Trader’s Way Review

tradersway.com briefly

The tradersway.com website is operated by TW Corp, which is incorporated in the Commonwealth of Dominica. The company is governed by the laws of the Commonwealth of Dominica, but it is not authorized and regulated by any major financial body. Trader’s Way strives to provide traders with the widest opportunities available on the financial markets, the company claims. Client orders are filled using Non-Dealing Desk (NDD) and Straight Through Processing (STP) execution model, the website informs. Clients can trade CFDs on forex, commodities, and cryptocurrencies with fixed and floating spreads through the popular MetaTrader 4 (MT4) and MetaTrader 5 (MT5) platforms. The lack of regulation allows the company to offer leverage up to 1:1000. The minimum required deposit to start trading is just USD10.

Regulation

It is important to know if and where the company is regulated. Unfortunately, the company TW Corp, which stands behind the brand is not authorized and regulated by any financial supervisor. About the safety of client funds TW Corp claims that no regulation can protect clients from dealing manipulation or company bankruptcy. Although the company is not regulated, it says that clients are protected by several ways such as optimized and effective business model, extensive range of internal policies, strict AML policy, conservative risk management policy, keeping client funds separated from company money and using NDD/STP/ECN execution models.

No matter what the company claims, there is no official financial authority to regulate and supervise TW Corp, so be careful if you decide to open an account here. By comparison, EU-regulated brokers are required to report all trades and follow strict procedures. In addition, they are members of compensation schemes and their clients will be compensated if they are unable to meet their obligations.

Account Types

There are four types of live trading accounts available that differ in the platform offered, spreads, commissions, and available trading instruments.

MT4.VAR. – You can trade currency pairs, cryptocurrencies, and commodities with variable spreads through the MetaTrader 4 (MT4) terminal. Trading is commission free and the spread for the EUR/USD starts at 0.7 pips. The minimum initial deposit is USD/EUR/CAD/GBP10 and the stop out level is 40%. The leverage is from 1:100 to 1:1000 depending on the account balance.

MT4.ECN – This account provides ECN trading with a direct access to interbank liquidity through the MT4 platform. You can trade currency pairs, cryptocurrencies, and commodities. The average spread for the EUR/USD pair is 0.5 pips (starting from 0 pips). You will be charged a USD3 commission per lot traded. The minimum initial deposit is USD/EUR/CAD/GBP10 and the stop out level is 40%. The leverage is from 1:100 to 1:1000 depending on the account balance.

MT5.ECN – This account provides the same trading conditions as MT4.ECN but through the MT5 platform. You can trade currency pairs, cryptocurrencies, and commodities. The average spread for the EUR/USD pair is 0.5 pips (starting from 0 pips). You will be charged a USD3 commission per lot traded. The minimum initial deposit is USD/EUR10 and the stop out level is 40%. The leverage is from 1:100 to 1:1000 depending on the account balance.

CT.ECN – Trader’s Way offers an ECN account where you can trade with the intuitive and convenient cTrader platform designed especially for ECN trading. Trader’s Way cTrader enables highly effective both manual and automatic trading. Traders can access the interbank market directly without any interference from brokers. You can trade currency pairs, and metals. The average spread for the EUR/USD pair is 0.5 pips (starting from 0 pips). You will be charged a USD3 commission per lot traded. The minimum initial deposit is USD10 and the stop out level is 40%. The leverage is from 1:25 to 1:500 depending on the account balance.

What Type of Broker the Company Is?

The company has provided the Risk Warning file, which informs that your potential losses, which depend on movements in the price of the underlying instrument, can exceed any deposit, margin, or other amount you have paid to the company. You may lose all amounts you deposit with the company as margin, and your account could go into deficit. The placing of stop loss orders that are intended to limit losses to certain amounts may not always be effective because market conditions or technological limitations may make it impossible to execute such orders. You must pay to the company all losses you sustain as well as all other amounts payable under the customer agreement such as interest. This means that clients are not covered by Negative balance protection and in the end, it may appear that you owe money to this company. In addition, this shows that all types of orders are subject to slippage and stop loss orders are not guaranteed.

