Zulu Trade Full Review & 6 Simple Process For Successful Start
Estimated Reading Time: 23 minutes
What do you see the man doing in the above image? (Stick with me; this is actually a Zulu Trade review). Yes, painting, but who & Where & for what?
This man is Henricus van Meegeren and painting “Jesus Among the Doctors” in Dutch court to prove he can forge Vermeers. Meegeren created his own works replicating Johannes Vermeer‘s style and allowed them to be sold to many buyers including Nazi leader Hermann Goering who thought them to be genuine. The priceonomics.com shows the below list that Meegeran, arguably the most successful art forger ever sold (probably over $60 million in total); It must remind you of the cliche “How We Define Art”. Frank Wynne who wrote Meegeren‘s biography (see the details at the bottom of this article) said that anyone fooled by a forgery must have been driven by greed or vanity rather than seduced by aesthetic attraction. In short a painting’s provenance is more important than anything else. Meegeren was charged with selling a Dutch national treasure to the enemy (Nazi) and faced the possibility of the death penalty. Meegeren’s only defence was that the works were not genuine Vermeer, so not national treasure, but his forgeries. But his work was so good like the “The Supper at Emmausand” (left image), nobody believed his confession therefore he had to prove his ability in the court. What an irony! Meegeren said “My paintings will become original Vermeers once more. I produced them not for money but for art’s sake.” Well, it’s yet the fact that his work created such huge value allowing him to spend wealthy life.
Luckily, in Zulu Trade, you don’t need any talent to replicate experts’ trading style to generate value (profit) but simply copying them, and nobody cares about the provenance of the original experts. Paul Gauguin used to say that “Art is either plagiarism or revolution.”, and see how you can develop an Art of Plagiarism legally here.
Zulu Trade Review
Just in case you are not familiar with Social Trading / Copy Trading, read 【 Six Simple Things That Allow You To Start Social Copy Trading 】 click HERE first.
What is Zulu trade?
Zulu Trade was founded by Leon Yohai a Greek entrepreneur who is mostly known for founding a series of high profile.com ventures. Leon has been trading futures for his own account, in equities and money markets since 2000 and recognized a need for a service for individual traders, who have busy schedules and cannot follow the rapidly changing markets, yet need total control of their funds (this is exactly the need we are trying to fulfil in our Global Extra Money site). With this background, Leon started ZuluTrade, the first peer-to-peer forex autotrading network in 2006. ZuluTrade is probably the largest global social trading network and competing with eToro ( read click HERE eTro Review & Five Quick Steps To Avoid Mistakes“). ZuluTrade servers have processed more than $400 billion in trades since its inception, with more than 30,000 accounts. It’s connected with?more than 64 different brokerage firms globally.
- Company Name: ZuluTrade
- Description: ZuluTrade is a forex auto-trading social community that monitors and rates the performance of third party trading masterminds.
- Cost Model: ZuluTrade receives compensation per trade per contract from the brokers connected within its peer-to-peer network and splits the compensation with the signal providers that have originated the trades which have been executed successfully on one or more live followers’ trading account.
- Type: Private-Held Company
- Address: 14 Akti Kondyli, Piraeus, 18545 Greece
- Managements: Leon Yohai (CEO) / George Kollias / Yorgos Eliopoulos / Roula Pelehrinis
- Started: 2006
*For the technical facts of its integrated broker AAAFx account, see the 5 Steps To Start section.
I excerpted the interview comments Leon Yohai made in Forexmagnates.com which gives a bit more company’s status & future prospect, as below;
Q: As social trading and copy trading platforms have become de rigeur as a tool for retail FX brokers to attract more new clients, and increase trading volume from that target market, do you think that regulatory authorities will begin to consider the signal provider that users can copy, as a financial adviser and therefore, require all signal providers to be regulated as financial advisers?
A: “ESMA in Europe considers those services as asset management, when the customer copies a trade in real time. We applied for such a license a year ago and we are now in the final stage, where we expect to get it in the next month or so. Signal providers will not need registration since our license is intended to cover all those requirements.”
Q: As one of the pioneering companies within the social and copy trading segment, how does today’s operational landscape compare to the inaugural stages of the firm, and what adaptations have been made in order to move with the times?
A: “Well, we now have over 120 people, 40 people for customer support which operates 24 hours, 7 days per week, covering 15 languages.?Also included in this is a compliance desk, and a server farm way bigger than I ever thought it could be. I started the company in the living room of my home in Virginia with only 1 developer who was actually my roommate.”
