This ultimate Zulutrade Review will help you make the decision if Zulutrade is right for you. We went into real tangible detail to help you weigh up the pros and cons and arm you with knowledge.
We hope you enjoy and plan on updating this review every year to make it better and keep it up to date!
WHAT IS ZULUTRADE? HOW DOES IT WORK?
Zulutrade is a trading platform that allows investors to trade across forex, indices, stocks, cryptocurrency and commodities markets. The founders of Zulutrade are experienced in the industry. Before founding ZuluTrade, they worked for company FXCM, or Forex Capital Market, which is a UK-based broker that was established in 1999. The company is regulated by top-tier financial authorities: in the UK, the Financial Conduct Authority (FCA), and in Australia, the Australian Securities and Investments Commission (ASIC). Zulutrade in its own right also has an EU Portfolio Management License (which they gained in 2015) which legitimised the platform.
One of the key innovations of Zulutrade is the social trading function. In a style that is similar to eToro, Zulutrade allows traders to copy expert investors and their portfolios, and then invest their money in the same pattern. This is applicable across the entire website of trading options (forex, indices, stocks, crypto and commodities).
Zulutrade is also quite niche specific focusing purely on forex rather than eToro that allows for a broader range of assets!
You should also check out my eToro review for a bigger and better alternative! CLICK HERE!
Background on Zulutrade
Zulutrade is offered as a trading platform as a part of a larger trading group, FXCM. The parent company of Zulutrade, FXCM, was established in 1999. FXCM is listed on the New York Stock Exchange, with a history in banking, which means that it is considered a fairly safe and stable company. It also has a long history, spanning back to 1999, suggesting that it is resilient enough to withstand global financial issues. In terms of investors and shareholders, a dominant figure is the Jefferies Financial Group.
Zulutrade as a platform in its own right was founded in 2007 by Leon Yohai and Kosta Eleftheriou. Leon Yohai wanted to create a site where inexperienced traders could copy veterans and their portfolio, as this would allow more people to access investing and finance. Just two years later, in 2009, over 4500 expert traders had signed up to make their investment portfolios available on the site and allow members of the public to copy them. This rapid growth was just a harbinger of what Zulutrade could become.
In 2014, the Zulutrade website was redesigned to look more professional and increase functionality. At the same time, features such as ZuluGuard were added. Zuluguard is a protection feature that closely monitors the actions of traders that a user has chosen to copy. In order to prevent scams and massive losses, Zulutrade automatically freezes and cancels the copy function on traders that have radical trading patterns, or that begin to have inconsistencies. This is in order to protect consumers. Furthermore, at this time, the size of the business increased to 120 employees. 40 of these employees were dedicated to customer service, showing the growth of Zulutrade as a commercialised platform.
In May of the same year, Zulutrade announced a partnership with SpotOption. SpotOption is a broker in the binary option industry, in which traders invest for an ‘all-or-nothing’ pay out. The driving force behind this partnership was to create a social trading platform for binary options, despite the industry being rife with fraud and other financial issues.
2015 bought a massive success for Zulutrade. As previously mentioned, in 2015, Zulutrade was awarded an EU Portfolio Management License by the European Union. This garnered much respect for Zulutrade, and made it a far more legitimate company than it had ever been before.
Zulutrade Review at a Glance …
|ZuluTrade Review at a glance|
|Countries of regulation||Global [depends on broker]|
|Trading fees class||Low|
|Inactivity fee charged||No|
|Withdrawal fee amount||$0|
|Minimum deposit||$1 – $300 (depending on broker)|
|Time to open an account||1-3 days|
|Deposit with credit/debit card||Depends on Broker|
|Depositing with electronic wallet||Depends on Broker|
|Base currencies supported||7 (using AAAFx)|
|Demo account provided||Yes|
|Products offered||Forex, Cryptocurrency, Stocks, Indices, Commodities|
Zulutrade certainly has lots to offer. There is a low minimum deposit, although this does depend on the broker. The system on Zulutrade requires users to choose a broker through whom they deposit and trade their money, with many to choose from. Zulutrade does offer its own native broker, AAAFx, with a low minimum deposit. Other brokers available on the site may charge up to $300 as a minimum investment, which is worth bearing in mind. Withdrawal is free on Zulutrade, and commission is automatically charged so that signal providers (the expert traders) benefit when their trades profit those who have been copying them, and are penalised when they do not.
