HERE IS A LIST OF FOREX AND CFD PLATFORMS THAT ALLOW YOU TO COPY OTHER TRADERS
Best Copy Trading Platforms in Nigeria
Forex trading is continually attracting more and more people seeking to capitalize on financial markets to potentially earn lucrative returns. However, not everyone who wishes to invest in the markets has the time or experience to navigate market complexities on their own. This is where copy trading comes in. Copy trading is one of the most resourceful tools in forex trading. It allows traders to copy the moves of more experienced investors in the market.
In this detailed review, we are going to take a look at some of the best copy trading forex brokers in Nigeria. We will look at how copy trading works on the various broker sites, the assets they provide, and other features to see which brokers stand out.
What is Copy Trading and Why Consider It?
Copy trading simplifies forex trading by allowing traders to automatically mimic the positions of chosen experienced traders usually referred to as signal providers. Simply, traders select a signal provider based on their track record, risk tolerance, and trading style. Whenever they execute a trade, it's automatically mirrored in the traders’s account proportionally to their available capital.
This form of trading allows individuals with limited knowledge or experience in the forex market to benefit from the expertise of seasoned traders. It also helps individuals lacking the time to do their own market analysis to still invest in financial markets. But which are some of the best copy trading forex brokers in Nigeria? Let’s take a look.
Best Platforms That Support Copy Trading
Exness
Exness is a well-established broker in Nigeria and offers traders the ability to copy the strategies of other traders in the market. This is primarily possible through Exness’ mobile trading app, Exness Trade app. Copying on Exness involves an investor copying the strategy of a Strategy Provider after factoring in a copying coefficient. There are two scenarios in this process.
First, a trader can start copying a strategy that has at that moment no open trades running. Once the copying process starts, the system calculates a copying coefficient. When the strategy provider opens a trade, the trade is immediately copied to the investor’s account at the same opening price. The second scenario involves opening a trade when there are trades open. Once the copying process starts, the system calculates the copying coefficient that is different from the first scenario as it also includes the spread cost of the strategy provider’s open trades.
Further, Exness offers two different accounts custom for copy trading purposes. These include the Social Standard account and the Social Pro account. The social standard account requires a minimum deposit of $500 and offers spreads from as low as 1.0 pips with no commission required. In contrast, the social pro account requires a minimum deposit of $2,000 and features spreads from 0.6 pips with no commission required. Both of these accounts allow traders to invest in the forex, metal, and cryptocurrency markets.
As traders are always looking to trade with regulated brokers, let’s see how Exness is supervised. This broker operates under the examination of the FSCA in South Africa, the CMA in Kenya, and the FCA in the UK, among others.
Skilling
Skilling boasts of one of the largest social trading communities by any forex broker. The broker promises over 400 different trading strategies. With Skilling Copy, traders can automatically mirror the strategies and trades based on performance statistics availed. You can efficiently research Strategy providers based on their track record of investment as well as researching trading styles and strategies.
Notably, Copy Trading is available on the Skilling cTrader web application. The copy trading system uses the equity-to-equity model where copied trades are determined by the relationship between the provider and follower equity. If a trader has $1,000 in their account and the provider has $10,000, the copied trade will be 1/10 of the provider’s.
In terms of market products, Skilling allows traders to diversify their portfolios by investing in a variety of markets. Investors gain access to over 1,200 different market instruments that include CFDs in forex, shares, commodities, indices, and cryptocurrencies. The spreads start from as low as 1.0 pips on the standard account and from 0.1 pips on the premium account. However, the premium account charges a commission of $30 per million traded and upwards.
Finally, Skilling is also a regulated broker. It holds regulatory licenses from the FSA in Seychelles alongside the CySEC in Cyprus.
XM.com
On XM.com, traders who lack the time to spend hours in front of charts or those lacking expertise can still invest in financial markets. They can simply follow the moves of other successful traders whose approach they like. With over 10 million clients, XM has no shortage of strategies to follow. Better yet, you can copy trades whether you’re on the Web, iOS, or Android. Interestingly, Strategy Providers on the XM.com broker site can earn up to 50% in profit share. To participate in copy trading on XM.com, a trader needs to sign up as an investor or a strategy provider after creating an account.
