The opportunities for players in the trading market are enormous. But only the fewest manage it to obtain continuously high profits and to secure thereby a stable income. In most cases not only much work stands before the success, but in all rule also high losses. The result is that many traders who hopefully enter this segment quickly turn away again. Usually also around a considerable amount of money poorer. This is not least also because the offerers for the respective trade forms suggest to the potential customers that high profits are possible for everyone and very fast. This is theoretically possible with products such as binary options. But finally profits are based also with this in principle simple form of trade on a correct estimate of the future price development. In order to avoid making the entry into trading an expensive failure, various platforms such as soXange offer the possibility of social trading.
The idea behind this term is simply that young traders simply join the experienced players in the industry and profit from their profits. And also soXange has made this principle its business model. Over its Internet platform the offerer looks for Tradern, which entrust their money to the Top Tradern active on the platform and from their transactions to profit would like. In total, a large number of different top traders are listed, none of whom have actually been active within the last few months. So it remains to be seen how the dynamics on the soXange platform will develop in the coming weeks and months. Nevertheless, we consider the business model to be so interesting that we would like to take a closer look at it in a detailed test. We want to focus our attention on criteria such as the exact conception of the business model, the categories from which the underlying values come, but also the support offer and the structure and user friendliness of the website. We were also interested in the trustworthiness aspect of our test. We want to make sure that fraud or rip-off can be excluded for our customers.
This experience at a glance
In this section we would like to summarize our most important experiences. However, it is not easy to get an exact impression of the business model and its implementation. The reason for this is that apparently no traders are currently active on soXange. However, the trader can also inform himself about the actual business model via the website. In a short film he is informed about the advantages of soXange. These advantages consist above all in the fact that high profits are to be possible in the Trading also without large individual expenditure.
Background is the consideration that there is already a set of successful traders, who developed a strategy, with which they gain profits successfully for longer time at the market. With the platform, every actor is now given the opportunity to participate directly in this success. In principle, it is only necessary to log on to the platform, deposit money into the trading account and select appropriate top traders whose transactions are to be followed directly. Ideally, profits will then be generated continuously. In addition, the platform is of course also an interesting option for traders who are already successful in business. With the platform soXange they have the possibility to present themselves with their own trading strategy and to search for followers. From each trade, which is released by it additionally with a Follower, you can profit by Credits additionally in the form of Credits.
An important authority of the offerer lies therefore also in giving the customers a simple and effective possibility to the hand, in order to look purposefully for Followern and/or for Top Tradern. This makes it possible to differentiate between the various top traders on the basis of various categories, such as performance, maximum loss, profit ratio and most frequently traded assets, and to search specifically for strategies. In order to test the soXange business model risk-free, it is first possible to open an account with virtual capital. This can then be converted into a real money account at any time if the trader is satisfied with the development of his portfolio.
soXange in check: Fraud or serious?
It should be one of the most important questions to be answered when traders decide on a particular platform: Is it a reputable provider who is not expected to cheat or rip off? Unfortunately we find out again and again that traders enter the market much too gullibly and let themselves be blinded by promises and well opened pages. However, this can prove to be an expensive mistake if the provider turns out to be dubious. In the case of the soXange platform, the first aggravating factor is that not only the social trader has to be considered, but also the respective partner broker. Because in order to use the services, it is necessary to open a trading account with a partner broker.
There are various providers available, but their trustworthiness by the investor should be checked again separately. In particular, it is important that it is a regulated provider. Only here the Trader can ensure that the customer interests are sufficiently considered. In concrete terms, this means that they are honestly informed about the risks that the trading opportunities present. In addition, the regulatory authority ensures that the transactions are carried out under market conditions and that no manipulation is carried out to the detriment of traders. With regard to soXange itself, we have at least found no evidence that it is a dubious provider. In principle, however, traders should prepare themselves for the fact that even the best top traders can never rule out at least a temporary loss.
Many top traders and underlyings from several categories
The offer that soXange offers its customers consists above all of connecting different traders with each other. However, it cannot be assumed, as with a classic online broker, that there is a clearly defined trading offer. Rather different strategies are offered, between which the Trader can decide. Of course, it is also intended to combine a number of different strategies. This also makes it possible to diversify one’s own investment strategy and spread the risk.
The concrete range of underlying securities can only be assessed if the focus is on the respective partner broker with whom the active traders have opened an account. In principle, however, underlyings from all conceivable categories are available. In our experience, both CFDs and binary options can be traded. The selection of underlyings includes equities, equity indices, currency pairs and commodities. The trading history of the last weeks and months can also be viewed for each top trader listed on soXange. In addition, an exact statistic is offered, which can be used by soXange visitors to determine which underlying securities are traded, how high the success rate is and how high the risk of this trader is valued.
