# What is copy trading, and how is following a Portfolio different? URL: https://start.joinautopilot.com/journal/what-is-copy-trading Updated: 2026-10-09 I'm Chris, one of the co-founders of Autopilot. Open it in the Autopilot app. https://link.joinautopilot.com/eXKr?c=what-is-copy-trading&af_sub1=intro Copy trading is when a platform lets you copy another investor's trades in your own account. The SEC's investor site, Investor.gov, says "certain digital platforms enable investors to copy the trades of other investors" in certain types of investments. On Autopilot, you follow a Portfolio. It sounds similar, and it is in some ways. But the details matter: which firm is the registered adviser, which account your money sits in, what you can follow, and how fast it happens. https://link.joinautopilot.com/eXKr?c=what-is-copy-trading&af_sub1=body Let me explain. 1) What US regulators have said about copy trading For those unaware, there's no single official definition. Here's what's on the record: - FINRA's December 2025 report on social media-influenced investing describes copy trading as "imitating the trading activity of other traders," and says it "can take different forms and may involve the payment of fees for access to strategies and automation of trades in more structured forms." FINRA, the Financial Industry Regulatory Authority, oversees brokerage firms in the US. 2) Copy trading, mirror trading, and social trading The three terms get used loosely, and they overlap. - Copy trading. You pick another investor, set an amount, and their trades get copied into your account, often automatically. - Mirror trading. Usually means following a set strategy automatically, with less say over individual trades. - Social trading. Usually means investors sharing trades and ideas in an online community, and you decide whether to act on them. FINRA's report says using investing chat groups and forums is frequently linked to the development of trading strategies like copy trading. 3) How following a Portfolio on Autopilot works You follow a Portfolio There are three kinds of Portfolios: ones inspired by the publicly disclosed trading activities of certain individuals and entities, proprietary Portfolios, and ones managed by third-party advisers and other creators. A Pilot is the person or firm behind a Portfolio. You're following a Portfolio, and you want to know how it changes and why. Autopilot Advisers is a registered investment adviser Autopilot Advisers, LLC is an SEC-registered investment adviser. You can look it up on the SEC's adviser database under CRD 331749. You give it limited authority through an advisory agreement. When we act as your investment adviser, we have to act in your best interest and not put our interest ahead of yours. Your money stays in your own brokerage account You connect an individual or IRA brokerage account you already have at one of our supported brokerages. You give Autopilot Advisers limited authority to place trades. It can't move or withdraw your money. We don't hold your money. Autopilot doesn't currently maintain custody of any client assets. Your broker holds the account and fills the orders. The money stays in your account. Your amount is spread across the holdings Your amount is spread pro rata across the Portfolio's holdings, based on each one's weight in the Portfolio when you invest. So if a stock is 10% of the Portfolio and you put in $1,000, about $100 goes to it. Mainly stocks and ETFs We filter some securities out of Portfolios, including short positions, options, and securities your broker can't trade in fractional shares, and the list isn't limited to those. Portfolios are primarily composed of ETFs and US equities. An ETF can itself be leveraged or crypto-related, so read each Portfolio's holdings. It isn't instant Orders can go out in batches over the trading day, in a randomized order across accounts, and can be delayed by things like low liquidity, trading halts, or technical problems. Some brokers also make you approve each trade. And if a Portfolio is inspired by public filings, it starts behind the original trade, because the filing comes after the trade. For those unaware, a 13F is the quarterly holdings report filed by managers with at least $100 million in qualifying securities. It's due within 45 days after the quarter ends. 13Fs don't have a purchase date. They only have the ending date. A member of Congress has up to 45 days after a trade to report it. It depends on your tier Autopilot has two tiers, Basic Tier and Premium Tier. On Basic Tier, we send your broker the Portfolio's starting allocation, then alert you when the Portfolio changes. On Premium Tier, we automatically send your broker the changes, where your broker allows it. There's a $500 minimum account size and a $500 minimum per Portfolio. The full breakdown is in What does Autopilot cost. 4) What to check before you follow anyone 1. Who's registered. FINRA says to make sure services that send trades to your brokerage account are provided by registered firms, and to check them with its BrokerCheck tool. You can also look up an investment adviser on the SEC's adviser database, which is where Autopilot Advisers is listed. 2. What you're following. Read the Portfolio's description, its holdings, how often it trades, and its performance chart in the app. 3. Who gets paid. FINRA's report notes copy trading may involve paying fees for access to strategies. On Autopilot, third-party Pilots get a share of the subscription fees from their Portfolios, and that creates conflicts of interest. 4. Taxes. Expect frequent trading, so in a taxable account you'll mostly see short-term capital gains and losses, which are generally taxed less favorably than long-term ones. 5. Your own trades. If you sell a stock Autopilot is tracking, the app will try to buy it back to rebalance, usually in one to three business days. To stop buying one stock, use Blacklist instead. 