ZuluTrade Review: Performance

The performance of the ZuluTrade social trading network, i.e. it’s capability to make you money, is directly linked to the traders (AKA “signal providers”) you can follow on their platform. Because you can not only view the performance of the actual traders, but also of the followers (SEE IMAGE), it’s pretty transparent that people are actually making real money consistently. However … looking on the other side of the performance table, it’s also clear people lose money too.

ZuluTrade Follower Performance Screen

ZuluTrade Follower Performance Screen

Because of the massive choice of traders to follow and the fact they’re not formally vetted (i.e. the social network will do this over time), it requires some effort to find a set of trusted traders that match your investment profile. Some time also has to be invested in monitoring your portfolio performance over time.

Because you’re trading with leverage and the openness of the ZuluTrade network will allow “signal providers” with high risk strategies, it’s certainly possible that you could double your account in a month or even a day. However, the chance of your account running out of cash is probably as high when these are your aspirations and you might as well try a casino website and put it all on black or red. Nevertheless, if you have a gambling approach to trading, then technically, yes, ZuluTrade makes it possible for you to try and make a very high return on your investment.

If however you’re looking for consistent returns with a lower risk on your invested capital, this is certainly possible too and there are plenty of followers showing consistent month and month growth in their accounts.  It does require a little bit of effort and careful risk management. In our experience as well, it takes some time before you end up with a few “trusted” traders to copy, but once you found them and you manage the risk for each one, you can expect some good returns.

It’s also worth noting that the changes ZuluTrade implemented on December the 12th 2014 for their EU resident client had a positive effect on the overall quality of the traders/signal providers on their network. These changes were implemented in accordance to EU legislation and with the aim to increase investor protection and reduce systemic risk. From that date only the top 1,000 Traders in the ZuluTrade performance table are available to follow for EU residents. And in addition they need to comply with the following criteria: Max DD less than 30%, average pips per trade more than 3 and the  Trader has to have a trade history of at least 12 weeks.

While traders not matching these criteria can still be viewed and followed by customers outside the EU, most Traders now aim to meet these criteria because getting followers from EU market is very important for them. Hence the overall average quality has increased.

Don’t forget to read through our ZuluTrade Tips before you get started and try with a demo account first.

 

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