Ok, so now it’s time to take a look at another forex copytrading platform – Zulutrade. I’ve taken a look at eToro, and will continue to to report on my progress (P/L) with them. The reason I mention CopyTrader in practically the same breath is that they are the main competitor when it comes to copytrading, and so comparisons will inevitably arise. But, on to Zulutrade, how does the platform standup from a Forex newbie’s perspective?
The good news, is that the platform is web based, and offers a good deal of control over the allocation of funds to the ‘signal providers’ (traders that you copy). The downside, is that it can be a bit confusing especially if you are new to Forex trading. However, if you are serious about trading, then an investment in time is a prerequisite if you want to make some cash from currencies or commodities. So, in reality, this is not a ‘downside’, but it does require that you get your thinking cap on, and your calculator out.
Unlike their main competitor, Zulutrade offer the ability to set your own stop losses BUT, a seasoned trader may question the wisdom of this function, particularly in the hands of an inexperienced trader. Successful Forex traders who attract followers generally know a bit more more about where to set stop losses and limits (take profit) than newbie traders. Which begs the question, is it wise to set your own limitations on a trade, and override those of a more experienced trader? Having said this, at least the platform enables you to close individual open trades, so if you are screen watching, and you see a nice profit to grab before it turns direction, then you can do so.
From the perspective of ‘cash commitment’, i.e. how much you are prepared to risk on a platform that you don’t fully understand, this is fortunately not too much of a problem, as a demo account is available. This way you can get your head around all the functions and options without losing any money. The demo only lasts for 30 days, but, you can open 10 demo accounts with one email address. One very good function of the platform is the ability to export your trading history to Excel – a very simple process, and if you know Excel, you know how valuable this function is. Try the demo account.
The interface itself isn’t exactly ‘slick’ (see below), however, after a little time to familiarise yourself with it, you may be thinking that it is a victory of content over style, and is far superior to some of the interfaces I’ve used. You will need to configure the platform with your broker, or sign up for a broker if you don’t have one. While this might appear to be a bit of a pain, it is actually a bonus, as you can choose your broker, as opposed to using eToro, where you have to accept their spreads and terms and conditions.
Sign up for a free demo account.
One feature that has really piqued my interest is the ‘reverse’ function. I’m going to have to try this out and be a bit scientific about its analysis, but it’s either one of the most insane ideas I’ve come across in this field, or a stroke of pure genius. In short, you can select a ‘really bad trader’ to copy, and set your account to do the exact opposite of what they do. Whoever came up with this one is a very ‘out of the box’ thinker, and in some ways, I see this as a sign of an innovative Forex trading platform – although I have yet to test its potential properly.
Overall, initial impressions are good, but, remember to come back as I will be reporting on how my account pans out in terms of profit and loss. If you would like to contribute your experiences to this experiment, sign up for a demo account, and let me know how you get on either in the comments below, or via the Contact Page.