ZuluTrade Review – Our Independent, Technical and Professional Opinion
Looking for a ZuluTrade review that’s professional, technical and above all honest?
Want to figure out whether ZuluTrade is a good broker, and especially if is good for you?
Then you are in the right place.
In this ZuluTrade review we’ll provide in the first place an explanation of how this Social Trading broker works.
But not only.
Here’s what you’ll discover in this review:
- Our opinions on ZuluTrade
- Its strengths
- Its weaknesses
- Any dangers
- For who is best suited
All this, always with a technical and professional approach but explained in easy terms.
No false promises, no bait and switch.
Only technical opinions based on our professional experience.
Let’s start now.
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Before proceeding with all the various ZuluTrade reviews, please note these three points:
Scroll this ZuluTrade review, or use the menu below to instantly find the topic you are looking for.
2.2 – Social Trading
2.3 – Signal Providers
2.5 – Attention to detail
2.6 – Advanced Search
2.8 – Control Panel
2.9 – The Broker
2.10 – AAAFX
2.11 – Training and Assistance
Zulu Trade Review by InvestinGoal
Writing a ZuluTrade review, we cannot help but say it is without doubt one of the most important companies on the international Social Trading scene.
Founded in 2007 by Leon Yohai and Kostas Eleftheriou (the latter left the company in 2008), ZuluTrade is a financial services company that operates as a platform for inter-connection between different brokers. It has offices in Athens and in the United States, where it is instead registered as IB (introducing broker) with the Commodity Futures Trading Commission (CFTC U.S.), and is a member of the National Futures Association (NFA).
Like any company that deals with Social Trading, ZuluTrade connects all those investors who are 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 achieve the same returns of a professional trader and, on the other hand, the traders themselves (as we’ll see, more or less professional) who, operating on their own or through automated strategies, are willing to make public and shared their investment activities in the markets, in the event of a possible additional income derived from the replication of their signals.
Since its first steps, ZuluTrade has always shown to have an edge over many of its competitors, and over the years its service has evolved to reach different points of excellence.
The entire platform has got modern and captivating graphics, the functions are simple and practical, accessibility is very high, in less than a minute you can open a free demo account, whether by entering your data, or using your Facebook account.
The amount of registered Signal Providers is huge, more than 10,000 traders. We will see later how ZuluTrade is able to manage so many traders very well.
Registration is quick and easy, and for a first exploratory level, you can just open a demo account, which allows investors to test the exact same functionality guaranteed to real users. In this way, even for those inexperienced and not used to trading and Social Trading, it becomes easy to become familiar with these investment instruments, testing them without risk thanks to the safety provided by the demo account.
In this ZuluTrade review we’ll present the various aspects of this platform together with our opinion. To learn how to best use it, however, go to the Base Course for ZuluTrade.
ZuluTrade Review – The Platform
Financial Assets and Binary Options
ZuluTrade has recently extended its range of financial assets, which at the moment is rather limited compared to other Social Trading companies, but it clearly shows the direction that the company wants to take for the future.
With ZuluTrade, you can invest in a wide range of currencies, from the majors to the exotic. Through the use of CFDs (Contract For Difference) you can also invest in some commodities and in some indexes.
We must recognize that the bid-ask spreads are very good, certainly better than the average for the sector.
Recently, you can also operate on binary options with ZuluTrade.
The assets are the same as already mentioned, it only changes the tool you use to trade with. While preferring the more traditional options, European or American style, we must recognize that binary options are very trandy in this period.
Personally we don’t invest in binary options, because of their risk-return profile that characterize them and that make them look more like a bet than a proper investment activity.
For what concerns the operation and replicability of the transactions performed on binary options, the situation is the same. What we will tell in this ZuluTrade review and what you will find in the courses can be equally applied to binary options in terms of logic and reasoning.
ZuluTrade review – Social Trading
ZuluTrade was founded in 2007, and is definitely one of the pioneers of this new investment style.
Despite being known as one of the most important reality of the Social Trading scene, its focus has been always on Copy Trading (you can read here to understand the differences). In fact, the social aspect within ZuluTrade is not very developed as in other realities in the international scene, such as eToro (read our eToro review), which have given more prominence to the social aspect, providing real sharing platforms, like the most famous social networks.