Q: In terms of cost model, many retail brokers operate within the STP marketplace where spreads are low, and clients drive a very hard bargain in terms of the cost of closing trades. How will ZuluTrade be capitalized in future to ensure that there is still enough margin to pay for the platform, and give the broker a profit without spread or external commissions increasing. With MetaTrader 4/retail broker partnerships, copy trading platform companies could charge 1 pip above standard rate for a dealing-desk based solution. How does ZuluTrade make a profit in today’s environmnet if spreads are so low and commissions cannot be increased?
A: “Any customer that wants to follow a plain vanilla investment strategy would pay 20-30% fees on profits and a 2% management fee on a traditional basis. So everyone expects to pay something extra. Most brokers have 2 pips spread in the EUR/USD. With an extra pip on top, Zulu gets compensated and our traders as well. And honestly I have never received a complaint by a customer for this extra pip. Remember that all results on the follower’s performance page, include the spread!”
Q: What is the corporate plan for the immediate future?
A: “Continue to penetrate Asia, more instruments, more brokers, and most sophisticated tools (for what we are known) to identify when a strategy loses its mojo! This way,?the customer feels protected, and then it’s when we feel that we offer a valuable service to our customers.”
Strength & Weakness
☑ Perfect Transparency: Zulu Trade share every single trade a trader has done in the past while some other social trading networks only give you access to the last 50 or 100 trades.
☑ Multiple Brokers Choices: On top of d directly integrated broker AAAfx (Greece), there’re over 50 outside partnered brokers, including US, UK, Europe, Russia, New Zealand and Australia etc, which allow you to keep your account in these and other base currencies. These outside brokers offers a smaller spread than AAAfx broker.
☑ Huge Choice of Signal Providers: Probably the largest number of traders pool to copy, it is supposed to be over 10,000 providers.
☑ Security: Zulu Trade is regulated by the authotities in most of the key jurisdictions they operate such as both NFA & CFTC in the USA.
☑ Free Demo Account: It offers 30 days free full-functioning demo account, as explained later the period can be extended and you can open multiple free demo account under the same e-mail without any restriction.
☑ Advanced Risk Management Features: You can choose “Custom Mode” or “Auto Mode”, and cutom mode allows you to make risk management setting at your own discretion.
☠ Slippage: When you use outside brokers, you will face slippage, means you can’t expect the exactly the same trading (profit) as the signal provider you follow.
☠ Commission: Again, when you use outside brokers, Zulu Trade charges up to 3 pips per trade on top of their normal spread for connecting your account to ZuluTrade (0 commission for AAAfx as the integrated Zulu broker).
☠ Relatively Complicated Setting System: Zulu Trade gives more freedom to traders for copy trade setting & risk management setting, rather than full-automated system, means novice trader may not be able to make the best use of the offers.
☠ Many Poor Signal Providers: Although there are massive choices of signal providers, Zulu Trade allows anybody to be a signal provider and does not impose signal providers to trade using their own money, thus there are big risks that they take huge risk to show impressive return which may not last long, so careful choice pf providers & constant monitoring of trading progress is required.
Can We Really Make Money?
Firstly, can we expect the exact the same result of successful signal providers we follow?
As long as you use outside brokers, the answer is no because of the slippage as said a few times. Higher slippage often happens with scalpers because these traders look for small quick profits in volatile market conditions. However if you use AAAFx broker, Zulu Trade’s inside broker, you may experience very little slippage.
Secondary, various sites reported that over 95% of Zulu traders who follow signal traders lose money. Unfortunately, Zulu Trade doesn’t publicize any such statistics and they said they would not disclose the numbers thus don’t confirm it when I asked them. So, are people really making money? and who are making money? Well, believing the above numbers, 5% are making money. Go to Traders page and click “Followers” button, then you will find the “List Of Follower” who are in profit (see the below image).
Over 100 Followers’ information are appeared. Zulu Trade confirmed me that the information listed are the Followers Who Permit Their Account To Be in Public and Have a Trading History of Over 14 Weeks, so it is not an entire list of winners but just a part of it. You can see all their account details, more or less the same information as Traders and the useful thing is it shows their current & past “Signal Providers” they copy. Besides, the settings applied in the Live Follower’s account can also be copied in your account. It’s obviously the smart way to be a winner without any analysis of traders by yourself, but surely you need to analyze the follower carefully. Needless to say the past performance never guarantees any future result, but approaching from Winning Followers will provide another angle to choose Signal Providers, and unlike the Signal Providers’ performance that can be distorted by the flow of commissions based on number of followers, the Followers performance is never influenced by such factors because Followers don’t earn any commission by publicizing their account.