On market products, this broker avails over 1,000 different market products including CFDs on forex, indices, stocks, cryptocurrencies, energies, and precious metals. The spreads are fairly low starting from 1.0 pips on the standard and the mini accounts. However, they can be even lower on the XM Ultra Low account starting at 0.6 pips with no commission required.
On regulations, XM.com operates under the supervision of the FSC in Belize, the FCA, the CySEC, and the ASIC.
Pepperstone
Pepperstone is a reputable broker that offers Nigerian traders access to copy trading through three different platforms. These include MetaTrader Signals, DupliTrade, and Signal Start. On Pepperstone, MetaTrader Signals allows traders to access thousands of trading signals from other expert traders in real time.
Traders also have access to signals provided by experienced proprietary traders using DupliTrade. DupliTrade is a well-recognized copy trading platform that is used on many broker sites. Traders use this platform to enhance their trading skills and gain insight into how the pros trade. Finally, Pepperstone has partnered with Signal Start, a user-friendly platform that lets traders effortlessly replicate trailers from a diverse range of signal providers in just a few clicks. For all these copy trading programs, traders need to have an MT4 or MT5 Pepperstone account.
Notably, traders have access to a wide range of market products with this broker. In total, there are over 1,200 different assets available to traders. These include CFDs on forex, shares, commodities, cryptocurrencies, ETFs, and indices. The spreads are low starting from 1.0 pips on the standard account and 0.0 pips plus a commission on the razor account. The commission sits at $3.5 per side per lot on MetaTrader platforms, TradingView, and Pepperstone Trading Platform. In contrast, cTrader charges a commission of $3 per side per lot.
On regulations, Pepperstone operates under the supervision of the CMA in Kenya, the FCA in the UK, the DFSA in the DIFC, and the ASIC in Australia, among others.
FP Markets
FP Markets allows traders to engage in copy trading with added control over their trades. Notably, copy trading is offered to traders through MetaTrader 4 and MetaTrader 5. At the very core, FP Markets allows traders to find, follow and copy successful traders automatically. There are two main ways to do this. First, traders can use MT4 and MT5 built-in copy trading features and follow the moves of other traders.
Secondly, traders can use Signal Start which provides a one-stop turnkey solution for those who provide and follow signals. However, traders need to pay a $25 per month subscription fee to gain access to Signal Start’s basic facilities. This includes a list of professional signal providers with a breakdown of their percentage gain, drawdown, and profits. From there, each signal provider has an additional monthly price ranging from $30 to $100 per month.
There are plenty of investment opportunities on the FP Markets broker site. This broker features one of the deepest collections of market products totalling over 10,000 different market products. More specifically, traders can invest in forex alongside CFDs on indices, shares, metals, cryptocurrencies, ETFs, commodities, and bonds.
The spreads on this broker site are as low as 1.0 pips on the standard account and 0.0 pips on the raw account. The raw account charges a commission of $3 per side per lot on top of the low spreads. On regulations, this broker operates under the supervision of the FSCA in South Africa, the ASIC in Australia, and the CySEC in Cyprus, among others.
FXTM
Trading Forex and CFDs entail risk.
Your capital is at risk.
FXTM or Forextime, is another broker that offers Nigerian traders copy trading without needing a specialised trading platform to invest. Only strategy managers need to use the Advantage Plus MT4 account to invest and provide strategies. All a trader needs to start copy trading with FXTM is to create an FXTM Invest account and deposit at least $100. While the minimum deposit accepted by the broker is $10, traders need to deposit at least $100 to participate in the FXTM Invest program for copy trading. FXTM Invest allows traders to take the hassles of having to trade themselves by simply copying the trades of skilled strategy managers. Traders choose the strategy manager they want to copy from depending on their track record, strategies, and risk level.
