ZuluTrade is a global online trading site that trades with copies. Essentially, to reach a degree of automated trading, it enables traders to copy the trades of seasoned traders on Forex and financial markets. The social dimension helps traders also to leave feedback and exchange ideas, however.
Today it boasts over one million consumers and conducts a volume of trade approaching $800 billion. This review of ZuluTrade will break down how it works and cover costs, live accounts, user reviews, regulations and more.
Minimum Initial Deposit
ZuluTrade has a minimum deposit threshold that is relatively low. Some brokers with ZuluTrade require a minimum deposit of just $1, others may need $300, £210, €250, JPY 25,000, or AUD 300.
Nonetheless, you can register for their prototype simulation account for free. Further below you can find more information about their account of work.
Spreads and Commissions
In addition to the usual spread, the brokers charge a fee per transaction for linking your account to ZuluTrade. For ZuluTrade’s own broker, AAAFx, which has its headquarters in Greece, and up to three pips elsewhere, that can be as small as 0.
The spread (the difference between buy and sell price) can vary from one broker to another. Also the currency pair and the time of the day can affect the spread. Brokers, for example, often widen spreads during periods of high volatility.
Leverage
Most people are aware that leverage can be used to increase earnings potential. Before downloading an account, though, you should also remember that leverage trading can intensify losses and open up to marginal calls.
Normally the higher the leverage, like 1:1000, the lower the margin used, which typically implies an rise in the amount of free margin and profit. However, this may lead to overtrading and your account can reach a stop-out point with a high drawdown. So, to avoid risk, the use of 1:100 leverage is often recommended.
Other Trading Fees
You should also be aware of any extra costs before you sign up for and log in to ZuluTrade. For instance, you can be charged a roll-over / swap fee overnight. The sum would depend on the pair of currencies that you sell. Although these costs can eat into profits over a substantial period of time, intraday traders would not usually experience such charges.
Other than that, there are no other extra charges. ZuluTrade explained on their website that the traders you copy, as part of the fee, are paid directly by ZuluTrade.
It is also worth noting that if you go to their website, you can find rewards and promotions for deposits every now and then.
