The Forex and CFD broker EXness has joined the list of online brokers offering social trading tools thanks to its new copy trading application called EXNess Social. This application allows its clients to copy the trades of traders with successful trading strategies that have proven to be profitable over time.
For the most successful traders, this application allows them to earn additional income from their most profitable strategies by becoming a Strategy Provider, being able to earn commissions of up to 50% when investors profit from the copied strategies.
In the following review, we will discuss the main features of this service: Analysis of the broker EXNess.
What does EXNess’s social trading service consist of?
EXNess launched its social trading platform in March 2023. Shortly after, this service began to receive attention from traders around the world. In reality, social trading is not something new in the Forex world. For years, there have been well-known copy trading services like eToro and Zulutrade. So, what makes the EXNess social trading platform stand out from the competition?
We will see this below.
Exness Social Trading is a new copy trading service that provides its users with the ability to invest in the strategies of experienced traders. It is ideal for people who want to invest in the Forex market but lack the experience or time to do so.
Starting is very simple: explore the strategies, analyze their performance statistics, and when you find one that matches your goals and risk appetite, click on Copy.
We can say that EXNess Social Trading is unlike any other social trading platforms. They created a new platform and established their own rules. In fact, the application does not follow any rules or conventions that regular social trading investors are familiar with. For some, these changes are simpler and easier to apply than others. Their platform targets true investors who do not need to know how to trade but can apply their investment strategies as if they were investing in stocks.
You can find more information about this social trading service on the EXNess broker’s website via the following link:
What are the main advantages of EXNess Social Trading?
It is simpler than other platforms
The Exness social trading platform is very simple. It was created for people interested in the Forex market but who don’t know how to trade on their own. That’s why the Exness platform is different from others. It does not show overly detailed information about strategy providers (traders) such as equity, Stop Loss, Take Profit, etc.
Investors only care about risk and profit rate. Investment strategies are applied to balance risk and gains.
No minimum transaction volume
This may sound confusing at first. Every trader knows that the minimum position volume is 0.01 for most Forex brokers. But Exness social trading accounts do not limit the volume of our positions. We can even copy positions with volumes as small as 0.0001 lots.
This is one of the biggest advantages of the platform because sometimes, investors just want to test their investment strategies first. Therefore, they want to invest only a little money at the beginning, while Exness traders tend to deposit a large amount of money. So, if Exness limits the minimum volume, investors cannot copy 100% of the strategies they follow. And if we can’t copy 100% of the trades in a strategy, we might miss those winning trades that produce most of the strategy’s profits. That’s why this is a notable feature that is highly appreciated.
So, what is the principle of copying trades?
The copying is based on the equity ratio. If the strategy’s equity is $10,000 and an investor’s equity is $100, the copy ratio is 1:100. This means that if the strategy opens a position of 0.01 lots, the investor replicates the trade with a position of 0.0001 lots.
There are many strategies to follow
Exness has more than 40,000 active monthly clients. And many of these clients are large and experienced traders (that’s why these 40,000 traders have contributed around $400 billion in terms of monthly trading volume), so there are many quality strategies to copy. You can easily find many high-profit strategies, low-risk strategies, or even the most copied strategies.
More high-quality strategies and traders
What are the differences between Exness traders and traders on other social trading platforms? For me, Exness strategies are much better and safer, due to the purpose of the strategy providers. On other copy trading platforms, the purpose of traders is to be at the top of the ranking list and get money from investors who follow their strategies. Therefore, they have many ways to deceive investors. Many apply all kinds of unethical practices to make their strategies look attractive until they experience large losses that also wipe out their investors’ capital. After suffering catastrophic losses, they create new strategies. In fact, every trader will create hundreds of strategies until their strategies reach the top. And those who manage to get to the top make a lot of money from being at the top.
At Exness, strategy provider traders conduct their trades with the aim of making money in the market. The current 40,000 active clients of this broker are real traders. Their main purpose in creating an account on EXNess is to trade the markets, not to sell their strategies. Therefore, they tend to deposit more and trade more safely (of course, there are exceptions). Their profits come mainly from their trades. That’s why they are more careful when making decisions as their money is at stake. Because of this, most of these traders will not deceive investors by opening many accounts as strategy providers. They usually have only 1 or 2 trading accounts that they use for years.
What are the disadvantages of the EXNess social trading platform?
Many traders have complained that the Exness social trading platform is not as transparent as others because:
- It is not possible to access the strategy’s equity data.
- They cannot verify the strategy’s risk management, including data on Stop Loss or Take Profit.
- They cannot access more accurate data to measure risk.
As we mentioned earlier, Exness has focused on building a copy trading platform that is simple and easy to use, which means it does not offer complex data for strategy evaluation. Investors place their money in investment strategies that balance gains and risk. Additionally, they will create an investment portfolio by copying strategies.
How does trade copying work and how is the copy ratio calculated?
When you copy a strategy, the size of the positions opened in your account depends on your investment and the strategy’s capital. Let’s look at an example:
You invest 2,000 USD in one of trader A’s strategies. Trader A has a capital of 1,000 USD.
Investor’s capital / Strategy’s capital = 2000 / 1000 = 2 (copy ratio)
A copy ratio of 2 means that each position opened in the investor’s account will be twice the size of the position opened in the strategy provider’s account.
How to invest on the EXNess copy trading platform?
As we mentioned, this social trading application is simple and easy to use. To invest in the strategies of signal provider traders, the procedure is as follows:
- Open a social trading account on EXNess.
- Access the EXNess Social Trading platform and select one or more strategies to invest in.
- Deposit money and invest in the selected strategy. It is recommended to diversify the risk by investing in strategies with different characteristics.
- Earn money from the winning trades of the chosen strategies.
Unlike other copy trading applications, EXNess does not offer as much data or performance statistics for its strategies as other social trading platforms like Zulutrade. However, the information it provides about the different trading strategies allows for relatively easy filtering, analysis, and selection.
For each strategy, you can find the following data:
- The profitability of the strategy.
- The profitability of the strategy month by month.
- The maximum drawdown month by month.
- The risk score (on a scale of 1 to 10).
- The history of trades executed by the trader in their account.
- The list of instruments (currency pairs) the trader has traded with the respective trading percentages.
- The leverage used by the trader.
- The number of investors copying the strategy.
- The current open orders with their current profit/loss.
- The commission percentage charged by the trader.
- A brief description of the strategy.
With this data, we also have the possibility to select a good strategy that offers us good chances of making profits in the market. However, we cannot expect it to allow us to conduct a deeper analysis of the strategy, as we can do on other similar platforms.
How can we become Strategy Providers on EXNess Social?
The steps for a trader to become a strategy provider on EXNess and earn more profits from their best systems are as follows:
- Create a Social Trading account in the Personal Area of your EXNess account and start trading as usual.
- If your trading strategy proves successful, investors will see the results on the EXNess copy trading platform and decide whether or not to invest in your strategy.
- The Strategy Provider can earn up to 50% in commissions when copying investors profit from their strategy.
