What is ZuluTrade and how to work with it
ZuluTrade is a one-of-a-kind social trading platform that brings together over 15,000 professional traders from around the world. ZuluTrade acts as a kind of intermediary between brokers and signal providers and allows you to copy trades (or invest money) in successful managers.
The principle of working with ZuluTrade is as follows:
- on the ZuluTrade website, you must register. There is a demo account for testing the site;
- choose a broker from the list of partners of the site (there are more than 20 of them) and open a trading account with him;
- a trading account is linked to a personal account opened with ZuluTrade.
Then subscribe to car signals from the selected provider and earn if they are correct. There is a possibility of auto-trading and opening a position after confirmation by a trader.
ZuluTrade is often compared to MyFxBook. These platforms really have a lot in common – they unite traders and provide information about the strategy, profit, drawdown, etc., that is, they show the trading history. But MyFxBook has a better account verification system, since the service’s task is to be an independent platform, a symbol of reliable trading. ZuluTrade is a signal autocopying platform.
ZuluTrade: Easy Earning or a Way to Loss Your Deposit?
The trick of the trade copying system is that the signal provider makes a profit not from the trader’s profit, but from the spread. The spread at ZuluTrade is larger than that of the broker, and it is this spread, minus the broker’s spread as a commission, that the platform and the manager divide between themselves. The disadvantage of the system is that the signal provider does not care how much the trader earns, he just needs to show the profit.
Rules for working with ZuluTrade:
- do not focus on the manager’s profitability. One of the disadvantages of the site is weak control over the honesty of managers. To get into the ratings of the site, it is enough to show high profitability, the platform does not take into account the effectiveness and risks. Therefore, first of all, assess the risks, analyze the equity and be sure to ask the manager for a link to MyFxBook;
- evaluate the manager’s strategy. More than half of the rating managers work either according to the Martingale strategy, or do not correspond to reality. ZuluTrade is a popular platform, because brokers use it to attract clients, “drawing” a profitable trade;
- when copying signals, the platform and broker for you and the trader must match. The ZuluTrade website has statistics on slippage in points for each broker. Also, each broker has its own provider of quotes, which are slightly, but differ from each other. Different platforms can have different response rates. These are the three main reasons why your opening position will not match the position of the signal provider.
Summary… The popularity of ZuluTrade speaks for itself, but there are also many negative reviews about the site. There is no guarantee that a profitable provider is not a robot or does not work with a demo account. Since ZuluTrade is not responsible for the managers, the risks are entirely with the investor. You can make money on ZuluTrade, but you should be very careful and choose liquidity providers, rechecking the strategy to the smallest detail. And if you do not want to rely on chance, but are going to create your own Expert Advisor, read our article on how to do it.