The web is packed with providers offering trade possibilities involving binary options, forex currency pairs and contracts for difference. Online trade is available for beginners as well as for seasoned traders, but while professionals have enough experience and suitable strategies to show for it, beginners have a really hard time at first, for which reason they’re always looking for help and inspiration.
- Trading Robots: An algorithm automatically detects opportunities and investing independently.
- Social Trading: The user selects from a pool of successful trader and the system automatically copies the trades.
- Tradingsignals: The Broker will give the user signals about trends and good opportunities on the market.
Whether you need a free demo account or a senior trading account, you can find the right broker that meets your need on financecheck.net.
Tradeo: All advantages at a glance
- CySec regulated
- Currency pairs EUR/USD as of 2,2 Pips
- Maximal leverage of 1:200
- Up to 50 underlyings
- Very easy operations
- Chat, Phone, Skype and E-Mail Support
Robot & Social & Signal Broker
Social Trading Robot
Copy successful traders
Min. Deposit :
CFDs / Forex
Social Trading Robot
Copy successful traders
CFDs / Forex
Not only social trading but also robot trading is becoming increasingly popular with brokers. This automated trading method found appreciation especially with professional traders, and also offers advantages for those less experienced. In order to be successful in trading with binary options, contracts for difference and currency pairs, and make profit from it, you have to invest a lot of time. Traders have to study the respective markets in detail, and acquire the necessary know-how. Until this purpose is achieved, most traders first pay a so-called apprenticeship premium. Successful traders have to do more than just read the charts, they have to interpret and implement them correctly. Beginners without a lot of experience often encounter problems, and lose motivation rather quickly after the first losses. These past years brokers have developed many programs that do a lot of the work for traders. Robot trading finds support with more and more providers, and makes a number of useful features available for traders. Still, traders should never rely completely and carelessly on the modern form of automated trading, because that could lead to problems.
How exactly does robot trading work?
Robot trading uses a bot in form of intelligent software that can observe many markets and assets in parallel, which saves the trader a lot of time. The software scans the preferred markets for trends, and all that traders have to do is wait for the bot to recognize a suitable signal and point it out. With robot trading you can keep track of more markets at the same time, and react fast to trading signals. The software can be customized, and traders can choose the markets – among other things. With such a robot, binary options, contracts for difference and currency pairs can be traded automatically. But the bot doesn’t do all the work, so traders still have to take action themselves, and react to the trade signals the robot points to. There are different programs for the half-automated trade, but this software’s main task is analyzing the different charts, and scanning them for different assets. But every auto-trader only works according to the individual parameters set by the trader in advance. Without manual input most robots enter trade either partially or not at all. For this reason investors should have at least basic knowledge, and know their way around the markets accordingly.
A half-automated or fully automated trading system that can be used for forex, CFD and binary option trading is a complex software programmed by experts with experience, and comprising the knowledge of a great many stock market experts. The trading robot can analyze different markets in a fraction of a second, and can constantly react in real time. These are abilities that humans don’t have. One of the most important advantages over manual trading is that the software lacks emotion. Beginners and professional traders alike have the same trouble turning off their emotions in trading, and their feelings can have negative effects on the trade results. The programs constantly run logical calculations, while remaining completely free of emotion. They work considerably faster and more efficiently than human traders. Many traders rely on the Expert Advisor in forex trade. The automated trade system is an independent forex software that takes over market analysis upon request. Based on this analysis the software runs calculations and recommends a trade strategy. One of its features is for example placing trade positions independently. A great advantage of Expert Advisor consists of the safety profiles Take Profit and Stop Loss. These make trading a lot safer and protect the trader from total loss. Generally traders should get to know the robot in detail, and use the program regularly. This way trust in the software will grow, and traders can better interpret the recommended trade signals.
What are the risks?
Robot trading may seem to some traders an easy and fully automated trade solution that makes profits by itself without the slightest effort, but this is not the case. Unfortunately many inexperienced traders rely completely on the trade signals of a robot without at least familiarizing themselves with the most important basics first. In such a situation risks are very high that signals are wrongly interpreted, and that losses occur. Robot trading doesn’t offer 100%-guarantee of successful and profitable trade either. Those who don’t understand the exact way these programs work run a very high risk. Moreover, the calculated trade signals are no guarantee that a certain option will really be in the money until the end of the process. Everyone who wants to start robot trading should be aware of this. Before you even use such a program you should first look into the trading field, and get to know the advantages and disadvantages properly. Usually there’s a tight connection between broker and trading robot, which is another thing traders should be aware of. Despite the software and the mathematical algorithms it’s never certain that a particular trend will remain stable over the entire duration. This means the robot doesn’t keep traders safe from losses.
