This is about my copy trading experience. Nowadays, when online trading is becoming more and more popular, many people want to profit from the financial markets without having to become a stock market expert themselves. This is where copy trading comes in – an innovative method that allows you to automatically transfer the trades of experienced traders to your account and thus benefit from expert knowledge.
Finding suitable copy trading platforms is not easy, so below I have compiled what I consider to be the 5 best copy trading providers and their advantages. You will also learn how copytrading is taxed in Germany and much more.
Table of Contents
What is Copy Trading?
Copy trading is a popular method in online trading that allows you to automatically copy the trading activities of experienced traders. This means that you can profit from the investment decisions of others without having in-depth knowledge of trading or the financial markets yourself.
Basically, this means that you can automatically transfer the trading activities of successful traders to your own trading account. Thus, you copy the trades of a selected trader and participate in his profits, but also in his losses.
The big advantage of copy trading is that you do not have to actively trade yourself. Instead, you watch the performance of other traders and then decide whose strategies you want to automatically transfer to your own account. This type of investing is also referred to as “social trading” because it adds a social component to the trading process and provides the opportunity to interact with and learn from other traders.
The 5 Best Copy Trading Providers: Apps & Platforms
There are a lot of copy trading providers out there, but here are some of the most popular ones that I or people I know have had enough copy trading experience with.
|Provider||Register for Free|
|eToro Copy Trading ★★★★★||Register Now*|
|Bitget Copy Trading ★★★★★||Register Now*|
|CopyFX Copy Trading ★★★★☆||Register Now*|
|Bybit Copy Trading ★★★★☆||Register Now*|
|NAGA Copy Trading ★★★★☆||Register Now*|
eToro Copy Trading Experience
Right from the start: eToro is my No. 1 Platform for Copy Trading. I am registered there and so far largely satisfied.
eToro is a big player in the copy trading space and one of the most well-known and popular social trading platforms in the world. The platform was founded in 2007 and has since become one of the leading places for traders and investors who want to benefit from the experience of others.
The Copy Trading feature of eToro allows you to automatically copy the trading activities of successful traders to your own trading account. This means you can choose from a wide selection of experienced traders and replicate their trading strategies on your account. The platform also offers a variety of financial instruments and assets, including stocks, cryptocurrencies, forex, commodities, and more, that you can add to your copy trading portfolio.
How does eToro Copy Trading work?
Copy trading at eToro is essentially simple and user-friendly:
- Registration and account opening: First you need to register* on eToro and create a trading account. The registration is quick and uncomplicated.
- Trader Selection: After signing up, you can browse the list of available traders. Each trader has a detailed profile with information about their trading history, performance, risk profile and more. You can filter the traders by different criteria to choose the ones that best fit your investment goals.
- Copying Trades: Once you have found a trader you want to follow, you can automatically copy his portfolio to your account. Every trading decision made by the trader is automatically executed in your account.
- Own Control: eToro offers a variety of tools that allow you to monitor the copied trades and adjust them if necessary. You can set the size of your investments and the level of risk, or pause or stop copy trading at any time.
Advantages of eToro Copy Trading
- Easy Access: Even for beginners with no experience in trading, copy trading on eToro is easily accessible and allows for a hassle-free entry into the financial markets.
- Security: eToro is regulated by CySEC and the FCA, the UK’s financial regulator, as well as other authorities.
- eToro Copytrading App available (for iOS and Android)
- Free Demo Account
- Diversification: Copy trading allows you to invest in different traders and assets, which leads to a broader diversification of your portfolio.
- Social Component: eToro offers a strong social component that allows you to interact with other traders, see their successes and learn from them.
- Transparency: The platform offers transparent information about the traders and their trading strategies, which will help you choose the best traders.
Disadvantages of eToro Copy Trading
- Customer Support: No Live Chat available
Bitget Copy Trading Experience
Bitget is a cryptocurrency trading platform that specializes in trading cryptocurrencies and derivatives. In addition to traditional crypto trading, Bitget also offers an innovative copy trading feature that allows users to automatically copy successful crypto traders and share in their trading strategies.
You can choose from a variety of copy trading options on Bitget. Depending on your experience and preferences. The following copy trading options are available:
- Futures Copy Trading
- Spot Copy Trading
- Bot Copy Trading
RoboForex/CopyFX Copy Trading Experience
Roboforex is an international Forex and CFD broker that offers its clients a wide range of trading options and innovative features. One of the outstanding features of Roboforex is copy trading.
RoboForex’s copy trading system is called “CopyFX”. This social trading feature allows you to select successful traders and automatically transfer their trading activities to your own trading account. This means that you copy the trades of the selected traders in real time and participate in their profits (or losses).
