Copy trading is an increasingly popular way to trade the financial markets. It allows traders to mimic the trades of more experienced and successful traders without doing all the legwork themselves.
What is a trading app?
A trading app is software that allows you to trade financial instruments such as stocks, bonds, commodities or foreign exchange. They usually come in the form of an app that you can download to your smartphone or tablet, although brokers also offer trading apps for desktop computers.
There are two main types of trading apps: those that allow you to trade directly on the financial markets and those that allow you to copy the trades of other traders. Direct trading apps give you access to the live prices of financial instruments and allow you to place trades directly with a broker.
On the other hand, copy-trading apps let you mirror the trades of other traders, which means that when they buy or sell an asset, so does your trading program.
Why do traders use trading apps in Australia?
There are several reasons why traders in Australia might choose to use a trading app. The most obvious is convenience – being able to trade on the go, from anywhere in the world, anytime. The introduction of apps help to reduce the hassle in the currency trading business.
Another reason is cost. Although some brokers charge commissions for each trade, many don’t. Even those that do usually charge lower fees for trades via a trading app because it’s cheaper for the broker to process trades electronically than through a human dealer.
Another advantage of trading apps is that they often come with built-in charting tools and other features that make it easier to trade successfully. For example, some apps allow you to set up price alerts so you’ll be notified as soon as an asset reaches a specific price.
Which copy trading app is the best in Australia?
Several copy-trading apps are available in Australia, but not all are created equal. Here are three of the best trading apps in Australia:
eToro
eToro is one of the world’s leading social trading platforms, with millions of users from around the globe. The app allows you to trade various assets, including stocks, commodities, currencies, and even cryptocurrencies. What sets eToro apart from other copy-trading apps is its innovative CopyPortfolios feature, which lets you automatically mirror the portfolios of successful traders or invest in a pre-built portfolio of assets.
ZuluTrade
ZuluTrade is another popular social trading platform with a similar offering to eToro. The app allows you to trade various assets, including stocks, currencies, commodities, and cryptocurrencies. You can also use the app to copy the trades of other users.
AvaTrade
AvaTrade is the mobile trading app from an online broker AvaTrade. The app allows you to trade forex, CFDs, and cryptocurrencies on the go. It also gives you access to features and tools, including live quotes, charting capabilities, and market news. One of the stand-out features of AvaTradeGO is that it gives you the option to copy the trades of other users.
Which is the best copy-trading app in Australia?
It depends on your individual needs and preferences. If you’re looking for a platform with a wide range of assets, competitive fees, and innovative features, then eToro or ZuluTrade could be good. If you’re looking for a simple app from a well-established broker, AvaTradeGO could be a better option.
Conclusion
Before you start using a trading app, it’s essential to be aware of its risks. The first is that you can lose money; even more so if you’re not careful. Trading apps are very convenient, making it easy to place trades without overthinking them, leading to impulsive decisions and bad trades. Ultimately, the best copy trading app for you will be the one that best meets your needs. Take some time to consider what’s important to you, and then make your choice accordingly.
