Myfxbook has quickly become one of the most popular social trading networks, boasting a huge user base and a number of useful tools. The platform currently has around 90,000 users and is continuing to grow in popularity, with new traders flocking to the network all the time. While eToro and ZuluTrade usually hog much of the social trading limelight, myfxbook may well give these established brands a run for their money.
How Does Myfxbook work?
Like many of its competitors, Myfxbook is brokerage independent which means the social trading network can be used with a number of different supported brokerages. Currently Myfxbook only offers FXCM UK, Pepperston and IC Markets for those wanting to use the AutoTrade feature and those in the US are unable to use the AutoTrade feature. Myfxbook have promised that more brokerages will be supported soon. However it is still possible to follow many of the trading systems featured on the platform.
Myfxbook allows its users to automatically copy any of the systems featured on the platform. This means once you have set up a portfolio of trading systems, the AutoTrade system will sync with your account ensuring all opened trades are copied into your account. Of course customers are allowed to undertake measures to limit their risk. Myfxbook provides its users a ton of data, to help them determine whether a system is worth copying. It is possible for traders to hide certain data points from other users and when this is the case traders should advance with a degree of caution. There is also active discussion about many of the systems featured on the platform, which can help traders get a feel of what other traders make of a particular strategy.
Those using the AutoTrade feature are not charged anything by Myfxbook, though brokers can opt to charge users commission or a spread mark-up for the service. Currently, FXCM the only supported brokerage doesn’t charge the end user anything. Those who offer their system to AutoTrade users can earn 0.5 pips per lot traded in copiers accounts. This is an impressive rate of commission and many successful traders may be attracted to sharing their trading system with others in order to have the chance of earning these significant commissions.
Does Myfxbook work?
The Myfxbook platform boasts a number of very successful users, though the number of users currently sharing their trades through the AutoTrade system is still rather limited. This being said Myfxbook has strict criteria regarding who can be accepted into the AutoTrade providers program, those looking to be accepted into the program must fulfil the following criteria:
- A real verified MetaTrader 4 account with 3 months history.
- Drawdown of less than 50%.
- Return of least 10% and higher than drawdown.
- Avg. Return greater than 10 pips.
- Avg. Trade time in excess of 5 mins.
- No martingale/grid systems.
- An account balance in excess of $1000.
The above requirements are very stringent and aim to protect traders from rogue or unreliable signal providers. When the pool of AutoTrade providers begins to grow, it seems highly likely that there will be a number of signal providers who are worth proper consideration. Those who are curious about the AutoTrade program can try out a risk free demo before depositing for real.
Myfxbook features a number of very useful tools which can be used by everyone not just members. For instance it is possible to compare live spreads, quotes, swaps and volumes. This can be a very useful tool for those who are trying to pick a brokerage to operate with. The site also features one of the webs better economic calendars, providing live count downs to important events. The site also features other useful content including a very active community, some very useful market data and other features many traders will be interested in. Those at Myfxbook have worked very hard to make the site a real resource for its users and this approach has surely contributed to Myfxbook’s success.
The Myfxbook social network is indeed very impressive, with the site boasting a ton of useful features and tools for those who trade the markets. Automatic social trading is made possible through Myfxbook’s AutoTrade program, which appears to be a very promising product. The only major drawback being that Myfxbook currently only supports a limited range of brokerages, though plans are being made to introduce more brokerages. When this happens I can see Myfxbook becoming a real threat to some of the more well established social trading networks.