ZuluTrade is non-standard solution for social trading. Theoretically, brokers provide platforms with similar function — control over the transactions of other traders. The developers of ZuluTrade went further: they created a single online platform that allows you to copy the signals of more than 1000 providers. The service offers only to choose the right trader, at its discretion and automatically copy their trades.
Everything is beautiful, isn’t it? Just choose the most profitable broker and repeat his actions. By the way, about the problems of social trading we wrote before. Auto mode is captivating, but tell me, is there any sense for profitable investor to tell about his strategies for free, if you can take the money in trust, if he is so successful?
AAAFX is another dark horse in the chain of ZuluTrade, which is a subsidiary of the trading platform. In theory, the customer AAA FX will have to access the signals for free and instantly. It is noteworthy that initially ZuluTrade enjoyed the support of Alpari, but later the broker refused from support.
How to become a client of ZuluTrade:
go to the appropriate website and create a real or demo account (fortunately there is a possibility of creation a demo account);
choose any broker from the list. There are over 20, but you will also need to go through registration process with broker;
after a series of actions (follow the prompts of ZuluTrade) the broker connects the trading account with the account on the platform.
Trading takes place through the service platform. Thus, ZuluTrade is something in between specialized platform (auto trading) and service, being a mediator between the trader and the broker.
ZuluTrade a real earnings or scam?
There are a lot of positive reviews about this tool, but the question remains about the monetization of this platform. First, the case in wider spreads. That is, since the service pays the most successful traders fixed amount, ZuluTrade, must “recapture” the money. And he does it at the expense of widening of the spread. The more traders join the trader, the more the service will earn on commission, in parallel paying successful traders.
Then the question arises: if in the top 1000 traders say, there are 50 best that get profit for transactions, why would the rest of the 950 simply not to copy their trades? How is the distribution of profits performed, the cyclicality of which actually means building a pyramid?
The principle of operation of ZuluTrade is the following: the platform is an intermediary between the accounts of the trader and the investor. The investor finds a trader, whose dynamics is good for him and subscribes to him, copies his trades.
Strange, but in this situation the investor needs to obtain the same profit as the trader (except a spread, projecting earnings of ZuluTrade). And important point: the ZuluTrade signal is not the signal for the opening or closing of the transaction, it is an auto copy. That is, trades are opened and closed automatically and at the discretion of the investor to close them manually. AAA FX is a European broker, specially sharpened for the platform, that is offering the best expiry time of the trade.
It looks like a PAMM account. Feedbacks about this service are not good. In total, they are reduced to that:
traders in the top is not so much the specialists, because they use a high-risk strategy of betting on “random play” and losing the deposit on the drawdown;
there are a lot of questionable accounts, in which Martingale can be seen;
copying of trades leads to loss of investor’s deposit, while the trader continues to work. Reason: different trading conditions.
You can try to expand the filter. For example, leave only those traders who spend no more than 4-6 trades a day, to remove the traders and account for less than a year, to remove traders who have less than 20 followers. That is not to focus on leaders. But the reviews about ZuluTrade is rather negative than positive.
Summary. ZuluTrade is a mediator, which can not be blamed in case of loss of the investors account. The platform is not responsible for the actions of the traders (though turns off in case of problems or fraud on the part of the trader). In most cases, copying is unprofitable due to the difference in the spread of different trading conditions and traders ignore the rules of risk management. However, the risks of investing in the PAMM-account is the same.