Exploring the Merits of SignalTrader
Exploring the Merits of SignalTrader
Exploring the Merits of SignalTrader, one of the most well known mirror trading platforms in the forex industry, had been established in the year 2009. This podium is particularly known to offer copy trading option across a wide array of financial instruments. It connects budding traders with the experienced ones out there. If you have just forayed in to the world of forex trading, you might pick this trading platform which allows you to view others’ trades and copy them automatically in to your own account. You have the liberty to choose the traders whose moves you want to copy. Before you start trading here, you would want to acquaint yourself with its various aspects.
SignalTrader: The basic aspects of the platform explained
Please remember that this platform is not a broker itself. It is rather tied up to multiple forex brokers whom you can sign up with. There are around 10 partner brokers. You can choose any one of them, provided it is offering services in your country. You can open a live account here for completely free. Plus, there are no additional fees to pay as well. Take help of the website to sign up with one of the partner brokers and make sure that you are funding your account with at least US$2,000 or an equivalent amount of money in your currency.
The clients can access a diverse range of money management options in accordance with the level of risk they are willing to take. You have the freedom to dictate the size of the trade, the parameters and profit and loss positions in real time. Since it is not a broker itself but only an advanced automated mirror trading solution you would be required to open a live trading account with a 3rd party forex broker.
Should you trade with SignalTraders?
In order to determine whether at all you should trade with SignalTraders or not you should consider the pros and cons of the platform thoroughly. Here’s some help for you.
The Signal Providers are Selected after proper evaluation
While exploring the Merits of SignalTrader they have several trading systems including SignalCross, SignalMAX, SignalGrowth, SignalBrave and others. Now, though automated trading allows you to duplicate trades of successful traders without hassle, you cannot rule out the possibility of moves yielding unfavorable results as well. The platform has been designed keeping this point in view. The traders who send market signals go through a strict evaluation process before they are selected. They are required to demonstrate prudent risk management (<15% drawdown) and positive returns (>3%). The traders utilize their real money account in order to send over signals. Since the signal providers are putting their own money at stake you can expect a well-managed system at work.
The Trading Systems, on the other hand, are not automated robots functioning within the framework but monitored by experienced traders.
The transparency maintained by SignalTraders is reflected by its features and its performance sheet of the Trading Systems.
The overview screen clearly tells you about the features:
- The raw spreads start from 0.0 pips
- Hedging is allowed
- Leverage up to 1:200
- Multi-lingual support – English, German, Russian, Spanish and Finnish
The performance chart shows you the Profits and Losses incurred by the trading system over a period of time. You can view their detailed strategies, open and closed trades, average profit balance etc. The most important thing is that the platform generally does not remove the names which are performing badly to give an illusion that all’s well here.
You can open account in multiple currencies.
The system is not without its demerits as well. Read on to find out.
Clients who are looking to start trading with a small investment might not be able to do so since they require at least $5000 to start real trading.
Lack of Risk Management Tools
When exploring the Merits of SignalTrader systems we found there is the lack of a proper risk management tool. You will not be able to automtically stop a trading system even if it loses a certain amount of money in your account. Hence, it’s the leaders who are indirectly controlling the entire risk management functionality.
Trading foreign exchange carries a high level of risk, and may not be suitable for all investors. The high degree of leverage available can magnify profits and as well as loses. You can lose more than your initial deposit. Before trading, please carefully consider the risks and inherent costs and seek independent advice as required.