Tradeo Review – Our Independent, Technical and Professional Opinion

by | Oct 20, 2016 | Reviews | 0 comments

Looking for a Tradeo review that’s professional, technical and above all honest?

Want to figure out whether Tradeo is a good Social Trading broker, and especially if it is good for you?

Then you are in the right place.

In this Tradeo 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 Tradeo
  • Its strengths
  • Its weaknesses
  • Any dangers
  • For who it is best suited

All this 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 with Tradeo.

Let’s start now.

tradeo review

Tradeo Demo Account

Tradeo provides a free unlimited demo account, with no constraints, with 50,000 usd of virtual money.

It takes a few seconds to open it.

Do it now, so you can follow this review with the platform under your eyes.

All you have to do is follow this link, sign up providing an email and password (or even faster using Facebook or Google+) and confirm your account through the link in the confirmation email, and via a code sent via SMS.

There is only one problem with the Tradeo demo account, as we shall see shortly talking about the Copy Trading function.

Regarding the Webtrader platform, where you can trade independently, the functions and possibilities are exactly the same.

As for the ability to copy other traders instead, with the demo account you can copy only those traders using a demo account.

On one side, therefore, this aspect is a limitation to the possibility of really testing the platform, even if, however, the functioning with the demo accounts is identical to the real one.

What is Tradeo

Tradeo is a Social Trading broker, i.e. a broker who, in addition to the normal trading services, offers a Social Network service to its users.

Discover the Top10 Social Trading Networks!

Tradeo was founded in 2012 in Tel Aviv by Jonathan Adest (founder and CEO), and it initially started as a Social Trading platform where every trader could link his account, with his own trading platform, and share his thoughts and actions with other users.

In 2014 instead Tradeo decided to change radically, becoming a broker in all respect.

The brokerage services was initially offered by partnering with FXGlobe Ltd. However Tradeo recently changed partners, moving to UR Trade Fix Ltd, a Cypriot investment company (CIF) supervised and regulated by the Cyprus Securities and Exchange Commission (CySEC) with CIF license number 282/15.

Tradeo offers the possibility to operate on about 120 instruments, mainly currency pairs and CFDs on indices, metals, and the biggest and most famous listed companies.

tradeo logo

Tradeo Minimum deposit, Regulation and Costs

To open a live account with Tradeo, the minimum investment required is $ 250.

Tradeo accept deposits in three currencies, USD, EUR and GBP, it does not charge any fee on deposit, and it accepts a variety of payment methods, including credit transfers and credit cards.

Tradeo also complies with the MiFID European legislation, and for this reason European users are required to respond to the initial questionnaire before the opportunity to make the deposit.

The Social Trading and Copy Trading services are not chargeable, but Tradeo, being a trading broker in essence, gets its earnings simply by the normal brokerage activities.

In this regard, we can add that the Tradeo spreads seem in line with industry standards, maybe even lower than other competitors in the Social Trading industry.

How does Tradeo work?

Tradeo offers two Social Trading services:

  1. One of classic Social Trading, i.e. social interaction between individual traders trading on their own
  2. Another of Copy Trading in which a trader can automatically replicate the trades executed by another trader

In this Tradeo review we have evaluated both.

Tradeo Social Trading platform

The classic Social Trading function is developed on the Tradeo Social Webtrader platform.

This platform is definitely one of the best around, like other top range of the industry as eToro.

However, we need to specify and to emphasize immediately a very important feature of Tradeo, a feature that will be appreciated by many traders (and that eToro does not have), i.e. the complete compatibility of Tradeo with the MT4 trading platform.

This certainly is a big point in favor of Tradeo in comparison with its main competitors eToro, since many traders (including us), almost exclusively use the MT4 to perform the trading activity, given its convenience.

Going back to the Social Webtrader, the main section, which is immediately evident, is the one dedicated to the chart, with which you can work by adding lines and indicators.

The number of graphical tools and studying indicators is quite limited, but overall nothing essential is missing.

Always on the chart, however, we find the first “social” indicator, a pie chart with the Sentiment (whether Long or Short) of the Tradeo’s traders about that particular asset.

But that’s not all. On the lower part of the chart, you can find the trades opened from top the traders, shown at the time they were opened, and with the complete order details.

This way you can see, very clearly, if there are traders who open new positions at the right time, and in what way.

tradeo social webtrader platform

However, the central activity of the Tradeo Social Trading is done in the left section of the platform, where we find six different tabs:

  • Social Feed
  • Instruments
  • Trading Feed
  • News Feed
  • Economic Calendar
  • Chat

In the News Feed you can find a flow of financial and economic news from agencies such as Reuters, Financial Times, CNN, BBC, etc, with the possibility of giving Like and comments like in a real social network.

