What You Need to Know About ZuluTrade
Rakuten Securities Australia offers its clients access to ZuluTrade, which is an online social and copy trading platform. ZuluTrade offers investors a copy trading product, where professional traders produce signals, as well as a social trading communitywhere ideas can be shared. The platform was initially introduced in 2007 and today has more than 1-million users globally with trading volume of more than $800 billion. Investors that use the platform can choose from thousands of registered talented traders from over 192 countries globally.
ZuluTrade is not a broker. The software platform works in tandem with your broker and allows you to copy trades. The goal is to connect followers and signal providers through proprietary software that uses advanced performance tools. The ZuluTradeApp offers precise data about a-signal-provider’s operational strategy and performance.
How Do You Open an Account?
To open a Zulutrade account, you will need to have a trading account at Rakuten Securities Australia. This can be a new account that you open or an existing account. If you have an existing account, you will need to agree to link you Meta Trader 4 (MT4) account to a ZuluTrade account. To open a new account, you will need to register and then you will receive an email within 2-business days confirming that your account is open. Once this is complete, you can link your MT4 account to your dedicated ZuluTrade Account.
Spreads and Commissions
ZuluTrade fees are separate from the commissions and spreads that you will pay to your broker. The cost of using ZuluTrade is a 1 pip spread mark up on top of your normal spreads. ZuluTrade has a volume-based compensation program that is used for their Classic Account Model. In this model, traders will earn 0.5 pips per each lot that is closed in a real-investor (not demo) account. They also have a profit-sharing arrangement with traders. If you hold positions overnight, your broker will also apply a rollover cost.
One of the key benefits to using ZuluTrade is that you can use specific criteria to find traders that match your risk parameters. A traders’ performance is continuously ranked by ZuluTrade's, ZuluRank algorithm. There are graphical metrics that will help you visualize the performance of each trader.
Your region could control your ability to see certain traders. For example, there is EU has legislation that restricts investors to only seeing the performance of traders that are listed in the top 1000. Traders must also have a minimum of a 12-week track record and show a profit per trade that is better than 3 pips.
The ZuluRank System will also allow you to limit your exposure as well as your maximum drawdown. In addition, you will be able to measure each trader’s overall performance. This includes, pips earned, as well as average pips per trade.
ZuluTrade has several compliance rules. The goal is the safety of investors capital. This includes the maximum loss a trader can exceed for an individual trade as well as a portfolio drawdown. This is important for auto-trading clients as you are relying on ZuluTrade to police their trader’s activity.