SocialTRD.com in brief
As the name shows, this website is intended generally for fans of social trading. Copy trading (or social trading) has become a modern way for beginners to trade as experienced investors. The website is operated by Global Clearing House Ltd and FH Ever JSCo together. FH Ever JSCo is regulated under MiFID II and has an EU license issued by the BFSC, while Global Clearing House Ltd is regulated by the VFSC. The mission of SociaLTRD is to introduce an innovative way for traders to join the global markets, the website claims. SocialTRD offers online trading of CFDs on currency pairs, commodities, indices, shares, and cryptocurrencies through its own web-based terminal. The minimum initial deposit is USD500.
No matter what the company offers, it is good to check its regulation. Moreover, this website is owned by two brokerage companies. SocialTRD was created in 2018 and the companies that operate through it are both regulated. FH Ever JSCo complies with EU and local regulations such as the European Markets in Financial Instruments Directive II (MiFID II) and the Markets in Financial Instruments Regulation (MiFIR) and has an EU license issued by the BFSC under register number RG 03-0008. Global Clearing House Ltd (GCH) is authorized and regulated by VFSC under register number 14691 and is a certified member of the Financial Markets Association of Vanuatu, the website says. There is a link that confirms this claim. As an investment firm authorized by a regulator of an EU Member State (BFSC), FH Ever JSCo can offer its services on a cross-border basis to the European Economic Area (EEA) countries. Client funds are kept safe and are fully segregated from the company’s own funds. As a member of the Investor Compensation Fund (ICF), clients of FH Ever JSCo receive compensation in the event of the company’s bankruptcy.
Customers can open three types of real accounts by choosing the right one for them. They differ mainly in the minimum deposit required and the offered spreads.
Silver Account – The minimum required deposit is USD500 and the spreads for the major currency pairs start from 2.1 pips. You will receive a daily market overview and more than 1,000 instruments available for trading.
Gold Account – You can start trading by investing USD10,000 and the spreads for the major currency pairs start from 1.5 pips. In addition to the features of the silver account, here you will also receive some educational materials and the opportunity to interact with the social trading community.
Diamond Account – The minimum required deposit is USD25,000 and the spreads for the major currency pairs start from 0.9 pips. In addition to the features of the gold account, here you will also receive a senior account manager, personalized trading signals and technical and fundamental analysis.
What Type of Brokerage the Company is?
As the website is operated by two companies, we will check the legal documents for both. The Order Execution Policy file of GCH shows that the firm acts as principal in all dealings and as the sole execution venue for the client orders. This means that GCH acts as a market maker and the risk management team defines when to transmit an order for hedging the risk. The Order Execution Policy text of FH Ever JSCo informs that the Investment Intermediary executes client orders as a principal for the client and is a counterparty to the fulfillment of all orders. This means that FH Ever JSCo is a market maker and its risk management team takes care of the risk allocation. So, both financial companies act as market makers and the counterparty to each order of the clients. However, you can be sure that executions will be transparent because of their strict regulations.
The same documents warn about slippage – when the requested price shown to the client is not available, then the order will be executed at the next available market price. However, not all orders are subject to slippage. The paragraph about slippage claims that it may incur to market, limit, entry stop and entry limit orders. About the stop orders (stop loss orders and trailing stop orders) it is noted that despite the slippage occurrence, the companies cover the difference between the price at which the order has been submitted and the market price at which this order could be executed. In other words, stop loss orders are guaranteed.
The Terms and Conditions files confirm that both companies apply a Negative Balance Protection Policy. This means that retail clients may not lose more than the amount they have deposited. In the event of rapid market movements, which, despite the actions of both companies, the customer’s trade balance is reduced to a negative number, the companies undertake to cover this negative amount at their own expense.
Usually, there are some familiar fees, which every trader pays such as spreads, swaps, and rollovers. Some brokerage companies impose additional fees such as the inactivity fee. Both GCH and FH Ever JSCo impose such a fee, if you have not performed any transactions within a period of 30 days. Then your account is classified as inactive and both companies have a right to impose an inactivity fee of 1% per day (not less than EUR10) of your account balance.
Deposits and Withdrawals
Customers can deposit funds to their accounts by bank transfer, credit, or debit cards (VISA and Mastercard) or using payment providers such as Skrill and Trustly. The minimum first deposit depends on the account type and is USD500 for the silver account. The website warns that when depositing funds to their account or making withdrawals from it, the bank or the relevant payment provider may charge fees/commissions. When the companies are charged such fees/commissions from the relevant bank or payment provider, they are entitled to deduct those costs from the client’s account. This means that transaction fees are not covered. It is also noted that when a client deposits funds by debit/credit card or e-wallet, the companies could be charged a fee of up to 4% of the deposit’s amount by the payment operator or e-wallet provider. In this case, the companies will deduct the amount of the fee from the client’s account. However, the companies will credit the customer account with a bonus equivalent to the amount of the relevant fee, as a compensation. Keep in mind that this bonus cannot be withdrawn – it can be used only for trading.
Withdrawals will be paid directly to the same account that has been used from the client to deposit money. Withdrawal requests will be processed on the same day that they are made. Withdrawal fees for each method of payment are covered by customers. According to a clause in the Terms of Business file of the GCH, if you want to make withdrawals during the first 60 days of the account activation, you must trade at least 50 lots.
SocialTRD provides its own web-based trading platform that does not require any software installation and can be run on any browser or mobile device. There is a dedicated application for Android devices that can be downloaded on Google Play. It is easy to use and reliable, helping customers to easily trade a huge range of assets. The web platform is the perfect solution for beginners and ordinary investors. Hedging is also allowed. The terminal can easily be used as a platform for copy trading. You can start trading your favorite investor with just a few clicks.
There are four asset groups available for trading. Please note that choosing a company to trade with leads to major differences in the properties of the instruments. If you open an account in GCH, you will be able to trade with a maximum leverage of 1:100, while if you open a real account in FH Ever JSCo, you will be able to trade with a maximum leverage of 1:30 (this is an EU regulated company and meets the latest ESMA II requirements).
Currency Pairs – 260 currency pairs including major, minor, and exotic ones can be traded. Spreads depend on the account type and the minimum value for the EUR/USD pair is 0.9 pips.
Commodities – CFDs on 53 commodities are available for trading. They include Gold, Silver, Brent Oil, Crude Oil, other precious metals, cereals, food, and agricultural products. The spread for Gold is fixed at USD1.9 and the one for Crude Oil starts from USD0.098.
Indices – Clients can trade spot CFDs on 40 indices, such as DAX (Germany30), CAC40 (France40), DJIA(US30), etc. The minimum value of the spread for the DAX index is 5.4 point and for the DJIA index it is 9.5 points.
Shares – SocialTRD offers more than 400 CFDs on shares of companies of 19 countries globally, including Apple, Facebook, Google and more. You will be charged a commission of EUR2 per deal regardless of the traded amount.
Website SocialTRD is operated by Global Clearing House Ltd and FH Ever JSCo together. Both companies are regulated and FH Ever JSCo has an EU license, which allows the company to provide investment services across European Union. Legal documents show both companies are market makers but stop loss orders are guaranteed for no additional costs. You have a choice to trade a huge set of instruments via its own web-based platform. There are 3 different types of accounts that differ in the required minimum deposit and offered spreads. You can open a real account with at least USD500.