ZuluTrade: diversifying portfolios – optimizing performance (2022)

ZuluTrade promotes its social trading platform with the slogan “Invest with the best!”, an apt description of what network trading is for. ZuluTrade’s aim is to offer a competent and broad community for social trading. While eToro and Wikifolio may actually be better known, and have been doing this for longer, ZuluTrade mostly wants to score with an easy and innovative service. In doing so, the US-company comes across as young and fresh, designed to particularly attract traders that are as young and innovative.  

ZuluTrade is additionally referred to as the world’s leading Social trading platform, be it online in the browser or with the app. Some claims one should get to the bottom of. Which is why we will be focussing on the ZuluTrade concept in this article, while analyzing the various trading options and experiences with it.

The ZuluTrade concept

This image shows the ZuluTrade logo.

ZuluTrade’s concept is actually nothing new in comparison with other well-known platforms such as eToro, Wikifolio or NagaTrader. It provides another place where social traders and followers meet. Traders link their accounts with ZuluTrade to show their market results and then compete with all the other traders in the so-called Performance Tab. Followers can view these strategies and develop their own from them. Zulu enables everything from copy trading through to mirror trading.

ZuluTrade is thus highly focussed on the network idea and also wants to be understood as a social network for investing. One can therefore rate and comment on the various strategies, getting in touch with other members this way. Especially novices can build on this and refine their own trading strategies. ZuluTrade also provides them with very positive support in doing so, with important guidelines and video tutorials.

How does ZuluTrade work?

This image shows the menu bar of ZuluTrade. It contains links to the Invest, Markets, Learn & About sections and to the Login & Register forms.
ZuluTrade: Capabilities of the web version.

To trade on this platform, you need to register. For this you create a user account where you can choose from two account types – either “classic” or “Profit Sharing”. Then you select the broker you want to work with or whose trading activities you have already been tracking. If you do not have a Broker account yet, you can also use Zulu to open one at the broker of your choice. If this is successful, you can get started 2-3 banking days later.

ZuluTrade rather sees itself as a mediator in this, and not as an independent provider, because the minimum deposits, base currencies, etc. depend on the respective filed broker and not on ZuluTrade. There need to be minimum funds of US$ 100.00, however, to enable the interaction between ZuluTrade and the broker.

Upon your successful registration, you can search ZuluTrade with various parameters and filter functions for suitable traders whose strategies you want to copy. You can prioritize their ROI (return on investment) or risk behaviour, for example, and will be shown the matching search results. Then you can click through these lists and take an even closer look at individual traders. If you decide to follow a trader, you select the amount of capital, copy the desired strategy, and your investment is already underway. Trading at ZuluTrade is real-time, same as with the other providers. 

One helpful tool at ZuluTrade is their Simulation Function. This enables you to test the strategies of the social traders and, by applying various parameters, find out if their strategies could also work for you. This way you can trial them without needing to invest any real money.

As a follower at ZuluTrade, you can act quite freely, for example by setting your own Stops to minimize your personal risk while acting more independently. Compared to Wikifolio, for example, you are much freer in your investment decisions. The same freedom applies to the traded products and you can invest in everything the social traders invest in. The sky’s the limit here, so to speak.

Traders at ZuluTrade

Every registered user can present him- or herself as a trader on this platform. It is advisable to have acquired some market know-how and experience for this already, though, to deliver a suitable performance in the first place. The traders can be viewed on the website itself or in the corresponding app rated by their individual performance. This ranking is like a combination of the “likes” in social media platforms such as Instagram or Facebook and the rankings in gaming eSports. What particularly catches your eye in the list very quickly is the aforementioned ROI. If you want to follow a trader, you can simply do this here on this page if you are logged into your customer account. 

Traders’ Combos

All traders want to minimize their risk of loss and maximize their profit chances by a broad diversification. While some select a very broadly designed portfolio for this, others go for a more tranquil investment straight away with an ETF (exchange traded fund). To not only follow just a single trader, and enable the best possible diversification at ZuluTrade as a user, you can also opt for their Traders’ Combos. This will help you ensure a diversified strategy by combining ZuluTrade’s best traders.

All you need to do is select various high-performing traders based on their strategy and risk distribution and combine them, all according to your own wishes for risks and opportunities. ZuluTrade will then administer these trading services with a certified portfolio management team. This can either be fully automated in a copy trading sense, or only partly to still let you intervene as the user.

