Imagine you’re trying to lose weight. You know you must eat better, exercise, and change your habits. But that’s hard to do alone. Getting help from a fitness expert can motivate you and help you stick with your goals, but their proven strategies can ease your transition to a healthier lifestyle to reach your goals faster. In the financial markets, copy trading works in much the same way. When starting with futures copy trading, you can follow and copy the trades of experienced futures traders instead of going it alone. Using the best trade copier ensures you replicate these trades accurately and efficiently, maximizing your chances of success. This can help you grow your account quickly while you learn the ropes of futures trading. In this article, we’ll discuss how futures copy trading works, its benefits, and ways to get started on the right foot.
You’ll also discover how a trading VPS from QuantVPS can enhance your experience to help you achieve your financial goals.
What is Futures Copy Trading?
Futures trading is an agreement between a buyer and seller to trade a pre-determined quantity of an asset for a set price on a particular date. Traders typically have a variety of contracts to choose from with different expiration dates, and there are generally recognized expiration cycles, such as monthly or quarterly, that apply to most futures contracts. Futures are complex financial vehicles known as derivatives.
Their value is sourced (or derived) from the price of an underlying asset, although crucially, an investor does not need to own said asset to trade these contracts. Futures can exchange various assets, including:
- Commodities
- Equities
- Indices
- Bonds
- Cryptocurrencies
- Interest rates
- Foreign currencies
How Early Futures Markets Provided Stability for Agricultural Producers
Exchanges for these financial instruments were first set up around 300 years ago in Asia to trade soft commodities (or agricultural products). These contracts gave farmers a price guarantee for their crops and/or livestock and enough money to last until harvest. It also gave them peace of mind by allowing them to hedge against falling prices.
Futures Markets in the Modern Economy: Risk Management and Speculation
Wholesalers could protect themselves from rising costs and effectively manage their inventories by trading futures. These protections are as important now as they were centuries ago, so futures are still critical for commodities trading. But today, these derivatives are also hugely popular with:
- Speculators
- Producers
- Manufacturers
- Wholesalers
- Other businesses
At the same time, the range of assets they can be used to trade has also ballooned. Subsequently, the futures market has grown to gigantic proportions. According to the World Federation of Exchanges, 29.59 billion of these contracts changed hands in 2022.
The Basics of Futures Copy Trading
Futures copy trading is a process where traders replicate the trades of experienced investors in futures markets. This form of trading lets users automate their futures investments by mirroring the actions of seasoned traders.
Platforms enable users to mimic strategies without needing deep technical knowledge. In this way, futures copy trading can be an appealing option for beginners looking to learn from experts and busy traders who want to diversify their strategies with minimal effort.
How Does Futures Copy Trading Work?
Futures copy trading works by allowing you to pick a skilled trader on a platform that offers this service. When they trade, your account does the same automatically. It’s like following a recipe from a top chef. Perpetual futures contracts are prevalent in copy trading. They don’t expire, so you can hold a trade as long as you like.
Learning Crypto Trading Through Copying and Practice
This adds flexibility to your trading strategy. Learning how to trade Bitcoin options can also help. These options allow you to buy or sell Bitcoin at a set price in the future. They’re different from futures but can be part of your trading mix. Copy trading is great for beginners—it’s a way to start trading crypto without starting from scratch. You can see how trading works and learn by doing. Some demo trading platforms allow you to practice copying trades without using real funds.
Related Reading
Top 11 Futures Copy Trading Platforms
1. OKX
OKX’s copy trading offering benefits from a network of more than 8,000 experienced “lead traders.” It is renowned for copy trading, especially in the future. The platform has many trading options, including:
- Spot
- Derivatives
- Margin trading
What’s more, OKX extends services to users from more than 100 countries and offers a selection of over 300 cryptocurrencies.
Platform Features, Advantages, and Disadvantages
Features:
- Derivatives trading, including futures, options, and perpetual swaps for advanced trading.
- Staking and mining pools
- DeFi trading strategies
- Integrated web wallet
- Global accessibility
- Web3 features
Pros:
- Global reach
- Wide range of services (spot, derivatives, and margin trading)
- Extensive cryptocurrency support Web3 and DeFi focus
- High trading volumes
Cons:
- Not available for the U.S. audience
- Complex for beginners
- Regulatory challenges
2. Margex
Margex enables users to trade crypto at some of the lowest costs, thanks to its low minimum deposit requirement and high leverage options. This setup allows traders to increase their trading capacity while starting with minimal initial capital.