As reported in ; my eToro Review, MIT Media Lab team academically proved that the copy trading results in at least 6% better than the conventional trading in eTro case, which I personally believe can apply to Zulu Trade case given the similar size & diversity. Therefore, it’s really worth trying as a tool to gain extra income passively. The important thing is you start Demo Account with Virtual Money and never put your hard earning money before you feel comfortable & confident. Zulu Trade says the demo account expires 30 days after the activation date, but Zulu Trade clarified me that ?you can request for the demo account expiration to extend to 120 days or/and you can open other demo accounts as well with the same email address, there is no restriction as to the number of demo accounts you wish to open. So you can virtually try with Demo Account in enough period.
AAAFx Broker Account Summary
As explained, Zulu Trade inside broker is AAAFx, thus I’ll list its key features here as follows;
- Broker Type: ECN based on their self claim, but it is said to be DMA/STP
- Traders from USA: No / Islamic Account: Yes / Free Demo Account: Yes
- Trading Platforms: MetaTrader 4 By Meta Quotes / Zulu Trade
- Account Currencies: USD / EUR / GBP / JPY / AUD
- Minimum account size: $300 / Minimum lot size: 0.1 lot / Minimum Trade Size: 1000
- Leverage: Maximum 200:1
- Spreads (pips): EUR/USD1.5, GBP/USD1.9, USD/JPY1.9
- Payment options: Credit & debit cards, Neteller, PayPal, Skrill, Wiretransfer etc.
- Fee & Commissions: Margin Interest: Yes / Depositing Fees: Credit Card 2.95% / Withdrawal Fees: By Wire $25
- Scalping: Yes / Hedging: Yes
- Trading Tools:
Stop Order: Yes / Limit Order: Yes / Market Order: Yes / Trailing Stop Order: Yes / OCO Orders: Yes / One Click Trading: Yes / 24hr Trading: Yes / Charting Package: Yes / Trade off Charts: Yes / Streaming News Feed: Yes / Email Alerts: Yes / Mobile Alerts: Yes / Telephone Orders: Yes / Personal Account Manager: No
- Supported Languages:Arabic, Chinese, English, French, German, Hebrew, Italian, Japanese, Korean, Russian, Spanish
- Customer Service By:Newsletter, Call Back, Phone, Chat, Email
- Customer Service Hours:24/7
6 Successful Steps To Start
Follow the below simple process to practice Auto-Trading;
1) Watch The Video
This 8-minutes video gives a brief idea about Zulu Trade as well as basic Forex market which will be educational for novice players;
2) Visit Zulu Trade Site to Create Your Free Account
Visit Zulu Trade to create your account. You should sign-up for a free first. The sign-up procedure is easy and straight-forward, you will see the sign-up screen like below;
Click Start Investing Button which will take you to;
As you see this is the screen to proceed into Live Account, means the real account you trade with real money. Again, I would strongly suggest you (even if you are a seasoned FX trader) start up with Demo Account using Virtual Money, thus click open a practice account instead button at the top right.
3) Practice with Demo Management
After you click”open a practice account instead”, you will be navigated to the sign-up screen as below;
Select your prefered platform Forex or Binary Option
In case you have Face Book account you can create account with your Facebook profile instantly, or just fill in
☑ personal information which are Full Name / e-mail address / Country / Tel No.
☑ your account setting preferences of Base Currency / Leverage / Initial account balance
Remember, the purpose of the demo account is simulation of your real account, thus you should make account setting as what you plan to do with real money in future, so if you intend to invest only $1000 then set $1000 in demo account rather than $10,000.
After you fill-in the above info, you will receive the confirmation e-mail into your registered e-mail address, which includes Account Activation Link / User Name / Password, therefore it’s very important mail. When you click the activation link, your will be taken into the below screen;
This is a wizard to create your portfolio though you can skip it by clicking “Go to the next step” button to look around your account to be familiar with the site.
4) Select “Signal Provider” To Make Copy Trading
Now, you want to search traders called as “signal providers” to copy, then click “Traders” tag where you see the massive (> 10,000) number of Signal Providers list. So, suggest you use Search Function which filters the signal providers based on your preferences.
