What is Signal Trader?
What was Signal Trader?
Please note that on December 5th 2016 Signal Trader ceased operations. We leave this introduction online though so you can review the service they used to offer.
Signal Trader was established in 2009 with the aim to provide the best possible automated mirror/copy trading platform, connecting people with an interest in trading with market experts. As their client you can:
- get real-time access to the trading accounts of expert traders (aka “signal providers”)
- receive open and closed position signal alerts via e-mail
- automatically copy the trades of these expert traders in your broker account.
Signal Trader’s auto-execution mirror system allows you to duplicate trades on Forex, Indices and Commodities automatically when they get executed in your chosen expert traders’ own brokerage accounts. In addition, their money management options allow you to control the desired level of risk you want to take when you copy a trader (i.e. by setting your preferred trade size). Users can also monitor and close any copied trades in real time via Signal Trader’s interface.
There are currently about 12 signal providers available to copy on their social trading network. All of them need to go through Signal Trader’s vetting process and need to meet the following requirements:
- trade from live trading account with a minimum balance of $8,000
- have at least 3 months trading history with net profit of 3% or more
- display a maximum draw down of no more than 15% over the lifetime of the account
These expert traders are paid $5 per standard lot traded in followers’ accounts, but for profitable trades only. As mentioned, they all trade with “real money” accounts (the amount of which is displayed). This is something fairly unique among the social trading networks and why Signal Trader markets themselves with the tagline “Real Money, Real Trades, Real Time”.
Signal Trader does not act as a broker, but offer the technical platform and service which connects your account with those of the expert traders. It is totally free to join and use Signal Trader, and there are no management or success fees to pay. When you sign up for a live account, you do however have to do this with one of their partner brokers (AvaTrade, FxPro, FXDD, FXCM, Forex.com, FinxFx, AxiTrader, FxFair, Land-FX, FxOptimax, icMarkets, FxFair, Core Liquidity, BelforFX, Gallant Capital Markets and ETX Capital). This is the way they make money (and hence can offer their social trading service free), because as a referring broker, Signal Trader receives an IB fee from the brokers for accounts they refer. The minimum deposit required for using Signal Trader’s auto-execution platform is $2,000 (or equivalent in your account’s base currency). It used to be $5,000 but got lowered Q1 2015.
To try Signal Trader’s social trading platform and test the performance of their leading signal providers you can sign up for a free Signal Provider demo account. This practise account is valid for 31 days.