On another note, FXTM is a regulated broker in several jurisdictions. For starters, it is regulated by the CMA in Kenya and the FSCA in South Africa. On top of that, the broker has regulations in other jurisdictions including in the UK, by the FCA and in Cyprus by the CySEC.
Further, this broker offers a wide selection of market products with ECN execution and fairly low spreads. Some of the assets traders can invest in on the FXTM broker site include forex, metals, commodities, indices, forex indices, stocks, stock baskets, and stock CFDs. The Micro account and the Advantage Plus account both feature spreads from as low as 1.5 pips with no commissions paid. In contrast, the Advantage account has spreads from 0.0 pips with commissions based on trading volumes. The average commissions on the account are between $0.4 to $2.
AvaTrade
Trading Forex and CFDs entail risk.
Your capital is at risk.
AvaTrade is another well-established forex broker that allows traders to copy the trades of other investors. It supplies its traders with three different platforms they can use to replicate the market moves of other investors. These include the AvaSocial trading app, DupliTrade, and ZuluTrade. The AvaSocial app is the company’s in-house solution that allows traders to connect with a community of expert traders and replicate their strategies. Investors can easily trade alongside the experts with confidence.
On the other hand, DupliTrade and ZuluTrade are two popular third-party copy trading solutions that AvaTrade has partnered with. They also allow traders to replicate the moves of expert traders, giving investors a choice of the automated trading system to use. Further, AvaTrade has in-platform signals directly on their WebTrader and on their mobile application AvaTradeGO.
In terms of the market products accessible via this broker site, traders are spoilt for choice. In total, there are over 700 different assets available ranging from CFDs on forex, stocks, indices, commodities, cryptocurrencies, ETFs, and bonds. The spreads are within industry-standard when trading with this broker starting from as low as 0.9 pips with no commission paid.
Finally, this broker is under the regulation of the FSCA in South Africa, the Central Bank of Ireland, the KNF in Poland, and the CySEC, among others.
Benefits of Copy Trading
Copy trading offers several advantages for both novice and experienced traders, including:
- Time-saving - Copy trading eliminates the need for extensive market research and analysis, as trades are executed automatically.
- Reduced Learning Curve - Forex trading involves complex analysis and strategies. Copy trading allows traders to benefit from the experience of seasoned investors, potentially generating profits while learning from their actions.
- Accessibility - Copy trading platforms make the Forex market accessible to individuals with limited knowledge or experience.
- Diversification - Investors can diversify their portfolios by following multiple signal providers with different trading strategies and risk profiles.
- Potential for Profit - Successful signal providers can generate substantial profits, which can be replicated by their followers.
Drawbacks of Copy Trading
While copy trading has a lot of benefits, it is not without drawbacks. Let’s take a look at some of the disadvantages of copy trading.
- Risk of Following Losing Traders - The success of your copy trading relies on the performance of the signal providers you choose. If they make poor decisions, your account will suffer alongside theirs. As such, careful research and selection are crucial.
- Limited Control - By copying trades, you relinquish a degree of control over your investment decisions. This can be uncomfortable for some traders who prefer a more hands-on approach.
- Potential for High Fees - Some brokers charge fees on top of spreads for copy trading services. These fees can eat into your profits, so comparing fee structures is essential.
- Lack of Learning - While you can get some insights by observing experienced traders, copy trading alone might not equip you with the knowledge to trade independently in the long run.
Copy trading forex in Nigeria offers a plethora of options catering to traders of varying experience levels and preferences. There are plenty of copy trading forex brokers in Nigeria that provide access to a diverse array of features and functionalities. At the core, Copy trading is a great way for new investors to get involved in the forex market.
It allows them to copy the trades of experienced traders, which can help them to learn and make money. However, it is important to be aware of the drawbacks of copy trading before you start. These include the risk of following losing traders, limited control, and the potential for high fees.
Traders should approach copy trading with diligence. This means conducting thorough research and due diligence when selecting signal providers and platforms to use. Ultimately, copy trading serves as a valuable tool in modern trading. It offers a blend of convenience, potential profits, and opportunities for portfolio diversification. As the forex market continues to evolve, so too will the landscape of copy trading.