The company wikifolio has stood for social trading for several years, is the second largest provider directly behind the test winner eToro in the sector and has been bringing top traders and followers together on its platform since the top trader. For the investor this has the advantage that he can select from a huge selection of strategies his favorites. Apart from the possibility of following the decision of a Traders one to one, wikifolio went still another step further. Top traders with a certain trading volume can also follow follow followers by certificate, which is issued directly on the stock exchange by a partner company. This makes “following” a top trader not only very easy. A further advantage is the possibility to sell the certificate on the stock exchange at any time, so that one can fall back very quickly on the tied money.
And another important component of trading on wikifolio should be mentioned here: According to the Web 2.0 thought the exchange should not represent a one-way street. Over social exchange media at any time lively over current situation and investment decisions can be discussed. Thus it is also in principle possible to determine an investment strategy together.
Videovorschau zu wikifolio
In the following video you find our experiences with wikifolio in the summary. We will also show you how the registration works and show you the first steps with the provider.
Now take a look at the video to get a preview of wikifolio:
Our experiences at a glance
The company wikifolio has its name from the famous online encyclopedia and strives for the principle of social intelligence, also called swarm intelligence. In principle, the company, which has been active since 2011, is nothing more than an Internet platform on which different dealers are brought together. On the one hand there are the so-called top traders, who publish their self-managed depots and are looking for imitators, so-called followers. On the other hand, there are “normal” investors who are looking for an investment strategy that is ideal for them. Successful and long-term active top traders can bundle their portfolio as a certificate so that the investor can directly participate in the strategy of the top trader by purchasing such a certificate. Certificates are traditionally initially issued at an issue price of 100 euros, so that the performance can also be read directly from the value of the certificate. Similar to a fund, you thus receive a share certificate that allows you to participate directly in the performance of the portfolio of the respective top trader. However, even if a corresponding strategy is very cost-effective compared to buying funds, a wikifolio certificate is of course not free of charge. In addition to the annual fee of EUR 0.95, the investor also pays a performance-related fee, which can amount to up to 30 percent of the yield achieved. Here you should inform yourself in each case before exactly in order not to be surprised badly, if he is pleased about a tidy performance. Last but not least, the regular order and portfolio management fees of your own bank or broker must also be taken into account. Wikifolio does not operate its own custody accounts, so the investment must open one with its own bank. Interesting is also the possibility to get into wikifolios that have fallen in price. Here the performance fee is omitted as long as the price is below the initial price. But also here you should take a close look and deal with the reasons for the previous price fall.
In our experience, wikifolio is a very reputable company. In addition to the transparency about the respective strategies and decisions, strict standards are also set for potential top traders. In this way, fraud is excluded from the outset. However, this does not mean that investors sometimes take an unintended risk when they decide on the product of a certain top trader.
As diverse as the range of different products on the stock exchange is, so diverse is the range of different wikifolios. Important for the investor is to know thereby first that there is a set of different risk classes, with which occasionally also extremely high risks are taken. In addition to classic equities and ETFs, speculative strategies are also possible as the basis for a certificate, using massive leverage. Wikifolio has set itself the task of providing you with an optimal selection tool to help you make your decision. The most different criteria can be used for the search. In addition to simple performance indicators, this includes the mainly traded securities. Here you can, for example, focus on different regions, such as the USA or Europe. You can also search for products with an explicit dividend strategy. The trading strategy of the top trader can also be used as a selection criterion. A distinction can be made between “actively diversified”, “heavy trader” or “medium to long-term”. In addition, the criteria that can be used for selection also include personal characteristics of the top trader such as communication behaviour. Thus it is possible to use the sophisticated search function of wikifolio to select the strategy that best suits your situation from a large number of strategies.
Another special feature is that publicly known players and institutions also publish and offer their own wikifolios. Thus the investor can acquire the certificates of many restaurant economics like for instance the trade paper and profit from their specialized expertise. However, this always requires the investor’s common sense. After all, every social trading enthusiast should always be clear about one thing: Ultimately, one acts at one’s own risk and is also liable for any wrong decisions made by the top trader. Special with highly speculative strategies with strong levers is and remains Social-Trading from view of the Followers rather a gamble.
