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Ayondo Review - Is it scam or safe?

Ayondo Review - is ayondo.com scam or good forex broker?

RATING: 3.5 / 0 REVIEWS
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Trading Accounts

 

Account type  Minimum deposit Maximum leverage Spread
Standard €100 1:100 From 0.8

 

Ayondo is a forex and CFD broker, which heavily focuses on its proprietary social trading system. One of its most interesting aspects is the rating of master account traders or “Top Traders”, as they are called. 


The Company. Security of Funds

Company Country Regulation
ayondo Markets Ltd. UK  FCA
ayondo GBH Germany BaFin

 

There are two companies behind Ayondo – one is the FCA-regulated Ayondo Makrets Ltd., which is in essence the broker. The second company, ayondo GBH is under the regulatory supervision of BaFin and is the social trading provider. Both of these are top watchdogs and you should have now worries about the security of your funds.

 

You may already know this, but we will mention some of the benefits of trading with an FCA-regulated broker. First of all these companies must apply the principle of account segregation. To put it simply, a trader’s in vestment can not be freely accessed (and potentially stolen) by the company – there are firm rules on how and when transfers can be made. Furthermore all brokers, who are under the supervision of the British watchdog must participate in the Financial Services Compensation Scheme (FSCS). This is a mechanism which protects clients against a potential default by their broker. If you trade with an FCA-regulated company and they happen to go bankrupt, your account will be covered up to £50,000.

 

On top of that, Ayondo offers negative balance protection. As you may know, in the case of an extraordinary market event, you may lose more than your initial investment. Ayondo would not go after you to claim the additional losses. 

 

Trading Conditions

 

Minimum Initial Deposit

Ayondo has set the minimum deposit requirement at €100 (for traders). This may be viewed as a high level by some, especially when compared to other companies, which go lower and lower, in pursuit of new clients. For instance, one of the leading brokers and spreadbetting providers IG, has entirely removed the entry barrier – you can deposit whatever you wish. 

 

When it comes to following other traders, Ayondo recommends depositing at least €1,000, as this way you can effectively diversify your investment to at least five "Top Traders".

 

Average spreads & Commissions

Spreads at Ayondo are variable, with the EUR/USD spread starting from 0.8 pips. Our experiments with the platform can confirm this claim, with the level constantly being under one pip. This level is very competitive in the current environment, as most brokers are offering something in the 1.0 to 1.5 pip range for this pair.

 

Leverage

Ayondo provides a maximum leverage of 1:100. You may think this is a small ratio, as some brokers are offering 1:500 or even greater levels.

 

If you believe 1:100 to be a low level, you should reevaluate this perception. If one fully utilizes a 1:100 leverage ratio, a mere 1% market move against him, will be spell the end of his entire account. Furthermore, the fact Ayondo focuses so much on the social trading makes it imperative, they limit the maximum amount of risk traders can take per position.

 

Trading Platforms

 

Ayondo provides its own proprietary trading platform – TradeHub. It is web based, although mobile apps are also available. 

 

When it comes to the browser version, it is quite interesting, with lots of settings being left to the individual trader. This can be viewed as a strong side, but also as a weakness – once you give people too much freedom, there is no guarantee they will utilize it to its full potential. On the other hand, although you can set-up your layout exactly how you want to, you will still be limited by the your browser, meaning multiple-screen layouts will not be available (one of the key weaknesses of MetaTrader4).

 

Furthermore you have the limitation of only one active watchlist at a time. You can create additional lists, but you can only have one visible at a time. Also the positions box (similar to the terminal in the bottom portion of MT4) is hidden by default. 

 

Charting, albeit good has its weaknesses. We noticed some technical indicators caused the platform to behave in a rather odd manner, when stretched to full screen.

 

Here is a preview of a layout we managed set-up, while testing the platform:

 

Ayondo's trading platform, after some adjustment to the layout, click to zoom-in

 

 

 

Social Trading

 

This is the most unique feature of Ayondo – the social trading system. All traders who register an account with this broker are automatically enrolled in the system. That being said, getting followers is the tough part. They can distinguish among the different “top traders” (the name, which Ayondo has given to traders, who can be followed) via multiple statistics. One of the key factors is their “career level”, a simplified measure of their experience and historical performance. Here are the conditions one must fulfill in order to climb the ladder (at the time of writing of this review):

 

Requirements for the different "Career" levles at Ayondo, click to zoom-in 

 

As you can see the main focus is on consistency and not so much on generating enormous returns. So why would you want to go up through the ranks? For one you would attract more investors. Furthermore you would be able to charge a higher commission on your followers. The fees vary from 2% for the “Street trader” to 12% for the “Institutional” one. 

 

From an investor’s point of view Ayondo offers something relatively different. As we just illustrated a heavier focus is placed on trading consistency and stability, rather than explosive gains. The second point where emphasis falls is diversification – clients are advised to allocate their funds to at least several traders. Here is a screenshot of our testing, of the “Portfolio Simulator”:

 

A diversified portfolo we made in a couple of minutres with Ayondo's Portfolio Simulator, click to zoom-in

 

 

The key thing to note, about Ayondo’s social trading platform is that it is limited to the clients of the company, unlike some other services, like Zulutrade. This may be a concern, as there may be alack of available traders, as well as investors. 

 

Methods of Payment

 

Payment methods at Ayondo are limited to Bank transfer, Credit/debit Card. Not having an e-wallet, such as Skrill, available is rather bizarre for a company which has provided so many other advanced solutions.

 

Conclusion

 

Ayondo is a forex broker, which places a big emphasis on social trading. The company is regulated by the UK’s FCA and Germany’s BaFin, which gives it a lot of credibility. On top of that, spreads are very competitive. When it comes to the social trading aspect, there are a couple of things we like and some we don’t. The key one is the fact, this service is limited to Ayondo traders, unlike other similar platforms. Here is a summary of this broker’s pros and cons:

Pros Cons
FCA and BaFin regulation  Potentially limited pool of investors/traders
Competitive spreads  In-house trading platform
Consistency focused trader evaluation (for social trading) Few payment methods

 

 

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Spread

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Slippage

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Requotes

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Price feed

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Platform

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Deposit/Withdraw

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Customer service

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Summary

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Traders` reviews for Ayondo

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