Looking for a Peeptrade review that’s professional, technical and above all honest?
Want to figure out whether Peeptrade is a good broker, and especially if it is good for you?
Then you are in the right place.
In this Peeptrade review we’ll provide in the first instance an explanation of how this Social Trading broker works.
But not only.
Here’s what you’ll discover in this review:
- Our opinions on Peeptrade
- Its strengths
- Its weaknesses
- Any dangers
- For who it is best suited
All this, always with a technical and professional approach but explained in easy terms.
No false promises, no bait and hook.
Only technical opinions based on our professional experience.
Now, let’s begin.
Peeptrade is one of the latest companies appeared in the world of Social Trading.
In this Peeptrade review we will show you the capabilities of this platform and smartphone App, along with our judgments and opinions.
Peeptrade is a Social Trading platform more suitable for investors than for traders. In fact, Peeptrade users can “peep” how the investment portfolio of the so-called Top Investors are made up.
Up until a few days ago, to obtain this function, you had to pay a monthly fee for each investor you wanted to peep, with the cost determined by the investor himself. But today everything has changed.
Peeptrade does not provide copy trading functions with which automatically replicating the trades of other investors. Think of Peeptrade more as a platform for consulting portfolios that have proven to be profitable.
That said, the Peeptrade platform is integrated today with more than 1,000 brokers. Although it is not a trading platform, you can still open new positions on your trading account through the platform thanks to APIs.
The “peeping” service, ie viewing the Top Investor portfolios, is separate from the connection or not of your broker to the Peeptrade trading platform.
This means that, with Peeptrade, all types of investors, even the most “classical” ones used to buy stocks by calling their broker, can still use the service.
What is Peeptrade
Founded in Austin, Texas on September 15, 2014 by Juan Mendoza (founder and CEO), Austin Sarles, Carlos Chávez and Ali Bakir (all respectively co-founder), Peeptrade now has its operations center in Chicago.
- an online platform for multi-asset information
- a Social Network
- a Social Trading platform
All these things together, at the same time, on the same platform.
Each registered user has, at his disposal, a social network profile, with which he can:
- follow the financial information and news related to all types of assets (equities, commodities, currencies, metals)
- communicate and interact with other members of the platform with likes, comments and tags functions
About the Social Network feature, the starting point is definitely good, but, to date, it definitely lacks some features that could improve it further.
One above all, the ability, absent today, to “follow” other users to create a boards with their feeds and updates, maybe even organizing them into different lists.
As on eToro however, the fulcrum of the information sharing and fruition is on the single assets pages.
In each asset, being it commodities, metals etc, the user can find a whole series of technical data, news, sentiment and comments of other users, very useful to be able to make better decisions.
The asset pages are very well done, and allow the user to consider the asset from every point of view: the technical and fundamental point of view, the “Related news” one, and also the community one, thanks to the comments and opinions of others subscribers.
It lacks, however, an asset organization system, a section where the assets are displayed and organized according to various parameters (type, market, industry, etc), to help the user so that he can search and find them more easily, perhaps (as before), creating lists of interest.
In fact, each asset can only be found by knowing its ticker, or by searching them through the search engine.
Peeptrade also allows you to connect the platform to your broker via APIs (today it supports more than 1000 brokers), in order to open positions directly from the Peeptrade platform, from the pages of the individual assets.
But now, let’s see the most interesting Peeptrade feature, its core business, namely the Social Trading function.
Peeptrade review: Social Trading
Peeptrade can be used both as a platform for information consulting and as a Social Network platform for sharing and interacting with other users.
All this at no charge.
With the Social Trading service, users can observe the performance of the so-called Top Investors, and, if interested, they can “peep” the full composition of their portfolio, completely free of charge (from 27 October 2016, while before you had to pay a monthly fee)
Let’s see how it works a bit more in detail.
Within the Peeptrade community members, you can find the so-called Top Investors (previously called Guru).
The Peeptrade Top Investors are investors who have decided to connect their investment account to Peeptrade, allowing it to record in detail their trading performance and the actual composition of their portfolio.
Of each Top Investor, Peeptrade will freely show a series of performance data and the type of operating style. Entering then into the Top Investor’s profile, the user will also view a description, written by the trader himself, of his strategy.
To view all the rest, i.e. all you need to understand what the Top Investor is really doing, where he’s investing his money, so that you can possibly copy him, you will simply have to click on the “Peep to unlock” button. This way you will add that investor to your favorites list and unlock the display of:
- The trading operations history
- The current composition of the portfolio
- An asset allocation chart
Until October 27, 2016 this option was chargeable. In order to observe these fundamental data (and actually spy on the investor moves) you had to pay a monthly fee determined by the investor himself, a fee from which Peeptrade was receiving a portion.
Peeptrade Free: the reasons for the change
We spoke directly with the Peeptrade executives to understand the reasons for this important change.
What we found was very interesting.
Basically, throughout the period of beta testing and the first months after the official launch of the platform with the old fee model, they have found that many investors continued their activities in a spontaneously free way, without requiring any monthly fee.
