Want to Try Your Hand at Social Trading? Read our ZuluTrade Forex Brokers Review.

ZulutradeIn today’s Forex trading world, a new way of trading has taken it by storm. Many traders are now choosing to use social trading networks to help with their decisions. One of the first names to get a foothold in the industry was ZuluTrade, and today there is a good selection of ZuluTrade Forex brokers to choose from. The idea behind social trading networks is really quite a simple one for everyone concerned. ZuluTrade, along with a number of other social trading platforms, gives users the opportunity to mimic trades made by other, often more experienced, traders. For those more experienced traders, not only does this give them the chance to share their knowledge, but it can also earn them some extra cash.

A brief introduction to ZuluTrade

In the world of online software providers, ZuluTrade has quite a reputation. Founded in 2007, it provides an online and mobile copy- and social trading platform. From very humble beginnings in the founder’s living room, it has blossomed into a very successful software company with more than 1 million users and $800 billion in executed trades. In the beginning, it was just signal providers that were available for following, but today traders are able to follow other more experienced traders as well.

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In the strictest sense, ZuluTrade is merely a Forex autotrading platform, but as traders are able to leave comments and feedback, as well as watch and copy other traders, it is also considered to be a social trading platform.

Zulu’s concept is “to offer an open environment, where traders from all over the world are able to connect and share their knowledge”. If that’s their aim then they’ve pretty much achieved it.

What do ZuluTrade Forex brokers have to offer?

No one will deny that being a successful Forex trader requires time and effort. Watching, understanding and being able to analyse the foreign currency markets isn’t something that can be done in a short amount of time. With a social trading network, it is possible to reduce this workload by following another trader or signal provider, and letting them do all the legwork instead. For some, this may sound a rather lazy way of trading, but for others, it is the only way they are able to achieve any level of success. The advantages of copying someone else’s Forex trades are many. Choosing a ZuluTrade Forex broker means you can benefit from the following:

It sounds pretty amazing, we have to agree; but a word of warning is required, because social trading does not necessarily offer a better chance of winning. It can improve your chances when compared with trading on your own. As we all know, though, Forex trading is not an exact science, and what might be a great deal to make in one instant may have a different outcome 5 minutes later.

Is it easy to find your way around ZuluTrade?

It is very quick and easy to trade Forex with ZuluTrade, by using a Forex broker that offers ZuluTrade as a platform option. You should always try a demo account first, as this will be a good introduction. Then when you’re ready to start trading live, you just open a live trading account and deposit some capital. The next step, and this is possibly the most difficult one, is to choose the right traders to follow. If you’ve taken the sensible option of opening a demo account first, this step will be much easier, as you will already have a good idea of those experts you want to follow. Once you’ve chosen a few likely candidates, remember to set your own stop losses. This will reduce your own losses if you’ve picked the wrong traders to follow.

Is ZuluTrade better than any other social trading platform?

There are a number of reasons why ZuluTrade stands out from the crowd, the most important of which is its commission structure for signal providers. It was recently amended, and now providers are only able to keep their earned commission if they have had a profitable month. For the signal providers this acts as an incentive to share winning strategies; and for followers, it means they can be more confident of making a profit.

ZuluTrade also provides comprehensive stats for each signal provider, and you can tailor the performance table according to a number of different criteria. You get to see the number of trades, how many pips, percentage of wins, maximum open trades, average trading time, and a number of other important figures, all of which will help you decide on the best providers to follow.

ZuluTrade has a little-used option that is definitely worth considering. It is an automated trading option that trades opposite signals to those provided. Sounds pretty silly? Not really, because it is based on the assumption that most providers end up out of pocket, and it is possible to make a half-decent profit if you can find those who aren’t worried about risk and have no real trading strategy.

Is there a downside to ZuluTrade?

You’ve got to be thinking that so far ZuluTrade sounds pretty amazing, and we have to agree it is. However, as with most things, there are some disadvantages: