Which prop firms allow trade copiers?

Proprietary firms allow traders to speculate on financial markets with the firm’s money to make profits. Different prop firms have different rules and training conditions for getting funded. While the majority of the firms restrict the use of automated trading software, EAs and trade copiers, some of them allow traders to mirror the trades of successful traders. Before a trader starts using copy trading services, they need to ensure the firm allows it to avoid issues and potential loss of a funded account. There is a limited number of prop firms that offer their copiers. This is why it is not recommended to use prop firm trade copiers.

On our platform, we constantly review and rank prop firms using our advanced research methodology. This is because selecting the safest and most honest prop firm is the key to becoming a successful funded trader. Below we will list the best prop firm with trade copiers and also explain every crucial detail about copy trading in general.

What is Copy Trading in Prop Firms?

Copy trading refers to mirroring trades from other traders and opening exactly the same trading positions. With trade copiers, inexperienced traders are allowed to repeat results from successful traders. As we have mentioned, all prop firms come with their unique rules and conditions. Some prop firms allow traders to employ copy trading services, while some even offer their own trade copiers. This is especially the case for firms that focus on trader development and trading courses, but any firm can have these services. Top prop firms for copy trading typically offer minimalistic rules and less restrictive risk limits.

Replicating successful traders’ trading positions and profits can have a tremendous impact on a trader’s performance, especially if the trader has less time available and wants to invest their money in financial trading.

It is very important to carefully read copy trading rule at prop firms before applying to the funded challenge. Here is how the process works in most cases:

1. Finding an experienced and profitable trader. Some traders are more experienced in financial markets and have a track record of making profits consistently, and they are the best traders to copy trading positions from.
2. Copying trades. Less experienced traders can opt to learn from the strategies and decisions of more experienced traders and replicate their performance. This can be done in two ways. Following the successful trader’s signal channel, typically on Telegram or any other similar platform, or using a trade copier software that automatically copies trades. Trading software usually tracks the trading account of a successful trader and whenever there is activity on that account it automatically opens trading positions with the same specs on the account of a less experienced trader. Prop firms that allow copy trading sometimes do offer trade copier tools to their traders, which can be very useful.

Prop firms that allow trade copiers offer distinctive advantages to less experienced traders to replicate profitable strategies from pro traders and make money on funded accounts. Together with benefits, there are certain risks related to using other traders’ trading signals. Not all trades will be successful, and blindly following another trader can lead to losses and slow down the development of a trader.

In the end, copy trading in prop firms is the easiest way to leverage the expertise and trading skills of more experienced traders to help less experienced traders replicate trading performance.

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Best Prop Firms with Trade Copiers

Below we have sorted the most reliable copy trading prop firms rated by our experts using advanced research methodology.

Copy Trading Prop Firms Rating Explained

Unbiased copy trading prop firms rating is the most essential part of selecting firms that allow or offer trade copiers. Since the industry lacks regulations, we had to develop some kind of method to spot the most reliable firms. Our methodology includes safety features that allow us to detect any inefficiencies in the firm’s safety. This safety feature has a major impact on the final score of each firm, which is achieved using a weighted average method. After selecting the top prop firms using our research methodology, we check if any of the top firms allow or offer trade copiers and will list them in our list above. This approach ensures that only the most reliable prop firms can be selected for our list of best firms with trade copiers. As a result, we have found the best copy trading prop firms for our readers that are reliable and trustworthy.

Using Trade Copiers in Prop Trading – Pros and Cons

There are several benefits of using trade copiers, but the cons can not be underestimated either. To give our readers the full picture of the pros and cons of using trade copiers, we will discuss both of them.