Does it make sense to use an automated software?
This is an important question every trader interested in this topic will ask himself. Usually, for half-automated trade based on software the same rules apply as for manual trade. Traders should keep themselves thoroughly informed, and they should definitely run one or more tests. Most brokers will allow you to create a free demo-account, which you can use to test the software’s features without running any financial risks. Of course that when using the robot traders should have suitable finance management. Since the software doesn’t guarantee winnings, and mainly works based on trends, a trade signal can also turn out to be ineffective. Proper finance and risk management protects traders from existential loss. What the software does is only to look for trends and give trade signals accordingly. Such a program can’t predict the stability of trends, which is why traders should never invest too much money. Moreover, the costs for the trade software should be taken into account when doing your calculations. Prices can vary from broker to broker, but there are also some providers who place such software at their clients’ disposal free of charge. Investors can only participate in robot trading if they have a trade account with the respective broker, in which they deposited the necessary amount. Usually traders use different strategies for binary options, contracts for difference and currency pairs. The most experienced traders diversify their portfolio, which can also be done with robot trading. While the software scans different markets for trends, traders can try other assets at the same time.
Opportunities & risks of robot trading
Automated trade offers advantages as well as disadvantages. Intelligent programs are very helpful for traders and do a lot of the work for them. Traders don’t have to look for the proper trade signals themselves, they can leave that to the robot, which can be tuned according to the trader’s individual needs. As soon as the robot found a suitable trade signal it informs the trader, who can react accordingly, but automated trade systems can’t eliminate the risks of the volatile markets completely. If the predicted trends don’t keep their place all the way, it can come to losses. So traders should not make the mistake of relying completely on the robot’s trade recommendations, and they should analyze each one of them. Inexperienced traders should first create a demo-account and make experience using robot trading, just to be sure. With the necessary basic knowledge and a careful approach, robot trading is a very helpful and timesaving thing.
Social trading basically works like a social network. People who trade with currency pairs, contracts for difference or binary options can exchange information and experience on a common platform on the web. Trade is constantly based on traders recognizing the right signals and using them to their advantage. Not only the market gives these signals, but also other traders. Those more experienced, who’ve been earning their money on the web for years, and who are willing to share their well-grounded knowledge with others play a very important part in social trading. On this common platform professional traders share their knowledge and trade strategies with both beginners and advanced traders. Those less experienced can use all this knowledge and become successful in the trading business. Social trading is a long way from becoming a standard feature, but it’s an increasingly popular one that even some brokers have started offering. On these brokers’ trading platforms signal givers (professional traders) can interact with signal receivers (beginners). Of course this happens on a voluntary basis. The experienced traders aren’t in any way obliged to share their knowledge, their participation on the platform is completely voluntary. On first sight it may seem it’s mainly the beginners who profit from the platform, since they get help as well as tried and tested strategies at no charge. In order to stimulate professional traders to participate, social trading providers offer bonuses for their participation on the platforms. Traders looking for a social trading platform usually have 2 different options. Classical platforms work directly with the respective broker, which enables participants to run their trades directly through the platform. Some brokers act as social trading providers as well, making it possible for the participants to trade with the broker the portfolios assumed from experienced traders. Both options have their advantages, and they’re very helpful for beginners. Generally traders shouldn’t underestimate the fact that social trading platforms can also be used for direct exchange of information and experience with each other. For example, in the open communities you can ask questions and share your own knowledge. The meaning and purpose of social trading is using the platform to help beginners become experienced traders, who then impart their knowledge to other beginners, a circuit that all participants profit from.
What advantages does social trading offer?
In the world of trade knowledge plays a very important part. The same applies for binary options, trade with contracts for difference and forex trade. Traders with enough knowledge have a better feel of the market, which earns them profits. On the other hand, the risks for inexperienced traders are relatively high, and they can easily translate into losses in the beginning. On first sight virtual trade seems easier than it actually is. Placing an order successfully requires a lot of prior hard work, and traders must be ready to constantly learn new things. Especially in the beginning it really can’t hurt for the beginners to get all the help they can get from the experienced. Social trading makes this possible even at no further costs. Using most platforms is completely free, and payment is only necessary when a trader decides to place an order. Until then, traders can simply observe the signals of experienced experts. The best option would be for traders to look for providers that offer a free demo-account. With this account traders can resort to virtual funds, and test all features of social trading to the greatest extent without any financial risk. What’s generally very important in social trading is high transparency. This practically means that the signal giver lays open all his actions. This applies not only to strategies, but also to risk approach. This way followers of experienced traders get a clear picture from the signal givers, and their decision whether to trust the trader or not is made easier. Social trading has been developed mainly for beginners, who can benefit from quite a number of advantages. Experienced traders taking the time to act as signal givers also get rewards for doing so. Signal givers who trade a lot and are also successful can increase their winnings through social trading, since the providers’ bonus payments are relatively high.
