Tuesday, 12 August 2014

What is ZuluTrade?

ZuluTrade is a social trading network and platform that connects you with thousands of traders (called ‘signal providers’) around the world. Instead of studying the market and trading yourself, you select the signal providers you’d like to follow instead. The Zulutrade platform will then convert their advice and trades directly into your own account (with one of their supported brokers). At any time, you can close trades opened in your account by signal providers manually yourself. In the ZuluTrade interface you can also set limits on what trades you like to take at account level (e.g. only EUR/USD trades) or at signal provider level (e.g. no more than 5 open trades at any time).

ZuluTrade provides a wide range of information for you to evaluate and select a ‘signal provider’. This includes the provider’s strategy, past performance, maximum drawdown and follower comments. You can review every single trade made by the provider in the past if you like. The best performing signal providers are also ranked in the proprietary ZuluTrade ranking.

While it is technically possible to trade on gold and silver, hardly any signal providers trade on these instruments (mainly because some brokers don’t support it) and therefore it’s fair to call ZuluTrade a social forex trading network. The social aspect is delivered through an active forum and customer feedback and votes which can be directly left on the signal provider’s pages. In addition, you can link your ZuluTrade account to your Twitter or Facebook account, which will post a message every time a trade is closed in your account (winner or loser).

You can sign-up for a free Zulu Trade demo account (click here) which allows you to select any signal provider in the same way as you would with a live account and monitor the performance of your portfolio. Once you decide you want to use “real” money you need to sign-up with one of their supported brokers. AAAfx is their “preferred” broker because they’re part of the same holding company as ZuluTrade. However they’ve got a list of over 40 other brokers globally which you can sign-up with as well.
Following the signal providers and using the ZuluTrade platform from a live account is free. Your actual cost is included in the spread for each trade. E.g. if your broker spread is 2 pips, part of this will go to ZuluTrade as commission. The “signal providers” are paid direct by ZuluTrade, who share the pip commissions the “signal provider” has generated at the end of the month from their followers, but only if they made a profit in pips at the end of the month (i.e. they don’t get paid in loosing months).

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