Opening An Account on Zulutrade
Like many similar platforms, there are two types of account available on Zulutrade. The first of these is a demo account, with no real money involved. This gives potential traders the option to practice and learn before they invest with their own money. Setting up a demo account is quick and easy, and signing up for one requires just the following information:
- Phone Number
- Base Currency
- Virtual Account Balance
Once these have been provided, demo trading can begin straight away. The demo account is an easy-to-use replica of the live website, allowing users to conduct in-depth analysis and even copying traders to find the settings, brokers and styles that work for them.
When it comes to setting up a live account, there are two options that users must choose between. The ‘Classic’ option is designed for more advanced users. There is access to manual or fully customised copy trading, with standard volume-based commissions. This also allows people to copy your trades, although this does not necessarily mean that people will.
The other account option is a ‘Profit Sharing’ account. This option is recommended by Zulutrade for beginner traders, as you learn by copying others’ trades. Traders that you copy will get extra money for themselves when you profit, and will lose out when you lose money, meaning that they have your best interests at heart. The other benefit to this type of account is reduced commissions, meaning that more of the money you make is yours to keep.
When setting up an account, the process is much the same as a demo account. The major difference is that the user must choose a broker from the options provided by Zulutrade, and then complete an external sign up depending on the requirements of the broker. These brokers can be filtered depending on the requirements and wishes of the user. From this point, approval and set up will be completed in 2-3 business days.
Both account options give you full access to all data available. This includes charts, data, alerts and forex signals. Account maintenance is also straightforward, and is contained in the ‘my account’ tab. Here, you can review performance, access most of the necessary functions, and delete your account. Once you have an account, you must choose a supported broker to trade through.
What kind of Fees does Zulutrade wack on
No review would be compete without looking the Fees! Most trading platforms have fees that occur when you trade; these platforms run as for-profit business, and the majority of revenue comes from fees for the majority of platforms. There are some basic types of fees that users should be aware of when it comes to choosing a brokerage platform, and knowing which fees are applied by which platforms is invaluable. The basic fee types are as follows:
A commission is a fee based on the traded volume or a flat fee per trade. Most commissions are based on the traded volume, and are calculated as a percentage of this.
Zulutrade takes commission from each trade in order to amass revenue, but also to provide compensation to signal providers for successful trades. This encourages veteran traders to make good trades within the best interests of their followers, and maintain a successful copy trade system. For investors copying experts, this can be as high as 20%, in order to compensate those that they are copying, which is quite high for the industry.
Other than this, there is a range in the level of commission charged by the brokers supported through Zulutrade; this cost is for connecting the broker to Zulutrade. The highest cost for this is around 0.3%, but this can easily be circumvented by using the native broker AAAFx, which is free.
The Spread on Zulutrade:
A spread is the difference between the buy and sell price of a unit. CFD companies like eToro and other similar platforms incorporate their costs into this buy or sell price, and quote a final spread that is usually wider than the current market spread. If you set the leverage to higher than one, you can trade stocks and ETFs as CFDs. This product has a low spread compared to other online competitors. On Zulutrade the pip is around 0.6 for currency trading, which is around average for the industry. Depending on which broker you use, they may have a different spread, but this cost would occur whether you were using Zulutrade or not.
Financing Rates on Zulutrade:
These are charged when you hold your leveraged position for more than a day. A leveraged position means that you have borrowed money from the broker to trade, and the financing rate (also called the overnight rate) is the interest charged on this money.
Zulutrade does not charge highly for this, in line with industry average, but it is worth bearing in mind that these costs can add up. This is especially true if a user leaves a position open for an extended period of time.
Zulutrade Conversion Fee:
A conversion fee is charged when your trade requires a currency conversion. This can also occur with other transactions, such as depositing and withdrawing money. Zulutrade does not charge this directly, although some brokers available might. According to the Zulutrade website, this is entirely decided by the broker. As you decide a broker upon sign up, you can filter your options for the best fees in this respect.
Zulutrade Reveiw Non-trading Fees are bit higher than eToro:
These are charges that are not directly related to trading. This can include deposit fees, withdrawal fees and charges for inactivity. On Zulutrade, to keep your account open, you must maintain a balance of at least $100. Aside from this, on a profit-sharing account, there is a monthly charge of $30.
