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Social trading – Is it a free for all?

14 February 2014

Committed traders spend thousands of hours absorbing, processing and acting on market information. “Social” empowers them to post, receive, and thus exchange information, 24*7 with others around the globe.

P2P is THE new paradigm. Unsurprisingly, traders have embraced P2P with gusto.

Social and traders: isn’t this exciting? How about Social trading / Copy-trading / Auto-trading / Mirror trading??

Here’s our take! (Hint: knowing that trading is Intellectual Property, you won’t be surprised!)

Social trading & collaboration

Trades are a time sensitive IP produced by hard to acquire trading skills: knowing a good trader’s current market outlook, or the trade that he just placed is VERY valuable information.

On this account, “social” holds promise. Trading rooms & clusters of “Twitter traders” have formed on a validated psychology principle: group beats individual decision-making. Your information helps me; my information helps you, it’s a win-win, “social trading” here we go!

Collaboration is everything in social trading

 

 

 

 

 

 

Almost, but not quite!

Social trading = free for all?

There’s this tiny little thing: for this to work, my contribution has to be as valuable to you as your contribution is valuable to me.

Otherwise, imagine this conversation between Trader Johnnie and George “Quantum” Soros in 1992. Johnnie, who just placed his first ever trade, reaches out: “Hey George, I’m a trader, you’re a trader, let’s social trade: I’m long the GBP, any thoughts?”.

Absurd, and therefore unlikely! Animal Farm’s unforgettable Napoleon summed it up:

Animal Farm and social trading

 

 

 

“All traders are equal, but some trades are more equal than others”

 

 

 

Free “Social trading” as described above = barter. Barter works… AS LONG AS all parties to it exchange equally valuable contributions.

Luckily for George, trading is an IP industry: no amount of Johnnie trades are of interest to George (this is not to say that knowing ALL trades by ALL Johnnies at any point in time wouldn’t!). Barter and IP are difficult soul-mates: a sustained IP exchange where a trader consistently contributes above average only works if he really likes philanthropy: the communist trader – a very strange creature, indeed!

Social trading – our take

“Social trading” would work IF all traders had similarly valuable IP to contribute. But they don’t. The moment a trader contributes more than he gets, his incentive is to walk. Once he does, the second best trader, who also contributed above average and now also lost access to the best trader’s IP, follows suit. This triggers a race to the bottom that soon becomes noise. At its worst, this is Twitter for traders. Everyone has trades to tweet, alas not all trades are equally valuable.

Social trading – what’s next?

Barter is not the way to exchange valuable information: this ignores the dynamics of intellectual property. Existing “social trading” propositions fall short on this account and thus have flaws that greatly outweigh their benefits to good traders. What’s worse, they’re a self-selection magnet for all sorts of bad stuff that smart traders should best stay away from. Groucho Marx knew when he said: “I wouldn’t join a club that admitted me as a member!”

At Darwinex, we know that, given the right set-up, good traders have valuable IP to contribute, and can benefit from collaboration. Our investor platform is already in private beta, so stay tuned!

 

Last News

Amended Trading Hours due to US Memorial Day & UK Spring Bank Holiday (28 May 2018)

22 May 2018

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time). Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market […]

Please note the amended Darwinex trading hours for the upcoming US Memorial Day & UK Spring Bank Holiday on 28 May 2018 (all times are in UK time).

Important: as explained in our Help Section, if you open / close an investment in a DARWIN that has an open trade in an asset which market is closed (see amended trading hours in red below), the transaction will not be carried out immediately,  the investment will show up in your investor platform once it has been executed by our system when the index/commodity resumes trading on Monday night.

 Instrument Trading Hours
 FX  22:00 Sun – 22:00 Mon
  DARWINS  22.05 Sun – 22.00 Mon
 COMMODITIES
Gold* 23:00 Sun – 18:00 Mon
Silver* 23:00 Sun – 18:00 Mon
Platinum* 23:00 Sun – 18:00 Mon
Palladium* 23:00 Sun – 18:00 Mon
US Crude* 23:00 Sun – 17:45 Mon
Natural Gas* 23:00 Sun – 17:45 Mon
 INDICES
Australia 200 22:05 Sun – 22:00 Mon
 Europe 50 22:05 Sun – 22:00 Mon
France 40 22:05 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225*  22:05 Sun – 18:00 Mon 
 UK 100* Closed
 US SPX 500* 22:05 Sun – 18:00 Mon
 US Tech 100* 22:05 Sun – 18:00 Mon
Wall Street 30* 22:05 Sun – 18:00 Mon
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Amended trading hours during German Public Holiday (21 May 2018)

16 May 2018

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).  Instrument Trading Hours  FX  22.05 Sun – 22.00 Mon   DARWINs  22.05 Sun – 22.00 Mon  COMMODITIES 23.00 Sun – 22.00 Mon  INDICES Australia 200 22.05 Sun – 22.00 Mon  Europe 50 22.05 Sun […]

Please note the amended Darwinex trading hours for the German Public Holiday on 21 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX  22.05 Sun – 22.00 Mon
  DARWINs  22.05 Sun – 22.00 Mon
 COMMODITIES 23.00 Sun – 22.00 Mon
 INDICES
Australia 200 22.05 Sun – 22.00 Mon
 Europe 50 22.05 Sun – 22.00 Mon
France 40 22.05 Sun – 22.00 Mon
Germany 30* Closed
Spain 35 07:00 – 19:00
Japan 225  22.05 Sun – 22.00 Mon 
 UK 100 22.05 Sun – 22.00 Mon
 US SPX 500 22.05 Sun – 22.00 Mon
 US Tech 100 22.05 Sun – 22.00 Mon
Wall Street 30 22.05 Sun – 22.00 Mon
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Darwinex Trading Hours for UK Public Holiday (7 May 2018)

