Tradersway is an unregulated offshore forex broker that will appeal to the trader looking for a large choice of cryptocurrency deposit methods such as Bitcoin, Dash and Litecoin. See our Trader’s way review of this ECN broker for trading.
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Tradersway review to assess whether this unregulated broker is legit or not and worth using
The overall rating is based on review by our experts
One of the appeals of Trader’s Way is they have an account to suit all types of traders. Not too many brokers offer the clients a choice of each of the 2 types of trading spreads. Spread-only variable spreads (commission-free) and variable ECN pricing spread.
This types of account are commonly called the “Standard Account” by other brokers. With this account, you get variable spreads with no commissions. In place of commission costs, Trader’s Way widens the spreads slightly so they can make a small profit on your trades. As this account has no commissions, it is popular with beginner traders who are looking for a more simple cost structure, as your costs are already included in the spread. This type of account uses variable spreads, which means they are constantly changing depending on the liquidity for each currency pair. Spreads for EURUSD avg 1.4 pip, which is more than double the 0.5 pips MT4.ECN account offers.
When trading with this account, you must be using the MetaTrader 4 trading platform and you will not be able to trade Cryptocurrencies.
MT4.ECN, MT5.ECN, CT.ECN:
The ECN trading account types use ECN/STP/DMA trading (the broker appears to use these terms interchangeably) to give connect you directly with liquidity providers so you can achieve the lowest spreads Trader’s Way offers. To keep spreads tight, the broker charges a commission fee of USD$3.00 to open your position and $3.00 to close your position. However, at times promotions with reduced commissions are offered (see strength 7). The ECN style low spread account is popular with scalping, high volume and Robo-traders who will be looking to save on costs trading of large volumes can add up significantly.
With these accounts, you can choose MetaTrader 4, MetaTrader 5 or cTrader platforms and you can trade cryptocurrencies with the MetaTrader accounts.
Tradersway uses a no dealing desk (NDD) trading model with STP, DMA and ECN trading execution. This model gives traders the opportunity to be linked with various liquidity providers to get the best spreads. As Trader’s Way is not a market maker, they are not your counterparty and do not own any liquidity.
While Straight Through Provider (STP), Electronic Communication Network (ECN) and Direct Market Access (DMA) are similar but different trading execution concepts, Trader’s Way appear to be using these terms interchangeably so it is not clear exactly which execution is being used. Nevertheless, each method connects traders with liquidity providers with no human intervention.
With Tradersway’s choices of trading accounts, forex traders will have the option to pick the best trading account that suits their trading style.
Trader’s Way Tradersway offer 3 of the most popular trading platforms found in the marketplace, giving forex traders the option to choose which platform they’d like to trade on.
Trader’s Way offers MetaTrader 4 (MT4) with the MT4.Fix, MT4.Var, MT4.ECN accounts and MetaTrader 5 (MT5) with MT5.ECN accounts. If choosing MT4.Fix or MT4.Var, you will not be able to trade cryptocurrencies.
Released in 2005, MetaTrader 4 is the most popular trading platform worldwide. The trading platform is exceptionally popular with beginner traders (but also advanced traders) and those that only wish to trade forex for the following reasons:
MetaTrader 5 was released in 2010 and is designed to offer a more comprehensive and powerful platform for trading across multiple assets. Despite being a superior platform than MT4, it is not yet as popular however there are good reasons traders should consider MT5 over MT4 platform.
Regardless if you choose MT4 or MT5, you will be getting access to excellent platforms that offer all the features one needs to trade.
Below is a head-to-head comparison of the features of the platform:
Both platforms offer automated trading through Expert Advisors. While MT4 uses an order system, MT5 uses a positional system which can make automation with MT5 easier.
Looking at the comparisons, the main difference to note is that MT5 offers everything MT4 does and more:
cTrader is one of the most popular trading platforms among traders. The software offers a variety of charting tools with advanced order types, and most importantly, fast entry and execution of orders. It has a very user-friendly interface where it is connected to a back-end technology, with the software available on multiple devices.
What makes cTrader outperform both MT4/5 is that it has a modern design, advanced ordering plus market depth options (not found on MT4). Additionally, it offers cAlgo, allowing you to develop your trading software (cBots) or create your own indicators.
Trader’s Way offers social trading tools that can help your trading experience. Social trading is especially popular with beginner traders as they allow you to learn from and copy other successful traders, meaning there is no need to learn to forex trade yourself.
This social and auto trading platform offers a wealth of statistical and financial features in order to provide comprehensive analytical tools so users can get a detailed analysis of the trading systems they are using and statements. By providing a deep analysis of the trader’s statements, trading activities can be improvised.
Myfxbook’s AutoTrade copy trading system allows you to copy from a large choice of systems directly into your MetaTrader trading account. This makes social copying simple and easy, as you can access all the analytical tools MyFxBook offers which can be used to find the system that you plan to copy based on your desired criteria.
A strength of Myfxbook’s is that it uses algorithms to eliminate poor-performing signals and prioritise only the best performing signals.
