ZuluTrade Review 2020 – Social Trading with great strategy pool and many social features
ZuluTrade is, strictly speaking, not a broker but a platform for Social Trading. It combines the functionality of trading with the features of social media, allowing users to mirror the trades of other participants and thus copy trades, strategies or portfolios to their own trading account. Participation in ZuluTrade itself is free – costs are incurred depending on the broker selected, and ZuluTrade and the signal providers receive their remuneration out of the broker‘s spreads. The Social Trading platform has been in business since 2007 and, while not needing regulation, is licensed by the Hellenic Capital Markets Commission (HCMC).
Advantages and disadvantages
- Follow experienced traders and improve your own returns
- Platform with real social features, available also as a mobile app
- Follow „combos“ consisting of several traders, selected according to personal risk profile
- Signal providers are remunerated out of brokers‘ spreads according to the trading volume of the followers
- Users can be both signal providers and followers
- Fees only accrue through the spread depending on the broker
- Fine tuned strategy finding tools
- „Automator” for the development of own strategies
- Easy registration
- Free demo account
- Platform with real social features, also as a mobile app
- Strategies are based largely on trading Forex and binary options
ZuluTrade test of our editorial department
1. Trading conditions: signal providers' remuneration results from spreads without extra costs for users
- minimum deposit: US $ 0 – 2,000 depending on the broker selected
- spreads €/US-$: depends on the chosen broker
- the best spreads a broker can offer are not necessarily available for ZuluTrade users
- ZuluTrade and signal providers are paid from the broker‘s commissions
Registering for the use of ZuluTrade it becomes clear very soon that the Greek company is not in fact a broker. Actually ZuluTrade provides and forwards trading signals via the Social Trading platform. In order to execute trades, subscribers need a trading account with one of the twelve cooperating brokers that can than be linked to the ZuluTrade account. The cooperation partners can be found through a link on the ZuluTrade website.
ZuluTrade does not charge subscribers for the use of the platform. The costs incurred depend on the broker selected. Possible costs include minimum deposit, the spreads of the broker, but also possible payout fees or inactivity fees. The brokers available may differ considerably and traders should familiarize themselves with the terms and conditions before opening an account.
ZuluTrade receives its funding from the partner brokers who in turn charge traders a spread for the execution of their orders. These spreads are divided among the broker, ZuluTrade and the signal providers. Other fees are not charged by the Social Trading platform. Many of the brokers listed as cooperation partners offer basic accounts for beginners with a market maker model that allows them to profit through spreads. In turn, there are no additional commissions for the execution of orders.
The ZuluTrade homepageVisit Broker at: www.zulutrade.com
2. Underlyings and trading stations offered: ZuluTrade strategies are mainly focused on FX trading
Since ZuluTrade itself is not a broker, the selection of underlyings depends, just as with the trading conditions, on the broker. Traders can take their pick out of a dozen partner brokers. The underlyings that may be traded depend on the portfolio of the broker where a trader keeps his account. This may include various assets, but not all of these can be matched to strategies or combos available via ZuluTrade. As our ZuluTrade experiences show, there is a clear focus on Forex related strategies with the Social Trading provider. In this area users may find trading signals for majors, minors and exotics, but also for trading crypto currencies. Whether these can be executed depends on the underlyings available at the broker. The same goes for the trading software.Visit Broker at: www.zulutrade.com
3. Order functions of the trading platform: automatic ordering directed to the brokers‘ servers
Traders who subscribe to ZuluTrade receive an outline of an order sequence as executed by the Social Trading provider. Followers who copy a strategy will have the related order executed automatically based on the activities of the signal provider. Orders are executed as simple market orders redirected from the platform‘s servers to the broker where the trading account is being kept. Prices depend on the best possible prices the broker can offer at the moment of execution. This may differ between the respective brokers, therefore traders using different brokers may obtain different prices for an order based on one and the same strategy!
The Social Trading platform itself is not designed to place orders. Instead it brings followers and signal providers together. The platform can really score with its excellent usability and the real social media components that allow communication between followers and signal providers. Another advantage found in our ZuluTrade review is the fact that subscribers do not have to choose between being followers or signal givers – instead, they can be both.
Traders who are active as followers may use the capital in their trading account to fund a variety of strategies or opt for a so-called „combo“. These combinations may be chosen according to risk profile.