Many of them were using Peeptrade with a pure Social Trading spirit, i.e. of free sharing; some used the service to freely show their skills, get free publicity, and gain visibility at major fund managers in the financial sector; in any case, at no extra charge.
A careful analysis of this situation has convinced Peeptrade executives to consider, and finally implement, this structural change of their business model, from a paid to a free structure, in order to give further impetus to what looked like a trend born spontaneously.
But then, this begs the question.
How does Peeptrade gain now?
How does Peeptrade gain?
Unlike other companies in the Social Trading panorama, as eToro, ZuluTrade, Tradeo, ayondo, which earn from the brokerage activity generating commissions by the spreads paid by the user on each operation, Peeptrade is not a broker and it does not have any kind of agreement with the brokers with which it’s integrated to share the revenues derived from spreads.
This means that on Peeptrade the investors have no incentive to trade more than necessary, by opening more positions to generate more commissions, as it happens in almost all the realities based on spread to generate their profits.
Under this aspect, Peeptrade is definitely one of the most transparent platforms absolutely.
To get to the heart of the matter, however, Peeptrade now plans to earn, more simply, from advertising.
Peeptrade University Challenge
Another interesting side are the activities that Peeptrade is trying to carry on with important institutions of the financial community.
One of these is the Peeptrade University Challenge.
Peeptrade has organized a contest, with the participation of groups of students and professors of the best universities of Economics and Finance of America and beyond. Each university group received an investment account with $ 10,000, linked to the Peeptrade platform.
Each group can then freely invest the capital received, and everything will be recorded on the Peeptrade platform until the end of the contest, set for December 2, 2016, when we will see which university as best performed.
Universities that are participating in this challenge are:
- Dartmouth College
- MIT Investment Management Club
- Princeton University
- University of Chicago
- University of North Carolina
- Georgetown University
- Indiana University
- London Business School
Obviously, anyone can view everything freely and free of charge on the Peeptrade platform.
Just subscribe to see clearly how the students of these universities are investing a real capital on the markets, what securities they bought or are buying, and how diversified their portfolios are.
Peeptrade Smartphone App
Peeptrade also provides an app for smartphones and tablets, both for Android and iOS.
We tried the Android version, and it looks really well done. In terms of content usage, research and information sharing and research and analysis on individual assets, you can do the exact same things as the desktop version.
The only part that has been somewhat sacrificed, is the Top Investors page with a list of all the investors available to the Social Trading function.
On the App you can see far less details, even though, by entering the Top Investor personal profile, you can see them all as the desktop version.
Therefore, it remains a very useful App to effectively use Peeptrade, wherever you are, even if, for the Top Investor research phase, the desktop version is still much more comfortable.
To recap, here’s what you can do with Peeptrade:
- Create a social networks account with which to interact with the community
- View various types of information on a variety of assets, remaining updated through the smartphones App
- Share and tap into the community opinions on the related assets
- Connect the Peeptrade platform to your broker in order to open new positions directly from Peeptrade
- View the composition of his portfolio and his positions
- Manually replicate the same positions directly from Peeptrade (no automated copy trading service)
Considerations about Peeptrade Social Trading
The gain for those Social Trading companies is generated by the spreads you pay each time you replicate an operation, in fact, in those conditions, spreads (ie your costs) are usually slightly larger than normal.
Peeptrade instead thinks differently.
There is no automatic copy trading services from which to generate commissions, and even if the user wants to link his account to be able to open positions directly from the Peeptrade platform, user conditions remain unchanged, there is no extra charge.
This creates one of the most transparent systems among all Social Trading services.
Another of the major points in favor of Peeptrade is the fact that the Social Trading service is disengaged from the connection of a trading account. Basically, you can freely spy on any investor you want, you are not forced to open or connect a trading account. Just sign up to the platform, it only takes an email.
With Peeptrade you have a completely free access to the information and the Top Investors’ strategies. You may be an investor who still call his broker by phone to decide where to invest, and Peeptrade might just be for you.
In essence, the functioning of the Peeptrade Social Trading service is certainly interesting.
It should however be specified that Peeptrade will appeal more to investors than to day traders. Those interested in Social Trading or Copy Trading on Forex, or to more dynamic strategies, with the ability to create a truly automated portfolio of traders, will definitely find the best platforms in eToro, ZuluTrade, ayondo, Tradeo etc.
- Peeptrade is a good platform as regards the fruition of financial information and the sharing of opinions (although it can greatly improve on certain points)
- Thanks to the recent change of course, even the most important information, i.e. the visibility on the moves and securities of the Top Investors’ portfolios, today are completely free and accessible by anyone
- Peeptrade is definitely more suitable for investors looking for a guide, than for day-traders looking for automatic strategies
Peeptrade Pros and Cons
- Free access to the Strategies and portfolios of the Top Investor
- Solid platform
- Assets analysis pages well made
- Excellent for most investors and asset managers rather than traders
- Social Trading Service can also be used without a trading account
- More than 1000 supported brokers
- Underdeveloped Social Network
- No chance of Copy Trading or automated replication functions
- Low number of Top Investors (but because they are starting out)