Is ZuluTrade a scam? Is ZuluTrade reliable? ZuluTrade legal opinions
Let’s start from the top.
To anyone looking for “ZuluTrade reliable” or “ZuluTrade scam”, to understand if ZuluTrade is indeed a real company, and not just one of the many scams we hear about today, we can say: ZuluTrade is not a scam.
There are many scams in the forex field, carried out by phony investment broker agencies. ZuluTrade is not one of those companies. ZuluTrade is a regulated firm with several licenses, founded in 2007, therefore it’s been on the market for many years, with hundreds of employs in their offices all over the world, and with many partnerships with other important players of the financial markets.
Furthermore, the ZuluTrade group has just been acquired by a large Chinese company, the Formax group.
– Opening an Account with ZuluTrade, Where Does My Money Go?
ZuluTrade is a cross-broker platform. ZuluTrade bridges brokers, specifically your broker and that of the Signal Provider you intend to copy.
So, ZuluTrade per se is not a broker. To operate with ZuluTrade you will need to open a trading account with one of the recognized partner brokers.
Your funds will then be held by the broker of your choice.
– What is the best broker for ZuluTrade?
The best broker to operate with ZuluTrade is AAAFX, a Greek brokerage firm, regulated in Europe, registered under the HCMC (Hellenic Capital Market Commission), and compliant with MiFID.
AAAFX is owned by the ZuluTrade Group itself (now part of the Formax group).
This is why, overall, the whole copy trading experience with ZuluTrade is slightly better when paired with AAAFX.
– Is ZuluTrade regulated? Is AAAFX regulated?
As explained earlier, ZuluTrade is not a broker, but a cross-broker platform. Dayo Innovative Trading Ltd. owns the patents and licenses of ZuluTrade, and it operates under the trade name of AAAFX.
AAAFX (or the full name “Triple A Experts SA”) is a Greek brokerage firm, regularly registered at the HCMC (Hellenic Capital Market Commission) with registration number 2/540/17-2-2010, and MiFID compliant.
– How to check ZuluTrade’s licenses
We have prepared the direct link to the site of the supervisory authority. There you go:
Japan Office: 3rd Floor, 3-2-11, Kitazawa, Setagaya-ku, Tokyo, 155-0031 (03-5738-5117)
ZuluTrade Review by InvestinGoal
Founded in 2007 by Leon Yohai and Kostas Eleftheriou (the latter left the company in 2008), ZuluTrade is a financial services company operating as an inter-connection platform between various brokers.
After 10 years of growth and innovation, ZuluTrade and all its patents and licenses were purchased by a large Chinese group, the Formax Group, to further increase the brand’s expansion.
Below, you can find the description and review of all of ZuluTrade’s features and functionalities, including our opinions.
– What can you do with ZuluTrade?
With ZuluTrade, you can:
Operate on the markets autonomously (Retail Trading) through CFDs on some cryptocurrencies, currencies, indices, raw materials, maybe through the ZuluTrade Social Charts;
Let ZuluTrade automatically and proportionally replicate on your account the trades of traders you choose (Copy Trading);
Do both, participating and sharing information on trades and investments with the whole community, to make the best choices (Social Trading);
Set advanced security tools (ZuluGuard) or automatic portfolio management rules (ZuluTrade Automator)
Trade on the most popular cryptocurrencies
Create and use Trading Scripts and EA directly from the platform, without having to use external software, thanks to ZuluScript.
Like all other Social Trading companies, ZuluTrade connects all investors looking for new ways to get returns from their capital by exploiting the performance of other professional traders, called Signal Providers.
ZuluTrade attracts, on the one hand, all those investors who want to obtain the same returns as a professional trader and, on the other hand, the traders themselves (more or less professionals) who, operating on their own or through automated strategies, are willing to make public their investment activities on the markets, resulting in a possible further income deriving from the replication of their operational signals.
ZuluTrade has had an edge over many other competitors since its first steps, and over the years its service has evolved to reach several points of excellence.
The whole platform has a modern and captivating graphic, its features are simple and practical, providing for a high accessibility, in less than a minute you can open a free demo account, either by entering your data or using your Facebook account.
