides excellent customer service. The copy trading platform ensures all users enjoy their trading journey by addressing their issues as quickly as possible.

Is Copy Trading Legal in Australia?

Any broker that has secured a license from the Australian Securities and Investments Commission can offer copy trading. So yes! Copy trading is legal in Australia.