Tradency Mirror Trader Review – Our View
|Broker||Tradency Mirror Trader|
|Minimum 1st Deposit. .||It works with third-party brokers, so the minimum deposit depends on the selected broker|
|Bonus||Live Signals, Mirror Trading, Practice Account|
|Leverage||Depends on the asset, the broker and your region|
|Free Demo Account|
|Regulated||Depends on broker|
|Number of Assets||Forex, CFDs, Crypto, Commodities, Indices, ETFs, and more|
|US Traders Allowed|
What is Tradency Mirror Trader and how it works
Tradency BVI, founded in 2005, is a financial technology company providing innovative trading solutions. They were one of the pioneers in the area of auto-trading and social trading, or as they call it “mirror trading”. Their trading platform is called “Mirror Trader” and it enables FX traders to use the knowledge of strategy developers and other traders from around the world for their own trading.
The first thing to note is that you cannot sign up for Mirror Trader direct via the Tradency website. Just to clarify, Tradency is a pure technology provider who develops and sell trading platforms to brokers. Hence, you can only sign for Mirror Trader direct via a broker. We used AvaTrade who actually also offer free demo access to the Mirror Trader platform as well when you sign up with them. As with our other social trading platform reviews, this review is also based on experience with a live account and is regularly if new features are released.
Tradency Support and Fees
Tradency is not a broker per se! It actually connects to brokers and is a pure software and solution provider. Because Tradency leaves the customer acquisition and management to the brokers, this means they don’t really offer much support to end customers (no telephone number) and there’s also not much educational info on their website. While Tradency doesn’t charge anything to you as end-customer they charge each broker a performance fee per trade or monthly technology fee per customer for using Mirror Trader.
Quite a few brokers still charge you an extra commission per trade when you use Mirror Trader (though we didn’t check all of them as part of this review). Hence, you’ll need to check yourself the costs when deciding on a broker. AVATrade, the one we use doesn’t charge any extras. While there used to be a useful list of partner brokers on the Tradency website, this is unfortunately no longer available. You’ll find a Mirror Trader supported broker list here on our website.
They have two different charging models for the brokers. Their original model charges the brokers a volume fee of about 1-2 pips per trade. Under Tradency’s alternative business model, which was introduced later in 2011, they charge a technology fee to the broker of a few tens of dollars per active user per month instead of the volume fee. Tradency hopes that this alternative model is more convenient for brokers. They believe it’ll make them more attractive and cheaper to customers since brokers would normally pass on part or all of the volume fee to the end customer.
Tools and Features
Once you sign up you get access to Tradency’s Mirror Trader platform (in practice or live mode). This platform includes the usual trading and charting tools allowing you to analyse the currency pair charts using various oscillators and open up buy or sell positions manually. You can also look at the “Sentiments” for each currency pair which shows what the % of other Mirror Trader platform users are in Buy or Sell positions which is useful. In addition to these basics, Mirror Trader also gives you access to the strategies from other traders (called “strategy providers”). Via the Live Signals screen, you can view all the signals real-time and copy them if you decide to (called semi-automatic mirroring). Alternatively, you can select and add strategies to your portfolio which the Mirror Trader platform will automatically execute in your trading account (automatic mirroring).
At a basic level, Mirror Trader offers traders a trading workspace with all the usual trading and charting tools to buy and sell. However, Tradency’s platform also gives you access to the strategies from other trades and introduces some new trading techniques, including Semi Mirroring and Automatic Mirroring
Automatic Mirroring: the Tradency software will mirror the strategies you select by copying their trades in your account automatically.
- Semi Mirroring: this option gives you more control over which trades you decide to mirror by allowing you to view the live trades of strategy providers. You can then choose the trades you want to mirror instantly and ignore the ones you don’t.
How to Manage Risk and Develop a Winning Strategy on Tradency’s Mirror Trader
While the trading and charting tools are useful, most brokers will give you a very similar offering and the real “value add” of Mirror Trader is in the strategies you can copy. There’s a choice of more than 300 strategies to choose from. While strategy providers don’t necessarily need to trade their own signal via a live account, they need to prove to Tradency that they have one and their system will be tested for 1 month and a minimum of 30 trades. If after this period their strategy meets the required performance standards, Tradency will also interview them, before their strategy goes live on Mirror Trader. This is a bit of a bottleneck. The evaluation process (with interview) is positive on the other hand.
Use Filters Wisely!