The amount of registered Signal Providers is huge, counting over 30,000 traders. Later on, we will see how ZuluTrade is able to manage this number in an excellent way.
Registering is fast and easy and, to start exploring, users can simply open a demo account, allowing investors to test the same features real users have. This way, even the most inexperienced users, with fewer notions of trading and Social Trading, can easily familiarize with the future investment tools, testing the platform without risking anything, thanks to the security provided by the demo account.
In this ZuluTrade review we will present the various features of the platform and our opinions. On the other hand, to learn how to use the platform at its best, please check our ZuluTrade Course.
What Kind of Accounts Does ZuluTrade Offer? ZuluTrade accounts opinions
ZuluTrade offers two types of accounts, Classic or Profit Sharing.
The two accounts differ in the way the Signal Providers are rewarded. The choice of account type is obviously up to the trader follower, and the Signal Providers will be rewarded with a specific mode, based on the user’s choice.
– ZuluTrade Classic Account
The ZuluTrade Classic account is the account mode that was available from the start.
The compensation model is based on the volume of operations replicated by the follower.
The trader profits 0.5 pips for each operation replicated by the follower.
If the follower replicates an operation on EURUSD with 1 lot, the trader earns $5 (0.5 pips).
The follower DOES NOT pay performance fees to the trader at the end of the month.
On the other hand, the spread paid by the follower for each transaction is slightly higher.
– ZuluTrade Profit Sharing Account
This new model aims to:
improve the relationship between traders and followers
hold traders responsible, making for safer and more secure trading investments
further shift the trader’s focus on growing his followers
With ZuluTrade’s Profit Sharing model, the trader earns 20% of the profits he has generated for his follower’s account every month.
From the other side, the follower pays the trader 20% of the profits he has gained thanks to that trader, every month.
The Follower gets a discount on the spread paid for each replicated operation. ZuluTrade reports a lower fee for this model, from around 2 pips to 1.5 per transaction.
To learn more, read our post on ZuluTrade Profit Sharing.
What Products Does ZuluTrade Offer? Markets and Trading Assets
The currency market is certainly ZuluTrade’s main market.
Trading can be made on several currency pairs. In addition, some of the major stock indices and commodities are also available.
ZuluTrade has also introduced some of the main cryptocurrencies.
Compared to other Social Trading companies however, ZuluTrade is certainly the one offering the least amount of markets and assets.
Here is an image with the complete list of available assets.
– ZuluTrade Bitcoin and Cryptocurrencies
ZuluTrade has introduced the possibility of trading or copy-trading via CFD on the main cryptocurrencies.
Here are the main cryptocurrencies, which can be traded with their counter-value in dollars:
Bitcoin Cash (BCH/USD)
There are also other cryptocurrencies, but their counter-value is in bitcoin.
You can find them in the image of the previous paragraph.
The ZuluTrade platform is very articulate, with many available features.
Let’s see these features and the various possibilities together.
– Social Trading and Copy Trading
Despite being renowned as one of the most important companies in the Social Trading panorama, ZuluTrade’s focus has always been Copy Trading (read here to understand the differences). In fact, ZuluTrade’s social aspect isn’t as evolved as in other platforms on the international scene, such as eToro, which have given more prominence to the social trading aspect, providing true and proper sharing platforms, like the most renowned social networks.
Concerning the social aspect, the sharing of opinions and exchanges with the Signal Providers is mostly focused on judgements and feedback of followers about the quality or repeatability of the trading strategy of Signal Providers.
Users can comment and assign judgements, which are then transformed into stars and appreciation percentages.
Comments left by followers can be read and appreciated with a like, but there is no actual interaction between followers and Signal Providers. The Signal Provider’s communication is limited to posting information in a box located on the top of his page, to keep users up-to-date on the status of his operations.
Moreover, it can be noted that most of the comments or votes are nothing more than negative reviews left by users who most likely expected to get 100% returns and get rich overnight, so basically votes and comments of little use and importance.
This is why ZuluTrade has focused its policy on transparent and in-depth sharing of the statistical and operational data of the Signal Provider’s strategy, so as to allow followers to construct their opinion on certain data and not on the opinions of others.
