Automated Forex Trading FAQ

From ZuluTrade Website:

• What is ZuluTrade?

  ZuluTrade bridged the gap between valuable information in money markets and trade execution, by converting the advice of professional and talented traders globally to an executed trade rapidly and automatically in your account (from supported brokers)

  There was a time when trading was a headache. Not anymore! You don't have to study or monitor the market to make a good pick, because hundreds of industry well-known experts from all over the world are doing it for you. All you have to do is pick the experts you like, and Zulutrade will quickly convert their advice into live trades in your trading account directly with your broker. And the best of all, it's completely FREE!*

  Zulutrade receives rebates from the brokers, for the trades generated and splits them with the experts that provide the advice. Check the performance results recommended by our experts here

• So this service is completely free for me?

  Yes, completely free. The FCM and ZuluTrade are compensated for their services through the spread between the bid/ask prices. The revenues are then shared with the signal providers who have generated the signals. Note that unlike other similar services, we do not increase the spreads on any currency. There is absolutely no additional/hidden cost in our service.

• Who is placing the trades on my account? Do the experts know about my account?

  None of the experts that recommend trades will ever know your account's existence. Zulutrade receives their recommendations, and checks the experts you have subscribed with in your account profile, and decides whether or not to autotrade their advice in your live account using a secure direct connection with the broker's backend. Zulutrade's patented engine places trades automatically with no human intervention. Zulutrade service is server based, in other words you don't even need to have your computer on.

• How do I get started?

  All you have to do is provide Zulutrade with the name and account number of the brokerage firm you're trading with. Sign and fax the documentation required by your broker, to authorize ZuluTrade to bridge the experts advice with your broker account.

  If it is the first time that you will trade online or you never had an on-line trading account with one of the brokers we support, then the first step is to open a new account. Click here to open one now in just 5 minutes.

• Are the results hypothetical? There are a lot of websites that claim all kinds of results...

  Every signal received by ZuluTrade is executed on at least one live / demo broker account. The results contain final spread, swap rates, and profit or loss from current open positions, hence all possible costs by the broker. The spread is the standard spread advertised by the broker you're trading with. Hence our performance always reflects real market conditions. Due to the volatility of the markets, sometimes results may vary between accounts.All signals and trades executed on a demo account are considered to be hypothetical.

• I already have an account with one of the dealing brokers you support. Why is ZuluTrade telling me that I cannot use this account? Signing the IB form doesn't work. Do I need to open a new account? What’s wrong?

  This is because when you opened this account, there was a party that acted as an Introducing Broker (IB). Your dealing broker cannot remove that Introducing Broker from your account and replace it with Zulutrade as the new one (legal issues). You need to open a new account and set ZuluTrade as your Introducing Broker. Click here to open a new account already setup for ZuluTrade.

• I do not want to open a new account, and I don’t want to sign any forms, even though there is not any cost involved with it. I prefer to use my existing account with the broker I’m trading with, without any changes. Is this possible?

  No. By signing the IB form, you enable ZuluTrade to receive rebates from the broker or dealer you have an account with, and most importantly for ZuluTrade to pay the signal providers that are generating the trades being executed in your account. So if you do not wish to sign the IB form with the existing account, the alternative is to open a new account with your broker by signing the same IB form for that new account.

• Why do I need to type my username for the broker platform I’m trading with? Is there any danger for anybody to steal it?

  No, there is no danger. We will never ask you for your password. But even If your password was stolen, it is not possible for anyone (including ZuluTrade) to withdraw funds from your account. This is because your broker, who always wires funds to the beneficiary of the account ONLY, is the one who had opened the account

• What is a pip?