Deposits And Withdrawals on Zulutrade
Like many other things on the Zulutrade system, deposit and withdrawal is highly dependent on the broker that you choose to trade through. Generally speaking, deposit is available via the most common market options: bank transfer, debit or credit card, Skrill, Neteller or UnionPay. When choosing a broker through which you would like to invest, take note of the deposit and withdrawal times and costs (if there are any) in order to inform your decision.
Like with many other brokers, bank transfers may take several days, whilst credit or debit card payments are instant, and you can only use bank sources that are registered in the same name as on your Zulutrade account.
Web Trading Platform Interface User Experience on Zulutrade
In my opinion one of the most important features of a trading platform is its user experience. With this Zulutrade review we found it difficult to navigate.The Zulutrade website is easy to navigate and aesthetically pleasing, although it is sometimes hard to find the relevant sections for trading without copying. The colours are simple and highly contrasting, which makes for a basic and pleasing visual input. The website structure is not so immediately clear; it takes some effort to work out the tabs and navigation to specific stocks without using the copy trader function, and it seems that the main priority of Zulutrade is to promote this.
The website continues the theme of global accessibility, and is available in 26 languages. The customer support, however is available in just 11 languages. These are:
Buying an asset on the website is easy and intuitive. All it requires is scrolling over the particular asset, clicking and filling in the form. On Zulutrade, there are several parameters that can be set on and order. The Zulutrade order form pop-up is somewhat hard to understand, although after a little bit of playing it is easy to work out which boxes control which parameters. At the bottom of the pop-up box, there is a short summary of the order before you submit it. The available parameters are:
This is the most basic order option, and is the default unless you specify otherwise. Your trade will be bought or sold at whatever the current best price is, and will be executed immediately.
Once you have bought assets and you have an open position, you most likely want to secure your profits and minimise your losses, which can be done using stop orders.
In order to secure your profit, you will most likely use a take-profit order. An example of a take-profit order is the best way to understand this type of transaction. If you buy an asset at $400 and decide a $100 profit is optimal, you set the take-profit level to $500. Once the asset reaches this, your position is automatically closed and you receive your profit.
Another type of stop order is a stop-loss order, which is self-explanatory. If you buy the same $400 asset and decided you cannot lose more than $50 on it, you set the stop-loss order at $350. If the price ever decreases to this, your position is closed and you escape with minimal loss.
Sometimes, stop-loss orders can be factored into the asset, so that no matter how low the price of the asset goes, the broker will provide you with an agreed minimum. For example, if your $400 asset drops suddenly to $300, a guaranteed stop of $350 will mean that your broker still gives you this amount, no matter how low the price drops. Brokers do charge a fee to include a guaranteed stop.
Stop Limit Order:
An asset can sometimes experience a huge jump in price that very quickly reverses. This huge price jump may trigger your limit order. So that this doesn’t happen, a stop-limit order triggers a limit order once the stop price is reached. With a stop limit order, you have two prices. The stop price triggers closing your position. The limit price is the price below which you do not wish your position to be closed. With our earlier example, as if the $400 investment has a stop price of $350 and a limit price at $340. If the price drops below $350, the system starts selling units. If it then retreats to below $340, the system stops selling again.
The mobile app for Zulutrade is much the same. It is both aesthetically pleasing and simple, whilst maintaining functionality.
Zulutrade Review: Markets and financial products available!
On Zulutrade, there is a wide range of products available. This includes Forex, Stocks, Indices, Commodities and Cryptocurrency. Unlike many market trading platforms, Zulutrade offers Cryptocurrency. Alongside this, it offers some information on the fluctuations in the market for the value of various cryptocurrencies, as well as comments and thoughts of veteran traders. This means that it is easier for investors to decide whether it is worth investing in cryptocurrency long-term, or whether the interest will decline.
The stocks and forex are offered through a myriad of brokers, meaning that the range in stock markets covered by Zulutrade is massive. Some platforms are limited to just major stocks, shares and assets, but the unique system of brokers that Zulutrade supports mean that many markets are available to users. This increases the options that investors have when it comes to trading, and it undoubtedly a big bonus to trading with Zulutrade.
The only issue with this is that to trade on Zulutrade, a user must pick a single broker; this requires investigating each of the available brokers individually in order to find the best fit with the most markets available, among other features.