3 May 2018

Please note the amended Darwinex trading hours for the upcoming bank holiday in the UK on Monday, 7 May 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:05 Sun – 22:00 Mon   DARWINS 22:05 Sun – 22:00 Mon  COMMODITIES   Gold 23:01 Sun – 21:59 Mon Silver 23:00 Sun – 22:00 Mon Platinum […]

Please note the amended Darwinex trading hours for the upcoming bank holiday in the UK on Monday, 7 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:05 Sun – 22:00 Mon
  DARWINS 22:05 Sun – 22:00 Mon
 COMMODITIES  
Gold 23:01 Sun – 21:59 Mon
Silver 23:00 Sun – 22:00 Mon
Platinum 23:00 Sun – 22:00 Mon
Palladium 23:00 Sun – 22:00 Mon
US Crude 23:00 Sun – 22:00 Mon
Natural Gas 23:00 Sun – 22:00 Mon
 INDICES  
 Australia 200  23:00 Sun – 22:00 Mon
 Europe 50 23:00 Sun – 22:00 Mon
France 40 23:00 Sun – 22:00 Mon
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225 23:00 Sun – 22:00 Mon
 UK 100* 23:00 Sun – 22:00 Mon
 US SPX 500 23:00 Sun – 22:00 Mon
 US Tech 100 23:00 Sun – 22:00 Mon
Wall Street 30 23:00 Sun – 22:00 Mon
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Darwinex amended trading hours (1 May 2018)

24 April 2018

Please note the amended Darwinex trading hours for the upcoming bank holiday on 1 May 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:01 Mon – 22:00 Tue   DARWINS 22:01 Mon – 22:00 Tue  COMMODITIES   Gold 23:01 Mon – 21:59 Tue Silver 23:00 Mon – 22:00 Tue Platinum 23:00 Mon – 22:00 Tue […]

Please note the amended Darwinex trading hours for the upcoming bank holiday on 1 May 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:01 Mon – 22:00 Tue
  DARWINS 22:01 Mon – 22:00 Tue
 COMMODITIES  
Gold 23:01 Mon – 21:59 Tue
Silver 23:00 Mon – 22:00 Tue
Platinum 23:00 Mon – 22:00 Tue
Palladium 23:00 Mon – 22:00 Tue
US Crude 23:00 Mon – 22:00 Tue
Natural Gas 23:00 Mon – 22:00 Tue
 INDICES  
Australia 200 23:00 Mon – 22:00 Tue
 Europe 50* Closed
France 40* Closed
Germany 30* Closed
Spain 35* Closed
Japan 225 23:00 Mon – 22:00 Tue
UK 100 23:00 Mon – 22:00 Tue
 US SPX 500 23:00 Mon – 22:00 Tue
 US Tech 100 23:00 Mon – 22:00 Tue
Wall Street 30 23:00 Mon – 22:00 Tue
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Darwinex Trading Hours for ANZAC Day

19 April 2018

Please note the amended Darwinex trading hours for the upcoming ANZAC Day on 25 April 2018 (all times are in UK time).  Instrument Trading Hours  FX 22:01 Wed – 22:00 Thu   DARWINS 22:01 Wed – 22:00 Thu  COMMODITIES   Gold 23:01 Wed – 21:59 Thu Silver 23:00 Wed – 22:00 Thu Platinum 23:00 Wed – 22:00 Thu Palladium […]

Please note the amended Darwinex trading hours for the upcoming ANZAC Day on 25 April 2018 (all times are in UK time).

 Instrument Trading Hours
 FX 22:01 Wed – 22:00 Thu
  DARWINS 22:01 Wed – 22:00 Thu
 COMMODITIES  
Gold 23:01 Wed – 21:59 Thu
Silver 23:00 Wed – 22:00 Thu
Platinum 23:00 Wed – 22:00 Thu
Palladium 23:00 Wed – 22:00 Thu
US Crude 23:00 Wed – 22:00 Thu
Natural Gas 23:00 Wed – 22:00 Thu
 INDICES  
Australia 200* 08:10 – 22:00
 Europe 50 23:00 Wed – 22:00 Thu
France 40 23:00 Wed – 22:00 Thu
Germany 30 07:00 – 21:00
Spain 35 07:00 – 19:00
Japan 225 23:00 Wed – 22:00 Thu
 UK 100 23:00 Wed – 22:00 Thu
 US SPX 500 23:00 Wed – 22:00 Thu
 US Tech 100 23:00 Wed – 22:00 Thu
Wall Street 30 23:00 Wed – 22:00 Thu
*Amended Darwinex trading hours.

As always, at info@darwinex.com we’ll be happy to assist you!

Change in bank account details for GBP deposits

6 April 2018

Over the next few days the segregated accounts for our GBP clients will be transferred over to a new FCA regulated banking entity. Your deposits remain protected under the Financial Services Compensation Scheme (FSCS). The change will be 100% automatic and will not require any action on your part. Nevertheless, due to the fact that […]

Over the next few days the segregated accounts for our GBP clients will be transferred over to a new FCA regulated banking entity. Your deposits remain protected under the Financial Services Compensation Scheme (FSCS). The change will be 100% automatic and will not require any action on your part.

Nevertheless, due to the fact that the bank account details used up until now for GBP deposits have been changed, if you wish to make a deposit via bank transfer, make sure to initiate the deposit from your Wallet in order to receive the new bank account details per email. This should be the way you always initiate a deposit as opposed to copying a previous deposit’s data.

We remain at your disposal at info@darwinex.com