As regards the social aspect, ZuluTrade only gave followers the chance to share their opinion and comment about the strongness and the replicability of the Signal Provider’s trading strategy.
There is in fact the opportunity to comment and assign votes, that then turn into stars and approval ratings.
The comments left by followers can be read and appreciated with a like, but the interaction is missing a real debate between followers and the Signal Provider, which just posts scant information in a box located at top of his page by which he keeps users up to date about the status of his operation strategy.
In addition, over time it can be noticed that most of the comments and votes are nothing but negative reviews left by users who probably expected to get 100% of earnings and get rich overnight; in essence, votes and comments are of little value.
That’s why ZuluTrade has focused its policy on a deepened and transparent sharing of statistical data of the Signal Provider strategy, in order to allow followers to form their opinions on certain data, and not on others’ opinions.
But this implies that operating with ZuluTrade is not as simple as with other companies, such as eToro or Ayondo, but some technical knowledge is required, in particular about money management. Giving answer to all these questions is the reason that led us to design the base course for ZuluTrade.
However, to improve the social interaction within the platform, ZuluTrade has introduced the Social Charts.
Within this section the user can upload one or multiple charts on which the progress of the operations made by Signal Providers is displayed, along with comments.
In addition, a real time chronological update of the Signal Providers transactions closures, along with comments, are displayed directly on the graph, but in this case without any distinction for currency pair.
For sure, seeing at what price level the positions have been closed or which price level has given rise to a debate may be interesting, but we’re really not sure whether it can be constructive or formative in terms of trading.
ZuluTrade Review – Signal Provider
With ZuluTrade the Signal Providers can operate (and be copied) not only with real accounts, but also with demo accounts. This is definitely one of the reasons behind the large number of Signal Providers registered in ZuluTrade.
Although in ZuluTrade it’s possible to find many excellent Signal Providers with long, solid and respectable track records, if we consider the totality of the registered traders (more than 10,000), it is clear that the majority of these Signal Providers are absolutely not professionals.
The fact of being able to be classified as Signal Providers, even if the strategy is executed on a demo account, allows these traders to make profits in case their operations should be replicated by follower investors with real accounts.
This choice by ZuluTrade (shared by other companies such as Ayondo, read our Ayondo review to learn more) has certainly made possible the increase in the number of Signal Providers inside the ZuluTrade trader pool. Opening a demo account and testing a trading strategy, perhaps with aggressive operational logics, becomes a smart trick that, if successful, will give the possibility to the improvised Signal Provider to become visible and earn some money without too much effort.
It might seem like an easy solution to this problem is to just follow Signal Providers that operate with a real account.
While this is certainly a positive fact, it doesn’t mean it’s the ultimate solution to the problem. Believing that a Signal Provider won’t take unnecessary risks or won’t try his luck because he’s investing real money doesn’t make much sense when you can start trading in real even with a capital of $ 300 or less. Several Signal Providers try their luck by investing very little money and trying to reach the top of the chart with highly profitable but very risky strategies, and then earn from fees.
So, rather than observing whether the Signal Provider operates with real money or in demo (a matter clearly expressed by ZuluTrade), you need to really understand the riskiness of his strategy through a deepned study of all the data provided in his profile.
ZuluTrade Reviews – Regulation and Signal Provider payments
ZuluTrade has always sought to set limits and strict rules in an attempt to curb this phenomenon of unprofessional Signal Providers.
One of the first measures was to limit to 30 the maximum number of orders opened at the same time (to limit endless averaging techniques, easy to implement with a demo account, lethal for any real one). After that, other rules were introduced to limit the practice of scalping or super fast trading, very interesting technique for those who want to open many trades and generate many fees, but very difficult to manage and therefore risky for those who were follow them.
The Signal Providers earn 0.5 pips for each trade that is replicated with a live account. On their operating accounts they can open all the trades they want, even breaking the ZuluTrade rules, but on the platform, and therefore on the followers’ accounts, only those trades that fall within the parameters will be replicated. Therefore, by operating outside the ZuluTrade rules, Signal Providers won’t earn anything.