Zulutrade Special Features
Zulutrade, like industry giant eToro, has the option to copy veteran traders. This allows users to browse through other veteran traders, much like with social media, and look at their trading patterns, statistics and other information. This information allows users to make an informed decision about which investors to copy, and how much they would like to invest to follow the same pattern as a trader. This obviously allows newer traders to observe experts and gain a better understanding of the industry before they branch out into independent investing. On Zulutrade, there are over 10 000 traders available to copy, from 192 different countries; there is a wealth of choice and something for everyone to copy, no matter their interests and thoughts.
Also available on Zulutrade are a wealth of simple but important features that may make or break a trading experience. The first of these is a pip calculator; this calculates the price move in a given exchange rate, which helps traders to enter or edit orders to manage their strategy. There are also profit and margin calculators, which are fairly self-explanatory and are obviously important to traders for managing their portfolios. As Zulutrade supports forex trading and also trade in different currencies, there is also a currency calculator available. On top of this, there is an economic calendar function and access to financial news so that investors can stay on top of the important industry information that may inform their trades.
As an extension to this, there is a wealth of educational sources available on the website; Zulutrade appears to have a strong focus on learning and understanding the industry as users trade. There is also the ZuluGuard feature for safety and security, which flags up and freezes radical traders in order to protect users’ investments from extreme action.
Research Tools we looked at on this Zulutrade Review!
In terms of researching traders, Zulutrade has an advanced system for finding the trader that best suits your needs and investment style, should you choose to copy a trader. Despite there being more than 10 000 traders on the site, there is an advanced search engine to narrow this down. There are filters that allow you to sort through traders based on the amount they have invested, their profit margins, those who have traded for at least a year and even set maximum drawdown parameters. You can then add the traders you like into the system’s User Lists function, to keep track of your favourite or follow traders, but also to monitor individuals before you choose to copy their trades. Daily and weekly summary reports are also available to help you to monitor and track those you have copied.
Included in the research options for those copying other traders is the ZuluRank feature. This algorithm ranks traders in order to encourage better trading practice. The aim is to help users to find the best traders to copy, and those that are most suitable and well matched to their style of investment. Traders are ranked by the following features:
- Sharpe Ratio (this is a measure of risk-adjusted return)
- Low drawdowns
- High Profits
- Age of Signal Provider
- Amount of trade activity
- Frequency that the trader logs into Zulutrade
- Length of time their trades stay open
It is really nice to see that Sharpe Ratio is included as this is a key element missing from eToro, check out our our eToro review!
For account holders, there is also a calendar feature that marks the important financial events in order to inform your trading, which can be useful to establish patterns of trade and information that might otherwise be lacking.
In terms of financial information, Zulutrade offers real time financial information on a range of their products, and longer-term graphs and information for some products. There are also blogs, charts and tools available under the ‘Features’ tab to allow users to research and understand the investment markets before they begin to trade in real money. Similar to other platforms, there is not an overwhelming wealth of information, but sufficient amounts to give a user a basic understanding. It is better to research independently to find less biased sources, as well as a large variety of sources, in order to make the best and most well-informed decision possible.
Customer Service on Zulutrade is well-developed and well-executed. The company showed their commitment to strong customer service with its major expansion in 2014: of the 120 employees, a third were dedicated to customer service alone. There is email and phone hotline available 24 hours, with around a day being the average response time for the email service. There is a live chat function available on the Zulutrade homepage which is available in 11 languages.
Clearly, Zulutrade is dedicated to a positive consumer experience. If consumers have any issues with using Zulutrade, they can use the ‘contact us’ tab of the Zulutrade and fill out an online feedback form.
Educational Tools and resources
On the Zulutrade website, there are a plethora of educational resources. This includes PDFs, videos and webinars on the basics of investment and trading, as well as tutorials for how to use the platform. The resources are basic, and do not cover any in-depth material, but do cover enough for a basic understanding of the industry. Obviously, when learning about investment and trading of any kind, it is important to conduct independent learning to fully understand the risks, and potentials of investing and trading.