Copy trading on Margex is easy with its user-friendly interface, which guides users through the process. Whether you’re new to trading or have been in the game for a while, Margex’s platform is designed to provide a user-friendly trading experience.
User Experience and Security Features in Cryptocurrency Trading Platforms.
Features:
- Purchase Bitcoin with Visa and Mastercard directly on the platform
- Margex provides an optional account verification process, catering to users who prefer to maintain anonymity
- Two-factor authentication (2FA), email notifications, and cold storage for user assets.
- Educational resources
- Transparent statistics and daily commission payments in Bitcoin
Pros:
- Low minimum deposit
- Access leverage of up to 100x
- Easy-to-use interface
- MP Shield AI system enhances platform security by preventing price manipulation, unfair liquidations, slippage, and wicks.
- Referral program
- Multilingual customer support
Cons:
- Not available in the United States
- Margex operates from Seychelles and is unregulated
- Limited cryptocurrency pairs
3. Bybit
We like Bybit’s broad array of copy trading options, including derivatives and spot trading. The exchange is known for its high-performance transaction engine, which ensures trades are executed swiftly and efficiently and handles a large volume of transactions without a hitch.
Features:
- Futures and perpetual contracts with high-leverage options
- Altcoin trading with built-in leverage
- Copy trading
- Advanced trading interface
- Fast transaction processing
- Bybit wallet
- Multiple deposit and withdrawal options
Pros:
- Offers a wide range of derivatives for trading
- Quick order matching
- Over 10 million users
- Stringent security protocols for user protection
Cons:
- Complex for beginners
- Limited availability in certain regions
- Inefficient customer support
4. Bitget
Bitget implements a range of security protocols to protect traders and user wallets, ensuring the safety of investments. Its future copy trading offerings are extensive and easy to use.
The platform’s legitimacy is further enhanced by its licenses in multiple countries, including Lithuania, Italy, Canada, and Australia, showcasing Bitget’s commitment to meeting stringent regulatory standards.
Features:
- Spot and futures trading
- Offers leverage up to 125x on specific trading pairs
- Copy trading
- Bitget Wallet
- Bitget Earn
- Extensive cryptocurrency support
- Trading bots
Pros:
- Diverse trading options, including spot and futures trading
- Bitget Earn Web3-focused wallet
- Competitive fee structure
- Solid security measures
- Copy trading feature
Cons:
- Limited fiat support
- Complexity for beginners
- Withdrawal limits for unverified users
5. BYDFi
BYDFi was selected to offer copy traders various options, including:
- Futures
- Plus spot
- Perpetual contracts with leverage
The platform has implemented security measures to ensure a safe trading environment, giving users peace of mind while they trade. Unlike other platforms that may spread their focus thin over multiple areas, BYDFi concentrates solely on trading, avoiding the complexity of features like staking or web3 products.
Features:
- Good market liquidity with $250 million 24-hour trading volume
- Offers tiered spot trading options from classical to advanced interfaces
- Perpetual futures with up to 100x leverage for both USDT and coin-margined contracts
- Features leveraged tokens for spot trading
- Copy trading
- Advanced security
Pros:
- Low trading fees
- Accepts over 50 fiat currencies
- Offers both an online wallet and cold storage
- Available in 150+ countries
Cons:
- Doesn’t offer staking and lending
- Deposited funds are not insured
6. MEXC
MEXC boasts an automated copy trading feature with a low entry barrier: users only have to transfer funds to their copy trade account and fill in their details to start copying futures trades.
This platform also shines with its user-friendly P2P (peer-to-peer) marketplace, simplifying direct cryptocurrency transactions between users. Catering to a vast user base, MEXC serves over 200 regions, making it highly accessible and inclusive.
Features:
- User-friendly P2P marketplace
- Supports over 7 million traders globally
- Available in multiple languages
- Offers a variety of payment methods
- Real-time user communication chat
- 24/7 help center
- Zero fees for spot trading
- Encryption for user safety
- Compatible across all devices
Pros:
- Zero fees for spot trading 24/7 help center
- Educational tutorials
- Global availability
Cons:
Minimal range of fiat currencies
7. Binance
Binance supports various cryptocurrencies and altcoin trading pairs, catering to multiple interests and trading strategies.
CEX’s automated trading feature is easy to use. Users can search for specific traders and use the “copy” or “mock copy” functionality for futures trades.