After that, ZuluTrade changed its regulation for payments, introducing the rule that only those who have closed the month with profits may collect their fees, applying the rule to both trades closed during the month, and especially to those still opened at the end of it. One of the practices of those non-professional Signal Providers is to keep open for a long time, with averagin down strategy, all those loosing trades (causing huge risks to capital), closing them with just a few profit pips only when they turn back positive (to better understand how these techniques work you can download our Social Trading eBook). This new ZuluTrade rule intervenes to limit this phenomenon, making inconvenient for Signal Providers to use these practices, since the won’t be able to receive their fees.
In December 2014 ZuluTrade announced one of its biggest updates. Following the change of the MiFID regulation for Social Trading in Europe, ZuluTrade was forced to change the platform functioning for all the European clients, and this also included the introduction of a series of new restrictive parameters which the Signal Providers had to compy with in order be shown to the European clients too (read our post on the ZuluTrade Europe change to understand the European Platform differences). These safety standards had the ability to limit riskier Signal Providers, and drive worldwide Signal Providers towards improving their performance, especially in terms of safety and soundness, to be sure to re-enter the European market and not to lose a big chunk of ZuluTrade followers.
In summary, we can say that ZuluTrade is a platform with one of the highest number of Signal Provider subscribers, although in percentage of the total only few are really worthy, several are in the average, many of them are not professional, and that the company keeps working with new rules and restrictions to improve the registered traders’ quality, and therefore the protection of their investors.
Attention to detail review
For each Signal Provider, ZuluTrade provides follower investor with a details tab on his operational strategy, incredibly deepned and meticulous, almost maniacal. In the Social Trading international landscape, there isn’t a reality that provides a more complete and accurate level of details. 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 a few or many of the information made available by ZuluTrade. Our base course for ZuluTrade explains in detail how to use all the provided parameters and also how to cross them to get useful answers.
Needless to say that all these values, as well as being an indication of the company seriousness, which doesn’t want to hide anything about the traders strategy, give the follower the possibility to realize if the strategy applied by the Signal Provider is exactly the one that suits him and can co-exist with the activities of the other traders of the people-based portfolio.
Another key element is the ability to tell whether the strategy applied by the Signal Provider has been respected historically and what happened at particular market stages, giving the opportunity to identify any problems.
As if not enough, in addition to displaying several dozen indicators, ZuluTrade preserves and makes available a complete history of all the operations performed by the Signal Provider, since he started trading with ZuluTrade.
The history is not just a list of the operations performed by the Signal Provider. It provides important details of each operation such as:
- The provider ticket
- The broker ticket
- The instrument traded
- The sign of the negotiation (if buy or sell)
- The size of the operation (how many lots, minilots or microlots)
- Opening date and time (minutes and seconds) with the respective price
- Closing date and time (minutes and seconds) with the respective price
- Possible collected or paid rollover
- The realized profit in pips and $
- The amount of the most positive fluctuation
- The amount of the most negative fluctuation
All these data can be even downloaded in Excel or CSV, giving the opportunity to cross them and extract even more information than what’s already in the tab. Thanks to this, we at InvestinGoal have made real tools for Social Trading with ZuluTrade, available for our users.
Zulu Trade Review – Advanced Search
The existence of thousands of traders to choose from could send the investor into confusion. ZuluTrade tries to help the user by providing different traders research methods:
- A simple list, initially ordered by profit made by followers, which of course the user can order at will according to each parameter.
- A search tool by country, where it is provided, for each single country, a statistical detail on the Social Trading activities of the country itself.
- An advanced search panel, where you can set the search for each parameter, as we have talked extensively in the lesson on the ZuluTrade Advanced Search.
A similar depth of detail, combined with a bit of awareness by the investor, gives the opportunity to be a sniper in the choice of the perfect trader.
Another certainly interesting element in the Signal Providers research is the ZuluTrade Compare Trader function. This function allows you to place traders and their performance side by side, to be able to compare them. It becomes very useful when, after a research, an investor finds more traders with similar characteristics and doesn’t know which one to choose. A lineup often can clarify things.
Risk Control, Management and Replication Instruments Review
For what concerns the copy trading activity, the customization of the signals replication process and the money management, we must recognise that ZuluTrade provides both a very simple procedure, definitely perfect for those less experienced investors or that don’t want to lose too much time, and an extreme customization level, that would make even the nerdiest investor happy.
