Copy trading is a popular choice amongst beginner traders and more experienced traders alike. Whether you don’t have time to study graphs and market trends or you’d rather rely on the strategy of a more experienced trader, copy trading offers a popular route into trading. But is copy trading legal?
In this article, we’ll explore where the law stands on copy trading and how you can make sure that your trading activities are legal, whatever country you live in.
Is Copy Trading A Legal Way To Trade?
Copy trading is a great way to get started with trading, without any prior experience being required. However, before you get started with copy trading, you’re probably wondering where it stands in the eyes of the law. What you really need to know is whether copy trading is legal in your country.
Read on to discover more about the legalities of copy trading.
What Is Copy Trading?
Before we begin to discuss whether copy trading is legal, let’s first recap about what copy trading actually is.
Copy trading involves mimicking the trading actions of an established trader. Whenever they make a trade, you replicate their actions with your own trades. You have the freedom to choose which trader strategy you want to copy and you can choose to split your investments across multiple traders to spread your risk.
Copy trading platforms can take the form of a signal service which alerts you to trades, allowing you to choose whether or not to mimic the action, or an automated trade bot which performs the trades automatically on your behalf.
What Is The Law On Copy Trading?
The good news is that copy trading is legal in most countries, including UK, USA, Australia, Singapore and within the EU. This is providing the copy trading broker is correctly licensed and regulated and accepts clients from your country.
However, it’s important to be aware that there may be restrictions in some countries. For example, copy trading may be restricted in parts of India due to local laws. You should always check local law before beginning copy trading.
How Are Copy Trading Platforms Regulated?
The most important thing to check when you thinking about starting copy trading is that the platform you’re choosing is licensed. Each country will have its own regulatory authorities which could include FCA, SEC, CFTC or CySEC.
Ensuring that the copy trading service you choose is regulated can help to make sure that you’re choosing a legitimate platform, minimising the chance of scams.
How To Choose The Right Copy Trading Platform
It can be difficult to know where to start when you’re looking for the right copy trading platform to begin your journey into copy trading. You’ll need to make sure that the platform you choose accepts clients from your country of residence, as well as being properly licensed with a regulator.
There are lots of scams out there, and you need to be sure that you’re choosing a copy trading service which is both safe and genuine.
I know how challenging it can be to find the right copy trading platform. That’s why I put together my top 3 rated copy trading services guide, to help you to navigate the options and make the best choice. I’ve done over a decade of research, testing and reviewing over 100 platforms. I’ve made the mistakes so that you don’t have to.
Is Copy Trading An Effective Way To Make Money Legally?
Copy trading can be a safe and effective way to begin trading and create a passive income stream. It is legal in most countries, but it’s always a good idea to check if there are any local restrictions in your area before beginning your copy trading journey.
The most important thing is to make sure that you’re choosing a regulated and trustworthy copy trading platform. This will help to ensure that your money is safe and you’re investing in a genuine opportunity.
Providing you choose the right platform to begin copy trading, it can be an effective and profitable investment that could soon become a passive income stream. My top 3 rated services guide can help you to separate the genuine investment opportunities from the scams.
Is Copy Trading A Good Idea?
Copy trading is a popular way to get started with trading. You don’t need any prior experience and can learn from more established traders. As long as you choose the right platform and follow the right traders, copy trading could help you to create a passive income stream and earn profits from your investments.
However, it’s important to remember that like any type of trading, profits are not guaranteed and you could make a loss.
Is Copy Trading Safe?
Copy trading is a safe, legal and effective method of trading which involves mimicking the trading actions of experienced and established traders. This limits your amount of risk as your trades are based on the trading actions of more experienced traders.
However, successful copy trading relies on choosing the right copy trading service and mimicking the right traders. It’s important to remember that although copy trading can be profitable, you could also make a loss.
Ready To Give Copy Trading A Try?
If you’re ready to give copy trading a try, I’ve got you covered. I’ve spent the past decade researching, testing and reviewing over 100 copy trading platforms and really putting them through their paces.
I’ve made mistakes along the way so that you don’t have to. If you want to benefit from my knowledge, take a look at my guide to the top 3 rated copy trading services. This guide will give you everything you need to know to choose the right copy trading platform to get started on your copy trading journey.
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.