What is The Minimum Amount to Start Copy Trading?

Copy trading has become an increasingly popular way for traders to participate in the financial markets. It allows users to replicate the trades of successful and experienced traders in real-time. Consequently, traders do not necessarily need to have extensive trading knowledge to trade financial instruments. Moreover, busy investors lacking the time to monitor the markets themselves can still participate in trading through copytrading.

But a common question arises: What is the minimum amount required to start copy trading? In this article, we’ll break down the minimum investment required to begin copy trading and highlight some of the best low-deposit copy trading brokers available.

Understanding Copy Trading

Before discussing minimum amounts, it’s important to understand what copy trading is and how it works. Copy trading allows investors to automatically mirror the trading decisions of expert traders in real time. When the expert places a trade, the same trade is mirrored in your account proportionally to your investment amount. While copy trading simplifies the trading process, it’s still important to manage risk, choose signal providers carefully, and understand the conditions of the platform.

Popular copy trading platforms include CopyTrader by eToro, ZuluTrade, Myfxbook AutoTrade, MetaTrader Signals, and DupliTrade, among others. There are several factors that affect the minimum investment required to start copy trading, and this will depend on both the broker and the platform itself.

Factors Determining the Minimum Amount to Start Copy Trading

The minimum capital you need to start copy trading is not universal. Instead, it varies depending on the platform, broker, and strategy provider you select. The main factors include:

Broker’s Minimum Deposit

Just like with standard trading accounts, brokers set their own minimum deposit requirements for copy trading. Some platforms allow you to start with as little as $10, while others may require $100 or more. 

The Copy Trading Platform's Requirements

Some copy trading platforms have their own minimum investment requirements. Some platforms may have a lower barrier to entry than others. For example, eToro’s CopyTrader, a prominent copy trading platform, has a relatively low minimum deposit for new users, often starting around $50 to $200, though this can vary by region. Other platforms might require higher initial deposits.

Minimum Investment per Strategy Provider

Individual strategy providers often set their own minimum investment amounts, regardless of the broker’s minimum requirements. They do this to ensure followers have enough capital to handle potential losses. Afterall, some strategies require larger positions to be effective. High-volume traders may prefer followers with bigger accounts to avoid micro-lot complications.

Some Prominent Copy Trading Platforms and Their Minimums

Here's a look at some popular copy trading brokers and general insights into their minimum requirements. Please note that minimum deposits can change, and specific requirements may vary based on your location:

Pepperstone

Pepperstone provides one of the top copy trading platforms by any broker. Better yet, this broker does not have a minimum deposit requirement to start copytrading. Pepperstone allows its clients to start investing with whatever amount they want. 

To begin copy trading with Pepperstone, you'll need an existing MT4 or MT5 account. Next, download the CopyTrading by Pepperstone app, available on both the App Store and Google Play. Once you have the app, create your copy trading account within the app and link it to your MT4 or MT5 account through the settings.

Additionally, Pepperstone also offers copy trading through two third-party integrations accessible via all kinds of devices, including PCs and the Web. These include Signal Start and cTrader Copy. The broker provides competitive trading conditions across its two main account types. The Standard Account features spreads starting from 1.0 pips on major currency pairs with zero commission.

Alternatively, the Razor Account offers raw spreads from 0.0 pips, with a commission that varies depending on the trading platform used. Traders can choose from five platform options: MT4, MT5, cTrader, TradingView, and Pepperstone’s own proprietary platform.

In terms of market offerings, Pepperstone grants access to a wide range of CFD instruments, including forex, shares, commodities, cryptocurrencies, ETFs, and indices. Additionally, it is a fully regulated broker, holding licenses from several reputable authorities, including the FCA in the UK, the ASIC in Australia, the CySEC in Cyprus, and the BaFin in Germany, among others.

75.3% of retail CFD accounts lose money

HFM

HFM offers its own copy trading platform called HFcopy. Through this platform, traders can browse through a list of strategy providers, view their performance metrics, and choose to copy their trades with ease. To participate in HFM’s copy trading, traders must first have an account with HFM. They then need to have a copy trading account.

There are three account types available for both followers and strategy providers: Copy Cent, Copy Premium, and Copy Pro. It’s important to note that followers can only copy strategy providers who are using the same account type. For example, a follower with a Copy Cent account can only follow a strategy provider who also uses a Copy Cent account.

The Copy Cent account requires a minimum deposit of $10 for followers and $25 for strategy providers. This account offers spreads starting from 1.2 pips with no commission. This account provides access to CFDs on forex and gold only. The Copy Premium account, on the other hand, requires a minimum deposit of $25 for followers and $100 for strategy providers. It also features spreads from 1.2 pips without commission and includes access to CFDs on forex, spot indices, gold, spot energies, and silver.

Lastly, the Copy Pro account requires a $100 minimum deposit for both followers and strategy providers. It offers tighter spreads starting from 0.6 pips, with no commission. It grants access to a broader range of CFDs, including forex, spot indices, gold, spot energies, and silver.

In terms of regulations, this broker is under the supervision of the FCA, the CySEC, the DFSA, the FSCA in South Africa, and the FSA in Seychelles, among others.

