ZuluTrade is an interesting hybrid forex signal provider and managed account network. ZuluTrade works by taking the trade signals of the traders that you choose to follow, and automatically passing them to your broker account. What makes ZuluTrade interesting is that it offers this service for free to the end user, and anyone can become a signal provider.
Pip: depends on broker
Min deposit: $500 recommended
Max Leverage: 1:100 recommended
Zulu makes its money by taking a commission from the brokers that it ties in to.
If you are an experienced forex trader looking to prove your expertise and gain clients that follow your trading system, then ZuluTrade is a great way to show that your system works and attract the attention of traders looking for auto trading systems.
ZuluTrade works with FXCM, iTradeFX, AvaFX, Forex.com, alpari, easy forex and many more. And it’s likely that other brokers will be added as time goes on.
There are hundreds of signal providers to choose from. Naturally, some of those signal providers aren’t very good, but ZuluTrade makes it easy to tell the good from the bad, providing detailed records for each signal provider. You can see how often they trade, and how much they make or lose with each trade. Users are warned if a trader engages in risky behaviour, and it’s also made clear whether the trades they are making are being made on a live account, or in the demo account – so you know if the traders are actually willing to put real money where their mouth is.
To get started with trading using ZuluTrade, you will need an account with them, and an account with a suitable broker. You’ll need to fill out a form and fax it to ZuluTrade, and it takes a day or so for the form to be processed. Once you’re up and running, however, things go quite smoothly. You can withdraw any profits through your broker, and don’t need to interact with Zulu as a middleman for that part of trading.
ZuluTrade works best if you have a decent bankroll. They recommend a minimum of $500 for mini accounts, and $1500 or more for standard accounts.
ZuluTrade is easy to use, and provides clear information about which signal providers have the best pip count, highest percentage of winning trades, highest average profit, etc. You can also see which traders are the most active, and which have the most subscribed users. All trades are audited, and the process is transparent – you won’t find brokers coming on and padding their statistics.
One great feature of ZuluTrade is the Margin Call-O-Meter. This feature reduces the likelihood of margin calls by limiting the number of trades a signal can have at a time, and the number of lots in each trade. This is valuable protection for traders.
While ZuluTrade will conduct trades automatically, you are still in control. You can watch the trades that are taking place, and manually close them if you wish. However, if you’ve chosen a good signal provider, it’s unlikely that you would want to.
ZuluTrade is great for people that want to try forex but don’t want to have to spend all their time watching an online forex broker. Basically, it lets you trade while you sleep – or spend your waking hours doing other things.
The support on the site is good. There’s the option of 24 hour live chat support, or telephone support. It’s always a good sign when a company is reachable via telephone. Another good thing is that ZuluTrade is regulated in the USA by the NFA, and is a CFTC member.
If you’re a novice to forex trading, then ZuluTrade is a great place to start – however you should read the disclaimers presented on the site carefully. Daytrading and trading spot currencies carries a large risk. You should never trade with money that you can’t afford to lose. When you’re starting out in online forex trading, treat it like a normal hobby, and consider the money to be “spent” when you start a trade. Any profits that you make can be put back in to trading to build up more funds, but remember that as much as markets go up, they can go down.
All that said, having an experienced signal provider to guide your trades does minimise the risk, and that’s exactly what ZuluTrade offers – at no cost to you.