|Is It Possible To Use Mirror Trader Forex Brokers For Successful Social Trading?
Mirror Trader is a copy trader platform developed by Tradency, a company that acts as a technology service provider that caters exclusively to brokers and third party signal services. Tradency works with Forex brokers for providing a broad range of automated trading tools that enable traders to copy trading strategies and incorporate mirror trading tools from other successful traders. Tradency is not a social trading network and does not allow traders or investors to sign up directly with the Mirror Trader platform. Instead, users can only sign up for a Mirror Trader account through the help of a broker that offers Mirror Trader as a free or paid alternative. Several mainstream brokers usually offer their proprietary mirror trading software that is designed and developed by the company’s in-house programmers. On the other hand, other Forex brokers might find it hard to justify the cost of developing a proprietary social trading network, which forces them to use third party systems such as the one offered by Tradency. Tradency’s Mirror Trader software is not as popular as some of the other standalone copy trade platforms, but Mirror Trader provides several customization options and a lower cost of subscription that allows brokers to license the platform at favorable costs. The revenue for the platform is shared between Tradency, the broker, and the signals providers by charging subscribers through a commission based fee or a fixed cost of subscription on a monthly basis.To get more news about forex mirror trading, you can visit wikifx.com official website.
What Are The Core Features Of Mirror Trader?
Tradency offers three different tools for investing in the Forex markets, namely the Mirror Trader, the RoboX, and the Smart Investor. The RoboX platform deals with automated EA trading, while the Smart Investor platform is oriented for investors looking for managed accounts and fund managers. The Mirror Trader takes care of all the social aspects of copy trading that allow investors to copy trades from successful trading strategies that are available from the Mirror Trader database. Tradency has an exhaustive list of trading systems that are highly transparent in their strategy and trading performance. Investors get to choose any trading system according to their trading preferences, and the Mirror Trader platform is home to fully automated, semi-automated, and Manual trading systems. The Mirror Trader consists of strategies that use a mix of EA as well as manual trading, which gives plenty of options for subscribers to choose a preferred trading system according to historical performances.
Trade Copiers have full control over several parameters before deciding to adopt a trading system, and all subscribers have the option of demo trading the system before putting real money on the line. Mirror Trader users can also browse through the history of performance of a trading system and browse through account balances, invested funds, open/closed trades, and other vital factors that allow investors to gauge the effectiveness of a trading system properly. Mirror Trader lets users add multiple strategies to their account and automate the process of trading by allocating specific amounts of trading capital for each trading strategy. The ability to add multiple strategies to a single trading account offers the trader an opportunity to hedge against massive losses or drawdowns, which can also help in finding the most profitable strategy according to the user’s trading history. Even though Mirror Trader uses the automated trading feature, the platform offers full control to the trader to be able to open and close positions according to their preferences.
Is Mirror Trader As Effective As Other Social Trading Platforms?
Mirror Trader does have a few drawbacks when pitched directly against its immediate competitors. Mirror Trader allows signals providers to offer signals services through both live as well as demo accounts, which prevent followers and subscribers to verify the authenticity of a trading system. Most social trading platforms only allow verified live accounts to be a part of their system; however, the Mirror Trader allows selling signals through demo accounts. Therefore, traders might not receive a total commitment from traders as trades executed on demo accounts have significantly lower real-life significance than those executed in live accounts. The cost of subscribing to the Mirror Trader is either paid as a subscription fee or according to the commissions per standard lot traded. Unlike conventional social trading accounts that pay according to the performance, Mirror Trader generates revenue according to the number of live accounts opened. In the Mirror Trader platform, subscribers are required to pay for the services regardless of the trading performance of the strategies chosen.
If a subscriber or follower is not satisfied with the results, they can just ignore a system and choose the next. Nonetheless, customers should pay for Mirror Trader access regardless of whether they decide to adopt a trading system or not. The Mirror Trader platform also does not provide clear insights into the trading performance, as the drawdowns and risks do not include a combination of both open and closed positions. The performance of a trading system is determined by the profit and loss of all closed trades, which does not account for drawdowns or losing trades that are not closed on time. Therefore, there is a far more freedom for traders to hide the actual performance of their strategies by purposefully keeping their losing positions open for a longer period, thereby risking a massive drawdown in the event of a volatile market situation. Mirror Trader also prevents any interaction between traders, as Tradency has not designed the Mirror Trader to be a social trading network alternative. Every strategy is linked to a single currency; therefore, it cannot be used for any other currency pair. Some Mirror Trader Forex brokers are also known to charge additional maintenance fees and other costs of trading for continued Mirror Trader support, which can run into hundreds or even thousands of dollars per month.
Mirror Trader was launched in the year 2005 and is regulated by the JFSA (Japanese Banks and Financial Markets Regulatory Agency) as well as NFA (USA) certified to offer mirror trading services under the CFTC act. Tradency has only recently started offering its Mirror Trader services to Forex traders and started catering to brokers for cashing in on the current demands for a reliable mirror trading system. Mirror Trader platforms have several unique features as well as drawbacks, which forces traders to be proactive in their decision while choosing a Mirror Trader strategy. Always perform due diligence while selecting a trading system, and always concentrate on keeping your trading capital safe from any risky investment ventures.|