The Best Platforms for Copy Trading
Trading is both an art and science, demanding a blend of intellectual rigor and time commitment. But for those hesitant to grapple with the intricacies of indicators and trading strategies, there’s an alternative: copy trading, a tool that enables automatic replication of other traders' actions.
We've previously elaborated on the concept of copy trading, also known as "mirror trading" or "social trading", and its myriad benefits in a dedicated article.
Today, our focus shifts to spotlighting the crème de la crème of copy trading platforms.
Several cryptocurrency exchanges offer the capability to monitor and emulate the trades of adept providers. These include:
- Bybit;
- Binance (operating under the BingX platform)
- Bitget;
- Gate.io;
- Coinbase Pro;
- Kraken.
Additionally, there are independent brokers tailor-made for cryptocurrency copy trading, which serve as conduits to trade across a multitude of exchanges. In choosing the right platform, factors to consider encompass:
- The minimum threshold for placing an order
- The protocol for profit distribution
- Terms governing subscriber verification
- Available leverage size
- Commissions levied by the platform
TraderWagon
A platform that prides itself on catering to a spectrum of participants, from novices to seasoned traders.
Notable benefits of the platform are:
- Transparent trader profiles: Potential subscribers are privy to a comprehensive snapshot, capturing net gains or losses over specified timelines, available slots, and the espoused trading strategy.
- An inclusive entry point: Users have the latitude to initiate trades with deposits spanning from $100 to a towering $50,000.
- Favorable broker fees: A flat taker's fee of 0.05% is applicable to all trades.
- An enticing referral program to bolster earnings.
On the flip side, TraderWagon has its set of constraints:
- A restricted array of trading pairs
- A customer support that sometimes leaves more to be desired
- A limited roster of compatible cryptocurrency exchanges for account integration.
3Commas
This platform not only enables users to mirror the strategies of successful traders but also offers automated trading bots designed to profit from sideways market movements. The broker emphasizes that it's not just trades that can be copied, but also the preset configurations of these bots.
3Commas Advantages:
- Free Trial: Allows users to test the service for 3-7 days, helping them decide on the most suitable subscription package.
- API Connectivity: Integrates seamlessly with the majority of top cryptocurrency exchanges. Their extensive list includes well-known names such as Binance, Bybit, Bitfinex, Bitstamp, Kraken, and Coinbase.
- Demo Account: Beginners can use a virtual training module to familiarize themselves with managing portfolios.
3Commas Drawbacks:
- Limited Automated Trading: Not all the supported exchanges offer automated trading. This means users can follow experienced traders, but may not always be able to utilize trading bots for the purpose.
- Technical Know-How Required: To set up a trading bot, users need a solid grasp of TradingView. Additionally, to integrate signals, one should have at least rudimentary programming skills, posing a challenge for newcomers.
WunderTrading
Similar to 3Commas, WunderTrading provides not only a subscription to top traders but also bots to automate the mirroring of their trades. It offers a unified platform for trading across ten top exchanges.
WunderTrading Advantages:
- Highly Customizable: A flexible system boasting a wide selection of trading strategies.
- Dedicated Portfolio Tools: Offers specific tools for effective portfolio management and rebalancing.
- Top-tier Security: Incorporates 2FA, utilizes AES-256 encryption, and ensures clients' funds aren't stored on the platform.
- Generous Free Plan: A complimentary offering that includes substantial features, such as 5 open positions, 2 bots, and a single API connection per exchange.
- Minimal Trading Barrier: Users can commence trades with as little as $10.
WunderTrading Drawbacks:
- User Interface Challenges: Some users might find the interface convoluted and occasionally not user-friendly.
- Lagging Customer Support: Their customer service is notably slow to respond.
Limited Expert Traders: The platform seems to lack a significant number of genuine professional traders to follow. This Latvian venture, with its Russian roots, appears to be past its peak as its user base dwindles. The number of active traders, as declared by the founders, might be inflated.
