Editor’s Verdict
Overview
Review
Headquarters | Dominica |
|---|---|
Year Established | 2011 |
Execution Type(s) | ECN/STP, No Dealing Desk |
Minimum Deposit | $10 |
Trading Platform(s) | MetaTrader 4, MetaTrader 5, cTrader |
Islamic Account | |
Signals | |
US Persons Accepted? | |
Managed Accounts |
TradersWay has operated since 2011 as an unregulated broker out of the Republic of Dominica. It is an execution-only broker without value-added services; it suggests that the absence of services is beneficial to traders amid a lack of conflict of interest. TradersWay maintains the core versions of the MT4, MT5, and cTrader trading platforms. There is no minimum deposit, except for ECN accounts, which are available from $10. The maximum leverage remains dynamic and decreases as the account balance increases, ranging from a maximum of 1:1000 to a minimum of 1:100 for Forex traders. A restrictive 100% deposit bonus is available.
Regulation and Security
TradersWay is an unregulated broker; it notes in its Safety of Funds section that no regulation protects clients from manipulation, misuse of client money, and bankruptcy, clarifying its standpoint on the matter. Despite being incorrect on all three counts, the business model appears to work well enough for this broker to remain operational. It does provide a list as to how it protects clients, but there is no independent verification of those claims. Traders must pass a verification process, similar to regulated entities, consisting of AML/KYC protocols. TradersWay takes no additional steps to ensure client safety, such as a membership with the Hong Kong Financial Commission, the primary independent dispute resolution body, or third-party deposit insurance. It also fails to note independent auditors nor does it offer any assurances confirmed by a third party.
While brokers may operate as an unregulated entity in business-friendly jurisdictions, trusted ones generally provide a confirmed layer of protection, security, and access to a dispute resolution mechanism. The absence of it at TradersWay raises a significant red flag, and traders should consider it. Ironically, even the details provided by TradersWay as to how to spot a scam broker operating a Ponzi scheme essentially classifies TradersWay as such. It notes that traders should shy away from brokers offering large bonuses, yet it maintains a 100% bonus offer on deposits. The restrictions, terms, and conditions raises further concerns, as they discourage and punish withdrawals.
Per its own description of brokers to avoid, traders should not open an account with TradersWay, which violates scenario one. It essentially labeled itself a Ponzi scheme.
Fees
While TradersWay remains primarily a commission-based broker, it provides one commission-free alternative. The former commences from raw spreads of 0.0 pips with a cost of $3.00 per $100,000 in trading volume, making it one of the cheapest brokers in operation. The latter displays a minimum mark-up of 0.7 pips or $7.00 per trade per 1.0 standard lot. Swap rates on leveraged overnight positions apply, and TradersWay lists how to obtain them from the trading platform. Third-party payment processor fees may apply. TradersWay does not list any other costs.
MT4/MT5 traders can easily access swap rates from their platform by following these steps:
1. Right-click on the desired symbol in the Market Watch window and select Symbols.
2. Select the desired currency and then click on Properties located on the right side.
3. Scroll down until you see Swap Long and Swap Short.
From a pricing perspective, TradersWay ranks among the most competitive brokers.
What Can I Trade?
The asset selection at TradersWay remains limited to 41 currency pairs, three commodities, and nine cryptocurrency pairs. It notes that its mission is to provide traders with unlimited trading opportunities but maintains only 53 instruments, making it the broker with the second-fewest overall choice among all online brokers. It is another example of a questionable broker making bold statements and failing to deliver.
Traders at TradersWay must accept the second-fewest asset selection among all brokers, with only 53 available across Forex, cryptocurrencies, and commodities.
Account Types
TradersWay provides clients with four account types, three commission-based ones, and one commission-free alternative. Trading conditions remain mostly equal, with the primary difference being the trading platform. The MT4/MT5 ECN accounts offer all assets, while the cTrader ECN account does not feature cryptocurrency CFDs. Despite noting no minimum deposit for the commission-free MT4 account, the account comparison page shows $10, among the lowest industry-wide, for all four account types. The maximum leverage is 1:1000 but decreases with the account size.
TradersWay delivers a well-thought-through account structure.
Trading Platforms
TradersWay provides clients with out-of-the-box MT4, MT5, and cTrader trading platforms. It upgrades the core MT4/MT5 with its MT QuickDeal 2.0 plugin, offering market depth and an improved one-click trading feature. Therefore, traders have access to necessary Level 2 data, confirming the STP/ECN execution model at TradersWay. Traders also have access to the FxStat Autotrading service, and the FxWire Pro Newsfeed completes a more competitive trading environment compared to many brokers.
Traders have access to the three most popular trading platforms.