Selecting traders for Traders’ Combos

Not all the traders appear in the Combos. To be able to offer some guarantee of success, ZuluTrade requires active traders to take some hurdles for this, meaning that they need to show a long-term positive ROI and profits exceeding 30 percent. To exclude flukes with these traders, their performance needs to be maintained for a minimum of 15 weeks, and reflected in more than 100 trades. Otherwise they could successfully qualify with just one lucky trade, with little to no real substance behind them.

How do I create a Traders’ Combo?

With ZuluTrade being innovative and easy to operate, Traders’ Combos can be created in three very simple steps.

  • Step 1: Select a fund of the trader you want to invest in
  • Step 2: Define your risk tolerance. You can do this on a scale from high to low
  • Step 3: ZuluTrade will suggest Traders’ Combos and you just need to select the ones that suit you best.

Differences between Traders’ Combos and Combo+

ZuluTrade offers two types of Traders’ Combo, i.e. the standard version and Combo+. These differ in the options they offer, as you can see at a glance below:


ComboCombo+
Portfolio initialization
(trades are provided automatically)
No continuous portfolio monitoring required
Automatic portfolio rebalancing

Automatic trading with cryptocurrencies

Not every social trading platform offers Crypto trading. But expanding the portfolio is also a growing trend amongst investors here these days. Which is why ZuluTrade also gives you the option of trading Cryptocurrencies.

ZuluTrade advertises itself with the intention of making crypto trading social. And the options available for trading the most popular cryptos are ultimately comparable to the standard ZuluTrade services. You can follow cryptocurrency traders in a broad network of experienced traders whose performance you can copy. The 24/5 support from Monday to Friday and possibility of trading cryptocurrencies for lower commissions than in other platforms meanwhile present further powerful arguments for the social trading at ZuluTrade.

Which cryptos can be traded?

  • Bitcoin
  • Ethereum
  • Ripple
  • Bitcoin Cash
  • Litecoin

Experiences with ZuluTrade

ZuluTrade persuades social traders, novices and experts alike with its innovative and easy user interface. The mirror function helps them copy the best strategies in the process. Any social traders who feel confident enough can turn from a passive into an active trader and become signal providers themselves. To do this is easy as pie. The social trading platform is also free of charge for signal providers and followers, which is a convincing feature. The possibilities of the Traders’ Combos and almost totally adjustable strategy and risk management settings are further positive characteristics of ZuluTrade.

It is for these reasons that most the platform’s users are highly satisfied, and we also learned to know the positive sides of ZuluTrade in our own test, for sure. But this is not to say that there are no negative aspects. 

For ZuluTradeAgainst ZuluTrade
Innovative and intuitive platformAnyone can become a signal provider (no matter how good they are)
Good appBeginners can be easily blinded by past performances
Many setting optionsTrading hardly possible without previous knowledge
Various parameters for checking the quality of traders and their signalsThe real strength most of all lies in the mirror trading
Very good mirror function
Free for signal providers and followers
Individually adjustable risk management
Social trading with cryptocurrencies

Conclusions

ZuluTrade is a social trading platform that most of all understands itself as a network. The focus is on bringing together traders and followers, which is also the reason for the versatile integration of various Broker accounts. The many options for traders as well as followers are meanwhile convincing, even if there is some room for improvement in the transparency of the fees and costs. This because the fee structure is primarily passed on to the own broker.

The two-account model (classic vs. profit share) offers traders an opportunity to exert an even greater influence on their own commissions. Anyone confident enough in their ability to convince with a successful performance, most of all, can increase their earnings in the profit share model. Both models generally work under the same pattern, though: Traders with many followers earn better money.

The new options of Traders’ Combos and cryptocurrency trading demonstrate that ZuluTrade continues to innovate and wants to establish itself as a market leader. Countless possibilities meet hardly any restrictions on this social media platform. This looks markedly different with the competitors in parts. ZuluTrade meanwhile comes across as young and dynamic, which one can hardly say of their competitor Wikifolio, especially, these days. Anyone with technical interests who has already delved into Market technicals will greatly enjoy the possibilities of ZuluTrade. If you have some experience already, you can immediately go all out at ZuluTrade, but anyone coming here as a beginner would be better advised to thoroughly test the platform first, and familiarize themselves with the great trading universe’s opportunities and risks this way.

One aspect where ZuluTrade could take some stronger action is the critical performance. While there are entrance hurdles for the Traders’ Combos, they are totally lacking for normal signal providers. The less experienced a social trader and follower is, the easier they could be blinded by short-term performances. This because a critical view evades novices more than experienced traders. ZuluTrade could make some improvements in this regard to somewhat shorten the analysis of the long-term performance.

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