June 25, 2024

Copy Trading South Africa: Top 7 Platforms

June 25, 2024

Copy Trading
Content:

The emergence of social networks in the last twenty years has completely changed the landscape of online trade, with social and copy trading growing in popularity. These methods have made trading more accessible to all, giving novices the chance to pick up tips from seasoned traders by imitating their deals and researching their tactics.

In this article, we will take a look at the Best Copy Trading Platforms in South Africa in 2024. We will discuss how copy trading works and how to choose a trader to follow.

What is Copy Trading?

Copy trading, also known as mirror trading, allows traders to automatically copy the positions opened and maintained by a strategy provider—another trader of their choosing—when they trade online. With the help of this creative method, users can replicate the trades and tactics of seasoned and profitable traders.

When copy trading is used, the copy trader’s account executes the same trade every time the strategy supplier makes a trade. The trading platform takes care of everything automatically, so the copier doesn’t need to do anything by hand.

Beginners who are still learning the markets and formulating their own trading methods can benefit from this trading strategy. It also acts as a time-saving tool for seasoned traders who might not have the time to watch the markets as carefully.

Even while copy trading has many advantages, it’s important to keep in mind that there is high risk involved in all trading. It is possible to gain money and lose it, and a trader’s past performance does not guarantee future success.

CMTrading

CM Trading, a broker regulated by the FSCA, was established in Johannesburg in 2012. It provides six accounts on two separate trading platforms, but compared to other brokers, it has higher minimum deposits and continuous trading fees. 

CM Trading offers one-on-one training and platform assistance through its local South African customer service team. Additionally, local Financial Conduct Authority (FSCA) protection will help South African traders by ensuring that their funds are separated at prestigious South African banks. It is one of the best copy trading South Africa app.

Pros

  • Suitable for beginners
  • Excellent client service
  • Copy trading accounts

Cons

  • Costly withdrawals
  • Only local law regulation

eToro

eToro is a social trading platform where investors can mimic the moves of expert traders. One of eToro’s primary selling points is its easy-to-use interface and extensive library of educational materials. This makes it simple for investors to become knowledgeable about the markets and execute wise bets. With eToro, users can trade in a variety of markets, such as equities, FX, and cryptocurrencies. Therefore, it provides investors with the freedom to diversify their portfolios. Moreover, eToro highlights its social component, which allows traders to exchange and benefit from one another’s tactics and experiences. This makes it easier for investors to keep up with current market trends and spot fresh trading chances.

Pros

  • Wide range of trading instruments for diversification.
  • User-friendly platform suitable for all skill levels.
  • Enhanced trading with research capabilities and powerful charts.
  • Easy portfolio management with CopyPortfolios.

Cons

  • Limited advanced research tools.
  • Higher spreads and inactivity fees.
  • Reduced control in social trading, potential over-reliance on others.
  • Access limitations due to national regulations and compliance changes.

Copy Trading

AvaTrade

AvaTrade is a one-live, commission-free trading account with competitive trading conditions for trading on a variety of assets. These include Forex, cryptocurrencies, ETFs, bonds, and vanilla options, with a top global CFD market maker broker with outstanding regulation.

ZuluTrade, AvaSocial, and Duplitrade are the three copy trading platforms that AvaTrade provides. DupliTrade is an easy-to-use trading tool that lets consumers directly and automatically replicate the moves of professional traders.

With the help of the AvaSocial App, novices can find knowledgeable mentors and profitable traders by showcasing their risk tolerance, level of experience, and trading philosophy. In addition to speaking one-on-one with suppliers, copy traders will get constant real-time updates regarding the status of their trades. In order to provide a greater range of copy trading capabilities, AvaTrade has also teamed with Mirror Trader and ZuluTrade.

Pros

  • Diversification tools are widely supported.
  • Versatility with options to choose between DupliTrade and ZuluTrade platforms.
  • High-quality instructional materials and risk management solutions.
  • Regulated by different bodies ensuring accessibility and security.

Cons

  • Some copy-trading providers may impose extra costs.
  • Multiple platform choices can be complicated for beginners.
  • Variable performance among signal providers on the platforms.

Darwinex

Darwinex is a special copy trading platform that lets investors replicate the deals made by “Darwins,” or professional traders. The platform rates traders based on a unique algorithm that assesses their performance, giving investors a risk rating that makes it simple to choose the top traders to follow.

The so-called “Darwin exchange-traded funds” (ETFs), which are portfolios of the top-performing Darwins, are another feature of Darwinex that enables traders to invest in the top-performing Darwins. This allows traders to invest in a group of high-performing traders rather than just one, allowing them to diversify their portfolios. Reputable regulatory organizations like The Financial Sector Conduct Authority, previously the FSB, oversee Darwinex in terms of safety.

Pros

  • Strong focus on maintaining risk management and transparency.
  • Suitable for traders seeking a more analytical approach to copy trading.
  • Allows investment in unique strategies through the “DARWINs” methodology.
  • Offers a competitive fee structure that is based on performance.

Cons

  • Offers a more limited selection of assets compared to larger copy trading brokers.
  • Has a smaller, more specialized community than other major copy-trading platforms.
  • The platform can be complex and less intuitive for beginners compared to social-focused sites.
  • Investing in “DARWINs” still carries potential risks.