Zulutrade Review: Safety and Security
One of the best safety features on Zulutrade is the ZuluGuard feature. This is an extremely effective method of protecting investors that are copying others from fraud and scams, as well as from plain bad investing. The ZuluGuard function essentially monitors the actions of each and every trader that is available to copy by other investors. If the system detects problematic trading, it then freezes trade and even removes the users. Problematic trading can be erratic patterns, investing a massive sum into a suspicious sources or draconian techniques. This setting can be manually altered by navigating to the Advanced Mode section of the Settings tab of your Zulutrade account.
The stability of your investment very much depends on which broker you choose. Zulutrade offers a selection of over 50 global brokers. This is great for increasing the number of base currencies offered and creating an internationally viable service, but does mean that there is great variation in the stability of these brokers. How safe your money is very much depends on the regulation that the specific broker you choose is subject to. For example, UK residents are protected up to £50 000 if they invest with a UK-regulated broker, but investors that choose other global investors may not be offered the same level of protection. The liability does not lay with Zulutrade, as it is merely a platform through which these brokers are organised. Instead, the liability is with the individual broker and the body that regulates them.
The native broker to Zulutrade is AAAFx. Investors through this broker are protected by the Greek Guarantee Fund 9in accordance with the European Directive 93/22/EEC). This essentially means that in the event of AAAFx going bankrupt, or failure to fulfil its obligations to the investors, the Greek Guarantee Fund will act to reimburse investors. This protection is available up to a maximum of €30 000. This is not as high a protection as investing with a UK broker firm, but does remove the costs associated with using a broker that is entirely separate to Zulutrade.
In terms of regulation and licensing, Zulutrade is also fully regulated. In the EU, it has obtained a Triple A Experts SA License from Greece’s Hellenic Capital Market Commission (HCMC). This provides an extra layer of security and assurance for EU consumers. Brokers that run through Zulutrade do not need any additional regulation to offer their services to clients as a result of this; the Zulutrade platform fully complies with EU framework for auto trading service providers.
Some trading platforms are limited to 50-100 traders and just a few currencies and products. Zulutrade, however, offers over 10 000 traders in 192 different countries that are available to copy.
Furthermore, the use of different brokers means that Zulutrade is accessible on a global level. There are over 50 different brokers available serving a range of regulatory bodies and countries. This means that Zulutrade can be used in most countries. In addition, the broker that is directly linked to Zulutrade (called AAAFx) caters to 7 separate base currencies; if each broker offers a range of currencies, the global capacity of Zulutrade is limitless.
Final thoughts on our 2020 Zulutrade Review
To conclude, it seems that Zulutrade is a mixed bag in terms of its value as a trading platform. It performs well in customer service and account set up, and further to this has a good range of educational and research facilities.
The system by which investors choose a broker through which to trade has its own drawbacks and positive attributes. On the one hand, it offers traders a global outlook where they can trade in a myriad of currencies that are suitable for them, as well as accessing global markets. Conversely, it adds another layer of complexity in terms of ascertaining fees, organising investor protection and for investors choosing a method by which to trade. This is quite off-putting unless you are an experienced trader, or are willing to research all of the individual broker options to find one that suits your needs the best.
The standout feature of Zulutrade is the ability to copy veteran traders. This is similar to eToro and other, larger platforms in the industry. It means that, for novice traders, or those who are entering a new style of trading, that they can copy the moves of a more experienced trader to understand the market. The copy trade function is not as advanced as on other platforms, but there is a wider range of traders to copy, from a more global background. Furthermore, investors are protected from rogue traders by ZuluGuard, which monitors and freezes any suspicious trading activity in signal providers.
Overall, Zulutrade is a good resource for investors and has some benefits that are undeniable. Compared to other, similar, platforms, Zulutrade is remarkably safe and well-regulated, with a strong focus on customer service and satisfaction. There is a huge range of products and assets available, meaning that there is something available on Zulutrade for everyone. If you can afford to invest and mitigate any losses that come with the associated risks, then Zulutrade may be a good place to start!
For me I am not a massive fan of the User experience compared to eToro it feels old. If you want to see my eToro review click here. But if you join our Passive Trading System you’ll learn how powerful spreading your risk over multiple brokers can be!
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Hi, my name’s Joseph Moricca. I’m the Founder of Velox Investments! At 16 I learnt to count cards, at 17 I started day trading on various crypto exchanges and for the last 5 plus years I have been learning about Social Trading on eToro! I found that there wasn’t a good source for people looking to get into “Copy Trading” so I made one! On this website I share my best tips and tricks.