Ayondo is an English CFD broker of German origin which is registered and authorised by the English FCA.
The company behind this broker is DonauCapital Werpapier AG, a German company registered with the BaFin of that country.
Besides, Ayondo is under the umbrella of FSCS the regulatory body of United Kingdom in charge of compensating in case that a broker goes belly up. The FSCS protects the amounts below 50.000 pounds.
Ayondo offers one of the best social trading services of the World currently.
In some ways the best social broker, in my opinion. In other ways, like trading costs, it has room to improve.
With this broker we an open a typical CFDs account and trade or we can simply copy the trades of the best traders in the market.
The good thing about this is that someone who has a good system of trading can open an account and let his trading be followed, which is an advantage that some good traders could follow since the possibilities of making money are better.
There are a couple of ways of depositing money with this broker, basically, credit card or transfer. Although, it would be good if they introduced some other alternatives such as Skrill or Paypal. However, transfer and credit card are enough for the majority.
The platform used by Ayondo is the Trade Hub, a simple, intuitive and practical web based platform.
There is also the possibility of trading through the Ayondo mobile application.
Ayondo commissions and markets
Ayondo is a broker specialized in Spread Betting, which is tax free till certain amount in the UK, as well as CFDs.
|Ayondo||Minimum Lot||Spread||Leverage||Social trading spread|
As we should know, this is not bad per se.
Commissions are quite interesting although for social trading are higher. That is the price the users have to pay for that service, so to speak.
You can have more information about Ayondo markets and conditions by clicking here and going to their website.
The most interesting part of Ayondo is what refers to social trading, which I think is going to gain popularity in the coming years.
Even though the spreads are a bit bigger than those we can find in the competition, there are other advantages, since the service is not done for scalpers or providers of high frequency trading looking to do 20 trades a day with a 15 pips profit target.
As we can see in the table, the EURUSD spread is about 3 in the social trading platform, whereas it is 1 in the standard account. This being a disadvantage is no such a big problem once we consider the fact that if we trade more focused in the medium term, with stops of more than 50 pips, that cost is not so relevant.
Let us say that when the service is more adequate for those who like trading using a swig or trend trading style and short/medium time frame.
Once we join Ayondo social trading we can start searching for traders for which Ayondo has a personalized service of searching, in which you can filter using some options.
For example, if the provider has real account or not, or if it has certain amount of drawdown, or that the account has certain age, etcetera.
Besides there is the possibility of searching other followers and their portfolios hence you can try to look for those who are more efficient at selecting some sort of fund with the best traders.
For instance, as I said before about the fact that this is a service that works well for those that tend to trade not too much, if you look at the ranking, some of the traders that are in the first positions do not trade too much. Out of six, five were doing between one and thirty trades per month, which is not we normally find in other places where automated high frequency trading is prevalent.
The majority of Ayondo traders are people that do not trade too often, but do it well, and that is what interests us here.
Once you have selected the best traders we can start building some portfolio trying to minimize risk with whatever parameters we find adequate.
To know how the system works there is nothing better than opening a free demo account in its social trading platform and start trading the markets. Albeit real accounts are better considered in the ranking tables and when traders are search by potential investors.
Did the Ayondo leaders performe well later?
Now it is time for an update.
Why an update?
Because I published the original article in Spain in March 2015, almost two years ago.
As we can see in our ranking table there were some leaders that were doing very well until that time.
Now, two years later we can see what happened to some of them.
As we can see those traders were doing very well and with their drawdowns below 25%.
Those traders as we can see in the table were: Patternicus, HPMStefanRisse and MrDACHS.
We have to take into account that those traders had a huge base of followers by that date and they were doing very well in terms of commissions by volume.
What happened to those traders eventually?
Let us see.
Patternicus, the third of that ranking had had an almost 25% drawdown, the limit that Ayondo uses to impose strict money management rules to its traders.
It seemed that he was going to go lower than that level, which would have been demoralizing, but eventually it was the low of his particular “bear market”.
After that he recovered very well which means that it would have been a very good decision to choose that trader as a follower.
In this case buying when there is “blood in the streets” would have paid.
The second was MrDACHS
As we can see the great majority of his profit was made during 2015, therefore March of that year would have been a good moment since his account kept rising very fast until October.
Nonetheless, after that date this account has not performed well at all albeit without reaching the feared 25% drawdown yet.
Despite that, this trader has kept his account alive and it is still performing very well in the long term, with a 60% profit compared to the 20% of the DAX in the same period.
The third case is the former leader of March 2015, HPMStefanRinsse.
This case was very promising, but ended up being the worst of all since his particular “bull market” ended just by that time. After that it has fallen significantly reaching the permitted drawdown of 25%.
Therefore, after that point the trader may have well lost interest and be demoralized due to the fact that it will not be possible to go after the lower level in the trading career with that account in Ayondo.
The results of this analysis are mixed.
We have good results in some traders, other with regular results and other with bad results.
As we can see, it would have been difficult to beat the market choosing those traders, but depending on whom we chose we could have done better.
The better part of this is the fact that there is the chance for good traders to become leaders and get a big amount of followers like these traders did and still do.
However, we have to be cautious when we invest in leaders of any kind, whether traders or “hot stocks”. This is because those moments are actually quite risky, due to the fact that the market might be over heated, just as the Nasdaq in 1999 or StefanRisse.
On the other hand, investing in traders like Patternicus, could pay well, which is akin to investing in a correction.
How to become an Ayondo trader?
To become a successful Ayondo trader there we have to do some steps:
This phase will last 30 days and you have to accomplish certain achievements to be able to go to the next level.
- There have to be at least 5 trades a month.
- The maximum drawdown cannot be bigger than 25%
- The period has to end with profits
- Performance must be over 0,5%
- The performance fee is 1 USD for each lot traded by a follower
This phase requires 60 days. There is the chance to pass level if:
- There have to be at least 5 trades per month
- The maximum drawdown cannot be over 25%
- The trader has to be in profits, and those have to be over 1%
- If you have a follower, there will be 2 USD fee per lot traded
This phase lasts 90 days and has the next characteristics:
- There has to be at least 15 trade per month
- The maximum drawdown cannot be over 25%
- There has to be a profit of more than 1,5% at the end of the level
- There will be 3 USD per follower and lot
Period of 180 days. Requisites:
- Minimum of 15 trades per month
- Maximum drawdown not bigger than 25%
- Performance has to be more than 3% for the period
- 4 USD per follower and lot traded
This period lasts 365 days. To be able to stay there you need:
- A minimum of 30 trades
- Maximum drawdown cannot be more than 25%
- The performance has to be 6% annually, at least
- 5 USD per follower and lot
You can notice how strict Ayondo is with the drawdown, since 25% is something that most people will not be able to do.
Simply think that during bear markets, stocks can fall even more than 50% depending on the severity. For instance, most European markets have decreased by more than 50% since 2008.
This rule is not easy to accomplish because you will have to use a small leverage and trade very well, evidently. Not many people will reach that level.
The best of all is that we can try demo accounts to test our abilities, either as traders or investors.
This is one of the best alternatives in the CFDs world nowadays, very interesting and innovative.
For more information visit the website.