In Economic Calendar instead you have a useful list of all the future economic news, organized by day, with other useful data such as the impact, the expected data and the previous release.

In the Instruments section you have access to all the assets you can use to trade with Tradeo, and from which you can indeed open new positions.

In the Trading Feed tab you enter instead into the heart of the Tradeo Social Trading. Here you can find a flow of trading operations executed by the various participants.

Not only you can see which operations have been opened, by whom, and with what details, but of course you can comment on them, and if you want you can copy them with a simple click, with the same specifications (but obviously with a different entry price).

The order flow is separated by asset, based on what you are viewing on the chart.

This way you can have a complete picture of what is happening graphically and what other traders are doing, so, should you want to, you could quickly copy the operations that seem most deserving.

Finally, the Social Feed section is the part of Tradeo certainly more similar to a real social network.

Here you can find all the feeds generated by the Tradeo users, their statements (called broadcast), the links they share, but also their orders.

You can organize this flow by setting it with some preferences, to eventually show only the feeds that interest you, especially viewing only feeds in your language, in order to exclude all the others you can’t understand.

Although it is manageable and adaptable to your preference, the Tradeo Social Feed tab, in our opinion, has the problem of not being divided according to the assets.

In the same stream there are all the possible arguments, while it would be more useful, in our view, to be able to see all the broadcast related to an asset conveyed in a single stream, a thing is done with greater success for example in eToro.

The last section, however, the Chat Section, is the section where Tradeo even surpasses eToro in terms of ability of social interaction allowed between users.

In fact, Tradeo is one of the few platforms where users can freely chat in private rooms.

This is really a very interesting feature for those traders who spend long time in front of the platform and who likes to establish relationships with other traders based on sharing and confronting views, taking advantage of the speed and privacy of a chat rather than the “slowness” of a social flow.

Tradeo Copy Trading function

Tradeo, in union with the Social Trading one, also offers a Copy Trading functionality.

Once subscribed to the network, every trader can follow or copy anyone, then, in turn, everyone can be followed or copied (provided you keep your profile “public”).

One of the peculiarities of Tradeo is that each member can have, under the same profile, different accounts, both demo and live, all viewable by other users, in a separate way.

A trader who wants to present different trading strategies separately, each one with its own data and performance, could do it very effectively thanks to this option.

On the other hand, a user has the ability to copy only a specific account of another trader, getting only that specific strategy.

From our experience, however, the majority of users with more than one account are users who have burned the capital of the first account, and have then started again with a new account, resetting their statistics. Many others are traders with a live account, but using the demo account as a test.

– Traders’ performance data

To assess the strategies of the various accounts of a trader, Tradeo provides a number of performance data.

Some can be found immediately from the “Summary” page, but the complete detail is obtained by entering the specific page of the account in question.

Here we can find information such as:

  • Gain
  • Average Leverage
  • #Trades
  • Win Ratio
  • Average Trade Time
  • Percentages level of Copy/Manual Trades

In addition there are 3 charts:

  • Equity line of the balance historical trend
  • Pie chart with the instruments traded by the trader
  • Histogram with the profits of the last four weeks

Finally, a section for the operations open at that time, one for the orders, and a historical list of all the operations performed by the trader (unfortunately, there’s no way to download it in Excel for a more detailed analysis).

tradeo trader performance data

At first glance certainly Tradeo has improved compared to the past, when there were less data and shorter historical depth (especially the list of executed trade).

Some of the basic data to understand the style and the effectiveness of a strategy are present.

However, it lacks definitely a focus on the Drawdown.

The only information is a percentage of Max Drawdown visible in the “Overview” page. On the account page instead there are no other data or graphics, neither on the past situation, neither on the current one.

We believe that some more information on this data would definitely be a major improvement, as the drawdown is the most important indicator to understand the degree of danger of a strategy.

In such cases, it’s essential to observe how the trader behaves over time, and above all to observe how many operations he keeps open simultaneously, and if he leave them running at a loss for long periods.

Always on the Drawdown we noticed that some traders have a Max Drawdown greater than 100%, which is impossible at the logical level.

To our request for clarification the assistance told us that it depends on the fact that the trader, in those cases, has lost also the bonus money he received initially, a thing that, apparently, breaks the 100% limit (however, please note that now initial bonuses are no longer allowed because of a change of regulation of CySec).

