Social trading is certainly a point of great interest this year; indeed so great is client interest that MetaQuotes are including a social trading facility within their next release of MT4. Another broker to go down this route is Cyrpus-based online forex broker Liquid Markets.
This is the latest in a series of transformations made by this particular company, the most poignant of which was its rebranding from Tadawul FX to Liquid Markets in November 2012 following the addition of further liquidity providers and a change in corporate direction to offer tighter spreads.
This new dynamic continued in the direction of offering faster execution, tighter spreads and a more competitive user experience signaled by the launch of the cTrader ECN platform, offering prices provided directly from Tier-1 liquidity providers with no dealing desk.
There are two types of accounts specified by Liquid Markets under the cTrader platform: The Liquid Plus Prine which offers raw spread, leverage of up to 500:1 and a trading commission of $45 per million. The other alternative is the Liquid Prime account, again offering variable spread as low as 0.6 pips (EUR/USD) , leverage of up to 500:1 and no commission.
The company provides both as a direct market access product.
In terms of their latest development, by partnering with Currensee, a large industry-wide provider of social and automated trading, Liquid Markets can offer their clients an alternative to traditional portfolio managers and provide them with control over their portfolio.
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Nicolas Bang, CEO of Liquid Markets, says this is a fantastic additional service for traders which will enable them to diversify their portfolio with greater control and transparency, even if they are less experienced.
“For those who do not have the time to research and analyse the market to uncover trading opportunities, a social trading solution such as this can be an exciting proposition,” says Bang.
Currensee individually selects emerging money managers after it has reviewed them extensively, and allows only those with a proven trading track record and consistent results to become Trade Leaders.
Clients can then choose Trade Leaders based on a transparent record of their performance and results, insert them into their portfolio and allocate assets with each in a proportion that suits their trading style.
After they are included in the trader’s portfolio, any trades made by the Trade Leaders are automatically replicated in the traders’ MetaTrader 4 account.
Bang feels this type of trading is growing in popularity and has some very key advantages for traders. He explains: “What sets Currensee apart is the very transparent and trusted nature of the environment it provides and the increased sharing of information.
Traders have complete control over the allocation to individual Trade Leaders and this allows them to manage their risk more effectively and enables a form of tailored money management. The Trade Leaders are also delivering great results for traders, so this is becoming increasingly attractive to our clients, even when more experienced, as they have the opportunity to test new areas with only a proportion of their portfolio.”
Late last year, the company announced its plans to open an office in the UK however a final date on this has not been confirmed.