The soXange platform is also unable to make any concrete statements with regard to conditions. In principle the offer is available free of charge. However naturally also the conditions should be considered, which are ordered by the respective partner broker. If it concerns thereby an on-line broker for the trade of binary options, no actual fees are to be expected also thereby. However, the binary option product is a derivative in whose construction the brokers have already included their fees. The decisive factor here is above all the possible yield. However, no additional fees are normally charged for the opening of an account or the execution of operations.
Bonus for new customers depending on partner Broker
Many traders looking for a suitable Forex Broker on the market pay particular attention to a bonus. This is understandable at first sight, since immediately after the registration and/or after the deposit of own capital additional money is available for the trade. With closer looking it concerns however a strategy, which has also its pitfalls. On the one hand, a higher account balance leads many traders to higher stakes, so that in principle the risk of losses also increases. In addition, it is unfortunately not the case that the additional trading capital granted is paid out without further ado. Rather, a disbursement is linked to various conditions, in particular a corresponding turnover in trading. Against this background, the granting of a bonus is by no means synonymous with the payment of a bonus amount. Against this background, it is therefore advisable to study the conditions as closely as possible and also to compare them with the strategy of the selected top traders. The absence of a payout bonus does not have to be evaluated beyond that equal as disadvantage and/or as exclusion criterion for a certain on-line broker.
In- and payout represent usually no problem
Who decides for the platform soXange, can start first with a virtual capital of 500 euro in the trade. This serves however exclusively to test the business model and the possibilities, which soXange offers to its customers. It is not possible against it to be able to be disbursed this amount or also profits obtained thereby. The representation on the appropriate side of the offerer is thereby somewhat misleading. Actually only profits can be paid out, which were obtained with before deposited commercial capital. For this it is however necessary to use the methods, which are offered by the respective partner broker.
Traders, which have a credit card, are usually on the safe side thereby, since according to our experiences actually all on-line brokers offer this form of payment. In addition to MasterCard and Visa, some other credit card providers are also accepted. In addition, it is also possible to process deposits and withdrawals via so-called e-wallets, i.e. with the help of Internet-based payment service providers. Some online brokers also offer to carry out financial transactions by bank transfer.
Security and regulation are important criteria
The factors of security and regulation are also important criteria that should be taken into account when choosing a provider for trading. However, a regulatory obligation applies, if at all, then only to the chosen partner broker. soXange itself is only a platform that connects different traders with each other, but does not carry out any financial transactions itself. Against this background, regulation is not planned. The platform therefore has no control or due diligence obligations with regard to top traders.
Was it declared that all top traders are trustworthy candidates. Nevertheless, they are of course free to pursue their own strategy and thereby determine their trading risk themselves. In principle, the followers do not have any control possibilities except to take a corresponding top trader out of the portfolio again. In principle, it is of course possible to make contact with the top trader and thus build trust. With regard to the chosen partner broker, however, we believe it is very important to pay attention to regulation in order to effectively protect one’s trading capital in the event of the broker’s insolvency.
Support and customer service at a simple level
With a view to the possibilities in the area of support and customer service, traders should especially look at the possibilities at the selected partner broker. From soXange’s point of view, in our experience only little substantial is to be expected here. In the Support area, only a contact form is offered, in conjunction with the promise to deal with the customer’s concerns as quickly as possible. The possibility for a direct establishment of contact, either by telephone or also by Live Chat is not offered however. In particular if it concerns technical questions of the trade or around the trade account, anyway the selected partner Broker is the correct partner. Therefore in particular the possibilities of the respective on-line Brokers should be taken exactly into the view.
Webseite represents the model briefly and briefly
On the first view the web page works very user friendly. Many contents are represented very descriptive and with merry pictures and even its own film is offered, in order to explain the business model. However, in order to obtain additional information, for example about partner brokers or the underlying values available there, there is unfortunately no content available. So a lot of information about the soXange offer remains unclear. The homepage itself is in German. Other contents, such as the terms and conditions are only available in English.
A mobile app is not offered and in our experience with soXange is not absolutely necessary. The business model is based on the fact that settings are made once in order to benefit permanently. Extensive transactions on the market are not planned. In order to check the currently achieved return, the corresponding dashboard, i.e. the user’s account, can also be easily controlled with a mobile device.
Fazit – soXange offers advantages for top traders and followers
We took a closer look at and tested the platform for social trading. All in all, however, we come to a somewhat ambivalent conclusion. On the one hand, soXange offers its customers the effective implementation of an in principle ingenious business model. Traders who have little experience or time can join the best players in the trade with a few mouse clicks and profit permanently from their success. And the corresponding top traders can also profit by receiving commissions for every transaction they initiate.
However, it was our impression that the site was not quite accepted at the moment. With the Top Tradern, which are to the selection, the vast majority are no longer active for longer than one year. The last transactions of individual top traders took place a few months ago. Against this background, it does not seem to make much sense to set up an account with soXange at the moment, even if only virtual capital is needed initially. Nevertheless, we consider the model to be so interesting that it is well worthwhile to continue monitoring the provider and its development. This is also due to the fact that we hold soXange for a respectable offerer. Fraud or Abzocke must not be feared here.