To minimize the risks of automatically copying (and executing) trading strategies, followers can personalize the settings using the ZuluGuard account protection feature. This allows users to make manual adjustments in their dashboard under Advanced Mode – User Account Settings. ZuluGuard automatically calculates an exit value for all open positions. As soon as this is reached, all open positions are closed and the corresponding signal provider is replaced by another one. The tool is uncomplicated to use even for beginners, additional information is given in a manual. ZuluGuard is designed to monitor different trade aspects at three levels, protecting equity, protecting individual trades and monitoring maximum open trades.
4. Analysis functions of the trading platform: search and filter functions facilitate finding top strategies
Since Social Trading depends largely on building valuable connections – just as in Social Media – the search options and filters provided by a platform are crucial tools for the trading success of a follower. Traders need to find successful signal providers who in turn fit their own preferences and risk profile. The number of key figures available for use in the search is one of the real advantages found during the ZuluTrade test. Followers have a wide selection of options at their fingertips, among them the hit rate, the average profit per position, updated return on investment, number of maximum open positions, number of traded weeks, number of followers and many more.
Just as easily discernible are the trade ratio and payoff ratio. While the former numbers profitable transactions as compared to loss-making transactions, the payoff ratio shows the results in profitable trades against the losses of deficit trades. The multiplication of trade ratio and payoff ratio results in the profit factor of a signal giver.
Nevertheless, the numbers are not always reflecting the true performance of a signal giver. A reliable variable is the average loss per position, since this is subject to the trading strategy and risk management. Other values depend at least partly on market developments and may serve as historical indicators but don‘t allow reliable forecasts of future performances.Visit Broker at: www.zulutrade.com
5. Regulation, deposit protection and risk management depend on the broker
Since the Social Trading provider is not a broker and does neither receive payments from subscribers nor manage their funds, the question of regulation does not apply. Nevertheless the license by the Hellenic Capital Markets Commission (HCMC) underlines the fact that this is a trustworthy company entitled to providing services all over Europe.
For regulation and deposit protection traders are advised to take a closer look at the regulation of the brokers that may be chosen in cooperation with ZuluTrade. It should be pointed out that the Social Trading provider may propose to traders within Europe only brokers that are licensed and regulated by a European financial authority. Among the brokers listed are AAAFx, FXCM, Swissquote, AvaTrade, Fidelis Capital Markets, Pepperstone, IC Markets and others. AAAFx is a Greece-based broker directly affiliated with the organization behind ZuluTrade, the Triple A Experts S.A.
All in all, traders may choose among a dozen eligible brokers with European regulation. Many of these are reputable, well-known providers. All of them are obliged to adhere to European legislation that stipulates the management of customer deposits in segregated customer accounts at renowned banks, separate from business assets of the broker. Beyond this, providers regulated by a European financial authority usually are members in customer compensation funds covering losses if the broker declares bankruptcy.
6. Automated creation of trading strategies with ZuluTrade‘s „Automator” tool
Since Social Trading is favoured by beginners who wish to learn from experienced signal givers, the set up and improvement of trading strategies is among the first things users need to learn. ZuluTrade provides an extremely useful optimisation tool called „Automator“. Users just have to define the conditions for the realization of strategies over their own account. This contributes enormously to successful risk management.
The parameters of the tool allow the determination of payout limits, but also enable traders to step on the brakes when signals from a certain signal giver fall below a pre-defined profitability limit. Handling of the tool is easy and intuitive, since the definitions are largely based on if-then sequences. In-depth programming skills are not necessary. The tool is a valuable asset for beginners taking their first steps in social trading.Visit Broker at: www.zulutrade.com
7. Account opening and minimum deposits starting with 0 US Dollar
Subscribing to ZuluTrade is a process that requires not only opening an account with theplatform, but also selecting a broker and opening a trading account. Upon registering with ZuluTrade, users can choose among the partner brokers according to the maximum costs, be it as spreads or commission, they are willing to pay. Other factors that can be selected using a filter or simply checking out the brokers‘ terms and conditions are possible leverage and of course the minimum deposits, but traders should not forget to include the broker‘s regulation, trading platform and other services in their considerations.
As soon as the decision for a broker has been reached, the registration form for ZuluTrade has to be filled out, afterwards the account opening procedure for the broker has to be completed. The assessment of the personal risk profile is part of the process. Ultimately the ZuluTrade account must be connected to the trading account for the broker to implement the trading signals relayed by the Social Trading platform. Users who already have an account with one of the partner brokers can just link this to their newly opened ZuluTrade account.