However, this implies that working with ZuluTrade is not as simple as with other companies such as eToro or Ayondo, as some technical notions are needed, particularly on money management.
– ZuluTrade Social Charts
To improve the social interaction within the platform, ZuluTrade has introduced Social Charts.
Within this section, users can upload one or more graphs showing the evolution of the operations performed by the Signal Providers, together with any eventual comments.
Furthermore, the right-hand side of the chart displays the chronological evolution, continuously updated as operations are closed by the Signal Providers, together with comments. However, in this case there is no distinction for currency pairs.
Surely seeing at what price positions have been closed or at what prices have started a debate can be interesting, but we are not sure of how much it can actually be constructive or formative from the trading point of view.
– ZuluTrade Signal Providers
On ZuluTrade, Signal Providers can operate (and be copied) not only through real accounts, but also through demo accounts. This is certainly one of the reasons for the large number of Signal Providers registered on ZuluTrade.
Although there are many excellent Signal Providers to be found on ZuluTrade, with long, solid and respectable track records, if we consider the totality of registered traders (over 10,000), it’s clear that the majority of these Signal Providers are not professionals.
The fact of being classified as Signal Providers even though the strategy is executed on a demo account, allows these traders to obtain profits in case their operations are replicated by follower investors with real accounts.
This choice by ZuluTrade (shared by other companies such as Ayondo) has made it possible to easily increase the number of Signal Providers within the ZuluTrade trader portfolio. Opening a demo account to test a trading strategy, perhaps with an aggressive operating style, is nothing more than a game that, if successful, gives the improvised Signal Provider the chance to gain some visibility and earn some money without too much effort.
The obvious solution could seem to only follow Signal Providers who operate with real accounts.
Even though this is certainly a positive sign, it’s not a sure fire solution to the problem. Believing that the Signal Provider won’t take any unnecessary risks or is not pushing his luck just because he is investing real money doesn’t make much sense, since it’s possible to start operating with a real account with a capital of $300 or even less. Several Signal Providers try their luck investing very little money, trying to climb the rankings with highly profitable but very risky strategies, earning from the commission fee.
So, rather than seeing if the Signal Provider operates with real money or with a demo account (a data which ZuluTrade signals clearly), it’s necessary to really understand the riskiness of a trader’s strategy through a thorough study of all the data provided in the trader’s profile.
– ZuluTrade Signal Provider Rules and Payments
ZuluTrade has always tried to set precise limits and rules in an attempt to stem the phenomenon of non-professional Signal Providers.
One of the first steps was to limit to 30 the maximum number of orders open at the same time (to limit infinite mediation techniques, which are easy to implement with a demo account, but lethal for any real account). Later on, ZuluTrade introduced other rules to limit scalping or super-fast trading, both very interesting techniques for those who want to open many trades and generate many commissions, but which are very difficult to manage and risky for followers.
Signal Providers can open all trades they wish on their operating account, even breaking the rules set by ZuluTrade, but on the platform, and consequently on followers’ accounts, only the trades within the set parameters are replicated. Therefore, the Signal Provider won’t earn anything by operating outside the rules.
Finally, ZuluTrade changed the payment regulations, so that only Signal Providers who have closed the month turning a profit can cash in their commissions, this is true for trades closed during the month, and especially for those still open at the end of it. A common practice of non-professional Signal Providers is to keep trades open for a long time, whenever the operations are in loss (causing huge capital risks), closing them with a few pips of profits only when they return profitable. This new rule set by ZuluTrade, intervenes and limits this phenomenon, making it inconvenient for the Signal Providers to use these practices, since they would not receive their compensation.
– ZuluTrade MIFID Regulation
In December 2014, ZuluTrade announced one of its biggest updates. Following the changes of the MiFID Social Trading Regulation in Europe, ZuluTrade was forced to change the platform’s operation for all European customers, including the introduction of several restrictive parameters within which the Signal Providers had to comply to be shown to European customers (read our post about the changes of ZuluTrade Europe to understand the differences of the European platform). These security parameters limited the riskier Signal Providers and pushed Signal Providers around the world to improve their performance, especially in terms of security and soundness, to be sure to enter the European market, avoiding the loss of a big chunk of ZuluTrade’s followers.
