Copy Trading vs. Robo-Advisors
July 4, 2026 · 5 min read
Quick answer
Copy trading and robo-advisors both automate investing, but they are very different. A robo-advisor builds and rebalances a diversified, mostly passive portfolio (usually index ETFs) based on your risk profile, with a long-term, hands-off goal. Copy trading follows a specific active trader’s decisions into your own account, which can be more concentrated and more active, and its results depend entirely on the trader you follow. Robo-advisors aim for steady, diversified growth; copy trading aims to mirror a strategy you believe in. Neither removes market risk.
Part of the complete guide to copy trading.
Copy trading and robo-advisors are both ways to automate investing, so they get compared, but they solve different problems. Understanding the difference helps you pick the right one, or decide they are not really substitutes at all.
What a robo-advisor does
A robo-advisor builds a diversified, mostly passive portfolio for you, usually low-cost index ETFs, based on a risk questionnaire, then automatically rebalances and reinvests over time. The goal is steady, long-term, hands-off growth with broad diversification. You are not following any individual trader; you are letting an algorithm maintain a standard allocation.
What copy trading does
Copy trading follows the trades of a specific active trader into your own brokerage account, sized to your limits. It can be more concentrated and more active than a robo portfolio, and the outcome depends entirely on the trader you choose. It is a way to automate an active strategy you find compelling, rather than to hold a broad, passive allocation.
Which fits you
- Want broad diversification and a long-term, set-and-forget allocation? A robo-advisor is closer to that.
- Want to follow a specific active trader or strategy in your own account, with your own risk limits? Copy trading fits that.
- Some people use both: a diversified core plus a smaller, risk-limited copy-trading allocation.
A robo-advisor aims for diversified, passive growth; copy trading mirrors an active trader’s decisions. Neither removes market risk, and you can lose money with either.
What to keep in mind
Copy trading concentrates on one trader’s decisions, so it can swing more than a diversified robo portfolio, and past performance is not indicative of future results. RelayTrades is automation software, not a robo-advisor, a broker-dealer, or a registered investment adviser, and it does not manage your money or give personalized advice. This is general information, not investment advice.
Frequently asked questions
Related reading
Copy Trading vs. Index Funds: Which Is Better?
Index funds are low-cost, passive, and diversified; copy trading is active and hands-on with higher risk and effort. Here’s how they compare and who each suits.
Read moreCopy Trading vs. Managed Accounts (PAMM/MAM): What’s the Difference?
Copy trading keeps you in control of your own account; a managed account hands discretion to a manager. Here’s how they compare.
Read moreWhat Is Copy Trading and How Does It Work?
Copy trading lets you automatically mirror another trader’s trades in your own brokerage account. Here’s how it works, step by step.
Read moreOr read the complete guide to copy trading and browse the glossary.
Copy trade on your own broker, with safeguards you control.
Connect your account, follow the strategies you choose, and keep position-size limits, slippage protection, and a kill switch in your hands at all times.
Get startedRelayTrades provides software and automation support, not investment advice or capital management. All trading involves risk; past performance is not indicative of future results.