The minimum deposit for first capitalisation of the trading account depends, again, on the broker, but the wide range of possibilities includes brokers who completely forgo the minimum deposit whil others start with initial payments of minimum 2.000 US Dollar or Euro respectively. Payments are always made to the broker, since ZuluTrade at no time handles clients‘ funds or receives payments.
Traders who wish to become signal providers have to follow a different account opening process specially designed for them. For all those who wish to put ZuluTrade to the test without committing themselves a free demo account offers the same functionality and authentic trading signals as a fully fledged live account.
8. The broker compared to the competition: longstanding experience against less market impact
The value of any Social Trading platform is determined by several factors. First of these is of course reach. Only if the platform attracts top signal providers can it build a sufficient follower base to result in satisfactory turnover and good profits for all parties concerned. ZuluTrade is among the foremost providers of Social Trading and counts according to the information on the website more than 100.000 influential signal providers among their subscribers. In this respect the Greek company is well placed.
Less favourable is the comparison with the major competitors. These are eToro, a Social Trading provider partly owned by the Commerbank‘s CommerzVentures, or Ayondo. Nevertheless ZuluTrade has managed to gain and keep significant market shares among Social Trading users and has been around for more than a decade, thus establishing itself as a leading provider with documented success in Social Trading.
9. Additional services of ZuluTrade: TradeWall and loyalty rewards
Social Trading platforms are often the prefered point of entry into Forex trading for beginners who have little or no trading experience. Beginners benefit from comprehensive educational ressources, which is one of the reasons more and more brokers include such materials in their services. The ZuluTrade experience however is rather lacking in this respect. On the other hand, observing other traders on the so-called TradeWall is supposed to help beginners gain insights into the trading strategies of others. Besides, on ZuluTrade real communication between followers and signal givers is possible, so questions may be asked and answered. For further education users may select a broker whose customer service includes various training materials, in some cases even webinars.
Other features that are much favoured among traders are bonuses, for example for opening an account or within a loyalty program. This is not available with ZuluTrade, as the platform does not handle the clients‘ money. But there is always the possibility to gradually expand one‘s knowledge and obtain in due time the status of a signal giver, with the remuneration this includes.
Besides, the broker chosen for the trading account may offer bonus payments or special offers for new customers or very active traders with a high trading volume.Visit Broker at: www.zulutrade.com
10. Customer service and website: Full information and helpful support
Customer service is an area where the platform can really convince in our ZuluTrade test. The company turns out to have the best customer service in an overall Social Trading comparison. The support is available from Sunday 21.00 p.m. until Friday 22.00 p.m. in English, German, French, Italian, Spanish, Portuguese, Russian, Arabic, Chinese, Japanese and Greek. The team can be contacted by phone with a Greek or British country code, by e-mail or at zero cost with a live chat module on the website. Besides, there is a feedback form on the website.
The live chat is the most cost effective way to reach the support and answers are given quickly, effectively and courteously. There are also social media channels like Facebook and Twitter to contact ZuluTrade, as well as the international community on the ZuluTrade forum where questions may be asked and discussions opened. All in all, the company offers a wide range of real social features and a customer service that leaves nothing to be desired.
Conclusion and final ZuluTrade assessment
It‘s with good reason that many users consider ZuluTrade the best Social Trading platform. The long standing provider offers real social features and has managed to win a large community of followers as well as top traders providing high quality trading signals with a focus on Forex trading. The intuitive use of the platform makes it easy for beginners to take their first steps in trading, and helpful filters as well as tools like the „Automator“ allow the adaptation of the platform to one‘s own requirements and risk profile. The Copy options allow copying not only individual trades but also „combo“ that are really groups of signal givers sorted according to the follower‘s preferences. Excellent also the fact that subscribers may be both signal givers and followers.
ZuluTrade is free to use, fees are applied only in form of spreads charged by the broker who executes the orders and pays ZuluTrade a commission that, in turn, allows for the remuneration of the top traders. The conditions and costs depend largely on the broker selected, but subscribers may take their pick among a dozen reputable brokers. With the right choice, even the trading signals for crypto currency may be executed over the trading account. Many good reasons in fact to give ZuluTrade a try!Visit Broker at: www.zulutrade.com