Copy Trading for Prop Firms: Is It Allowed?

Copy trading has become a dominant method for traders to leverage expertise without manually executing trades. For retail traders, the convenience is clear—but what about when trading with a prop firm funded account? Many aspiring traders wonder if copy trading is allowed, especially when attempting challenges at firms like FTMO, MyForexFunds, or The5ers. This article explores the realities, restrictions, and best practices of copy trading with prop firms in 2025. Along the way, we highlight how SmartT provides an AI-enhanced safety net where funds remain in your own broker account while trades are executed automatically with strict risk controls.

Prop firms provide traders with capital on the condition they follow specific rules. Their business model depends on ensuring risk is controlled and that traders don’t exploit loopholes. Copy trading introduces two major concerns:

• Unfair advantages if multiple traders mirror the same strategy.
• Difficulty monitoring originality, discipline, and skill in passing challenges.

Because of this, some prop firms ban copy trading outright, while others allow it with restrictions such as limiting the number of linked accounts or requiring independent decision-making.

FTMO is one of the most popular prop firms. Its terms highlight that strategies must be original, and they explicitly warn against account mirroring. However, FTMO allows the use of Expert Advisors (EAs), provided they are not used for trade duplication across multiple accounts. This creates a fine line: using a copy trading bot like SmartT to follow a single trader is different from copying trades across multiple funded accounts in violation of firm policies.

Different firms apply different policies:

Prop firm challenges usually involve strict rules: profit targets, maximum daily loss, and overall drawdown limits. Copy trading allows traders to leverage proven strategies, but survival requires more than copying blindly. Risk management is key. For example, AI risk management layers can prevent bad trades from triggering violations.

With SmartT, the AI Advisor blocks weak trades, while Market Sentiment filters avoid going against the broader trend. This aligns perfectly with prop firm requirements where a single mistake could void the challenge.

Although copy trading can help pass challenges, it introduces risks. Firms may detect patterns if multiple accounts are trading identically. Violations can result in losing access to the account. Traders should avoid:

• Running multiple accounts with mirrored trades.
• Ignoring firm communication about automation policies.
• Using martingale or grid systems flagged by firms.

SmartT isn’t just a copy trading tool—it’s a protection system. Traders connect their own broker accounts and allow SmartT to follow selected top performers. Funds remain secure, while the AI risk guard ensures compliance with risk limits similar to those imposed by prop firms.

• AI Advisor Guard: Blocks weak trades that may cause rule violations.
• Market Sentiment: Prevents trading against strong trends.
• Rate Guard: Enforces favorable risk-reward ratios, critical for funded account sustainability.

This makes SmartT particularly suitable for traders aiming to both pass challenges and manage live funded accounts responsibly.

• Read every prop firm’s terms carefully before enabling copy trading.
• Limit account mirroring and avoid obvious duplication across multiple funded accounts.
• Adjust lot sizes and risk per trade to remain within firm limits.
• Use demo accounts to test your setup before attempting real challenges.
• Consider diversifying strategies, as some firms score higher on originality.

• Step-by-Step Guide: Start Copy Trading with $100
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• AI Risk Management in Copy Trading
• SmartT Live Trading Bot Results
• Is Copy Trading Worth It?
• Best Copy Trading Platforms in 2025