Remember that Forex and CFDs available at HFM are leveraged products.
Their trading can result in the loss of your entire capital.

eToro

eToro has long established itself as a top broker for copy trading. eToro was one of the pioneers of social trading by introducing its CopyTrader feature. This feature allows users to automatically replicate the trades of top-performing investors. On this platform, traders have access to thousands of strategy providers through the Copy Discover page. Each investor showcases a distinct trading strategy, risk profile, and transparent performance history, making it easier for users to evaluate and choose whom to follow.

Once you identify a trader you'd like to follow, simply hit the Copy button and choose how much you want to allocate to the trader. The platform supports copying up to 100 different traders, allowing you to diversify your portfolio as you see fit.

The minimum deposit to start copy trading with this broker will depend on your country of origin. In most countries, the minimum deposit to start investing with eToro is just $50. These include the UK, Australia, Cyprus, the Czech Republic, Spain, Portugal, and Singapore, among others. However, in some regions, the minimum deposit is higher. For example, in the UAE, the minimum deposit accepted by eToro is $100.

eToro provides access to an extensive range of market products from global financial markets. Investors can trade over 7,000 instruments, including CFDs on forex pairs, commodities, indices, stocks, ETFs, and cryptocurrencies. Additionally, the platform supports the direct trading of real stocks and cryptocurrencies. The spreads are quite low, with major currency pairs featuring spreads that start from just 1.0 pips.

Furthermore, eToro is regulated by several well-known institutions. These include the FCA in the UK, the CySEC in Cyprus, the ASIC in Australia, and the MFSA in Malta, among others.

61% of retail investor accounts lose money when trading CFDs with this provider.

FP Markets

FP Markets is a well-established forex and CFD broker known for supporting social trading. It offers traders flexible copy trading options, starting with the built-in features of MetaTrader 4 and MetaTrader 5. These platforms allow users to automatically replicate the trades of other investors, enabling a smooth and efficient copy trading experience directly within the trading terminals. The minimum deposit to start copy trading here is $100.

In addition to the MetaTrader options, FP Markets also partners with Signal Start. To access Signal Start’s basic features, users must pay a $25 monthly subscription fee. This provides access to a list of professional signal providers, along with detailed performance data such as percentage gains, drawdowns, and overall profits. Each signal provider may also set their own subscription fees, typically ranging from $30 to $100.

FP Markets provides highly competitive trading conditions, with Standard accounts offering spreads starting from 1.0 pips and zero commission. For those seeking tighter spreads, the Raw account delivers spreads from 0.0 pips, accompanied by a commission of $3 per side per lot. 

The broker also stands out for its extensive range of market offerings, giving traders access to over 10,000 financial instruments. In terms of regulation, FP Markets operates under the oversight of several financial authorities. These include the ASIC, the CySEC, and the FSCA, among other organisations.

72.44% of retail CFD accounts lose money

Octa

Octa provides a robust copy trading platform built to support traders of all experience levels. Within this system, you'll find two main roles: Copiers and Master Traders. Master Traders are experienced investors who share their trading strategies, while Copiers are the traders who replicate the moves of these Master Traders.

While Octa itself has a minimum deposit of $25, each Master Trader on the Octa Copy Trading system has their own minimum investment requirement. The platform makes it easy for Copiers to find suitable Master Traders through a comprehensive rating system. This system ranks providers based on historical performance and displays key details like risk levels and commission rates. Copiers can filter Master Traders using various criteria, including minimum investment, past performance across different time periods, risk scores, and required trading expertise.

Octa provides traders with a wide range of market products, enabling them to diversify their investments. Traders can speculate on CFDs across various asset classes, including forex, cryptocurrencies, commodities, indices, and stocks. Additionally, Octa is a regulated broker. It operates under the regulation of the FSCA in South Africa and the MISA in Mwali.

How To Select a Broker For Copy Trading

While the minimum deposit is important, choosing the best copy trading solution requires looking at more than just the minimum amount to start. Here are other critical factors to evaluate:

• Regulation - Choose a broker that is licensed by a well-recognised financial authority, such as the FCA (UK), CySEC (Cyprus), ASIC (Australia), or FSCA (South Africa). Regulation helps ensure that the broker operates under strict financial guidelines, offering a higher level of safety and protection for your funds.
• Copy Trading Platform - Check that the broker provides robust copy trading functionalities. This could be through built-in features directly on their platform or by supporting well-known third-party services. Popular options include ZuluTrade, Myfxbook AutoTrade, DupliTrade, or MetaTrader’s Signal Service.
• Range of Tradable Assets - Assess the broker’s selection of markets, including forex, stocks, commodities, indices, and cryptocurrencies. A broad range of tradable assets allows you to diversify by copying strategies across multiple asset classes.

Final Comments

The minimum amount to start copy trading is a flexible figure. It mainly depends on the broker that a trader is using, but other factors also apply. These include the requirements of the copy trading platform and the minimum investment requirements of the strategy provider, among others. While it's possible to begin with as little as $10 or $50 on some platforms, most platforms will probably require minimum investments of $100 to $500.

Remember, copy trading offers convenience but doesn't eliminate risk. Start with the minimum, evaluate the performance of your chosen signal provider over time, and only increase your investment after building confidence and understanding their strategy. Always prioritise thorough research and proper risk management. And remember that past performance does not guarantee future results.