For this review, we will be talking about ZuluTrade. ZuluTrade is one of those trading services that are popular and has many users monthly. That’s because it’s fairly easy to create an account and it has seen some positive reviews over the years.
So for this Zulutrade review, we will be talking about a lot of things about what ZuluTrade is, how it got started, its ranking compared to other trading services, pros and cons, etc.
So without further ado, let’s talk about ZuluTrade.
What is ZuluTrade?
ZuluTrade is a Greek fintech company that was founded in 2007 by Leon Yonhai, with its main headquarters located in Athens, Greece. It is a Social Trading Platform, which is a trading platform that allows a trader to see the other traders trading strategies and habits, then copies their trading habits using copy trading or mirror investing. ZuluTrade uses various Trading strategies, like copy trading and crypto trading. It’s also very accommodating and quite easy to use, which is one of its main features.
Licenses and Regulations
ZuluTrade is a trading platform, it needs to have a license to operate. And because it’s main headquarters is based in Greece, they have obtained a Triple-A Experts SA License From the Hellenic Capital Market Commissions.
ZuluTrade is operating globally, offering the largest open-trading ecosystem out there. It also now has been regulated in the EU, United States of America, and Japan. And as of 2014, it has over 1 million users worldwide and an executed trading volume of USD 800 billion.
How ZuluTrade Works
ZuluTrade is a Social Trading Platform, but it also extends its platform to other forms of trading, like stocks, Forex, binary trading, crypto trading, etc. The platform then allows you to copy the trading strategies of one of the traders of the trade you choose.
Basically, Copy trading can be broken down into two categories: The Signal Providers and The Followers.
Signal Providers are the traders that are willing to let their strategies be copied by other traders. In exchange, they get compensation fees depending on the success of their strategies.
Followers are the ones that copy the strategies of the Signal Providers. They of course have to pay a compensation fee for copying an SPs Strategy, the price of the fee can vary, depending on the success of the strategy.
One of the main features of ZuluTrade is its accounts. With ZuluTrade, the minimum deposit needed to create an account is fairly low, with the minimum of USD 1. Unfortunately, You need to have a separate broker account made and connect it to ZuluTrade, because ZuluTrade is not a broker.
ZuluTrade also operates on a MT4 or MetaTrader 4 Platform. They also have Mobile Trading, since they have a Mobile app available.
There are two types of ZuluTrade Accounts: The Live and The Demo.
The Demo account allows users to use ZuluTrade without the risk of losing profit. To create your demo account, you need to enter some basic information like Name, Phone Number, Location, Leverage, Base Currency, and Virtual Account Balance. Once you have your login credentials, you will be able to use ZuluTrade’s services. And if you feel you’re satisfied with what ZuluTrade has to offer, then you can upgrade to a Live Account
Once you have upgraded your demo account into a live account, you need to decide on these two options: Classic or Profit Sharing.
Profit Sharing is recommended for beginners, because it lets you learn by copying others. Traders will be compensated when they profit and penalised when they lose. They also benefit from reduced commissions.
Classic is recommended to those who have experience in ZuluTrade. You will benefit from manual or a customised copy-trading portfolio. They also have standard volume-based commission. It is highly recommended first to get some experience before attempting to use a Classic account.
How Signal Providers work
Signal Providers make a lot of profit not because of the success rate of their strategy, but also the amount of followers using their strategy. This is because you get 0.5 pips per lot traded by someone following your strategies. So the more followers you have, the more profit there is to gain in compensation fees. Unfortunately, Not anyone in ZuluTrade can be a Signal Provider right away. You need to meet the criteria to become one.
- Maintain a maximum historic drawdown of less than 30%
- Average pips per trade must be more than 3 pips
- ZuluTrade activity for at least 12 weeks.
Apart from the criteria, you need to also maintain a positive balance, so that you can get more followers. You might also need to set up your account in a way that it attracts followers and establishes that you can be trusted to make a profit. Some ways to improve your account as a legitimate Signal Provider is to practice with a demo account, upload a professional profile picture, meet the criteria needed to become a SP, explain your strategy clearly, etc.
Payment can be done through your broker. Depending on your broker, there might be some extra charges when cashing out. If you are using AAAFx, then pay less on commissions. That’s because AAAfx is ZuluTrade’s broker. Once you have cashed out to your broker, you can withdraw your money through Paypal, Bank Wire Transfer, and ZuluTrade Mastercard.
Some reviews point out that ZuluTrade is quick to highlight payment commissions and withdrawal fees. But again, these can depend on the broker account you have.
Another one of ZuluTrade’s main selling points are its features. There are a lot of useful features that can help traders.
Locktrade allows you to verify the execution of a trade once a signal has been received.
Automator was introduced in 2016. It allows you to set certain rules when an event occurs, like when you lose a certain amount of money to a certain trader due to bad profit, The Automator then automatically locks your profit so that you won’t lose any more money. You can add more rules to the automator as well. Automator also notifies you on any events that happen.
They also have some Social Network Features, like Forums or Comment Sections. So that you can keep in touch with other traders and signal providers.
ZuluScript is another feature that allows you to create your own scripts that form a trading bot. In turn, this gives you the ability to automatically trade, which allows you to execute more trades that wouldn’t be possible if you did it all manually. These trading bots are commonly called Expert Advisors.
Another one of their features, the Margin Call-o-Meter, allows you to estimate the chance of your account running out of money. Keep in mind, this feature is not accurate on its estimation. You have to keep track of your own money.
Finally, their most important feature, the ZuluGuard. This is considered their security feature. It protects copy traders if traders do something crazy or desperate. This greatly helps risk management. It also deems traders that do not follow the current strategies as unusuals and pulls out followers that are following that trader. So keep that in mind when you’re looking for Signal Providers
In addition to all of these, they have some cryptocurrency features, which allows traders to track the progress of cryptos, and a Calendar, so that they can see key events happening in certain dates.
They also have some additional features like calculators for pips, margins, currency, and profits Calendars for economic events, and access to the latest news in the FOREX (or other financial trade) Market.
- Nice and user friendly interface
- Quite easy to set up an account
- If you have a AAAFx, then it is easy to set up a broker
- You can choose any broker you want to connect to your account
- A wide range of Traders to follow
- A lot of currencies are available
- You’re not being restricted on what you can trade and who you can follow
- The more traders you follow, the less risk you carry as an individual trader
- AAAFx is a much more profitable broker, because there are less commissions to be paid if you use AAAFx.
- ZuluGuard has been more of a nuisance when trading.
- There are a lot more inconsistent Signal Providers than successful ones
- Signal Providers are not required to use their own capital. Putting you at risk if a trade is not profitable.
- ZuluGuard tends to pull you out of trade when it deems it not favorable, resulting in a loss of profit.
- Unorthodox methods of trading are not recognized by ZuluGuard.
With all that being said, I think ZuluTrade is an ok platform for trading. Although, there are a lot more profitable trading platforms out there. The biggest issue I have with ZuluTrade is with the ZuluGuard feature. It pulls you out of trades when the trader you are following if they feel that the trader is being unusual with his trades. The commissions for the brokers is also an issue with me, if you are not using AAAFx as a broker, then you will be paying a lot more in commissions. This may not look like a big deal, but it will affect your total profit a lot when you’re withdrawing. But then again, these are my opinions.
So that is it for my Review of ZuluTrade. If you are still interested in using ZuluTrade, you can go to their main website here. They are also available for Mobile, their apps can be found in Google Play and Apple App Store. I also have other reviews of other financial services and trading platforms on my Website and video reviews on my Youtube channel, Trade Wise.
This Trade Wise for the review, Thanks for reading. Bye for now.