What is/was FxPro SuperTrader?
Please note that FxPro discontinued their SuperTrader feature in Q3 2016. You can still social trade with FxPro as a broker when you join other networks such as ZuluTade or SignalTrader. Below is a description of what their SuperTrader platform offered.
FxPro are a global brokerage service, regulated in the UK and Cyprus. They launched their SuperTrader social/mirror trading platform in Q4 2013. The aim of SuperTrader is to bring investors and experienced traders (which they refer to as strategy leaders) together. There advantages for both parties:
For FxPro Investors:
As an investor you have access to a list of FxPro approved strategies (i.e. traders) which are ranked by their historical performance data. You also have access to their historical performance indicators, closed trades and currenty open trades. When you you choose to copy a strategy, you also decide how much to invest using SuperTrader’s risk management controls. Each copied strategy will automatically trade on your behalf in your account. FxPro also monitors the performance of the strategies and will remove strategies when their performance falls below certain thresholds or they fail to comply with their risk criteria.
Experienced traders will have access to FxPro’s database of over 200,000 clients. They receive 5% commission on each profitable trade made in their followers portfolios. To be accepted as a strategy provider on SuperTrader, traders need to undergo a strict application process that includes questionnaires, interviews by FxPro staff and testing of their strategies. All traders also need to send their strategy signals from a live trading account (i.e. they need to trade with “real” money themselves).
The minimum equity you need in your SuperTrader account is since October 13th 2014, but in essence this means you can deposit $10,000 and use FxPro’s credit line multiplier of 2 to get your equity up to $30,000. The minimum investment in a single strategy is $500 though some of the SuperTrader strategies require higher minimum investments (currently up to $10,000). At the time of writing their were about 20 strategies live, falling into 2 categories, FxPro strategies and 3rd party strategies. While registering for the service is totally free, and your spreads are the same as when you’d normally trade with FxPro, there’s a 5% fee to pay when you copy a 3rd party strategy. This fee is payable on each profitable closed trade. E.g. if a trade made you $10, $0.50 will be deducted as fee.
FxPro also point out in their marketing that SuperTrader is backed by their Agency Model, meaning they don’t trade against you since there’s no Dealing Desk to intervene between the positions taken by the strategies in your portfolio and the markets. I.e. FxPro does not act as counterparty and their revenues do not come from your losses (something which may happen with some other mirror trading platform providers).
It’s worth noting though that the initial focus of FxPro’s SuperTrader is on the trade copying element of social trading (i.e. directly/automatically trying to benefit from the knowledge of other experienced traders). There are currently no social interaction features offered on the platform.