Are there also disadvantages?
Social trading is a very useful thing for beginners as well as for professionals, but there are of course a few small disadvantages that should be taken into account. Usually a lot of experts and professionals do social trading, which is why the field is packed with technical terms. This can be a disadvantage for inexperienced traders if they don’t understand these terms right or, even worse, if they understand them wrong. For this reason beginners should take the necessary time to get acquainted with the prevalent technical terms. Reading sheets and statistics is also as good as mandatory for beginners. Of course you can take over a portfolio 1:1 but it’s usually better if the signal receiver gets a detailed picture of how that portfolio came to be what it is. A disadvantage is surely also that, in social trading any trader can become a signal giver, which makes it difficult for the signal receiver to decide what experienced trader to trust. A bad decision can also mean loss of money, of course. Unfortunately many beginners tend to just copy a portfolio without first gathering extensive information, and then they wonder about the high losses. But besides these possible losses of capital there’s also the social trading fees to be taken into account. These diminish the possible winnings for the trader, for which reason traders should first run a comparison check between many providers, and discover which social trading platform has the lowest fees. This is a lot of work, but it saves the trader money in the long run.
The most important criteria when choosing a provider
By comparing providers beginners can discover which social trading possibility suits them best. Transparency is one of the most important topics. The applicable fees should be easy to distinguish on a first read. It’s helpful for future signal givers if the provider offers an overview of the possible revenues. When selecting a provider traders should also take into account that all earnings of signal givers consist only of real money and not of virtual funds. Of course that when selecting a social trading provider the same criteria applies as for normal brokers. In all cases providers should be reliable and have strict rules. Deposit protection should also be available.
What should I watch out for in social trading?
Social trading was developed mainly for beginners and traders with little experience. Beginners are the ones to benefit from it most, since they have access to the knowledge of experienced traders. The latters’ advantages for taking part in social trading are that they can expand their already available knowledge, and increase their winnings on the respective platform. All this requires a certain amount of work for traders. Signal givers only make profits if their own portfolios are successful. The general risks that arise when trading with contracts for difference, binary options and currency pairs are also there in social trading. On the one hand the risk of loss is almost the same as the risk of loss in classical trade. On the other hand the risk of loss increases for signal receivers if they don’t study the field sufficiently, and assume a portfolio just like that. Traders who want to become signal givers have to join the respective platform as signal givers, and make their portfolios openly available. Some social trading platforms additionally require that signal givers disclose their true names. But in order to attain long-term success registering as signal giver isn’t enough. Experienced traders must constantly improve their strategies too, and constantly keep an eye on the respective market. The big social trading platforms are especially programmed for social trading, and offer a higher number of features than the limited social features of simple brokers. By means of an online comparison check of providers traders can quickly find one that suits their needs. Regarding the offer and fees it’s always advantageous to first test the platform for free. Most providers allow the use of their platforms at no charge, and traders can simply create a free account and use it in order to get acquainted with the respective offer. Costs arise only when a trader takes over a portfolio from a signal giver, and commissions the broker with it. Fees depend on the broker’s spreads and general trade fees, and are applicable for both signal giver and signal receiver.
Make careful use of the helpful trade instruments
Both social trading and robot trading are helpful trade instruments that can prove really useful for traders. It’s especially inexperienced beginners who benefit from social trading and from the knowledge of professional traders, whose portfolios they can assume without great effort. Social trading can be very advantageous, but it also has its risks. Traders should study the field thoroughly and analyze every portfolio. Those who follow the recommendations of supposed experts blindly can lose money very quickly. The same applies for robot trading. Intelligent trade programs are definitely very helpful, and save investors a lot of time of research and analysis. Still traders shouldn’t just rely blindly on the recommended trade signals, and they should always double-check them. There’s no guarantee that a trend will stand until the end of an option. The risks are the same as the risks for manual trade, which is why traders should familiarize themselves thoroughly with the programs, and keep constant track of the markets. Without serious risk management the worst-case scenario can mean total loss.