Copy other people’s trade? Yes, that is possible. In this article, we will discuss the concept of copytrading, brokerage platforms that support copytrading along with the pros and cons of copytrading in Malaysia.
What does it mean to copy-trade? In essence, it means copying a person’s position in trading which allows you to buy when he buys and sells when he sells. By copy-trading, you allow the platform to “automate” by imitating other people’s activities (preferably a professional trader).
Why do you have to know about copy trading? Well, if you want to be a passive trader, you can choose to copy trade. This way, you won’t have to spend time and energy to research each position that you will have to make but instead, focus on finding the best trader that suits your style.
For example, if you have RM100 and you want to copy from a trader that has a good track record. You just simply click on a button from then on, his decision will be reflected in yours too. If he spent 20% of his total deposit on a USD/GBP pair, you will automatically spend RM20 on the position.
List of Best Copy Trade Forex Platforms In Malaysia
To get started on copying other traders, you have to look for forex platforms that support copy trade features in Malaysia. Here we present a number of options to choose from:
ZuluTrade (Website)
ZuluTrade is one of the best copytrading platforms in the market. Its popularity fell short behind eToro but regardless, it still offers one of the best services. It has its own proprietary web platform and supports copytrading with advanced signal replication tools.
Minimum deposit: $100 (RM400)
Regulations: MIFID-ESMA
Key features: Signal providers, Portfolio management
eToro (Website)
Without doubt, eToro is one of the most popular copytrading platforms in the world. It has over 20 million registered users in the platform, and therefore, provides a huge number of traders to copy from. Similar to ZuluTrade, eToro also has its own proprietary web platform. Being the best in the industry, eToro has evolved to become simpler in recent years to cater to beginners and professionals alike.
Minimum deposit: $200 (RM800)
Regulations: FCA, CFTC, MIFID-ESMA, ASIC, CYSEC
Key features: Number of users, UI/UX, Simple usability
NagaTrader (Website)
NagaTrader is the copytrading platform that is popular among the beginners. Why? Mainly because it doesn’t have a minimum deposit limit. It is one of the best in terms of adopting future technologies and asset classes. For example, you can trade cryptocurrency. NagaTrader is similar in eToro with less number of users but still one of the top ones in the market.
Minimum deposit: $0
Regulations: FCA, MIFID-ESMA, CYSEC
Key features: Simple usability, UI/UX, Zero deposit
AvaTrade (Website)
AvaTrade is a popular platform among Malaysian forex traders. Even though it is based in Ireland, the platform is widely used in Asia, especially Malaysian and Singapore. The reason is mainly attributed to the fixed spread offered. With 1.3 fixed pips spread, traders can be ensured to get consistent on any position. AvaTrade offers the platform Duplitrade for traders who want to seek copytrading features.
Minimum deposit: $100 (RM400)
Regulations: FSA, MIFID-ESMA, ASIC, IIROC, FSCA, Offshore, FSC (British)
Key features: MT4 & MT5 platform, Duplitrade
FBS (Website)
Another big names around forex trading brokerage is FBS. Known for the wide range of offering, FBS offers the safest option in the market. You can start trading for $10 under cent account registration. It also supports MT4 and MT5 platform if you want to include algo-trading in your forex trading account. Apart from the features offered, FBS has a solid foundation in copy trading service and being the household names, you can expect a number of traders to copy from when using this platform.
Minimum deposit: $10 (RM40)
Regulations: MIFID-ESMA, CYSEC, Offshore
Key features: Cent Account,UI/UX, High leverage
FXTM (Website)
FXTM is the platform that garnered the most attention in Asian and African markets. Similar to FBS, they also do offer a cent account for the customers along with the options of 5 more different types of accounts. It is a trusted company with an extra accreditation from FSC (Mauritius). For those who’ll be using FTXM, note that the copytrading takes place in its own proprietary platform that also supports MT4 and MT5 functions.
Key features: Technical advantage, MT4 and MT5 options with proprietary platform
Regulations: FCA, MIFID-ESMA, FSCA, CYSEC, FSC (Mauritius)
Minimum deposit: $10 (RM40)
OctaFX (Website)
Another platform that is increasingly known for breakthroughs in the forex trading scene. OctaFX offers a competitive rate starting from only 0.4 pips and even 0.2 pips if you qualify for a professional account. The platform can be considered solely on the cheapest rate among any brokers with low initial entry cost. OctaFX also offers a seamless execution on its platform and can be regarded as the best in business.
Key features: Instant trading experience, Low cost
Regulations: MIFID-ESMA, CYSEC
Minimum deposit: $5 (RM20)
Pros and Cons of Copytrading
Every investment or trading decision comes with its own advantages and weaknesses. It is important to know beforehand the risk so you can gauge your profile and make a better decision. Here are a few insight on copytrading:
Pros
- Efficient – You don’t need to spend time to monitor every market movement.
- Expert trader’s experience – Instead of you making a decision, other trader’s will make one for you and you have to choose the one with the most experience or one that suits your risk profile.
- Cheaper – Compared to algo-trading where you have to buy the software, you simply have to choose platform that supports copytrading and start right away
Cons
- No autonomy – Other trader’s will determine how much you gain or lose on a certain position. So, you have no autonomy over the strategy of when to cut loss or take profit.
Differences between Copytrading VS Algotrading
Another form of automated trading, algo-trading, is different compared to copytrading. You might have heard that you can set up or buy an algorithm and use that to make decisions for you. However, it is different compared to copytrading on a few number of things such as:
| Copy Trading | Algo Trading |
|---|---|
| Copy trading positions from other user or trader | Execute trading positions based on predetermined criteria |
| Requires platform that support copytrading features (eToro) | Requires software that needed to be installed and linked to your trading account |
| Performance dictated by other traders copied | Performance dictated by the software used |
| More social (depends on people) | More technical (depends on code) |
Key Takeaways
From the article above, we can conclude that:
- There are multiple brokerage platforms that offer copytrading features in Malaysia, with the famous one being eToro. However, it is worthwhile to check on other platform too with the cheap rate (OctaFX) or interactive and pleasing interface (NagaTrade)
- Main pros of copytrading are you save time and energy while the cons are you are sacrificing the control over your strategy.
- Copytrading and algo-trading are similar in a way that they automate your trading but copytrading is more social (depending on other trader’s perfomance) while algo-trading is more technical (depending on software/program performance).
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