To summarize, ZuluTrade remains one of the platforms with the highest number of registered Signal Providers, although in percentage, a few are notable traders, several are average, and many Signal Providers are non-professional, although the company continues to work and set new rules and restrictions to improve the quality of registered traders, thus protect their investors.
– Data and Performance Sharing
ZuluTrade provides Follower Investors with a detailed operational information sheet for each Signal Provider, which is incredibly detailed and meticulous. In the international Social Trading scenario, no platform provides a more complete and thorough detail. This makes ZuluTrade one of the most transparent companies in terms of data sharing.
Depending on your level of preparation in the investment world, you can use from a few to all the information ZuluTrade offers.
Needless to say, all these values, other than being an indication of the seriousness of the company, which doesn’t hide anything about its traders’ strategies, give the Follower the opportunity to realize if the strategy applied by an individual Signal Provider is exactly the one that suits him best and if it can coexist with the activity of other traders in his people-based portfolio.
Another fundamental element is the chance to understand whether the strategy applied by the Signal Provider has been historically respected, and what has happened in particular market phases, thus providing the opportunity to identify any problems.
As if this weren’t enough, in addition to exposing several dozens of indicators, ZuluTrade maintains and offers the history of all transactions made by the Signal Provider, since he began operating with ZuluTrade.
This history is not a simple list of operations performed by the Signal Provider. It provides important details of every operation, such as:
The provider ticket;
The broker ticket;
The asset being traded;
The trade sign (buy or sell);
The size of the operation (how many, lots, minilots, or microlots);
date and time (minutes and seconds) when the trade was opened and the respective price;
date and time (minutes and seconds) when the trade was closed, and the respective price;
Any rollover paid or gained;
The profit realized in pips and $;
The magnitude of the greatest positive oscillation;
The magnitude of the greatest negative oscillation.
Furthermore, all these data aren’t just displayed in the Signal Provider details sheet, it can be downloaded in Excel or CSV format, allowing users to create new crossings of values to extrapolate even more information than those already showed in the card itself.
– Best ZuluTrade Traders – How to Find Them
The existence of thousands of traders to choose from could confuse the investor. ZuluTrade tries to help the user by providing different ways to search for traders:
A simple list, initially ordered for profit made by followers, which the user can clearly sort at will according by each of the available parameters.
A research by country tool, where a statistical detail of the Social Trading of the country is provided for each item.
An advanced search panel, where users can search customizing each individual parameter.
A similar detail depth, combined with a minimum trading knowledge of the investor, certainly offers the possibility of sniping the best traders.
Another interesting element in the Signal Provider search is the Compare Trader function. This feature allows users to compare traders and their performances, showing them side by side. It’s very useful when, as a result of a search, an investor is faced with more traders with similar characteristics and can’t decide who to choose. A straight out comparison can often clear one’s mind.
ZuluGuard and Risk Control, Management and Replication Tools
Concerning the activity of copy trading, the customization of the replication of the signals provided by the Signal Providers, and money management, ZuluTrade offers both an extremely simple procedure, certainly suitable for less experienced investors who do not want to lose too much time, and an extreme level of customization, which would dwarf even the nerdiest investors.
As regards the simplest activity of replicating the operations of Signal Providers, ZuluTrade provides a risk thermometer, which the investor can adjust according to his own propensity.
ZuluTrade will automatically manage levers and lot sizes for each individual Signal Provider, depending on the riskiness of the strategy applied by the latter and the combination of risk profiles of all the Signal Providers in the portfolio.
Whereas to obtain an extreme personalization of the replication of operations (through manual personalization), ZuluTrade provides dozens of settings and interesting tools, from trailing stop, offset pips, pips spacing, ZuluGuard , to the function of max open trades and max open lots, up to the personalization on the single underlying asset.
The replication of operations can be set up by defining a standard lot size, the historical Fixed replication call mode, or, the recently introduced, new Pro-Rata ZuluTrade mode, which allows you to proportionally replicate operations on the investor’s account, allowing a more faithful replication of the trader’s strategy, who might have to amplify or reduce the leverage of operations in certain market moments.