6. Your account. FINRA says that even with a registered service, you should "always monitor the activity in your accounts." I want to be honest with you. Your results won't match anyone else's exactly. Some Pilots go up for years, some are flat for years, and some lose money. Research the person and the Portfolio. TLDR: Copy trading is when a platform lets you copy another investor's trades in your own account, often automatically. The SEC said in 2021 that copy trading in securities may raise broker-dealer and investment adviser status issues, and FINRA says it can take different forms. Following a Portfolio on Autopilot works differently. You follow a Portfolio. Autopilot Advisers is an SEC-registered investment adviser. Your money stays at your own broker. Portfolios are mainly stocks and ETFs, and orders go out over the trading day. Frequently asked questions What is copy trading and how does it work? Copy trading is when a platform lets you copy another investor's trades in your own account. You pick someone to copy and set an amount, and their trades get copied into your account, often automatically. The SEC's Investor.gov says certain digital platforms enable investors to copy the trades of other investors in certain types of investments, and FINRA says it can take different forms, including paying fees for access to strategies. What's the difference between copy trading and a robo-advisor? The SEC describes a robo-adviser as an automated digital investment advisory program: you fill out an online questionnaire about your goals and risk tolerance, and it creates and manages a portfolio for you. Copy trading copies a specific person's trades. On Autopilot, you choose a Portfolio, built by a Pilot (the person or firm behind it) or from public filings, and Autopilot Advisers, an SEC-registered investment adviser, sends instructions to your own brokerage account. What's the difference between copy trading and following a portfolio? Copy trading copies a person's trades, often automatically, and FINRA says it can take different forms. On Autopilot, you follow a Portfolio, and Autopilot Advisers, an SEC-registered investment adviser, sends instructions to the brokerage account you already own. On Premium Tier it automatically sends your broker the changes where your broker allows it, and on Basic Tier it alerts you. Portfolios are mainly stocks and ETFs, and orders go out over the trading day. What's the difference between copy trading, mirror trading and social trading? The terms get used loosely and overlap. Copy trading means another investor's trades get copied into your account, often automatically. Mirror trading usually means following a set strategy automatically, with less say over individual trades. Social trading usually means investors sharing trades and ideas in an online community, and you decide whether to act on them. FINRA says using investing chat groups and forums is frequently linked to strategies like copy trading. Is copy trading a form of passive investing? No. The SEC describes a passive fund as one that follows a strategy designed to match an index's return before fees. Copy trading and following a Portfolio both track someone's active choices, so you take the risk of those choices. On Autopilot's Basic Tier you also act on the alerts yourself, and frequent trading can create short-term gains and losses in a taxable account. How does an app place trades automatically in my own brokerage account? On Autopilot, you sign an advisory agreement that gives Autopilot Advisers, an SEC-registered investment adviser, limited authority to place trades in the brokerage account you connect. It can't move or withdraw your money. On Premium Tier, we automatically send your broker the changes when the Portfolio changes, where your broker allows it, and your broker fills them. On Basic Tier, we send your starting allocation and alert you to later changes. Some brokers require you to approve each trade. Do copy trading apps guarantee the same returns as the investor I'm copying? No. FINRA says guarantees of investment performance are a red flag, and all investments carry risk. On Autopilot, your results won't perfectly match the Pilot's: orders go out after the Portfolio changes and fill at your broker's pace, some brokers don't trade fractional shares, and Portfolios inspired by public filings start behind the original trades. Some Pilots go up for years, some are flat for years, and some lose money. Are apps that follow other investors required to register as investment advisers? It depends on how they work. Autopilot Advisers, LLC is registered with the SEC as an investment adviser, CRD 331749. FINRA says to make sure auto-trading services come from registered firms and to check them with BrokerCheck, and you can look up an investment adviser on the SEC's adviser database. Can I make my own trades in an account that follows a Portfolio? Yes, but know what happens. If you sell a stock Autopilot is tracking, the app tries to buy it back to rebalance, usually in one to three business days. To stop buying a specific stock, use Blacklist instead, and Autopilot spreads the money across the Portfolio's other holdings. Stocks you buy by hand aren't counted in Autopilot's tracking, and we suggest a separate brokerage account for your own trades. Open it in the Autopilot app. https://link.joinautopilot.com/eXKr?c=what-is-copy-trading&af_sub1=end "Autopilot" refers to Autopilot Holdings Corp and Autopilot Advisers, LLC, an SEC-registered investment adviser. Investing carries risk-including possible loss of principal-and past performance is not indicative of future results. Figures current as of 10/09/26. View our Customer Relationship Summary and other important info at joinautopilot.com/disclaimer.