FxPro SuperTrader: our review

FxPro SuperTrader

Since 2006, FxPro is one of the leading global forex brokers, with clients in over 150 countries. The FxPro SuperTrader mirror trading and social trading platform was launched in late 2013 (click here to visit the FxPro website). The SuperTrader platform connects FxPro's clients and investors with experienced forex traders. Investors can therefore automatically analyse and copy these expert traders' strategies into their own FxPro accounts.

SuperTrader is exclusively reserved for FxPro clients, you must first open an FxPro trading account to create a SuperTrader account. As of 4 May 2015, FxPro has decreased the minimum capital required to open a SuperTrader account to $2,000. And if you deposit $2,000, the broker automatically adds a line of credit of $8,000.

FxPro believes that to be effective, SuperTrader portfolios should be well diversified across multiple trading strategies, it is for this reason that the initial investment is high.

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FxPro SuperTrader credit

 

Who are SuperTrader's leading traders?

FxPro SuperTrader Strategies

These "leaders" are entities or physical persons who emit their trading signals in real time via SuperTrader. These traders are sending their signals from a real trading account - they are therefore also risking their own money.

SuperTrader leaders are all subjected to a rigorous approval process in which FxPro experts analyse their trading strategies in order to check for consistency and compliance with certain risk management rules. Traders are paid a performance fee of 5% on all winning trades that are sent to investors' accounts.

There are not many strategies to copy because FxPro removes all of the strategies that no longer meet their criteria of effectiveness - this facilitates the research process for investors.

Here are some risk management guidelines that an FxPro leader must follow:

  • Reasonable risk/reward ratio
  • Coherent strategy in relation to the 30-day test and the stated description
  • Use of a reasonable exit strategy that is adapted to the strategy
  • Limit the maximum loss to 50% of the capital
  • Limit unrealised losses (drawdown) to 20% of the account balance

One of the most positive features regarding these leaders is that, beyond the fact that they are trading with their own money, you can see how much they have in their account. Most accounts have balances over $10,000. This is rather unique, because with other social trading networks, this information is not shared.

Currently, there are 35 trading strategies that you can copy. They are classified within two categories: FxPro strategies or third-party strategies. The difference is quite obvious: the FxPro strategies were developed internally by FxPro, while the third-party strategies are created by independent traders.

 

Selecting trading strategies to copy on FxPro SuperTrader

Each strategy has a page that displays historical performance and key parameters such as maximum drawdown, the leverage used, performance expressed as a percentage, the average duration of trades, the risk/reward ratio, etc.

FxPro SuperTrader Statistics

For most investors the performance charts and historical statistics available are more than enough to make informed decisions and to choose strategies that match their risk profiles. The trading history can be downloaded into Excel, which is very useful if you want to make your own offline analysis.

Open trades are also displayed and all data is updated in real time. It is fair to say that FxPro SuperTrader is totally transparent, you can see the same amount of money traders have lost or made.

FxPro SuperTrader Statistics 2

 

Risk management

You can define a certain number of parameters to manage risk:

FxPro SuperTrader risk management

Amount allocation $: select the amount of money you want to allocate to this strategy (the minimum is $500, some strategies require a higher amount). The trades are copied to your account accordingly. If you allocate $500 and the capital available on the account of the strategy is $5,000, when the trader opens a 1-lot trade, the trade is copied onto your account via a 0.10-lot trade.

Ratio Multiplier: you can select 1, 2 or 3 to increase the risk (and the position sizing).

Strategy Max Loss %: allows you to stop following the strategy after a loss between 5 and 30%.

Trailing Stop (Equity) %: this feature is similar to "Strategy Max Loss %", but it also takes into account profits, which allows you to lock in profits.

Copy all Open Position: if a leader already has an open position and you decide to start copying the strategy, all open positions will be replicated in your account.

You can also track the performance of your account in real time and manually close all trades that were opened by a strategy.

 

Costs of using FxPro SuperTrader

Registration is completely free and spreads are the same as with FxPro trading accounts, that is to say, very competitive with the competition. It is only when you copy a "third-party" strategy that you have to pay a performance fee of 5% on profitable trades, which seems to be more than fair to us. Overall, SuperTrader's costs are low compared with other similar services.

When talking about costs, we always like to consider slippage. Slippage (for those who are unfamiliar with social trading) is the difference between the price you get in your account and the price that the trader gets (due to latency). Traders who offer their strategies use FxPro trading accounts (like yours), slippage is therefore very low compared to multi-broker social networks (like Zulutrade for example).

 

Social features

The principle of social trading lies in the ability to share trading ideas with other traders and also to be able to automatically copy their trades. FxPro SuperTrader allows you to copy trading strategies, but the features available to interact with other investors are limited.

 

Pros:

  • The strategies of leaders are reviewed by FxPro
  • All leaders use real money accounts
  • All data (including the amounts in $) are fully transparent
  • There are a few quality leaders you can copy
  • Good account and risk management tools
  • Leaders are only paid for profitable trades
  • The trading history can be downloaded into Excel
  • Low cost and reasonable slippage
  • Fully integrated service with an intuitive interface

Cons:

  • No demo accounts
  • High initial investment required ($2,000)
  • Some strategies require a high minimum investment ($10,000)
  • No interaction with leaders

To make a long story short, FxPro SuperTrader is a social investment platform for sophisticated investors due to the minimum deposit of $2,000. The interface is fairly intuitive and all of the data on the strategies is completely transparent. FxPro pre-selects strategies and monitors them, which facilitates the choice, because the list of strategies available to copy is limited.

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