You have a variety of filters you can apply to find a strategy which matches your risk profile. For each strategy, you also have access to ALL their historical AND current trades, which makes Tradency totally transparent and a plus point compared to some other social trading networks which don’t provide access to all that trading data. While there’s always room for improvement, the Mirror Trader platform’s features to review, analyse and compare the historical performance are functional and sufficient for most of the research activities you want to perform. In addition, you can export all data to Excel as well if you want to do some more advanced analysis.
Our main issue with the info provided on Mirror Trader is with the calculation of the historical drawdown for the strategies. This is done on the account level and closed trades only and doesn’t take into consideration the drawdown on historical open trades. This, unfortunately, doesn’t make the drawdown numbers very relevant to strategies which hold on to multiple open positions with wide stops. Therefore, it impacts their proprietary T-Score (otherwise a good idea) which can be used to rank the strategies.
Social Interaction Features
While Tradency mentioned a while ago that they were looking at adding social interaction features to their Mirror Trader platform, at the time of this review this hasn’t happened yet. The only interaction you have with the strategy providers is one-way, in the sense that can leave a description for their strategy. While some are detailed and useful, others are fairly non-descriptive. Overall, the quality of them has improved over the past years. While there are no feedback comments or ratings of the strategies by Mirror Trader users, you can actually view how many followers with real money live accounts each system has (the $ amounts are not shared though). Therefore, it’s easily possible to use the social equivalent of ‘following the herd’ when selecting your portfolio of strategy provider.
Once you made a selection, you select how much to invest in each provider in terms of lots. Mirror Trader’s account management functions also let you limit the number of trades you allow open per strategy and set a monetary limit for the maximum loss you are willing to endure for the strategy. You can also view current open trades and close them from within the platform at any stage (which is very useful as it puts you in full control of your trades from within the same interface). The account and risk management settings are fairly intuitive and give you some flexibility in how to protect your account.
Is it Possible to Make Money when People Copy Your Strategies?
The strategy developers are compensated for every signal that was mirrored by the Mirror Trader’s users. They can send their buy and sell signals to the Tradency servers by EA, TradeStation or API. Because the strategies are running on the strategy provider’s side they always remain confidential. The strategy providers can also leave a detailed description of their strategy and trading experience.
Making Money by Copying Others
The question on whether you can make money with Mirror Trader obviously very much depends on the quality of the strategies offered by Tradency on their platform. Fair to say we experienced the good and the bad (i.e. it’s not because a strategy has been evaluated for a month that you should blindly trust). However, with some good risk management and some regular monitoring, you can achieve some overall gains. Because a lot of these strategies are EAs (i.e. robots) you will, however, have a much better chance in being successful if you have some trading background and can intercept some strategies or trades on certain news events.
Which Devices are available for using Mirror Trader
Mirror Trader is primarily a web-based platform. You can still access the website via mobile, but you won’t find an application per se. Via the mobile platform, you’ll be able to check your portfolio, execute manual trades and mirror live signals. While Mirror Trader initially only supported Forex instruments, since 2014 Tradency supports CFD instruments such as S&P 500, Google, Crude oil and more. The wide range of markets available now covers currencies, equities, commodities, indices, gold, silver and energy futures.
According to a recent survey published on the Tradency website, among 1000 live, active users:
- 90.2% said that the Mirror Trader platform is easy to use
- 92.4% said they liked the 24/6 automated trading capability
- 80.6% said they consider Mirror Trader as a long term investment tool
In February 2017, Invast securities announced reaching 100,000 live users using MirrorTrader by Tradency.
Tradency Deposit Options
Mirror Trader supports account in USD or EUR currencies and Tradency already works with over 40 brokers around the world. These include FXDD, Forex.com, FXopen, AvaTrade, FXCM, Golder Market, FX Trade, USG Capital and more.
Tradency Mirror Trader Pros and Cons
- All historical trade info and current open trades available (data is transparent)
- Risk can be managed separately for each strategy copied (i.e. losses can be limited)
- Full control (open trades can be closed from Mirror Trader interface at any time)
- Fully functioning free demo account available (though dependent on broker)
- Drawdown is calculated on closed trades only and doesn’t include drawdown on open positions. This makes the figures not very relevant for some strategies
- No social interaction possibilities with strategy providers or other traders
- Most brokers still charge extra commission per trade to customers for using Mirror Trader
- Strategy providers do not need to trade their own signal from a live account
- Each strategy is linked to single currency
- Basic Tradency support is poor
Based on socialtradingguru