Copy trading is a trading strategy wherein a trader automatically copies the moves of experienced investors, which is also known as signal providers, in a copy trading platform. This trading strategy is great for newbie traders or those who do not have the time to manage their trades themselves.
ZuluTrade is one of the oldest and most well-established names in the world of copy trading. It allows users to interact with experienced traders worldwide and copy their trades directly.
In this ZuluTrade review, let’s look at ZuluTrade as a copy trading platform and see whether copying trades is worth it.
Overview of ZuluTrade
Before we move forward in this ZuluTrade review, let’s talk about ZuluTrade. A FINVISIA Group company, ZuluTrade is the largest wealth management and oldest copy trading platform worldwide.
Established in 2007, ZuluTrade revolutionized copy trading by creating a socially driven broker and a social network independent of platforms. ZuluTrade allows users to invest their capital and manage their wealth more effectively with its diverse community, technology, and open ecosystem.
As a platform, ZuluTrade collaborates with brokers, who provide trading solutions on various financial instruments, including crypto CFDs, stocks, forex, and commodities. Investors with brokers that operate through the Act Trader, the MT4/MT5, or Match-Trader can connect to ZuluTrade.
Here are the three types of brokers investors can connect their accounts to:
- Integrated brokers: This refers to brokers who have been integrated into the Zulutrade platform. It works by accessing and managing your account with the broker directly within the Zulutrade platform. Every account opened through Zulutrade’s integrated brokers will get life-long free copy trading on the platform.
- Co-branded brokers: This refers to brokers with a co-branded ZuluTrade website with an exclusive space for brokers and their users. Users need to open their account independently from their broker’s website, and then they must connect it to the ZuluTrade platform.
- Standard brokers: This refers to any broker that offers trading accounts on Match Trader, MT4, MT5, ACT Trader, or X Open Hub. You may join and use ZuluTrade services for $10 per strategy per month without any limit using your account with any broker from anywhere in the world.
How ZuluTrade Works
The users of ZuluTrade are split into two categories:
- Leaders: These are traders who can link their trading account with ZuluTrade. This makes their account public and allows investors to copy their portfolios. They are compensated by the number of trades executed by investors.
- Investors: This refers to users who can copy the strategies of the leaders.
ZuluTrade Key Features
Here are some of the features you can use once you have your ZuluTrade account login details:
- Social network features: These features include forums and comment sections. It also allows users to upload photos and videos. Here, traders can review other traders, offer advice, and ask questions.
- ZuluGuard: This is a unique feature that protects traders if the traders they are following opened erratic trades.
- Calendar: This calendar summarizes all key events for financial markets worldwide.
- Simulation: This tool allows users to see how much they could earn by testing their strategies without risking their capital.
- Watchlist: This tool allows traders to track their favorite leaders and market assets.
- Risk Score: This feature helps investors make informed decisions. It ranges from 1 to 5, with 1 indicating “low risk” and 5 indicating “high risk.”
Advantages of ZuluTrade
Here are the advantages of using ZuluTrade:
Demo Accounts
ZuluTrade allows users to create a demo account to practice on the platform without losing their capital. Opening a demo account will help traders understand how the platform works
Low Cost to Start Trading on Live Accounts
The minimum deposit requirement depends on the broker. Some brokers only require $1 to start, while some require $250 or $300 as a minimum deposit. Still, it is a relatively low cost to start trading.
Transparency
ZuluTrade allows users to view and download all past trades of a trader to analyze offline.
Massive Size of Signal Providers to Choose From
ZuluTrade has more than 10,000 signal providers, giving its users a huge selection to find leaders that fit them.
Support for Mobile Apps
In addition to ZuluTrade’s web-based platform, it also has apps for iPad/iPhone, Android, Windows phone, and BlackBerry. This allows traders to monitor and close existing trades at their fingertips.
Very Social
On the ZuluTrade platform, users can comment on a trader’s performance, provide feedback, and ask questions. It also allows traders to translate everything into English.