MT4 Trading Signals
MT4 Signals is MetaTrader’s built-in solution for social trading. As this product is part of the trading platform, all you need to do is choose a signal provider and subscribe to their signals. Once subscribed, you can set up your filters so automatically copy the signals provider.
One of the benefits of choosing the MetaTrader social trading solution is the large community MetaTrader offers. This means you can choose from an infinite number of signals to follow, thus increasing the chances of finding someone that trades in a style that suits you.
We like Tradersway platform offering. They offer three of the 3 most popular generally available platforms on the market and a few social trading tools to further enhance your trading experience. If you’re looking for even more tools, then Pepperstone or IC Markets are good options. If you’re looking for a specialist platform with risk management features, then easyMarkets may appeal.
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Every forex trader prefers a specified trading platform. Tradersway offers the most popular platforms which facilitate trading and analysis. In forex trading, MT4 is still the most used platform among traders since its release in 2005.
Most forex brokers require a minimum deposit of $200 to open a live account. Tradersway allows you to start trading with as little as $10.
While you will definitely benefit by investing larger amounts when trading as this presents more opportunities for greater returns, in some circumstances, traders may wish to open an account with minimal amounts. Reasons could include:
Although Trader’s Way has low minimum deposits, it is worth noting the broker does encourage larger initial deposits through their bonus program. The table below compares the minimum deposits with other notable brokers. If you are a serious trader seeking greater earning potential, then you will end up depositing larger amounts of funds inevitably so there are brokers with reasonably larger minimum deposits such as IC Markets should not be discounted. Saxo Markets have very high minimum deposits, as they are likely targeting semi-professional traders.
By not requiring a minimum deposit, Tradersway is giving the chance for small retail traders and beginners to have the chance to be one of the participants in the financial market.
Tradersway allows leverage of up to 1:1000 for each of its MetaTrader accounts and 1:500 for its cTrader account. Trader’s Way uses tiered leverage with the maximum allowable leverage reduced the more you trade.
Leverage of 1:1000 gives the trader the ability to borrow $1000 for each $1 deposited (in case the account is in US Dollars) when trading the forex market.
Using high leverage can assist traders to greatly increase the amounts of profit they can achieve while committing only a small amount of their own money. Should you trade with high leverage, be aware you can also increase your risks of large losses if the currency pairs moved against you.
With up to 1:1000 leverage available to its customers, Tradersway offer far more than a regulated broker will offer. ASIC allows brokers operating in Australia to offer up to 1:500, while financial authorities in Europe such as the FCA, CySEC and BaFIN allow 1:30 for major currency pairs and 20:1 for minor currency pairs.
Trader’s Way policy of reducing maximum leverage the more you trade can be seen as a somewhat sensible policy, as losses with large investments using 1:1000 can lead to crippling financial losses.
Tradersway gives its clients a wide range of payment types for deposits and withdrawals, including options not commonly found with most other brokers. Traders looking to fund their account anonymously may appreciate Vload, Abba, and Cryptocurrency options.
Trader’s Way does not accept Credit or Debit Cards for funding, instead, they provide 3rd party platforms to facilitate payment with Visa, MasterCard and other bank cards. Tradersway does not charge any fees however the 3rd party provider will have fees as the back end.
Funding with Cryptocurrency is becoming increasingly popular due to the speed one can make deposits and withdrawals and the anonymity that these funding methods allow. With Cryptocurrency, traders don’t need to worry about funding red tape that may be associated with traditional methods.
Trader’s Way also accepts a large range of funding via Cryptocurrency. Cryptocurrencies accepted include Bitcoin, LiteCoin, Ripple, Ether, USD Coin, Tether and TrueUSD. You will need to purchase the coins via a Cryptocurrency exchange such as Coinbase and then transfer the coins to your Trader’s Way account.
While Trader’s Way does not charge any fees, the Cryptocurrency network will have its own charges, which usually apply when you make a withdrawal.
If you prefer to fund your accounts via the web, then you have a range of options. These include Skrill, Perfect Money, FasaPay and NETELLER. Use of these services will incur charges from the provider.
Below is a summary of the available options provided by Tradersway.
Tradersway is generous when it comes to bonuses. This forex broker offers a 100% bonus credit on your initial deposit to use for trading. That means you have double the funds available for trading.
Our review of Tradersway’s spreads by our analysts shows that they are quite wide when compared to similar brokers. Wider spreads mean higher costs. Scalpers especially will want to trade with a broker with tight spreads due to the high volume of trades they will perform.
Tradersway charges an average spread of 0.5 pips for EUR/USD (ECN accounts) which means each time you open and close a trade you will pay USD$5. With a cost of $10 in total to exit your position, this can be expensive when trading with many lots.
Our table below shows how Trader’s Way spreads compare with other brokers.
Trader’s Way has an average of 0.5 pips EURUSD for commission spreads. This contrasts with some other brokers like Pepperstone and IC Markets who average around 0.1 pips. To open and close with Trader’s Way you will pay $10 on average while to open and close Pepperstone and IC Markets you could pay as little as 0.20 pips on average, equating to $2.00. This means you will save $8.00 for each standard lot you trade. If you are trading with high leverage, regularly this cost difference can be significant.