Pepperstone

Pepperstone is a well-established Australian brokerage firm that is fully regulated by ASIC, FCA, and CMA. Funds belonging to its clients are held in separate accounts with tier 1 banks.

To provide traders with access to methods from the top traders worldwide, Pepperstone has partnered with several social trading platforms. It offers Myfxbook, MetaTrader Signals, and DupliTrade as social trading platforms.

Pros

  • Overseen by ASIC and FCA for strict security.
  • Sophisticated features via MetaTrader 4/5.
  • Strong risk management features for better control.
  • Quick Account Creation
  • Outstanding Customer Service

Cons

    • Mostly Provided for CFDs
  • The performance of MT4/5 signal providers depends on filtering.
  • Requires expertise in MetaTrader.

NAGA

The main focus of NAGA’s platform is social trading; it includes an automated copying tool, a list of traders who perform well called the “Leaderboard,” and a newsfeed feature that offers useful market data to improve the whole experience.

The platform levies spreads on underlying assets in addition to per-trade copy costs. Estimates of profit should take these costs into trading account. To meet different trading demands, NAGA provides a variety of assets, such as stocks, indices, Forex, cryptocurrencies, and ETFs.

Pros

  • Allows users to purchase fractional shares of US equities.
  • Each NAGA client is assigned a personal account manager for assistance and guidance.
  • CySEC, a reputable financial regulator, oversees NAGA.
  • The Autocopy feature enables users to replicate the trades of successful traders, which can be beneficial for novices.
  • No fees for stock and ETF trading, and its spreads are often competitive.

Cons

  • NAGA imposes fees for several deposit and withdrawal methods.
  • A €10 monthly inactivity fee is charged after six months of inactivity.
  • The NAGA platform may be difficult for beginners to navigate.
  • Some traders have reported difficulty reaching NAGA’s customer support personnel.

ZuluTrade

ZuluTrade is a reputable copy trading platform with sophisticated trader screening features and cutting-edge tools for combo and basket trading. Its simulated demo mode also offers lots of practice chances to improve abilities in the field.

The platform offers volume-based savings in addition to performance fees. Spreads differ according to the broker using ZuluTrade. Mostly, they concentrate on currency markets.

Because of its very complex interface, it is best suited for users with prior trading experience. Broker-specific client support differs, and the platform has limited community features. 

Pros

  • The platform has years of expertise and a large pool of signal providers.
  • It offers extensive trader filtration and performance analysis.
  • A demo mode is available for testing strategies.
  • Provides Combo and Basket tools for variety and customization.

Cons

  • Primarily focuses on currency trading.
  • The interface may appear outdated and cumbersome.
  • Performance fees can add up, especially when using multiple signals.
  • Customer support depends on the linked broker.

How to Decide Which Trader to Follow

Choosing a trader to copy is one of the most important tasks in copy trading. Here are some tips to help you make a wise decision:

Examine the trader’s history: Although past performance does not guarantee future results, it can provide you with an indication of the long-term efficacy of their trading technique.

Recognize their Approach: Which markets is the trader concentrating on? How much danger do they accept? Verify that their approach fits both your risk tolerance and your trading objectives.

Examine their Risk Index: For every trader, the majority of platforms offer a risk score. A lower score usually denotes a more cautious, safer trading strategy.

Examine their Follower Count: While it’s still important to perform your analysis, a large follower count can be a sign of trust from other users.

Is copy trading legal in South Africa?

Copy trading is allowed in South Africa as long as the platforms and brokers offering this service are subject to regulation by The Financial Sector Conduct Authority—formerly known as the FSB. Under the Corporations Act of 2001, copy trading is regulated and is regarded as a type of investment management. Copy trading is accepted as legal in South Africa as long as the platforms and brokers offering the services are registered with the FSCB and follow all rules. Traders must make sure they use a licensed platform in order to safeguard their money and maintain legal compliance. Users can verify the registration number of any platform on the FSCA website

Ready to start Online Trading? Open an account today        

Join CMTrading, the largest and best-performing broker in Africa, and discover more opportunities with an award-winning broker. Register here to get started            

Follow us on Facebook, Instagram, LinkedIn, Twitter, and YouTube 

Disclaimer
Trading involves a significant risk of loss and is not suitable for all investors. It’s important to understand the risks and seek advice from an independent financial advisor if necessary.

The information provided here does not constitute investment advice.

Facebook
Twitter
LinkedIn
WhatsApp
Email

Content:

Follow us on:

Start Trading Now!

Recent Posts

Gold
How To Invest In Gold In South Africa

  Investments in precious metals, particularly gold, tend to keep their value in the financial markets for extended periods. They thereby offer commodity merchants a permanent safe haven.   Beyond its flashy exterior, gold has

Read More »
Trade Schools
What Are The Best Trade Schools In South Africa

  Technical Vocational Education and Training (TVET colleges) or Trade schools, which offer specialized education in a range of skilled trades, are essential parts of South Africa’s educational system. These educational establishments have a functional,

Read More »

Leaving so Soon?

Register now and get $300 extra using promo code CMT300

T&C Apply | Min Deposit $300 | Max. Reward $300