It is important to remember that, for EU countries that have to comply with the new MIFID Social Trading regulation, some of these functions cannot be used, such as the automatic parameter setting function or some extreme levels of customization.
Some other features however, like the very useful ZuluGuard function, have even become mandatory.
– ZuluTrade Automator
ZuluTrade Automator is a very interesting function that allows you to automate specific actions to managing your account or open positions.
Automator works with a “if … then” logic, meaning “if this happens … then do this”.
The system is very useful, because you can set different actions to protect your portfolio from losses or to ensure profits automatic.
Let’s take an example.
Many people know the famous Take Profit orders. With this feature, it is possible to set the closing of a single operation when a specific target is reached.
The problem is that the order can only be set on a single operation.
With ZuluTrade Automator, you can set up a take profit once your portfolio has reached a certain target. Or, instead of closing all positions, you can decide to be notified by email.
The options are different, and it’s worth checking all of them out.
The reserved area is also very smart and functional. Here the investor can:
Check and update the profile from an administrative point of view.
Have full control over open market transactions, pending orders, exposure to single currency pairs and also check out the transaction history. For the geeks, this is where users can also add scripts to automate some of the trading operations.
Have full control over the Signal Providers being replicated, with the ability to intervene on their settings.
Operate independently on the markets with a rather reactive orders panel. Clearly, since retail trading is not the core business of ZuluTrade, this service, although available, is not the best.
Check the account progress, with filters and statistics to highlight any operational weaknesses or strengths of the activity up to that moment.
– Broker Management
With ZuluTrade you can use the Copy Trading service using different partner brokers, contrary to what happens with other platforms where you can only work with their broker, or where they are brokers themselves. If you already have an account with one of the broker partners, you can request to connect the accounts. Otherwise, you could find out which is the best broker for ZuluTrade.
The advantage of these partnerships is being able to exploit the ZuluTrade service (both as Signal Provider and as Follower) through a trusted intermediary, either because you have been using it for other investments, either because you already know the partner through friends or because you found positive reviews on the internet.
Clearly, connecting two different intermediaries operating on an OTC market such as the Forex market is not a simple undertaking, so the signal replication isn’t always perfect. This is highly dependent from the two brokers (the one transmitting the signal and the one receiving it), and from the trader’s strategy: the faster it is, providing tight stops and profits, the easier it gets for performances not to match.
In this regard, ZuluTrade intervened with four corrective measures, aimed at improving the investor’s experience, protecting his returns and performances.
As mentioned before, on the Signal Provider side, ZuluTrade rebukes the traders on operations that are too fast, as replication is difficult, and then it started not replicating the trading operations that were too difficult to replicate due to their characteristics. Obviously, when trading operations are non-replicable (traders have been informed by ZuluTrade of what constitutes a non-replicable trade), they are not transmitted to the Follower accounts and are not reported among the operations performed by the Signal Provider within their detail sheet, therefore they aren’t entered in their operational history and their statistics. It’s as if that operation, which could not be replicated for its features, had never been made by the trader.
This way, the follower who checks the Signal Provider’s operating card can observe a trading strategy only based on the operations that he could replicate, thus viewing the real replicability of the performance.
– ZuluTrade Slippage
On the Follower side, ZuluTrade offers a very valuable parameter, ZuluTrade’s slippage indicator. Through slippage, the investor is given the opportunity, before following the Signal Provider, to know the limits of the strategy’s replicability according to his broker.
The slippage parameter is clearly identifiable within the profile of each individual trader, indicating how many pips are lost on average on each replicated transaction with each broker. Clearly less pips are lost per operation the better.
– ZuluTrade Refund Policy
ZuluTrade is one of the few companies in the industry to implement a refund policy for certain cases.
If, as a result of the settings you have implemented on the platform, ZuluTrade replicates a signal that was should have NOT been replicated, or does not replicate a signal that should have been replicated (signal means both opening and closing a trade, changes to stop losses or take profits, etc), and this causes a loss on your part, ZuluTrade will refund the loss if reported within 24 hours.
In any case, ZuluTrade will only refund losses, not lost profits.