Features:
- Spot and derivatives trading
- Peer-to-peer (P2P) trading
- Binance Earn (staking)
- Binance Academy (educational resources on cryptocurrency and trading)
- API support
- NFT marketplace
- 2FA and advanced encryption
- Mobile app
- Multiple payment options
Pros:
- Offers high liquidity
- Extensive crypto asset range and over 1400 cryptocurrency pairs
- Advanced trading features, including leveraged trading
- Cheapest crypto trading fees
- Fast and effective P2P trading options
Cons:
- Customer service might be slow
- Geographic restrictions may impact fiat deposit and withdrawal options
- Limited selection of cryptocurrencies available for trading in the U.S.
8. BingX
BingX boasts a competitive fee structure that is lower than many other platforms. Alongside its quick and efficient withdrawal processes and intuitive user interface, BingX also allows users to copy:
- “Trending Traders”
- “Conservative Traders” (targeting low-risk, long-term growth)
- “Rising Stars”
It filters between futures and spot trading. The CEX also offers a handy social trading guide and a helpful FAQ section.
Features:
- Spot trading
- Convert and trade crypto
- Standard & perpetual futures
- Automatic trading bot for spot or futures trading
- BingX’s social trading network
- Social trading
- New user rewards, trading gifts, and bonuses
Pros:
- Over 400 payment methods
- There are no fees for buying and selling
- Supports more than 40 fiat currencies *
Cons:
Slow transaction time
9. Finestel Futures Copy Trading
Finestel, based in Canada, provides advanced trading software for profitable traders with a community of followers and investors.
Our service offers precision in fund management with additional tools like portfolio trackers, automated billing, and performance analytics.
Maximizing Profit Potential Through Advanced Copy Trading Ecosystems
Comprehensive Copy Trading Plans:
- Copy Trading as a Bot: This tool is perfect for traders managing fewer investors. It ensures instant replication of trades with high speed and accuracy.
- White-Label Copy Trading Software: This software is ideal for traders with over 10 clients. It offers a customizable interface under your own brand.
Enhancing Trading Efficiency with Integrated Additional Services
Additional Services
Finestel is not limited to a copy trading service. It also includes these services:
Private Strategy Marketplace
Connects skilled traders with white-label platform owners to integrate profitable strategies. Benefits include:
- Access to diverse strategies
- Platform expansion
- Higher profit potential through a performance fee sharing model
Innovative Telegram Bot
Streamlines:
- Trading operations directly within Telegram
- Consolidating portfolio tracking
- Client reporting
- Broadcast signaling
- Trade execution
- Brand customization
Benefits include:
- Time-saving automation
- Consolidated management
- Enhanced brand presence
Balancing Flexibility and Limitations in Copy Trading Platforms
Pros:
- User-friendly design
- Kucoin copy trading
- Binance copy trading
- OKX copy trading all on spot and futures markets are available, multiple exchanges will be supported shortly.
- Provides risk management diversification.
- Flexible pricing methods offered
- White Label Solutions
- Flexible Pricing Secure
- Reliable Fully
- Customizable
- 24/7 Online Customer
- Support Free First Month
- Supports Major Exchanges
Considerations:
Limited Exchange Support
10. Wundertrading Futures Copy Trading
Everyone can become an investor in the crypto market with complete transparency and security on WunderTrading. With the help of professional traders and over 60,000 users, 11,000 bots, and a monthly turnover of over USD300M, you can jumpstart your investment growth with the platform’s auto-pilot system.
Enjoy a user-friendly experience with WunderTrading’s simple copy trading platform. Read more in the Wundertrading review in 2024.
Pros:
- Low-cost
- Easy to use
- Educational resources
Cons:
- Monitoring copied traders can be challenging.
- Finding the best traders to copy can be difficult.
11. Coinmatics Futures Copy Trading
Coinmatics is a social trading platform that delivers a copy trading service. This service allows investors to replicate the performance of crypto traders and traders to share their strategies.
Depending on whether the trader wants to copy their trades, the trade will execute automatically, and the investor can benefit from it.
Pros:
- Diverse trading strategies are available.
- Advanced analytics and monitoring tools.
- Risk management features offered.
- User-friendly platform interface.
Cons:
- Risk of mimicry
- Limited choice of traders
- Investment loss
- No access to advanced strategies
Related Reading
- Trade Copier for TradingView
- DX Trade Copier
- Trade Multiple Accounts Simultaneously
- Copy Trading Platforms
Deploy a Trading VPS Today
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- Futures
- Crypto
- Equities
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- NinjaTrader
- TradeStation
- MetaTrader
- Interactive Brokers
- Sierra Chart
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With 24/7 support and a 100% uptime guarantee, QuantVPS provides a reliable, speed-optimized environment for traders to run their automated strategies continuously and efficiently. Get started and deploy your trading VPS today!