When it comes to social trading ZuluTrade and eToro are the names that generally dominate the headlines. Thus many haven’t heard of some of the more exclusive and smaller social trading networks such as Currensee. While Currensee is a social trading network it differs quite substantially from many of the other networks out there in a couple of ways. Essentially, Currensee offers two different products a general social trading network where individuals can monitor others activities to develop trading ideas of their own and a copy trade product the ‘Trade Leaders Investment Program’.
Currensee Social Network
The Currensee Social Network is a very useful product for anyone who is an active trader. Giving us access to real live information regarding the activity of the network members. With the Dashboard giving a member access to lots of information regarding how many people are long vs. short in a particular currency pairing. This information can be quite useful and can be used alongside traditional technical analysis. Currensee also place a lot of emphasis on the idea that you can connect with other traders to gain and share insights regarding trading. The Social Network offering is pretty useful, however to take advantage of the benefits of the network you either have to sign up for a real account with one of the supported brokerages or alternatively download their bridging software to integrate it with your current MetaTrader 4 account. However, I believe that this bridging software prevents you from operating Expert Advisors on your account which may put some people off. Overall, while the information contained on the Currensee Social Trading Network is pretty useful I would say that it’s probably not worth signing up with one of their supported brokerages unless you already have a real money account.
Trade Leaders Investment Program
This is the product that’s probably going to be of the most interest to those looking into Social Trading. The ‘Trade Leaders Investment Program’ is Currensee’s automated trading platform which operates in a similar way to both eToro and ZuluTrade, but with a few crucial differences. Firstly, the traders you are able to copy are hand picked by a proprietary algorithm owned by those who operate Currensee and at any one time there is only around 20 different traders available to follow. This is aimed at improving user experience by preventing traders from following inexperienced or risky traders. You can then of course assign a percentage of your portfolio to follow these traders and hopefully make some good returns, by copying the trades of these selected traders. While in practice this sounds like a brilliant idea there have been some issues with some of the Trade Leaders producing a run of bad results and being promptly dropped from the Leader board. This is of course to be expected with past performance being no indicator of future success, but it does show that Currensee’s algorithm isn’t foolproof.
The Second major way in which Currense’s ‘Trade Leaders Investment Program’ differs from many of the rivals, is that Currensee has very significant capital requirements. To use the ‘Trade Leaders Investment Program’ one must deposit a massive $10,000, but in order to follow multiple traders individuals may have to deposit in excess of $30,000. This is due to the fact that some of the Trade Leaders have minimum follow allocations of $10,000. This means that the program is off limits to the majority of those interested in social trading products, with the product being catered more towards elite investors.
There is one more crucial way in which Currensee, differs from it’s more accessible competitors in that the Trade Leader Investment Program charges fess. There is a flat 2% yearly fee on deposited funds and a further 20% of profits are taken in the form of a success fee. Networks such as ZuluTrade make money from commissions and others such as eToro operate as a brokerage. However, Currensee has decided to take a third route when it comes to their Trade Leaders Investment program and charge fees much like how an investment fund would do. These fees may be put a great deal of people off while the 20% success fee is something that many will be able to swallow , paying 2% on deposited funds is something that is likely to put a number of traders off depositing.
While I’m sure a number of individuals have made significant returns from the Currensee ‘Trade Leaders Investment Program’, the program is only really going to be of interest to those who have vast capital resources and don’t mind the 2% management fee which comes along with the program.
You can only trade FX for speculative purposes on the platform. If you need to make an international payment view this money transfer guide.
The Currensee Social Network is a useful tool for anyone who already has an account at one of the supported brokerages. I don’t recommend that anyone opens an account with a brokerage for the sole purpose of using the network however. The Traders Investment Network the product that the majority of traders will be most interested in, is likely to be out of reach to the majority of traders. However, the product may be of interest to those with large sums to invest and who don’t mind the significant management fees taken by Currensee.