--- title: "The History of Social and Copy Trading - Get Funded Now" description: "How social and copy trading evolved from early-2000s signal sharing to automated copying and social networks, and why regulators and prop firms limit it." url: "https://getfundednow.com/learn/history-of-copy-trading" language: "en" last_modified: "2026-09-22" publisher: "Get Funded Now (getfundednow.com)" translations: es: "https://getfundednow.com/es/learn/history-of-copy-trading" pt-BR: "https://getfundednow.com/pt-br/learn/history-of-copy-trading" fr: "https://getfundednow.com/fr/learn/history-of-copy-trading" it: "https://getfundednow.com/it/learn/history-of-copy-trading" de: "https://getfundednow.com/de/learn/history-of-copy-trading" disclosure: "All trading at Get Funded Now is simulated. 'Funded' means a simulated or virtual account; GFN is not a broker and does not hold client funds." --- Trading styles # Social and copy trading: how following other traders evolved. Social and copy trading grew out of traders sharing signals online in the early 2000s. Around 2005, automated trading made it possible to replicate another trader's orders directly, and from about 2010 copying became a mainstream feature of retail trading services. The growth brought regulatory scrutiny, and most prop firms now restrict copying another trader. [All trading lessons](https://getfundednow.com/learn) · [Read the trading rules →](https://getfundednow.com/rules) ## A short timeline The broad stages, as the published histories describe them. Dates are approximate and the services involved are not named here. **How social and copy trading developed** | Period | Development | | --- | --- | | Early 2000s | Websites let traders publish strategies and signals for others to follow manually; the first social trading functions appear around 2003. | | Around 2005 | Automated trading makes it possible to replicate orders from one account in another - the start of copy and mirror trading. | | From about 2010 | Copying becomes a mainstream feature of retail trading services, with public performance profiles and follower counts. | | 2014-2017 | Researchers study social trading networks as systems of influence, and find that followed traders show behavioural biases of their own. | | Late 2010s onward | Regulatory pressure on forex copy services, many of which close or change; prop firms write rules against copying another trader. | ## Social, mirror and copy trading The three terms are often used interchangeably, but they describe different things. - Social trading - sharing ideas, positions and results openly, with other traders deciding for themselves whether to act. - Mirror trading - automatically following a strategy, often an algorithm, rather than a particular person's account. - Copy trading - linking part of one account to another trader's so that every order they place is replicated, in proportion, automatically. ## Why it came under scrutiny Copying hands decisions to someone else, often on the strength of a short public record. A record that looks strong can reflect a few large trades, high risk or luck, and followers inherit all of it - including the leader's biases. Research on social trading networks found that followed traders were more prone to holding losers than other traders. The published histories also describe scams in forex copy services, and the regulatory action that followed. For prop firms the concern is different but related: an evaluation is meant to assess one person's trading, and copied trades defeat that. Step by step ## How to identify it If you consider copying anyone, ask these questions first. 1. How long is the record, and does it include losing periods? 2. What risk does it take - the worst drawdown, and position sizes relative to the account? 3. Is the performance verified, or self-reported? 4. Do the rules of the account you trade permit copying at all? Worked example ## The concept, walked through ### Why a short record misleads, described An illustrative case in words, with no real figures or services. It is not a record of any trader. 1. 1. Record A trader's public profile shows a large gain over three months, and followers pile in. 2. 2. Risk Most of the gain came from two oversized positions that happened to work. 3. 3. Result The next oversized position loses, and every follower's account takes the same loss in proportion. The followers copied the risk as well as the results. Nothing in the three-month record distinguished skill from luck. Common mistakes ## Where traders go wrong ### Judging a leader on returns alone Returns without drawdown and position size say little about the risk taken. ### Assuming copying is allowed everywhere Many prop firms prohibit copying another trader outright. ### Treating a follower count as evidence Popularity reflects visibility, not skill. Limitations ## What it cannot tell you No chart concept predicts price. These are the limits worth keeping in view. - The published histories of social and copy trading are secondary sources and some of their dates are approximate. - Research on social trading networks covers particular services and periods and may not describe current ones. In an evaluation ## Using it on a simulated account On GFN accounts, copying trades between accounts you personally own may be permitted within the rules. Copying another trader's positions, letting someone else manage your account, using a passing service, or trading as a coordinated group is prohibited on all three programmes. - [Is copy trading allowed?](https://getfundednow.com/rules/copy-trading) - Trading rule - What is and is not allowed at GFN. - [Can someone else trade my account?](https://getfundednow.com/rules/account-sharing) - Trading rule - Why the account, the identity and the payout must belong to one person. - [What trading is prohibited?](https://getfundednow.com/rules/prohibited-trading) - Trading rule - The wider list of conduct that ends accounts. Questions ## Asked about this concept Social trading is sharing ideas and positions openly for others to act on themselves. Copy trading automatically replicates another trader's orders in your account. It depends on the firm. At GFN, copying between accounts you personally own may be permitted, but copying another trader or having someone else trade your account is prohibited. Keep learning ## Related lessons - [Swing Trading vs Day Trading](https://getfundednow.com/learn/swing-trading-vs-day-trading) - Indicators and trading styles - How swing trading and day trading differ on holding time, screen time, costs and overnight risk - and why neither is the easier route. - [How Much Do Day Traders Make?](https://getfundednow.com/learn/how-much-do-day-traders-make) - Indicators and trading styles - An honest answer to the income question: what large studies of retail day traders found, and why a per-month figure is the wrong thing to look for. - [Backtesting a Trading Strategy](https://getfundednow.com/learn/backtesting) - Indicators and trading styles - How to test a strategy's rules on historical data, the costs and biases a fair test must include, and why a good backtest is not a forecast. - [What Is a Retail Trader?](https://getfundednow.com/learn/retail-trader) - Indicators and trading styles - Who retail traders are, how they differ from institutional traders on capital, costs and access, and where a prop firm evaluation fits between the two. - [AI in Forex Trading: What It Can Do](https://getfundednow.com/learn/ai-in-forex-trading) - Indicators and trading styles - Where machine learning and automation are used in currency trading, why regulators warn about AI trading-bot claims, and what automated trading means on a prop account. Sources ## What this page relied on 1. [Social trading](https://en.wikipedia.org/wiki/Social_trading) - Wikipedia. Retrieved 23 September 2026. The timeline from early-2000s signal sharing to 2010s social trading networks, and the research cited on them. 2. [Copy trading](https://en.wikipedia.org/wiki/Copy_trading) - Wikipedia. Retrieved 23 September 2026. The distinction between copy and mirror trading, its roots in automated trading around 2005, and the regulatory pressure on forex copy services. 3. [Mirror trading](https://en.wikipedia.org/wiki/Mirror_trading) - Wikipedia. Retrieved 23 September 2026. Mirror trading as copying a strategy rather than a specific trader's account. Educational content only, not investment advice or a recommendation to trade. Chart concepts describe what price has done; none of them predicts what it will do, and trading any strategy can lose money. Get Funded Now accounts are simulated and trade virtual funds. Last reviewed 22 September 2026. 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