Collective2 Review: Pros and Cons Uncovered 2023
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Collective2 offer a social copy trading environment and trading platform that is intuitive and user-friendly, ideal for new or experienced traders alike who are interested in social and copy trading.
Founded in New York in 2001, Collective2 is extremely well-regulated by the NFA in the United States as well as being a member of the CFTC. This provides a secure trading environment you can trust with one of the most stringent regulatory bodies in the industry.
Here are some of the key strengths of Collective2:
- Very good copy trading service
- Regulated in the US by the NFA
- CFTC member
Starting out with a new trading platform or one of the many trading strategies offered by Collective2 is a big decision. With this in mind, they offer a free trial period of 14 days to strategy managers, and 7 days on strategies if you sign up for as an investor
(Trading is risky. You can lose money.)
Our opinion of Collective2
Collective2 is a copy and social trading platform based on a subscription service model. The platform gives you the possibility to trade as a strategy manager or as a follower (investor). They offer a list of well-known and respected brokers you can connect their platform with and trade with several plans and prices available based on your needs.
If you are an investor, you can pay a monthly fee to subscribe and follow strategies from strategy managers. This includes the chance to engage auto trading features. As a strategy manager, you trade and receive monthly compensation based on your active subscribers.
The biggest key difference with C2 is that the subscription fee model is monthly instead of per trade.
Pros and Cons
Though there are a few downsides, there are also several positives. These include the fact that you can utilize a number of auto trading features while there is a good range of choices when it comes to strategies.
The subscription model can also be more beneficial than per trade fees based on your trading volume. Importantly, there is still a good selection of platforms that are compatible with the proprietary C2 platform, and the service is available in the USA.
Starting out with some of the challenges you may face, there are a few. These start with the asset and trading feature choices you have.
These do not depend on C2 but instead on your own individual broker you connect with, so they could vary. you will also find that the trading results posted on the website are just hypothetical and can of course vary.
Looking further, although the list of brokers partnered with C2 is extensive, it does require some further updates with more top brokers coming online all the time, and finally, the costs, depending on your trading style and pattern may not be all that low with the subscription model.
Pros and Cons: a Summary
The table below lays out some of the pros and cons in the several key areas of Collective2.
If you want to expand your research, and evaluate some options similar to this broker, you can consult the alternatives to Collective2.
|Demo account||For strategy managers there is a free trial of 14 days;
Most strategies for investors have 7 free-trial days
|No actual demo account available|
|Strategy Managers||50% flat fee compensation from all the subscription||Premium Plan costs $99 per month, which can be considered quite high for some users|
|Investors||High-quality Automated trading available with different package plans||Autotrading set-up process can be a little uneasy for some traders at first|
Strategy Managers Review
As a strategy manager, you can earn money by selling your trading signals and strategies to followers. You will receive 50% of the flat fee charged to each subscriber while you also have the ability to offer auto-trading to your followers with the help of the C2 platform.
There is a lot of customizability that allows you to tailor your offering including API, SEETU, email, C2webtrader, connectors, and Broker Transmit, depending on the package plan.
There are three package plans available as a strategy manager. These are the starter ($19), basic ($39), premium ($99) plans you can choose.
- The different package plans allow for flexibility depending on your goals
- The 50% flat fee compensation is relatively high
- Some may find the premium plan to be a little too expensive
From an investor perspective with the platform, you can decide which strategy manager to follow and copy. The first thing is you will need to register with a compatible broker and connect your account to C2. Once you have done that you can start subscribing.
The cost of the plans can vary with automated trading plans priced from $49 to $299. All of your trades can be monitored in real-time and shared through the social trading aspect of the C2 platform too.
- The features are excellent and overall user-friendly for copy trading
- The automated trading set-up process can seem a little complex to newer traders
Is Collective2 regulated and legit?
Collective2 is well-regulated in the USA. They are a member of the NFA and are registered with and regulated by the CFTC. These are some of the most trusted bodies in the industry worldwide that help ensure your safe trading is a priority.
Foundation and Offices
The company was founded in New York in 2001. This means they have a great depth of experience in the industry and from that, they are well-respected across the board. They provide services now to more than 100,000 users in total and have the following registered office:
228 Park Ave S #93926 New York,
New York 10003-1502
When it comes to this aspect, the protection will depend on the broker you use to connect with C2. This is since the money you are trading with stays in this broker account.
To that end though, the majority of brokers provide excellent protection and use segregated bank accounts to hold your funds. Most will also provide negative balance protection as standard.
Countries where Collective2 is not available
C2 has global availability include to EU, US, UK, and Asian markets and traders. Limitations to this again come from the brokers you partner though, so they will vary depending on this factor.