Customizable Trades
On the ZuluTrade platform, users can control how each trader’s trades are copied into their account. Hence, ZuluTrade allows traders to tailor their portfolio according to their own preferences.
Disadvantages of ZuluTrade
Although ZuluTrade definitely has some highs, it also has some lows, which may be a deal-breaker for other traders. Here are some of the disadvantages of ZuluTrade:
Huge Selection of Signal Providers
Although the massive size of ZuluTrade’s signal provider base is impressive and gives more options to choose from, it could also overwhelm the users.
Considering that ZuluTrade does not have a vetting system for who becomes a signal provider, the performance and quality of the signal providers could vary greatly.
Hence, it will be difficult for traders to sift through the long list of signal providers to find good ones that match their portfolio requirements.
Needs a Bit of Knowledge on Risk Management
You need to use a good risk management strategy when using ZuluTrade. Signal providers can use demo accounts, meaning they do not have any of their own equity at risk.
Hence, they could take unnecessary risks at the expense of their followers. They are also paid regardless of whether the trade was profitable or not.
High Slippage
Slippage refers to the difference between the amount a trade is actually filled at and the amount entered. Hence, it will affect the trader’s profit significantly or run them into losses.
Some brokers have very high slippage, some of which even reach over 6pips.
ZuluTrade Alternatives and Competitors
As shown in this ZuluTrade review, it has some disadvantages that may discourage traders from using it.
Hence, in this table, we list some alternatives, including AvaTrade, FXTM, Pepperstone, and OctaFX, to ZuluTrade, their minimum deposits, trading platforms, and financial markets and trading instruments:
| Alternatives | Minimum Deposit | Trading Platform | Financial Markets & Trading Instruments |
| FXGT | $5 | MT4 and MT5 | Forex, crypto, precious metals, energies, equity indices, and stocks |
| FXTM | $200 | MT4 and MT5 | Forex, metals, stocks, stock CFDs, commodities, indices, crypto, and trade CFDs |
| Pepperstone | Does not have a minimum deposit | MT4, MT5, cTrader, and TradingView | Forex, indices, shares, commodities, EFTs, and crypto |
| AvaTrade | USD account – USD $100 EUR account – €100 GBP** account – £100 AUD** account – AUD $100 | MT4, MT5, WebTrader, AvaOptions, and Ava Social | Indices, shares, bonds, commodities, crypto, and ETFs |
| OctaFX | $25 for all accounts | MT4, MT5, and OctaTrader | Currency pairs, stock derivatives, indices, commodities, crypto, and shares |
Frequently Asked Questions
How to Withdraw Money from ZuluTrade?
Since you will deposit money with your broker, you will not withdraw money from ZuluTrade directly. You will withdraw from your broker.
What is the Minimum Deposit for ZuluTrade?
The minimum deposit requirement on ZuluTrade is dependent on the trader’s broker. Some require a $1 minimum deposit, while others may require $300.
Is ZuluTrade Good for Beginners?
Yes, ZuluTrade is a good platform for beginners. You can start your trading journey, even if you do not know everything about CFDs, currencies, and global markets. You can just choose leaders who fit your needs and risk tolerance, and you are good to go.
Conclusion: Is Copying Trades Worth It?
In this ZuluTrade review, the question of whether copying trades is worth it remains. The answer still depends on your trading goals as well as risk tolerance. ZuluTrade is a convenient and user-friendly way to trade for beginners or those who don’t have time to analyze the markets.
Its social features, transparency, and wide range of signal providers make it easier to learn from experienced traders and potentially profit from their strategies.
However, copy trading is not a guaranteed path to success. How your portfolio performs still depends on the leaders or signal providers you follow, market conditions, and how well you manage risk.
Although ZuluTrade provides the tools and flexibility to succeed, it’s still up to the trader to use them wisely. Overall, copying trades on ZuluTrade can be worth it if you take the time to research, choose reliable leaders, and stay actively involved in managing your investments.
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