WHO IS ZULUTRADE?
According to research in South Africa ZuluTrade is an online social and copy trading platform which allows traders to copy the trades of experienced traders in the forex and financial markets to achieve a level of automated trading. This social element also enables traders to leave feedback and share ideas.
Today it boasts around one million users and executes a trading volume above $800 billion.
ZuluTrade was founded in 2007 by Leon Yohai and Kosta Eleftheriou. Yohai wanted to build software that allowed him to copy the trades of the best traders.
By 2014, ZuluTrade had re-designed its website and added several features, such as ZuluGuard, and had 120 employees, 40 of whom were in customer support.
In 2015 the platform was awarded an EU Portfolio Management License from the European Union and the company became legitimate and respected in the trading world.
SAFE OR SCAM
One of the best benchmarks to measure the safety of a broker like ZuluTrade is to establish which regulating authorities are watchdogs over its actions.
ZuluTrade received an EU Portfolio Management License in 2015. The company then created its own brokerage, Triple-A Experts Investment Services SA, which provides services to EU-based traders, and EU-headquartered brokers. ZuluTrade is regulated by the Hellenic Capital Markets Commission (HCMC) and its Japanese subsidiary is registered with the Kanto Financial Bureau (KFB) as an investment advisor.
In the US, it is registered with the Commodity Futures Trading Commission (CFTC) as an IB and a commodity trading advisor.
PRO AND CONS
| PROS | CONS |
| A licensed portfolio management company | A significant amount of monitoring is required to select an effective mix of traders. |
| A vast number of traders to follow and copy | Pressure on signal providers to perform due to compensation requirements |
| Free and fully functioning demo account | Signal providers are not formally vetted. |
| Offers relatively low ongoing fees | |
| Reliable and easy-to-use mobile apps. | |
| Superior choice of strategies across 35+ brokers | |
| Two compensation schemes for profitable signal providers | |
| Users have access to Cryptocurrencies. | |
| Wide choice of brokers from different countries. |
LEVERAGE
Leverage is a facility that enables you to get a much larger exposure to the market you are trading than the amount you deposited to open the trade. Leveraged products, such as forex trading, magnify your potential profit – but also increase your potential loss.
Leverage amount is expressed as a ratio, for instance, 50:1, 100:1, or 500:1. If you have $1,000 in your trading account and you trade ticket sizes of 500,000 USD/JPY, your leverage will equate to 500:1.
ZuluTrade offers a maximum leverage ratio of 1: 1000.
ACCOUNTS
A forex account at ZuluTrade is a trading account that you will hold and that will work similarly to your bank account, but with the difference that it is primarily issued with the purpose of trading on currencies.
Forex Islamic accounts are also known as swap-free accounts as they imply no swap or rollover interest on overnight positions, which is against the Islamic faith.
ZuluTrade offers the following types of accounts:
Classic Accounts
This account is recommended for advanced users which can benefit from manual or fully customized copy-trading, plus standard volume-based commissions. A trader should be sufficiently experienced before opening a signal provider account.
Profit-sharing Accounts
This account is recommended for beginners who yet must learn by copying others. Traders will be compensated when you profit and penalized when they lose. Traders can also benefit from reduced commissions on this account.
Both options give you access to charts, data, alerts, and forex signals. Once a trader has decided on an account he will then need to choose between supported brokers, details of which can be found on the website.
MARKET INSTRUMENTS
The most popular market instruments available from most brokers for trading include:
Forex:
Forex trading describes the currency exchange market which refers to the global, decentralized marketplace where individuals, companies, and financial institutions exchange currencies for one another at floating rates.
Commodity markets offer many investment opportunities for traders. Soft commodities have been traded for centuries and play a significant role in portfolio diversification and risk management. Investing in contract-based tradable goods is a reliable way to mitigate risk during times of economic uncertainty.
Indices:
Equity, or stock indices, are actual stock market indexes that measure the value of a specific section of a stock market. They can represent a specific stock market or a specific set of the largest companies in a nation.
Precious metals:
The trading of gold and other precious metals, along with crude oil, copper, or petroleum, are hard commodities that play a significant role in the commodities market and are contract-based tradable goods.
Energy:
The typical feature of energy prices is high volatility due to the influence of political and environmental factors, supply and demand, extreme weather conditions and global economic growth.
Cryptocurrencies:
- Bitcoin (BTC) is the digital currency with the largest market capitalization.
- Litecoin (LTC) is like Bitcoin but differs in terms of scalability
- Ripple (RPL) is popular among big banks with the Ripple network a next-generation real-time gross settlement system.