How does CopyFX Copy Trading work?
Copy trading at CopyFX is straightforward:
- Account Opening: First of all, you need to open a trading account with CopyFX through RoboForex. Registration is simple and, from experience, takes only a few minutes.
- Trader Selection: After registration, you can choose from a list of successful traders whose trading strategies you would like to copy. The platform provides detailed statistics and performance data of traders to help you make decisions.
- Copying Trades: Once you have selected a trader, his portfolio will be automatically replicated on your account. Every trading decision made by the trader is automatically implemented in your account.
- Own Control: CopyFX offers several settings options that allow you to monitor and adjust the copied trades. You can set the trade size, risk level and the number of copied traders according to your preferences.
Bybit Copy Trading Experience
Bybit is among the renowned trading platforms for cryptocurrencies, focusing especially on crypto derivatives trading. In addition to the traditional crypto trading features, Bybit also offers a groundbreaking Copy Trading feature that allows users to learn from successful crypto traders and automatically adopt their trading strategies. This innovative option allows users to benefit from the experience of experienced traders and optimize their own trading results.
Advantages of Bybit Copy Trading
- Wide range of payment options
- Variable fees depending on VIP status (maximum 0.1% Taker and Maker fees)
- Coins: More than 100 cryptocurrencies listed
- Intuitive user interface
NAGA Copy Trading Experience
On the Naga Social Trading platform, users can automatically transfer the trading activities of experienced traders to their own trading account. In doing so, they can choose from a variety of available traders and replicate their trading strategies seamlessly.
Advantages of NAGA Copy Trading
- Headquarters in Hamburg
- Wide range of tradable assets
- Free Demo Account
Is it possible to do Copy Trading on Trade Republic?
Currently, Trade Republic does not offer copy trading. Maybe in the future. Regardless, Trade Republic is one of the best and cheapest online brokers in my opinion. The purchase fee per trade is just €1 and there is a wide selection of free stock and ETF savings plans.
Read Trade Republic Field Report.
Sign up today* and benefit from especially low fees!
How much are Copytrading Taxes?
If you engage in copy trading in Germany and make profits, these profits are subject to taxation. Copy trading profits are subject to the final withholding tax in Germany, which is currently 25%. Together with the solidarity surcharge and, if applicable, church tax, this comes to over 26%. However, there is an allowance of €1000 (€2000 for married couples) up to which your capital gains are tax-free. Losses from copy trading can be offset against gains from other investments.
Depending on the provider, the tax is either paid automatically (don’t forget the exemption order!) or you have to pay it yourself. If you are unsure about how to pay tax on your copytrading profits, professional advice from a tax expert is recommended.
Of course, there are also legal ways to pay less or even no taxes on copytrading profits. However, this requires the willingness to give up his tax residence (in Germany). Staatenlos* advises you reliably about all the possibilities that exist. To get a tax savings model perfectly tailored to your situation.
Conclusion: Is Copytrading Legit?
In general, the answer to this question is “yes“, copytrading in general is legit. Does that mean you always make a profit? Certainly not! Even though copy trading is a legit option to make money in my opinion, and my copy trading experiences so far have been mostly positive, it still comes with a high risk.
To minimize your risk, you should choose a reputable copytrading provider that has been on the market for a long time and has good reviews.
eToro* is the copytrading provider I use myself and am satisfied with.
Besides, the choice of the trader whose strategy you copy is also crucial for your long-term success. Check each trader thoroughly and see if they have made profits in the past before you get attached to a trader. When copytrading, never copy the trades of only one trader! After all, past successes are no guarantee of future profits.
Make sure to invest only money you are willing to lose and start with small amounts to test copy trading first.
Overall, my copy trading experiences so far have been mostly positive, but I personally do not deposit more than €5000 there. To build a long-term, highly diversified portfolio, you should invest in a variety of assets. Stocks, ETFs, P2P lending, cryptocurrencies, and overnight or fixed deposits, to name a few.
For shares I use the platform Bison, there you currently get €10 for new registration.*
I use the following providers for overnight/term deposits, stocks & ETF, and P2P loans:
|Provider for instant-access and fixed-term deposits||Stock & Crypto Trading Broker||P2P Platform|
|Up to 4% interest||Only 1 € fee per order (cheapest broker)||6.75% interest with daily availability|
|Risk-free due to deposit protection||> 1500 ETF savings plans||High security compared to other P2P offerings|
|Read field report||Read field report||Read field report|
|>> Register Now*||>> Register Now*||>> Register Now and get 5 € Bonus*|