Tradency is the software company behind the Mirror Trader social trading platform, which is used by a number of brokers including Markets.com, FXCM, and AvaTrade amongst others. The platform allows these brokerages to offer social trading to their clients, who are able to mirror the strategies of the approved strategy providers featured on the platform. As with other social trading platforms, those who provide signals are rewarded based on the number of people who automatically mirror their positions. While other reward schemes such as eToro’s Popular Investor Program and ZuluTrade’s Signal Providers Program are more well known becoming a Tradency Strategy Provider may be a good option for those looking to earn an extra side income from their trading activity.
How do you get accepted?
As with many other similar reward programs there are certain conditions which must be fulfilled before you are rewarded to for sharing your signals with the users of the platform. Once you have signed up to the program you will be able to begin sending your signals to Tradency. Signals can be sent to Trandency’s servers via a number of different methods with Tradency supporting Expert Advisors, TradeStation, API and other properitary platforms.
Once you have set up your link with the firms servers, Tradency will monitor your performance for a period of one month before being allowed to go live on the social trading platform. Traders will have had to have placed at least 30 trades during this period, it is then up to those in charge at Tradency to determine whether you should be allowed to go live on the platform. These measures are to ensure that only high quality signal providers are allowed to go live on MirrorTrader.
It is possible to send signals from a demo account but you will have to prove that you have a real money account before Tradency will allow you to go live. It is however possible to continue to sending signals from a demo account once you go live. Tradency just want to confirm that those providing signals have real money trading experience.
How much can you earn?
Once you have been allowed to go “Live” on the platform your signals will be displayed to the platforms user base, allowing traders around the world to automatically or selectively mirror your trades. Tradency Strategy providers are rewarded for every signal that is mirrored by users of the MirrorTrader platform. Tradency uses two different pricing models with their partnered brokerages, which means that signal providers are rewarded in one of two different ways dependent on the brokerage that each of their copiers are a customer of.
Volume Based Model
On the volume based model Strategy Providers receive between 0.15-0.3 pips per round turn for each trade made by someone mirroring their strategy. The amount received depends on the currency pairing and the brokerages used by those copying your signal. This doesn’t compare particularly favourably to the ZuluTrade program were signal providers are rewarded 0.4 pips per round turn.
Fixed Fee Model
On this model Strategy Providers receive between $3.75-$5 per active trader who traded at least once with your strategy during a given month. So if you had 100 active users who only traded with your strategy, you could earn between $375-500 a month. If active users happen to be using strategies from more than one Strategy Provider the commission is divided between each Strategy Provider used. As many users of the platform are mirroring multiple strategy providers, the fixed fee model can see Strategy Providers receiving rather limited commission per trader using their strategies.
How does the program compare?
The Tradency Strategy Provider program allows traders to send signals to the MirrorTrader platform and be rewarded based on the number of users who mirror their trades. With Tradency compensating users based on two different pricing models, it can be difficult to determine how much a successful trader can expect to earn by sharing their trading strategy with MirrorTrader users. On the face of it, the program seems to compare unfavorably to the ZuluTrade program were Signal Providers receive 0.4 pips per round turn lot. It should also be noted that Tradency automatically applies a 300 pip stop loss to each signal you send to the platform, which means the program may not be suitable for those who adopt a longer term approach to trading.