What it is
Copy trading is a portfolio management strategy where an individual investor's account automatically mirrors the trades — opening and closing positions — of another chosen trader. This approach allows less experienced investors to leverage the expertise of seasoned professionals without needing to deeply understand market analysis or execute trades manually. Platforms offering copy trading typically provide performance statistics for traders, allowing users to select who to follow.
Copy trading platforms are often featured in discussions about democratizing finance and the rise of social investing. While it simplifies participation, it also means that the follower assumes the same risks as the copied trader, including potential losses. News about copy trading often focuses on the performance of popular traders, regulatory scrutiny over such platforms, and the inherent risks versus rewards for retail investors seeking passive investment strategies.
Why it matters
Copy trading offers a way to participate in markets by following others, but understanding its mechanics and risks is crucial for retail investors.
Reviewed under editorial standardsUpdated September 26, 2026Not investment advice