– Money Management and Risk Protection

Tradeo offers its users 2 automatic options for copying the operations, a standard mode and Dynamic mode (similar to what is offered for example by ZuluTrade).

The Dynamic mode, as explained to us by the Tradeo assistance, takes into consideration the variation of leverage used by the Signal Provider to proportionally modify the leverage of the order replicated by follower traders.

Without going into the technical details of the formula, Tradeo calculates a standard average of the leverage used by the trader in his past operations.

The follower trader, on his side, will have to provide a preferred Lot Size, which will be considered as the average leverage he would like to keep in his future operations.

At that point, if the new trade of the Signal Provider will deviate from his standard average (positively or negatively), Tradeo will calculate how much that deviation is in percentage, and will open the trade of the follower trader with a lot size “adjusted” for that same deviation percentage.

To enhance security, the user can still specify the Maximum Lot Size he is willing to accept, to protect against sudden decisions or mistakes of the Signal Provider.

In our view, the dynamic mode is certainly interesting and better than the fixed one in some points of view, since it can faithfully replicate the Risk/Revard levels of the trader’s strategy.

However, it should be specified that, as there is a limit to the minimum Lot Size you can use (0.01), for some users with too small deposits could be hard to replicate accurately and proportionately all the trades of the Signal Provider, if this were to reduce the leverage of his orders.

In this case, the Standard mode is certainly more useful. Here the Lot Size is decided from the outset and it is held fixed, beyond what will be instead used in the Signal Provider orders.

That said, however, what is missing is a more advanced system of losses protection.

In fact, there is no way to determine how much losses we are willing to suffer from a particular trader before automatically block the replication of his operations.

This is definitely a feature that should be implemented as soon as possible.

– Traders’ research tool

Tradeo provides a decent traders search system.

You can use different filters, useful for obtaining a more specific list of interesting trader.

But what could be improved is definitely having a greater number of functions to sort the list, since you can only do it:

  • By Gain
  • By number of Followers
  • By number of Copiers

Nevertheless, with a little patience you can still find some interesting trader, even though some of the data on which the filters are working (for example, “Approach”) are provided directly by the trader thus shuld be verified.

tradeo traders searching tool

– Traders’ compensation system

Here is definitely where Tradeo differs from its competitors.

In fact, Tradeo does not reward in any way those traders whose transactions are replicated.

For sure this point is quite controversial and makes us wonder how far this model is sustainable.

It’s true that, speaking of “Social” trading, thinking on the “social” aspect, so in a sense “disinterested”, this model may seem compliant.

But with many platforms that allow to do almost the same things (see eToro), but that in addition allow traders to earn something extra from their activity, it seems hard to believe that the best traders can stay just for the sake of sharing.

Actually, others on the web have suggested that the top traders indeed receive some sort of compensation, and to a direct question the assistance has however responded that Tradeo is open to the possibility, on the future, to provide some compensation to its Signal Providers.

Tradeo Review conclusion: for who is suitable?

We want to conclude this Tradeo review with our final point of view on this good Social Trading platform, showing, in our opinion, for who is most suitable.

Essentially, Tradeo offers a excellent Social Trading service, in terms of personal trading done with the addition of Social Network functionalities. It can be definitely improved, but it already has some very unique features, such as the private chat between traders and above all the compatibility with the MT4 platform.

The Copy Trading service instead is not at the same level of the Social Trading one, and, despite providing the basic minimum elements for operating (search tool, performance data, customizable replication), a user who wants to use Tradeo exclusively for Copy Trading could find better solutions in other platforms, especially in terms of automatic protections against losses and portfolio management.

For those who want to trade on their own, and really participate in a traders network to share and communicate their ideas, then Tradeo is definitely one of the best choice.

The Copy Trading service could become a pleasant addition to the retail trading activity, to integrate perhaps after a period spent actively within the community, after having known “directly” other traders and having understood and appreciated their strategy, having therefore clear their risks.

Starting from scratch with Copy Trading, searching for traders and putting them in your portfolio, might instead present some difficulties.

Tradeo Review: PROS and CONS

PROS

  • Demo account without time limits
  • Excellent Social Trading Platform
  • Compatible with MT4
  • Private chat for all members
  • Good levels of spreads
  • No compensation for Signal Providers

CONS

  • With the demo account you can follow only other demo accounts
  • Limited Copy Trading functionalities
  • Lack of automatic losses protections
  • Lack of depth on the Drawdown data

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Tradeo Review – Our Independent, Technical and Professional Opinion ultima modifica: 2016-10-20T09:00:14+00:00 da Filippo

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