Not least a general risk is to be pointed out, which exists with the trade with certificates: The issuer risk. If the bank, which publishes the certificates, in the case of Wikofolio it concerns thereby long and black, in insolvency, goes this for the current owner of the certificate synonymously with the total loss. Also against this background you should ask yourself with which amounts he enters the Social Trading. The alternative would be direct copy trading or mirror trading, in which the portfolio is automatically or manually replicated by the investor. Disadvantage here are comparatively high transaction fees, which result with the multiplicity of Trades.
Bonus for new customers
An own program for the advertisement of new customers or also Boni for inventory customers does not give it with wikifolio at present. However, additional income is tempting if you become a top trader. Then this can collect a kind bonus with each sold certificate.
Since wikifolio is not a classic broker, you cannot deposit or withdraw money directly here. The entire trading process takes place via a regular bank or an online broker, with whom the customer must register if he is not yet to have a deposit. If this is the case, he can in principle also buy certificates in addition to his existing values in the custody account and place them in his custody account. The case with automatic copy trading or mirror trading is somewhat different. In this case, the securities account is linked to the signal transmitter. This requires an additional agreement between bank, trader and wikifolio.
Security and Regulation
The certificates issued in cooperation with wikifolio do not belong to an official supervisor. This represents an increased risk compared to conventional products such as shares or funds, as the respective top trader is not controlled by anyone. However, in order to avoid incalculable risks or even rip-offs or fraud, wikifolio has built in some security measures. First every top trader has to legitimize himself before he can advertise for followers. In addition, wikifolio reserves the right to sanction possible misconduct, such as a violation of its own trading principles, and in the worst case to remove the top trader from trading. This can be the case, for example, if the top trader, contrary to his profile, consciously takes a higher risk.
The second security instance is the customers of wikifolio themselves. As with other Web 2.0 based projects, the community is called upon to report any misconduct. Wikifolio hopes that malpractice will be detected quickly and can be prosecuted. However, there are no fixed rules for this. Nevertheless, our experience shows that in most cases it is transparent and serious.
Support and Customer Service
Of course wikifolio has a Customer Service available. As the most important contact medium the email is offered, over which the customer is to bring up his problems. In view of the complexity of financial products, this is sometimes very laborious. Also for the telephone consultation two numbers are indicated, however the advice-looking for investor must raise here occasionally some patience. As a rule, personal contact is not even necessary, as a large part of the information is distributed via FAQs, a blog and a regular newsletter. Here you will find lots of interesting information about the current trends in social trading. In addition, there is always the possibility to follow the information policy of the top traders and to contact them if necessary.
User-friendliness of the website
All in all, the pages of wikifolio are designed and structured very intuitively and comprehensibly. In principle you can always get to the information you need with just a few clicks. Extremely user-friendly is also the search function, with which you can very easily find your way through the jungle of many offers.
In addition the offer of wikifolio is to be used for quite some time also over a mobile App. This allows you to follow the status and the development of individual wikifolios with a mobile application. In addition, the app offers access to the community, so that you can also discuss with other investors on the move. In addition, the trades themselves have to be processed via the depot operator, so that the app of wikifolio cannot be used for these purposes.
The platform wikifolio represents the professional implementation of an innovative idea, which is based on the principle of funds, but above all relies on the intelligence of the masses as well as highest transparency. From it quite chances can result for the investor. A condition is however also here that it concerns itself thoroughly with the philosophy of the Top Trader. Particularly with long-term strategies of experienced traders, there is a good chance of a continuously high return at comparatively moderate costs. The more speculatively a certificate is however aligned, the more the strategy resembles a highly speculative gambling. Here the investor should trust probably nevertheless rather in the own lucky hand. Because it carries the risk always alone.
Wikifolio makes a correct good impression on me. The enterprise is respectable and I receive my payments punctually. The customer service works exemplary. Nothing to complain for me at this point!
written 24 months ago
Wikifolio is probably something like the inventor of social trading and you notice that as an investor. Huge selection of top traders and the very best conditions to find the right strategies.
written 14 months ago