New Product Review: TopTradr FX Trading Contest Mobile App - Your Way into the Big Leagues

We have written about the startup firm,TopTradr, before at Forex Magnates, from the point of view of being an innovative tool in the industry, but now we would like to review the app as users and see what it can offer traders.

TopTradr works as an app that sits on the mobile device of the trader and ranks his performance for success and Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, most brokers employ a risk management department tasked with analyzing the data and flow of the broker to mitigate the firm’s exposure to financial markets moves. Why Risk Management is a Fixture Among BrokersTraditionally the company is employing a risk management team that is monitoring the exposure of the brokerage and the performance of select clients which it deems risky for the business. Common financial risks also come in the form of high inflation, volatility across capital markets, recession, bankruptcy, and others.As a countermeasure to these issues, brokers have looked to minimize and control the exposure of investment to such risks.In the modern hybrid mode of operation, brokers are sending out the flows from the most profitable clients to liquidity providers and internalize the flows from customers.This is deemed less risky and are likely to incur losses on their positions.This in turn allowing the broker to increase its revenue capture. Several software solutions exist to assist brokers to manage risk more efficiently and as of 2018, most connectivity/bridge providers are integrating a risk-management module into their offerings. This aspect of running a brokerage is also one of the most crucial ones when it comes to employing the right kind of talent. Read this Term.

The first thing you will notice is that the TopTradr app is not independent, but requires the user to have an FXCM mobile Trade Station app installed (with a demo or live FXCM account).

I downloaded the Android OS versions of the two mobile apps and the process was quick and easy on an HTC One phone. After signing up for an account with TopTradr, opening an account with FXCM was just another click.

The app adds all the gamelike features the FXCM mobile Trade Station lacks, including a Score, Experience Points, Levels, badges, Leaderboards, Achievements and competition, as well as an option to sign in with Facebook and add your friends. You can also share your trades on Facebook and Twitter if you want to impress or get feedback from your friends.

Once I placed a trade on the FXCM app it appeared instantly on TopTradr and my score was updated. (Now you know who to expect as next month's winner.) Throughout the process I did not need to access a desktop computer and it was all done efficiently on the phone. Hopefully in the future, the TopTradr app will also support other Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real-time updates on quotes, charts and is the main frontend which customers are facing.Brokers either use existing trading platforms and sometimes customize them, or develop their own platform from scratch. Since the beginning of the retail FX trading business MetaQuotes and its platforms MetaTrader 4 (MT4) and MetaTrader 5 (MT5) have been the industry standard, especially when it comes to automated trading.MT4 Shows Resiliency While MT4 has long been seen as ubiquitous amongst brokers’ offerings, a targeted push by MetaQuotes themselves has led to broader adoption of MT5 in recent years. Advanced trading platforms such as MT4 or MT5 also allow access to a wide range of asset classes available for trading.The development of trading platforms over the past decade has failed to successfully dethrone MT4 or MT5, notably in the retail market. However, in institutional markets, brokerage companies and banking entities also construct and utilize proprietary currency trading platforms to help satisfy internal needs with trades executed through institutional trading channels.By far the most important parameter for many retail clients is the optionality and pairs available on trading platforms. Additionally, demand by traders has led to a greater emphasis on newer features such as advanced charting and other tools. Read this Term and brokers.

TopTradr already has had a number of winners and we will be publishing an interview with them in the future for the benefit of traders who are interested in learning how it's done. The regular prize money is actually a $75,000 capital allocation equivalent, so the winners cannot withdraw it. Instead, using TopTradr's UK FCA regulation as an asset manager (prop trading firm), the winner can trade on behalf of the firm and earn a performance fee of 25% on any profits that he or she generates, similar to a professional hedge fund manager.

How the Founder Sees the Offer

Speaking with Forex Magnates, the TopTradr Founder, Francois Nembrini, described the service as a global talent competition to find the best fund managers in the world. They have a university students’ demo tournament to win $10,000 scholarships, a monthly competition of a $75,000 hedge fund and a yearly tournament to manage a $1,000,000 hedge fund.

The TopTradr platform is geared towards measuring a trader’s ability in real-time and scores their trades when they display the kind of trading behavior sought by hedge funds. CEO Nembrini explained: “Our algorithm award points for low-risk/high-reward trades and equity growth consistency. On that basis, traders with the highest TopTradr scores are awarded the equivalent of a $75,000 fund to manage."

Important for traders who want to establish themselves as trade leaders, CEO Nembrini also expects his firm's approach will prove more successful than regular copy trading methods because regulators might decide to discourage them. He said: "As social trading is becoming increasingly popular, people will look for an independent validation of a trader profile, which is exactly what we’re working towards with the TopTradr algorithm and score. Like a social trading ‘Klout’ score if you will. I think there will also be a certain amount of ‘clean up’ in the industry as the regulation is reviewed and this will massively benefit the industry.”

CEO Nembrini explained the approach to social his startup is taking: “TopTradr encourages discussion, to learn how best to manage risk and losses. It’s about creating a community where we can easily challenge our own ideas, rather than blindly copying others.” Adding, "It acts as a tool for educating traders and identifying talent, allowing someone who lives somewhere that would otherwise have no access to financial markets to get discovered, without having to move to New York or London."