- They have a long history in the industry of being well-regulated and safe
You will have several accounts to choose from that depend on your own trading needs.
Unfortunately, a direct actual demo account is not offered. What C2 does offer though is the ability to avail of free trials when you get started. This applies both as a strategy manager (trade leader) where you can sign up with a free 14-day trial.
The same is true of most strategies you use as an investor. The majority will have a 7-day free trial available.
This model account type is the one for strategy managers with the platform. Through this account, you can manage your assets and followers on the C2 platform.
In terms of payment, you receive a flat fee of 50% from all subscriptions to your strategies that you receive, with no additional fees.
Having this type of account and managing a strategy with C2 means you will have to provide buy and sell signals which you can input directly with the C2 platform or using a partnered broker and the BrokerTransmit technology, which connects broker and platform and reflects your trading activity into your Model Account.
There are a number of packages you can choose as a strategy manager. These range in price from $19 to $99 per month and each will have access to a different variety of tools.
You will also have an Investor account if you would prefer to invest in the strategies of others. All you need to do is open this type of account and choose the strategies you would like to follow, copy, and subscribe to, and connect your broker in order to get started.
The subscription fees depend on the strategies, but the monthly rates are usually from $49 to $199. You can also engage auto trading, with plans prices from $49 to $299 depending on the plan you choose. Again the features here will vary with each plan.
List of Brokers supported with Collective2
The list of brokers supported by C2 is strong. These are listed below and include many household names that are well-respected and trusted in the industry.
- Interactive Brokers
- Gain Capital
- Oanda (only for US clients)
*These are software platforms used by many different brokers. If the broker chosen by you supports any of these platforms, then your account is compatible with C2 AutoTrading. C2 will need to communicate with your broker and get their approval in order to facilitate your account.
Deposit and withdrawal
Account Base Currency
Your Collective2 account base currency is not decided by them but will depend on what the broker you connected with has available.
Again the deposit methods available will depend on the broker you choose. Though the minimum investment needed can be as low as $5,000 but go up to as much as $100,000 all depending on the strategy you choose.
Generally, with the majority of top brokers, the deposit methods offered include wire transfer, credit/debit cards, and some eWallet methods like Skrill, Neteller, and PayPal.
With C2 and the payment for your subscriptions, this can be sent via PayPal to the email address associated with your C2 account or through your credit card.
The same is true of withdrawal methods being dependent on your individual broker. With the vast majority of brokers, the methods available for deposit will also be available to withdraw through.
There are a couple of fees that you may need to take into account with C2. These are listed in more detail below.
Strategy Managers Fees
As mentioned above, Collective2 follows a monthly subscription model. For Strategy managers, this means three different plans to choose from. These are Starter (single strategy), Basic (single strategy), and Premium (3 strategies).
With the Starter plan, you will pay $19 per month, with the Basic Plan $39 per month and with the Premium Plan, the fee is $99 monthly. From this, C2 will take a 50% fee, inclusive of credit card and other fees.
While you are then free to set your own subscriber prices, the most common seems to be between $49 and $199.
As an investor, you will pay fees based on the subscriptions you make to strategies which can be between $49 and $199 generally. The monthly fee you pay will also depend on your choice of 4 plans available, these are the Solo Plan at $49, Standard Plan at $99, Standard at $199, and the Standard Plus at $299 monthly.
You should also remember that there could be broker commissions depending on the fees of the broker you partner through and that many of the strategies on offer also offer 7-day free trials with their price ranges set by the strategy managers.
- There are many different subscription plans to meet your needs
- They don’t charge any per-trade fees on auto trading
- Commissions and spreads will depend on your broker, not C2
- Some subscription plans can be a little expensive for some clients
- Strategy fee prices can also vary to the high end
Again the available markets will depend on the broker you use to connect. Sure, if you want to trade a forex-related strategy, then you will need a broker that offers forex trading, and likewise on other markets.
Some asset availability will also depend on your location. For example, with Collective2, due to local Australian regulations, only futures and forex are supported for Australian traders, not stocks and options currently.
Execution, leverage and position sizing
Copy and social trading are at the core of C2. This is largely what you can expect from them with a great range of features in that regard, and the ability to engage auto trading on the platform to facilitate your overall experience.
When it comes to other trading features and costs, these will be entirely depending on the broker you use to connect with the C2 platform.
The Collective2 leverage you will have access to depends on the broker you use to connect to the service. Typically maximum leverage can be between 20:1 and 400:1 on major forex pairs. Within the EU, UK, and under ASIC, the maximum leverage on forex is 30:1 because of the regulation.