  A pip is the minimum movement of a currency upwards or downwards. To calculate each pip for every currency, divide 1/ (currency pair exchange rate) Ex: 1/224.92 (GBP/JPY) = 0.00444 GBP. If you’re trading a 100:1 leverage account, then multiply this with 100. Ex 0.00444 x 1000 = 4.44 GBP. To transform this to USD just convert it. Ex: GBP/USD = 1.9377 x 4.444 = 8.6 USD / pip

  Another example is to calculate a pip for GBP/USD. 1/1.9377 = 0.516 GBP. For a 100:1 standard account, multiply that with 10. Ex: 0.516 x 10 = 5.16. To convert in USD multiply with 1.9377. Ex: 5.16 x 1.9377 = 9.98 USD / pip

  Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

• How long does it take to open a new account with my existing broker?

  It only takes 1 day. Most brokers – if you already had an account with them, do not require duplicate proof of records, and will provide you with a new account number. Don’t forget to tell them that your Introducing Broker is ZuluTrade. Click here to open a broker account already setup with ZuluTrade.

• What is the minimum deposit to open a new account?

  It depends on the broker, but we recommend that the amount for a standard account is $20,000 USD and for a mini account is $1,000 USD.

• I don’t have a trading account with one of the dealing brokers you support. Is that a problem?

  No. You can open a new account already set up with ZuluTrade now by clicking here.

• I tried to open an account, but I’m confused. Should I open a standard account, or a mini one?

  If you are trading more than $10,000 USD we recommend to open a standard account, otherwise a mini account.

• Can I open my account in different base currency than USD?

  Yes. You can choose between USD, JPY, EUR, GBP and AUD

• I logged into my account. How many providers should I trade with?

  On the account settings page in the member's login area, there is a wizard that corresponds to the lots traded by every provider and your equity. This wizard will display how many providers you should choose without having the risk of a margin call. Simply follow the wizard. Of course you can choose the signal providers manually if you wish.

• What is a lot?

  A standard lot is a buy or sell size. If you buy 1 lot of EUR/USD, trading at 100:1 leverage then you buy 100,000 EUR/USD. But since you’re trading with 100:1, the leveraged value is 1,000 EUR/USD or 1 standard lot. If you trade a mini lot, then you buy 10,000 EUR/USD and the leveraged value is 10,000 EUR/USD or 1 mini lot.

  Without proper risk management, this high degree of leverage can lead to large losses as well as gains.

• Can I trade manually? Or will it conflict with the zulutrades?

Yes. Manual trades will not affect automatic trades.

• I have opened a new account with my broker. How do I know everything is ok?

  Your broker will send you an email confirming that we are the Introducing Broker, and that your account is ready. Then, you log in to ZuluTrade and configure your trades.

• Who are these signal providers? How did you pick them?

  We do not pick them. Any individual can become a ZuluTrade signal provider. It is not possible on ZuluTrade to misrepresent the performance of the signals generated. If ZuluTrade shows a profit or loss, it is accurate, because details are confirmed by the dealing broker’s statements. For each pip stated in the performance section, there is a trade registered in the broker’s backoffice. The results are not hypothetical, but actual.

• What is ‘spread’ and why do all my trades start off with negative pips?

  The spread in the FX currency trading market, refers to the difference between the ‘bid’ price for the currency and the ‘ask’ price.
  Each traded currency pair opens with the spread. So if the spread is 5, then your trade will open at –5pips.

• How do I control the number of lots, and the number of trades a signal provider trades with on my account?

  When logged into your account at zulutrade.com, go to your account settings page. From there select the ‘max open lots’ drop down menu’, this allows you the set the number of total lots you wish a provider to have open at any one time, before he can open any more lots. Also, next to each provider's name you have selected, there is a drop down selection called ‘lots’. This pertains to the number of lots to be traded on each individual trade. For example: if you wish each provider to trade with 2 lots per trade, but wish there to be no more than 2 trades open at a time. Then you would set max open lots to 4, and number of lots next to your providers name to 2.

• What is Trail and Breakeven mean?

  Trail is a sliding stop value that follows the trade as it is making a profit.
  Breakeven is how many pips a trade must be profiting before a stop is placed at the breakeven.
  Both or these can be set manually when a provider is trading your account from your account settings page.

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