- Ethereum (ETH) is the second-largest cryptocurrency after Bitcoin and allows developers to create smart contracts on a platform.
- Bitcoin Cash (BCH) was created by the Bitcoin hard fork in 2017 as an updated version of the blockchain with different rules.
- ZuluTrade offers the following of the above: CFD, Indices, Forex, and Cryptocurrency.
FEES
Cost depends on several factors, like spread and margins, and ZuluTrade clients may also experience different fee structures according to their country or place of residence.
The spread of a currency pair is the difference between the bid and the asking rate. A pip represents the smallest increment that an exchange rate can move.
ZuluTrade offers different spreads for the Classic Account, dependent on the selected broker. The most competitive pricing environment is granted at AAAFX, the brokerage owned by ZuluTrade via Dayo.
For traders holding the Profit-Sharing Account, a monthly fee of $30 plus a 25% performance fee is charged if the account was profitable and exceeded the benchmark.
DEPOSIT AND WITHDRAWAL
Accounts usually require a certain minimum initial deposit, which can be paid in several ways. Withdrawals can usually be done in the same ways, but sometimes differ.
ZuluTrade’s minimum deposit required depends on the broker chosen. Certain brokers require a minimum deposit of only $1, while others may require $300, £210, €250, 25,000 JPY or 300 AUD.
Payment commissions and withdrawal fees vary based on which broker is used.
Payment and withdrawal methods also vary based on the broker used but include PayPal, Bank wire transfer, and the ZuluTrade Mastercard.
TRADING PLATFORMS
The forex trading platform provided by ZuluTrade to its clients is in essence the software to carry out their trades. Some brokers provide only one, others quite a few platforms.
A multi-asset trading platform allows clients to trade forex as well as other asset classes. The decision about which platform to choose will usually depend on what a client would like to trade.
ZuluTrade does not provide a trading platform, but investors must connect their MT4 trading accounts to their ZuluTrade accounts. This provides full statistics of all traders, ranks their performance, and grants a risk assessment.
Investors will have full access to all relevant information and portfolio management tools from the back-office, mobile versions are equally available.
HOW TO OPEN AN ACCOUNT
Similarly, to a bank, to register a forex trading account with ZuluTrade for the first time, you will be required to go through a basic “know your customer” process, which will allow ZuluTrade to ascertain that your submitted details and ensure the safety of your funds and account details.
With ZuluTrade, the process entails a quick online application. ZuluTrade also provides the option to complete this process via a Facebook or Google account. A verified MT4 trading account with a participating brokerage is required.
CUSTOMER SUPPORT
Potential traders need to make sure the broker company they chose will offer sufficient support whenever they need it.
In the case of ZuluTrade, customers can reach the support team by means of a live chat on the ZuluTrade homepage. This is available 24 hours a day and has become the most popular method of contact for ZuluTrade users although there are also email and phone support to 10 countries.
Traders can also use the ZuluTrade website to submit feedback via an online form. The website is available in several languages.
EDUCATION
Before starting to trade, potential clients of ZuluTrade should avail themselves of all possible information and trading skills needed to be successful in the world of forex and commodity trading.
The ZuluTrade website itself provides very little if any educational information.
RESEARCH
To be able to trade with confidence, traders should do as much as possible research about this kind of speculative trading before commencing, but also preceding every daring deal to ensure that they do not lose money unnecessarily and trade as profitable as possible.
With ZuluTrade they have access to a blog that covers macro-economic events, is updated frequently, and adds value to the core services of the company.
Four calculators are provided, offering investors the opportunity to compute pip values, margins, and profits, while a currency converter is available too. Social Charts allow traders and investors to share ideas.
AWARDS
Being an awarded company instills extra confidence in traders. Although ZuluTrade is acclaimed by customers, there is no indication of awards won on its homepage.
CONCLUSION
ZuluTrade allows traders to view rankings of investor performance and a simulator also shows the overall profit. They can set up email notifications for when margin calls occur or even download an Excel spreadsheet of all simulated trades.
Traders have access to over 10 000 traders from 192 countries and can use ZuluTrade’s advanced search engine to choose the best.
DISCLAIMER
ZuluTrade warns potential customers that Forex and CFDs trading always carries a substantial risk and may not be suitable for all investors.
Before deciding to trade with ZuluTrade, potential traders are advised to carefully consider their investment objectives, financial situation, needs, and level of experience before investing money they cannot afford to lose.
ZuluTrade warns that margin trading involves the potential for profit as well as the risk of loss and that movements in the price of foreign exchange and commodities are very unpredictable, hence ZuluTrade cannot guarantee a maximum loss that a trader may suffer, according to research in South Africa.
