Is ZuluTrade Safe?

Is Investing with ZuluTrade Safe?

ZuluTrade We’ve been asked the question on whether ZuluTrade “is safe” a few times, so based on our knowledge and experience as a customer, I thought I’d write down my opinion on this.

ZuluTrade Inc. is incorporated and registered in Greece and fully compliant to all EU regulations for financial companies. Their CFTC, NFA Member ID is 0389149 and to our knowledge this is a totally legit business.

Is my money safe?

To answer this question you must first understand that ZuluTrade is “only” the social trading platform which connects traders (aka signal providers) with investors. As an investor, your actual money is kept in the broker account you use to connect to ZuluTrade. There’s a choice of over 50 brokers from all around the world, so how safe your money is will depend on the financial stability of the broker and the regulations of the country they’re registered in. E.g. UK residents are protected and their capital safe up-to £50,000 in case they invest with a UK regulated broker which goes out of business. Hence the liability here is not with ZuluTrade but with the broker.

However in the case of AAAfx, which is ZuluTrade’s own broker, the case is obviously slightly different. AAAfx was founded in 2009 and is registered in Greece and fully compliant to all EU regulations.

Moreover, AAAFx investors are protected by the Greek Guarantee Fund according to the European Directive 93/22/EEC. In the event of an Investment Firm’s bankruptcy or failure to fulfill its obligations from the provision of investment services, this Greek Guarantee Fund will act in order to reimburse the investors and/or any of the contracting parts. The maximum amount of compensation is €30,000 per investor (more information can be found here).

Is my investment safe?

The safety of your investment all depends on yourself, and in particular on which traders you decide copy and your risk management settings. If you invest $1000 with ZuluTrade and select to copy a trader with a history of drawdowns larger than 1000 pips, you pretty much will lose your full investment and hence your investment clearly isn’t safe.

However, ZuluTrade provides a wide range of tools to help you protect your investment. E.g. you can set the maximum you allow a trader to lose before you automatically stop copying them (e.g. $200 if you only want to lose a maximum of 20% of your investment from the previous example). Or you can set the maximum amount of positions you copy for each trader in your portfolio. In addition you may find our ZuluTrade tips on selecting traders and money management settings useful too.

I hope this clarifies the question on how safe your money and investments are with ZuluTrade. As always, trading leveraged Forex instruments is considered high risk, so never invest money you cannot afford to lose. No “safe” trading system has ever been made, so there’re no guarantees of future profits or lack of losses.

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CFDs and other derivatives are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how an investment works and whether you can afford to take the high risk of losing your money.

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Past performance is not an indication of future results. Trading history presented is less than 5 years old unless otherwise stated and may not suffice as a basis for investment decisions. Prices may go down as well as up, prices can fluctuate widely, you may be exposed to currency exchange rate fluctuations and you may lose all of or more than the amount you invest. Investing is not suitable for everyone; ensure that you have fully understood the risks and legalities involved. If you are unsure, seek independent financial, legal, tax and/or accounting advice. This website does not provide investment, financial, legal, tax or accounting advice. Some links are affiliate links. For more information please read our full risk warning and disclaimer.