Learning simply how these instruments work and how to trade successfully with them is precisely the subject of our ZuluTrade Advanced Course.
For what concerns the simplest replication activities of the Signal Provider operation, ZuluTrade provides a risk thermometer, that the investor can calibrate according to his willingness.
Automatically, ZuluTrade will manage leverage and lot size for each Signal Provider, according to the riskiness of the strategy applied by the latter and the risk profiles combination of all the Signal Providers included in the portfolio.
As regards, instead, the possibility of obtaining an extreme customization of the trades replication (through the manual customization mode), ZuluTrade provides dozens of settings and very interesting tools, from the trailing stop, the offset pips, the pips spacing, the ZuluGuard and the max open trade and max open lots functions, to the customization of each underlying. Let’s talk about this procedure in the lesson on how to use the ZuluTrade settings.
You can set up the trade replication by defining a standard lot size, the historical replication mode called Fixed, or, introduced recently, using the new ZuluTrade Pro-Rata mode, which allows you to replicate the operations proportionally, allowing a more faithful replication of the trader strategy, who, in some moments of the market, may have to amplify or reduce the leverage of his operations.
It’s important to remember that, for the EU countries which must comply with the new MiFID II regulation for Social Trading, some of these functions cannot be used, such as the automatic parameter setting function or some extreme levels of customization.
Some, instead, as ZuluGuard usefu protection function, have even become mandatory.
ZuluTrade Control Panel Review
Even the personal account is very well cared and functional; here the investor has the possibility to:
- Check and update his profile from an administrative standpoint
- Have full control over the transactions opened in the market, pending orders, the exposure on every currency pairs and also the ability to verify his operations history. For the geeks it’s possible to enter also some scripts to automate some trading operations
- Have full control over the Signal Providers he is replicating, with the possibility to modify their settings
Operate independently in the markets with a quite reactive orders panel. Clearly, since retail trading is not the ZuluTrade core activity, this service, although present, is not the best
- Check the account performance, with filters and statistics to highlight any operational difficulties or strengths of the activity until that time
ZuluTrade Review – The Broker
With ZuluTrade you can use the Copy Trading service using different partner brokers, contrary to what happens with other platforms where you can operate only with their incorporated broker, or where they themselves are brokers. If you already have an account with one of the partner broker, you can request the connection. Otherwise, you can first discover which one is the best broker for ZuluTrade.
The advantage of these partnerships is clearly to use the ZuluTrade service (both from the Signal Provider and the Follower side) through your trusted intermediary, since maybe you have worked with him for some time for other investment activities or since friends or the web has given a positive assessment.
Clearly, connecting two different intermediaries that operate on an OTC market as the Forex market is not an easy task, which is why the signal replication is not always perfect. This really depends, as well as on the two brokers (the one that transmits the signal and the one who receives it), also on the strategy used by the trader: the more this will be fast, including tight stops and profits, the more it’s possible that the performance achieved by the signal provider won’t match up with that of the follower who has replicated his signals.
In this regard ZuluTrade applied four corrective measures to improve the investor experience and to protect his returns and performance.
As mentioned before, from the Signal Provider side, in the first instance ZuluTrade discourage traders from operate too fast, making the replication activity difficult, in the second stage it doesn’t replicate trades that, for specific characteristic, are hard to replicate. Clearly, when trading operations have the characteristics of non-replicability (which are described accurately to traders), they are not transmitted to Followers and are not displayed in the Signal Provider trade history within his detail tab, thus not entering in his statistics. It’s like that operation, that could not be replicated due to its characteristics, had never been made by the trader.
In this way, the follower observing the Signal Provider’s operating profile, will see a trading strategy based only on transactions which he could also replicate, therefore a vision of a real replicable performance.
From the followers side, instead, ZuluTrade provides a very valuable parameter, the ZuluTrade slippage indicator. Through the slippage, the investor has the opportunity, before following the Signal Provider, to know the strategy replicability limits depending on his broker.
The slippage parameter is clearly identified in each trader profile, and indicates how many pips are lost on average per each transaction replicated by each broker. Clearly, the less pips lost for operation the better.
Another important element to limit the drop in performance that could be determined by the broker is the refund. As ann evidence of the seriousness of this society and its good intentions to ensure the best Copy Trading experience, ZuluTrade will refund the poorly replicated operations that meet certain criteria. For our part, we’ve even created the ZuluTrade Refund software to do this check quickly and automatically.