– ZuluTrade Training and Support
Finally, we can talk about the training and information aspects of the platform.
ZuluTrade doesn’t rely on training a lot, its interface is very operational and finding training sections is quite hard. Contrary to other companies in the field, that offer more training, ZuluTrade merely offers some quick guide on the affiliate program and the trader program, nothing more.
On the contrary, the support and assistance service is well organized, ZuluTrade offers telephone support in several languages, a forum where you can share experiences and opinions and ask for help on basic issues, which other users might have already come across, so their personal experience can come in handy.
Two other important elements regarding the support service offered by ZuluTrade are the live chat, also available in several languages, and the second level mail assistance. Contrary to other services, the chat is very competent about all basic issues, issues of a commercial nature but even about technical details concerning elements within the various sections of their site.
For more complex issues, there is also a second level assistance that can be contacted via e-mail or that is directly addressed by the assistants via live chat.
ZuluTrade promises an answer to all issues within 48h. According to our experience, most requests and questions are dealt with within 24 hours, but if the issues are more complex, it could take longer.
– ZuluTrade Mobile Platform for iOS and Android
All of ZuluTrade’s features are also available through mobile devices, for iOS (iPhone and iPad), and for Android.
This is certainly an important component of the ZuluTrade offer. To create your portfolio and strategy, we definitely recommend the desktop platform in any case.
However, mobile platforms allow users to check their positions and investments at any time, and to manage anything in emergency situations.
ZuluTrade Full Pack – White Label Solution for Brokers
With the constant focus on improving the services offered to users, be them traders or investors, ZuluTrade provides a fully integrated platform which allows to access all the features in ZuluTrade with a single login, such as controlling your account, research and analysis of Signal Providers, copy trading and retail trading on currencies and other instruments, even though advanced graphs and implementing Zulu Scripts, or ZuluTrade Expert Advisors.
Thanks to the new ZuluTrade Full Pack, you can configure everything with just one interface, further improving the accessibility of the service and the user experience.
ZuluTrade Final Opinions – Experience and Summary
To summarize, ZuluTrade is definitely a platform you should try if you are more interested in learning about the traders you rely on and in developing your investment and money management skills, rather than sharing and socialize with other users.
The massive amount of Signal Providers (despite the large percentage of unprofessional traders) and the ability to customize and manage one’s people-based portfolio in detail make ZuluTrade one of the best Copy Trading companies in the world.
To whoever is more interested in the social aspect of Social Trading, we recommend eToro. On the other hand, to anyone who cares more about the solidity of traders, even though there are less, and the portfolio management is not very customizable, we recommend Ayondo or Darwinex.
Testing the platform with ZuluTrade, to get an idea first-hand, is extremely easy. It only takes a few seconds to open an unlimited demo account.
During the trial period you can try all of ZuluTrade’s features, since as you may have noticed reading this review, there are really a lot.
This is why we created our ZuluTrade Guide, to really help you understand this platform, in every detail, so you can decide if this may or may not be the right company for your next Social Trading investment.
Any Doubts? Ask Us
Still have doubts about ZuluTrade? You didn’t find what you were looking for in this ZuluTrade Review?
Contact us directly or write a comment below and tell us what you’d like to know. We’ll be happy to help!
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ZULUTRADE OPINIONS – PROS
Massive number of available traders (Signal Providers);
Clear and transparent data on traders’ performances;
Evolved and professional tools to customize the trading and money management experience;
Low entrance threshold and functioning;
Wide range of partner brokers beside AAAFX (owned by ZuluTrade);
Possibility to open a demo account that works as a real account;
Mobile apps for smartphones and tablets;
Opportunity to create EA and Trading Scripts directly on the platform;
Trading and Copy Trading on cryptocurrencies;
Automate self-management rules with the Automator.
ZULUTRADE OPINIONS – CONS
Underdeveloped Social Trading aspect;
Unhelpful user comments on traders’ performances;
Many non-professional traders (can operate with the demo account);
Some time and practice required to learn how the platform works.
Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. The present page is intended for teaching purposes only. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Any real or simulated result shall represent no warranty as to possible future performances. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility.