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The new Profit Sharing feature by ZuluTrade is now available for Demo accounts as well, not just for live ones.
To try it out, simply open a Demo account on ZuluTrade, it’s free and complete.
The new Profit Sharing feature, doesn’t interest the Signal Provider, but the followers, i.e. traders who wish to invest in ZuluTrade’s copy trading, receiving the automatic trading signals generated by the Signal Providers.
Until a few weeks ago, Signal Providers were compensated in a simple manner, according to the Volume Based model. For every operation copied by a Follower, on a Live Account, the Signal Provider received 0.5 pip (half pip) per traded lot (if a follower replicated a trade on EUR/USD with one lot, the Signal Provider received 5 USD).
Profit Sharing, however, is a different model, and using this model over the other, is up to the followers.
With ZuluTrade’s Profit Sharing, the follower can choose to pay the Signal Provider with 20% of any eventual profit generated by the trader for the follower over the last month.
Using this new features, the trading fees paid by the follower to every trader will be lower, since the Signal Provider’s profits won’t depend on operations any more.
As the term implies, the profits are shared, with a few additional rule.
First of all, 20% of the profits is paid to the Signal Provider, only if he has actually generated profits over the month.
Secondly, profits are calculated according to the High Water Mark principle, which is extremely common in traditional investment funds and Hedge Funds.
This new and interesting profit feature for Signal Providers has been introduced by ZuluTrade on February the 9th, 2018, only to followers with Live accounts.
Since May 16, 2018, however, ZuluTrade has extended this opportunity to Demo accounts as well. This news is particularly positive, as now users interested in investing with ZuluTrade can finally test out both payment methods, so as to understand which model they prefer.
Testing the new feature is extremely easy, just open a demo account on ZuluTrade, it’s free and complete.
For further information on ZuluTrade, and particularly on the Profit Sharing feature, check out our guides and tutorials.