Unique Features
The MT QuickDeal 2.0 plugin adds Level 2 pricing to the MT4/MT5 trading platforms. It also features an improved one-click trading tool, volume information, profit/loss and break-even data, and a close-all button. FxStat Autotrading supports copy trading with an innovative service, where strategies from profitable traders in real accounts are available. The FxWire Pro Newsfeed provides traders with over 600 news items daily, presented in bullet points, decreasing the time it takes to get the most relevant information. VPS hosting serves automated traders at TradersWay. Two packages exist, free of charge to traders who meet the requirements, otherwise, a monthly cost of $30 or $50 will apply. The unique features enhance the core trading environment at TradersWay.
The MT4/MT5 trading platforms receive an STP/ECN upgrade with MT QuickDeal 2.0.
TradersWay supports copy trading via FxStat Autotrading.
Traders get more than 600 news items delivered by FxWire Pro Newsfeed.
Two VPS hosting packages are also available.
Research and Education
Under the Safety of Funds section, TradersWay claims it provides no research for clients. Per its own account, the absence of research allows the operation of a conflict-free trading environment. The assumption that brokers which generate in-house trading recommendations have a conflict of interest is wrong. TradersWay hides behind the statement to justify its lack of value-added services. TradersWay does feature daily live webinars, where it claims to provide trading recommendations and other valuable content, contradicting its claim of not generating research made under Safety of Funds.
The interactive webinar takes over an hour; while it has valuable content from one perspective, other brokers offer more actionable information in less time. The TradersWay approach does appeal to a specific type of trader and remains executed well in that respect. There is no excuse to not provide free education to clients, which is missing at TradersWay. The live webinar fails to deliver it and is simply a monologue wherein the Chief FX Analyst at TradersWay discusses his ideas and answers questions.
TradersWay claims it does not provide trading recommendations and states it as a pillar of the “security” it grants.
It then features daily live, interactive webinars that feature trading recommendations.
Customer Support
Customer Support Methods |   |
|---|---|
Support Hours | Mon-Fri, times not specified |
Website Languages |           |
Customer support is available Monday through Friday, via live chat; TradersWay does not specify operating hours and the live chat feature is unavailable and offline during weekends. Three e-mail addresses and a phone number are available, but no physical address. The FAQ section only answers 14 questions, but TradersWay generally explains its limited services well.
TradersWay offers numerous contact methods to reach customer support but does not state its physical address.
The FAQ section offers limited support.
Bonuses and Promotions
TradersWay grants a 100% deposit bonus limited to $5,000 and only available for MT4 trading accounts. The terms and conditions discourage traders from withdrawing their profits, as any withdrawal request will void the bonus. Other brokers may have restrictions on bonus offerings, but none such as this, making the TradersWay deposit bonus offer one to avoid. From a statistical perspective, the more retail clients trade, the higher the chance of losses. It appears as if TradersWay counts on that, given its bonus structure.
The terms and conditions of the TradersWay bonus remain unacceptable.
Opening an Account
The online application asks for a name, e-mail address, desired account type, date of birth, and valid phone number. It takes less than a minute to complete the online form, but new clients must verify their trading account, despite the lack of regulation at TradersWay. Traders must submit a copy of their ID and one proof of residency document. TradersWay may reject applicants without explanation. While it follows the procedures of well-established industry standards, traders must consider that TradersWay is an unregulated entity operating out of Dominica, which it also fails to transparently note on its website. TradersWay also does not provide the physical address of its registered office.
The online application takes less than one minute to complete.
Account verification is mandatory.
Deposits and Withdrawals
TradersWay supports bank transfers via Abra, and credit/debit cards via VLoad, Skrill, Neteller, Perfect Money, FasaPay, TC Pay. It also accepts seven cryptocurrencies as payment options and appears to have a clear preference for cryptocurrencies. TradersWay charges a 1.5% currency conversion fee and processes requests within 48 hours. Third-party fees may apply, and the time until receipt of a withdrawal will depend on the payment processor. The overall deposit and withdrawal options remain competitive.
TradersWay supports bank transfers and seven cryptocurrencies as deposit options.
Summary
TradersWay is an unregulated broker operating out of the Republic of Dominica. While it does not provide its physical address, it maintains its trading environment well enough to attract traders. Per its own account, it executes orders with an ECN/STP model and operates an NDD. Traders may select between the MT4/MT5 trading accounts, which receive an ECN required plugin, or the cTrader trading platform. While the asset selection features the second-fewest number of instruments at 53, the pricing environment is competitive. The minimum deposit of $10 is low enough for traders to experiment with TradersWay, and the maximum leverage of 1:1000 may appeal to scalpers. While there are no signs of malpractice at TradersWay, several red flags exist. The limited asset selection and absence of value-added services stand out. Most traders will find a more competitive offer elsewhere.
Trading Platform
MT4 | |
|---|---|
MT5 | |
cTrader | |
Proprietary Platform | |
Automated Trading | |
Guaranteed Stop Loss | |
Scalping | |
Hedging | |
OCO Orders | |
Interest on Margin |
