Last week, fintech software developer Covesting launched the full version of its copy trading solution on the award-winning margin trading platform PrimeXBT. The only other tool offered in the realm of finance that works even remotely similarly is eToro's CopyTrader platform.
Both solutions allow traders to copy the trades of more experienced and skilled traders and bypass some of the hard-learned lessons new traders often go through when learning the ropes. But what are the differences between the two, and which one is the best, offering the most robust and value-packed solution?
eToro or Covesting: Which copy trading platform is the best around?
eToro offers what it refers to as "social trading" where each trader posts directly to a feed with comments, news and other information, and shares updates regarding current trades.
The feed itself looks similar to something out of Facebook, only instead of emoji and pictures of babies, there are buy orders for gold, Bitcoin, or even shares of the Zuckerberg-led firm.
Users can utilise the feed along with a variety of risk and success statistics to select a trader and copy their trades. Categories of traders are broken down into "top performing" and "most copied".
The most copied trader is the brand's former trading specialist, Mati Greenspan, who has only brought copiers as much as 65% ROI over the last year.
Greenspan's trades as a US user have been limited entirely to select crypto assets. International users don't get access to crypto, but can copy trades on stocks, commodities and more. This disjointed experience, depending on which side of the hemisphere you are, can be confusing. It also means traders in one region may be locked to only copying trades from that same region.
Most copies users appear to garner the only copiers, for whatever reason. Viewing the "top" performers' profiles shows almost zero copiers across the board, despite them offering much more ROI than anyone on the most copied list.
Covesting key features and most critical facts
Covesting is the newer of the two solutions, only releasing recently after a four-month beta testing phase. During that time, the product was shaped into a highly scalable copy trading module that can be implemented into any trading platform, starting with PrimeXBT.
PrimeXBT offers several benefits that help to make the Covesting pitch even more promising, but more on that later. Covesting takes a similar copy trading concept, but streamlines the experience for better transparency and a more enticing proposal for participants.
Covesting is a peer-to-peer solution that matches skilled traders seeking to make a name for themselves as strategy managers, with followers. Followers can copy each strategy manager's trades and earn a portion of the success fees generated by these more experienced traders. Strategy managers also receive a cut, making it profitable for all.
Covesting offers several risk management tools to minimise max drawdown and extensive metrics for full transparency into risk and potential earnings.
Although Covesting will ultimately live on other platforms as part of software licensing agreements with new partners, the platform's home is currently on PrimeXBT, an award-winning Bitcoin margin trading platform, offering crypto, forex, stock indices and commodities.
Copy trading solutions compared: Which offers the most diversity for traders?
Unlike eToro, which segregates crypto copy trading from traditional markets, and keeps the US trading experience wholly separate from the rest of the globe, Covesting on PrimeXBT offers the same solution globally for the most streamlined and comfortable experience.
eToro users can't diversify their trading experience or build a portfolio between crypto and other hot traditional assets like gold, oil and stock indices. Because Covesting leverages the trading instruments and powerful trading tools like long and short positions provided by PrimeXBT, it easily gains a competitive advantage. PrimeXBT’s technical analysis tools are also second to none, provided by TradingView.
Additionally, while eToro allows anyone's trades to be copied so long as they have a profile, it requires an extensive application process before you can begin earning money from those copying your trades. On Covesting, anyone with a dream or skills can become an aspiring strategy manager and at no cost or waiting.
All that matters is a successful ROI. During the four-month Covesting beta, traders reached as much as 1 800% ROI. The top-performing traders on eToro have only earned just over 200% ROI over 12 months, showing that the traders that PrimeXBT and Covesting are attracting are a cut above the rest.
eToro does allow traders to take the platform for a test spin before allocating real capital. Both offer free accounts for new users and a relatively quick sign-up process. Each platform also provides an attractive user interface that is easy to use.
Covesting or eToro: Who will wear the copy trading crown?
Both platforms offer several similar features, but eToro's over-focus on the social aspects of the service – which look the part – detract from what matters the most: trading. Covesting's solution, on the other hand, when combined with PrimeXBT, is a trader's dream, new or experienced.
With powerful trading tools and full access to an extensive list of the hottest assets, PrimeXBT helps Covesting gain the easy edge over eToro as the newly crowned king of copy trading.
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