The Terms and Conditions file does not inform how the company will execute client orders – as a market maker or as a brokerage company. The F.A.Q. section informs that the company offers ECN/STP accounts, which suggests that Trader’s Way uses the Straight Through Processing (STP) model to execute orders. However, it does not declare that 100% of client orders will be transmitted to its execution venues. This means that despite the use of the ECN/STP model, the company can act as a market maker on its own discretion. When the customer orders are executed through the STP model, there is no conflict of interest, but there is not written anywhere that the company may keep the risk to itself and not to transfer part of the orders. In this case, the conflict of interest exists.

Fees

We could not find any information about fees other than the usual ones, such as inactivity fees. This means that you can start and pause trading whenever you want.

Deposits and Withdrawals

Customers can use several deposit methods such as wire transfer, credit/debit cards, e-wallets (Neteller, Skrill, Perfect Money, FasaPay) and cryptocurrencies. 

All deposits and withdrawals must be made from/to financial accounts that exactly match the name on the client trading account. For all withdrawals up to the total deposited amount you must use the same payment option as you used for deposits. The rest can be withdrawn using any payment method. Withdrawal requests are processed within 48 hours on business days. Transactions requiring currency conversion via Trader’s Way are subject to a 1.5% fee. Clients who make a withdrawal without trading may be charged all fees originally covered by Trader’s Way during their initial deposit(s). The cost of the fees is determined by the payment system used.

Trading Platforms

You can trade via the three of the most fashionable trading platforms worldwide – MetaTrader 4 (MT4), MetaTrader 5 (MT5) and cTrader.

MT4 is an easy-to-use platform for online trading, analyzing the financial markets and using expert advisors. In addition to the standard features, Trader’s Way has added the ECN trading feature to MT4 providing a fair and transparent NDD/STP model, the company claims. 

MT5 is the successor of MT4 terminal. It provides innovative tools for complete technical analysis with more than 80 built-in indicators. You can view the market depth data (Level II quotes) and use algorithmic trading software such as expert advisors and robots. Both MT4 and MT5 platforms are available as a desktop version for Windows and MAC and as a mobile app for tablets and smartphones. In addition, you can trade through them directly from your browser.

Another popular terminal is also available – cTrader. Trader’s Way cTrader offers super-fast order execution, Level II pricing (market depth) and no conflict of interest due to no dealing desk functionality available for brokers. Now you can enjoy all the features of cTrader from any computer with an internet browser using the cTrader Web terminal.

Assets

Forex – More than 40 major, minor, and exotic currency pairs can be traded. The typical spread for the EUR/USD pair depends on the account type and is 1.4 pips for the MT4.VAR account and 0.5 pips MT4.ECN account (at the expense of the commissions).

Metals – Gold and Silver. The typical spread for the Gold is USD0.18 for the MT4.VAR account and USD0.12 for the MT4.ECN.

Energies – Crude Oil and Natural Gas are available for trading. The average spread for the Crude Oil is USD0.10 for the MT4.VAR account and USD0.07 for the NT4.ECN account.

Cryptocurrencies – 9 of the most used cryptocurrencies are available for trading. The average spread for Bitcoin is USD6.1 and for Ethereum it is USD USD1.1.

Summary

Trader’s Way does not have any regulation and you should be incredibly careful if you decide to open an account here. It claims to use the STP model to execute orders, although the company may act as a market maker as well. Trader’s Way provides mostly currency pairs and cryptocurrencies as trading instruments. You can trade them via the most popular trading terminals MT4, MT5 and cTrader. There are four types of live accounts and the minimum deposit amount is USD10. Keep in mind that the offered leverage of 1:1000 imposes a higher risk of losses that can exceed your deposit.