ZULUTRADE AT A GLANCE |
|
| Broker’s name | ZuluTrade |
| Headquarters | Athens, Greece |
| Year founded | 2007 |
| Regulating authorities | HCMC, KFB, CFTC |
| Countries accepted for trade | ZuluTrade ACCEPTS traders from Australia, Thailand, Canada, United States, United Kingdom, South Africa, Singapore, Hong Kong, India, France, Germany, Norway, Sweden, Italy, Denmark, United Arab Emirates, Saudi Arabia, Kuwait, Luxembourg, Qatar, and most other countries. |
| Demo account | Yes |
| Islamic account (swap-free) | Yes |
| Institutional accounts | Yes |
| Managed accounts | Yes |
| Maximum leverage | 1: 500 |
| Minimum deposit | $ 1 |
| Deposit options | PayPal, Bank wire transfer, and ZuluTrade Mastercard |
| Withdrawal options | PayPal, Bank wire transfer, and ZuluTrade Mastercard |
| Platform(s) provided | MT4 and its own platform |
| OS compatibility | Mac, Windows, Linux, Web, Mobile Android, iPhone, iPad. |
| Tradable assets offered | CFD, Indices, Forex, Cryptocurrency |
| Languages supported on the website | English, Russian, Japanese, German, Chinese, Spanish, French, Italian, Polish, Arabic, Dutch, Portuguese, Swedish, Vietnamese, Malaysian, and several others |
| Customer support languages | English, Russian, Japanese, German, Chinese, Spanish, French, Italian, Polish, Arabic, Dutch, Portuguese, Swedish, Vietnamese, Malaysian, and several others |
| Customer service hours | 24/5 |
FAQ
TRADING ENVIRONMENT
How many instruments can I trade with ZuluTrade?
You can trade several different instruments with ZuluTrade, which include the following:
- CFD
- Indices
- Forex
- Cryptocurrency
Which platforms are supported by ZuluTrade?
ZuluTrade provides the following popular trading platforms:
- MT4
- Own platform
Does ZuluTrade offer leverage?
Yes, ZuluTrade offers maximum leverage of up to 1: 1 000.
What spreads can I expect with ZuluTrade?
ZuluTrade offers different spreads on its various accounts. EUR/USD Spread starts from 0.6 pips.
Does ZuluTrade charge a commission?
Yes. More information on commissions may become available after opening an account.
Are there additional charges on the Islamic account?
Yes, brokers charge extra fees on Islamic accounts – either in wider spreads, additional commissions, or administration fees to make up for money that they lose by not charging overnight fees. New Islamic traders should enquire about these special conditions or extra fees before joining.
Is ZuluTrade regulated and by whom?
ZuluTrade is regulated by HCMC, KFB, CFTC.
Is ZuluTrade a recommended forex trading broker for experts and beginners?
ZuluTrade offers a fair-trading environment for most types of traders.
What is the overall rating out of 10 for ZuluTrade?
7/10.
ACCOUNTS
What is the difference between a demo and a live trading account?
A demo account as is offered by broker companies like ZuluTrade is usually funded with virtual money and allows a prospective customer to experiment with the company’s trading platforms and its features.
Does ZuluTrade offer a demo account?
Yes.
How long is the demo account valid?
The demo account can be used unlimited.
Which live trading accounts does ZuluTrade offer?
- Classic Account
- Profit-Sharing Account
Does ZuluTrade offer an Islamic Account?
Yes.
What are the available deposit currencies for a live trading account?
USD, GBP, EUR, JPY, and AUD.
DEPOSITS AND WITHDRAWALS
What is the minimum deposit required to open an account with ZuluTrade?
$ 1.
How do you make a deposit and withdraw money with ZuluTrade?
ZuluTrade offers the following deposit and withdrawal methods:
- PayPal
- Bank wire transfer
- ZuluTrade Mastercard
Does ZuluTrade charge withdrawal fees?
Users are charged a fee of $20 when they withdraw using the ZuluTrade MasterCard. There is a $45 fee when withdrawing through wire transfer outside of the US for customers based in the United States. Traders using PayPal are charged a $20 fee for withdrawals up to $500. Traders are charged a 3.9% fee in addition to the $20 if the withdrawals are above $500.
How long does it take to make a withdrawal?
Withdrawals using certain methods may be processed within a shorter period than others. Usually, withdrawals take a few days but depending on bank services it may take several days longer for the money to be available in a customer’s bank account.
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