The only risk management tools you will find available here are the trade scaling percentage, and stop loss.
The trade scale percentage lets you decide exactly how closely you want to follow the strategy.
For example, if you have 100.000$ in your broker account, the Strategy’s current Model Account equity is $50,000 and you want to place half of your account balance with this strategy: so, you would set the scale percentage to 100% or the corresponding amount for less.
Stop loss is commonly used and can allow you to exit a losing position automatically at a certain level set by you.
Platforms & Mobile
As you would expect, C2 has its own proprietary platform that is focused on social and copy trading. It provides a very user-friendly experience that can make it suitable for new and experienced traders alike.
The C2 platform also remains compatible with a good range of third-party platforms. These include WebTrader, NinjaTrader 7 and 8, TradeStation 9.5 and 10, and of course MT4 and MT5.
Remember your trading platform selection will also be based not only on your trading needs but also on what your partnering broker makes available.
Special features you can find on Collective2
While many of the trading features depend on the broker you use to connect with C2, they do have some of their own unique features as detailed below:
The leaderboard is the main area where you can see updates of the trade leader strategies and also define your parameters in searching for traders and strategies to follow. When you have narrowed them down, you can also add them to dedicated watchlists for monitoring.
This is a C2 feature that replicates the actions in your broker account so that they are automatically reflected in your C2 platform for followers. This feature does not work with demo accounts, only live trading accounts.
To set up the broker transmit feature you will need to log into C2, then head over to the Manager Tools section, click on “BrokerTransmit” and “Set up my account” and follow the on-screen prompts. To avail of this feature you also need to have a Premium Trade Leader plan.
This tool allows you as a strategy manager, to configure a third-party platform to transmit your actions and signals to your model account. This is an effective way to gain followers and have trades easily mirrored between their accounts and the C2 platform.
C2 Labs is a place where new projects can be tested and you may have the opportunity to get involved at an early stage on some new features or developments. Here you will find the C2 FireHouse, where you will see real-time buy and sell signals, or “point in time historical data sets”.
These can provide useful indications of past performance over set periods that you may be able to utilize in strategy development.
One of the main core features of Collective2 is AutoTrading. It does what it says and allows you to select a system on the site and have it run automatically on your account.
Once you’ve opened the account or connected your existing broker account with C2 and selected the plan, choose the strategy, and then set up the auto trade to get started.
You will find this within the leading strategies section and be able to access all of the portfolio management information through this feature.
Annual Return (Compounded), Max drawdown, Number of trades, Winning number of trades, Profit factor, Winning number of months, and full performance records should all be available here for your further study.
The results you will find on the website are simulated and hypothetical, and these results do not represent the actual trading results.
The results are calculated based on several presumptions. These include that profits are reinvested, you invested the starting size shown, and that all typical fees are included.
These results are reached using the “Max Drawdown” Calculation Method and are hypothetical because past performance does not guarantee future results. Therefore, future drawdowns may be larger than the historical maximum drawdowns you see on the site, alongside other varying factors.
Social Trading – Copy Trading
This is a key component of C2 and as you would expect, they offer great social and copy trading complete with a detailed selection of strategies, plentiful metrics to examine past performance and connect with the best possible strategy for you.
On the social side, you can participate in freely rating and commenting on strategies through dedicated areas. You can also communicate directly with strategy managers, but if you want to leave a strategy review you must have subscribed to it for at least 30-days.
- An excellent range of copy trading features are offered
- Social trading features are also well catered for
- There are a good number of top platforms compatible with C2
- Results on the website are hypothetical and could mislead
- The selection of risk management features is limited
The Collective2 site and platform is available exclusively in English
When it comes to customer service, this is typically of a high standard from Collective2. You will have access to support through a number of mediums. These include by email and phone as well as the website-based live chat service that can provide a very speedy reply.
Research and Education
When it comes to research C2 provides a decent level of detail in what you can access. This is mainly focused on performance charts and records that can indicate past performance in the portfolio section.
This kind of information can help you choose between strategies, while you will also have access to their routinely updated blog with useful articles, information, and the latest market news.
On education, you will find the section to be decent, but certainly not overflowing with top-quality educational content.
They do have video tutorials on how C2 works though which can be very helpful and a first-time user, and you also have access to their helpdesk and FAQ section which can go a long way to answering some of the most common questions.
Don’t forget you can also check out any of our step-by-step tutorials like how to connect C2 with Oanda and others if you are struggling.
- They manage to offer an all-around excellent and knowledgeable customer service experience
- The education section is a little limited beyond the workings of the actual platform basics
Is Collective2 regulated?
Collective2 is regulated. The broker is registered with the NFA and regulated by the CFTC in the United States.
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