Pros of using trade copiers

• Accessing the expertise of successful traders – Trade copiers allow inexperienced traders to replicate the experience of more successful traders, potentially leading to profitable trades by copying successful traders’ strategies.
• Learning opportunity – Copying other traders’ positions allows less experienced traders to learn pro traders’ strategies and decision-making processes, helping them improve their trading skills slowly.
• Time efficiency – Just copying trading signals without staring at charts all the time can save lots of time for traders who have less time for trading. This can be used to simultaneously do other jobs while trading profitably using other traders’ strategies.
• Diversification – Copying multiple experienced traders can potentially help less experienced traders diversify their trading portfolios by opening trades on different trading assets. Not being reliant on a single trading strategy can be very advantageous if one strategy experiences losses due to changing market conditions.

Cons of using trade copiers

• Risk of losses – Not all trades will be profitable, and less experienced traders might fail to grasp the whole essence of a trading strategy employed by pro traders and experience unnecessary losses.
• Over Reliance on other traders – Relying solely on trade copiers can lead to overreliance, hindering a trader’s ability to develop their own trading skills and strategies.
• Hinders trader development – Relying solely on the successful trader’s signals will cause a less experienced trader to rely on another trader increasingly, which can potentially hinder the development of a trader. It is important to develop your own trading strategy, tweak it, and become profitable. There is no other way, and using trade copiers can be dangerous for a trader’s proper development.
• Lack of independence – Once again, using other traders’ signals can cause mental troubles for inexperienced traders and prevent them from developing their own strategies. They can potentially become dependent on someone else instead of themselves.
• Limited control – Traders have limited control over the execution and timing of trades when relying on trade copiers, which may not be suitable for those who prefer a more hands-on experience in trading.

How to select proper trade copiers – Beginner steps

Before you apply and start trading using copy trading services on any firm listed above, there are several crucial details to consider.

Define your trading goals

First things first, you should have a clear idea of what objectives you are targeting to achieve. Define your risk tolerance and investment goals. This will play a critical role in finding a trade copier that aligns with your needs.

Research signal providers

Look for only reputable companies and copy trading providers. Ensure to check other traders’ comments and track record of a signal provider. Consider also their transparency. Track record is key for finding out whether the signal provider has been around long enough to ensure success.

Check supported brokers

This one is self-explanatory, as you need to match the trade copier and the broker that is a main partner of the prop firm. Ensure the trade copier is compatible with the firm’s chosen broker platform. In case you are using training signals, you won’t need to check the compatibility.

Analyze performance

Review the historical performance of the trade copier. Check 25-30 previous signals to have enough understanding of the profitability and risk involved with the signals. 25–30 trades is enough size for a sample to define if a strategy is profitable or not. Pay attention to metrics such as win rate, drawdown, and overall profitability. Drawdown is critical when trading on a funded account, as all prop firms have a strict rule for daily and absolute drawdown limits.

Why some Prop firms don’t allow trade copiers

The one important reason why some firms restrict trade copiers is to reduce exposure to market risks. If a sufficient number of traders start using the same copy trading signals, and they start losing money, it may pose risks to prop firm’s capital. This is especially the case when unexpected market movements happen that can make traders with similar strategies start losing money. Prop firms may also prefer that their traders have full control over their trading decisions. Copying other traders’ strategies may lead to a lack of independence and autonomy, as traders may become overly reliant on the strategies of others.

Prop firms often invest in training and offer courses for developing their traders. Allowing trade copiers can hinder the development of traders’ skills and their ability to develop their own trading strategies.

How can a prop firm find out if I am using a trade copier?

There are several methods used by prop firms to detect if their traders are using 3rd party software or copy trading services. One such method is monitoring trading activities closely. If the firm detects that there is a significant, consistent pattern of trading that closely matches that of a known trade copier or signal provider of services, it may raise suspicion. This is why it is always critical to check beforehand before starting to use copy trading services.

Another method is to track IP address and location. Firms can easily track the IP address and geographic location from which trades are being executed. If a trader’s IP suddenly changes to one associated with a popular trade copier service, they might detect you are using a copy trading service.

If a trade copier uses high-frequency trading signals that can not be executed by humans, then firms will easily detect such a case.

Overall, it is an absolute must to check if your prop firm allows trade copiers and what are the main rules.

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