In any case ZuluTrade also has a broker they own, allowing it to better manage the trades replication, working on resident servers and with identical prices provided by the same liquidity providers.
Using AAAFX guarantees the lowest levels of slippage and faster execution times, being the broker where Signal Providers, Followers and Copy Trading technology work within the same computing environment, ensuring higher performance and lower costs.
Zulu Trade Reviews – Training and Assistance
Finally, we can focus on training and information aspects.
ZuluTrade is not focusing on training, its interface is very operational and you will hardly come across training sections. Contrary to other companies that dedicate more time to training, in ZuluTrade you can find some quick guide on the functioning of the affiliate or trader program but nothing more.
Instead, the support and assistance service is well organized. There is a telephone support in several languages, a forum where you can share experiences and opinions and ask for help on the basic issues, and get anserws and tips from other members and access also to their experience.
Two other very important elements are the chat tool in different languages and the second level mail assistance. Unlike other services, the chat assistance is highly capable on all the basic, from the commercial nature issues to the technical details relating to the various sections of their site.
For more complex issues, there is also a second level support that you can contact through email or that is consulted directly by assistants via chat.
ZuluTrade promises an answer in the next 48 hours. In our experience, most of the requests and questions are processed within 24 hours, but if the issue is more complex than normal times tend to exceed this limit.
Mobile Devices and ZuluTrade Fullpack Review
All the ZuluTrade functionalities are accessible also through the use of mobile devices.
This is definitely an important component of the ZuluTrade offer. If for the portfolio and strategy building activity we recommended in any case the desktop platform, with the mobile platforms the user can check his position and his investment at any time and manage anything in emergency situations.
Always with the goal of improving the service provided to its users, both traders and investors, ZuluTrade is about to release a completely integrated platform which, with a single login, will give access to all the ZuluTrade functions, such as personal account control and Signal Providers search and analysis service as well as currencies operability, including the use of advanced graphics and the implementation of Zulu Script, in other words, ZuluTrade Expert Advisors.
With the new ZuluTrade Full Pack, everything will be available and configured under a single interface, improving even further the accessibility of the service and the user experience.
ZuluTrade Review – Experience and Conclusion
We can conclude by saying that ZuluTrade is definitely a platform to try if you are more interested in analyzing in detail the traders to whom entrust your money and in improving your investment and money management skills, rather than relying on sharing a social experience with other users.
The huge number of Signal Providers (despite the large percentage of non-professional) and the ability to customize and manage in detail the people-based portfolio make ZuluTrade one of the best Copy Trading companies in the world.
If you want to explore the question of the actual effectiveness of ZuluTrade, then we recommend you read our post and our truth about How to make money with ZuluTrade.
To those who are more interested in the social aspect of Social Trading therefore we recommend eToro. Those who particularly care about the traders strength, although they are few and the management is not very customizable, instead, we recommend Ayondo.
Test ZuluTrade for Free
With ZuluTrade it is extremely easy to test the platform to get an idea. It just take a few seconds to open a demo account for 30 days.
In this period you can try all the ZuluTrade features that, as you noticed reading this review, are really a lot.
That’s why we created our Basic Course for ZuluTrade, to allow you to really try this platform, by understanding it in every detail, so you’ll be able to decide if it may or may not fit for your next investment in Social Trading.
Got some doubts? Just ask
Do you still have doubts about ZuluTrade? Did you fail to find on this ZuluTrade Review what you were looking for?
Contact us directly or simply write a comment below and tell us what you want to know. We’ll be happy to help you!
We’re waiting for you.
ZuluTrade REVIEW – PROS
- Very large number of available traders (Signal providers)
- Total transparency on the data of their performance
- Advanced and professional tools for customization and money management
- Low costs for entry and functioning
- Wide choice of brokers along with the best AAAFX (owned by ZuluTrade)
- Demo account equal to the real
- Existence of Mobile App for smartphones and tablets
ZuluTrade REVIEW – CONS
- Social Trading Component is not well developed
- Users Comments about the traders performance are of little use
- Of the total number of traders, many are not professional (they can operate in demo)
- It requires a minimum period and practice to learn how it works properly