Data taken from broker website. Accurate as at 04/06/2021
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Standard account spreads have no commission, so are wider than the ECN pricing account. Tradersway spreads are high compared to other brokers with similar trading conditions. Many brokers ECN pricing brokers add a flat 1.0 pip to the commission spreads for all currency pairs. While it appears they add less for EUR/USD with 0.9 pips, it is noted they can add more than 1 pip for other currency pairs. AUS/USD appears to have 1.8 pips added, while EUR/GBP has around 1.9 pips added. This is very high.
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Tradersway is not a regulated broker. Many traders would rightfully consider this to be a big red flag when choosing a broker. A good broker will be licenced by a tier-1 regulator for the country or region you are trading in such as ASIC for Australia, BaFIN, CySec or FCA for Europe or MAS for Singapore.
Instead, Tradersway is headquartered at 8 Copthall, Roseau Valley, The Commonwealth of Dominica 00152, which is considered a high-risk jurisdiction.
Acquiring these licenses show that the forex broker is doing a transparent job, protecting its clients, and operating their business with integrity. These give trader peace of mind that their investments are safe with the broker. Trust is one of the main factors that a broker should consider to attract investors and clients.
Tradersway offers high leverage accounts, while this is a strength, it is also a weakness. High leverage can certainly lead to large profits with little investment of traders’ capital, it is a double-edged sword. Should currency pairs move in an unfavourable direction, traders risk large losses with their trades. With a leverage of up to 1:000 these losses can be much larger than traders may anticipate.
It is a good strategy to start with a demo account until you learn how to trade with leverage. Only when you have gained confidence, should you consider opening a live account. Leverage instruments are risky, so trading with caution is always advised.
Before signing with a broker, it is a smart idea to research the broker’s reputation online. Our analysts noticed that Tradersway has generally poor online reviews, which can be a concern. Trustpilot.com gives Trader’s Way a rating of 2.5/5 which is a score most would consider poor. 50% of reviews gave a score of “Bad”.
Common comments found in TrustPilot reviews include “They stole my money”, “Stay away from this UNREGULATED scam broker” and “they can’t be trusted, run far away”. Complaints seem to revolve around the broker overcharging with swap fees (they say they can’t control swaps fees as this is decided by the liquidity providers, however, this could reflect the quality of the liquidity providers the broker is using) and the broker stealing clients money (possible given the broker is not regulated though hard to prove). Only the Islamic trading accounts don’t charge swap fees.
Not all reviews, however, are negative with other headings more effusive such as “Good Forex Broker” and “Extremely good and impressive broker” with some praise for their spread prices and payment options. For any inquiries, we encourage you to contact customer support directly on the broker’s main page tradersway.com – run by TW Corp.
Tradersway doesn’t offer a large choice of CFDs for trade. This is fine if you only want to trade Forex, but if you like to trade with other financial instruments, then you may prefer a different broker.
Trader’s Way offers the following instruments:
The broker’s strength is the range of cryptocurrencies they offer with leverage of 1:20. Despite the impressive range of cryptocurrencies available for trade, the range of markets overall is very limited. Popular precious metals such as Platinum, Palladium And Copper are not available while natural gas energies is not an option. The broker offers no soft commodities such as rice, coffee, sugar nor other commonly traded CFDs such as Indices, Bonds, Stocks CFD, ETFs.
Spreads of CFDs on cryptocurrencies are relatively cheap when compared to other well-known brokers. Bitcoin (BTC) spreads with Trader’s Way, for example, is $6.1 which is cheaper than $10 per lot with a broker such as Pepperstone.
Depending on your trading requirements, Trader’s Way’s limited range of products may mean this broker is not the best choice for you, as it narrows your trading opportunities. Therefore, you may prefer to open an account with a broker that offers a wide range of financial instruments.
Tradersway has many strengths and weaknesses as shown in our review. We find it hard to get past the fact this is not a regulated broker and would never recommend a broker with no regulation, and we also don’t like the spreads as we feel you can find a better value with other brokers.
However, Tradersway has some benefits like 1:1000 leverage and no minimum deposit amount, and many traders may like the ability to pay with a wide range of cryptocurrencies. Meaning faster funds transfer with anonymity, something very few brokers can offer. You can compare Trader’s Way to Hugo’s Way (Their main competitors) and see a review of Kings of Transparency (KOT4X) another unregulated broker.
Justin Grossbard has been investing for the past 20 years and writing for the past 10. He co-founded Compare Forex Brokers in 2014 after working with the foreign exchange trading industry for several years. He also founded a number of FinTech and digital startups including Innovate Online and SMS Comparison. Justin holds a Masters Degree and an Honours in Commerce from Monash University. He and his wife Paula live in Melbourne, Australia with his son and Siberian cat. In his spare time, he watches Australian Rules Football and invests on global markets.