E.g. only show me traders with over 52 weeks history, who trade their own money and have a win percentage of at least 75%, the below screen is the Search Engine;
Your prefered set up will give you the shortened list;
You can make comparison among signal providers based on the various criteria Zulu Trade already set such as Amount Following / Profit / Open Positions / Weeks / Followers / ROI / Trades / Winning trades / Average pips/trade / Average trade time / Maximum drawdown / Max Open Trades / Worst Trade / Best Trade / Has live followers / Necessary Minimum Equity / Viewed as seen below;
When it comes to Performance Indicators, you may want to see “PAMM Investment Ultimate Guide – 7 Secrets To Find The Best Account“, which gives you a pretty good idea about the norm of key indicators to help you evaluate them.
Once you’ve selected a “signal provider” to follow, ZuluTrade lets you assign the amount you want to trade per signal as well as restrict how they can trade in your account (e.g. maximum number of open trades, fixed stop loss, fixed take profit, etc), which you can do all in My Account section.
As said earlier, Zulu Trade shares profitable “Followers” information which will provide you another way of choosing the Signal Providers in unique way.
Regarding the specific method to identify the best appropriate signal provider both in eToro & Zulu Trade , please go e-Toro & Zulu Trade How To Find The Best Traders To Copy.
5) Risk Management Review
Unlike eToro, thee is no particular auto Risk setting, thus you need to make your own risk management based on your risk tolerance. Under “My Account” section, you’ll find all the ZuluTrade user interface to manage your account settings which will determine how your funds are allocated and how much risk you’re taking (be noted that the settings tab only appeares after you move the mode slider to advanced).
The Auto Allocation Mode: It calculates lot allocation based on each signal provider’s Necessary Minimum Equity (NME) which is the minimum required capital to execute all trades of a signal provider by one micro lot volume per trade. You use the Risk Meter Bar value (0%-100%) indicating the amount of capital that will be risked in the worst case scenario according to historical data. You need to remember that the calculation can exceed expectations if signal providers execute worst trades in the future. This method is based on executing all provider trades without any customized settings. It is recommendable you set the meter less than 50% for safety.
Simulate: You can use Simulate function that will run a Backtest based on the settings you’re planning. You can check how your account would have performed with your starting balance and settings. As always, historical data is absolutely no guarantee of future performance and it’s very easy to get a high ROI of historical data. This tool is very useful for those who try to set their own stop or limit level to prevent high drawdown or lock in profits early.
The above tools are useful, but the most important thing is;
Keep Tracking: Although it’s an auto-trading but“signal provider may change their strategy from one day to another. You can review your account performance online at any time and ZuluTrade sends daily and weekly summary report by e-mails, besides they send you e-mail notice when the behaviour of one of the signal providers you follow changes. So, it’s recommendable you keep checking the progress and act accordingly to prevent any unpleasant surprise.
6) Open Real Account & Select Broker
Once you decide you want to use “real” money you need to sign-up with one of their over 50 supported brokers. If you already have a broker account that is their supporting broker you can keep using it. When you choose the broker, suggest you go through my articles of FX Broker 3 Hidden Agenda & 4 Criteria to Chose The Best – Part( 1 )& Part( 2 ); Besides, you’d better take bonus deal into account when you open your broker account for the first time, and there are a few agencies that have partnership with Fx brokers, they will provide you various rebates without any change of your trading. If you want to make the best of such rebates, visit;
Cashback ForexBoth agencies have partnership with over 30 Fx brokers that include many Zulu Trade Partner brokers.
Firstly, bear it in mind that anybody can be a Signal Provider in Zulu Trade and there are supposed to be many providers who take aggressive strategy to demonstrate impressive return to attract followers as many as possible. However, aggressive strategy is taking a huge risk therefore huge chance to generate huge loss in short term. Therefore you have to avoid being dazzled by such high return. Be conservative and check the list of Winning Followers as explained before, which will provide you with different insight on the selection of signal providers. Use Free Demo Account until you feel comfortable & confident, and I believe there are many chances of becoming top 5% who make constant earnings in Zulu Trade community as long as you take simple but cautious approach explained here.
Frank Wayne reported in his book titled “I Was Vermeer: The Legend of the Forger Who Swindled the Nazis” that Van Meegeren’s philistine father rips up the boy’s sketchpads and forces him to write 100 times “I know nothing, I am nothing, I am capable of nothing“. Ethics aside, obviously he is not capable of nothing but has great talent & created masterpieces. His self-confessed motive in forging Vermeers was not greed but determination to humiliate the art critics who pooh-poohed his oeuvre. In Zulu Trade, talented traders are evaluated based on solid facts & numbers, and once again, nobody will accuse you of copying such talents no matter they are original or forgery & motives behind.
BTW, we GEM deal with 6 Advantage Play as follows;
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