Signing with this brokerage will provide investors with two account options, including the Classic and Profit-Sharing Account. Case 3: In addition to the current volume-based payment model, ZuluTrade introduces a new compensation scheme with a view to aligning Followers interests with Traders rewards and applying mutual fair copy-trading conditions. As you can imagine, in the first month (if there were any profits), the reserve fund won’t have enough money to pay the total commission. Performance Fee will not apply for the Follower. Profit sharing accounts are subject to a monthly performance fee per selected trading system. You should consider whether you can afford to take the high risk of losing your money and whether you understand how CFDs, FX, and cryptocurrencies work. Find and follow the ones that match your risk appetite. For example: for USD accounts, round turn commission will be $15 instead of $20. For MT4 and Profit Sharing accounts, commissions are $2.50 for forex trades and $0.30 for CFDs. Monthly Reserve Amount = -$20 For an actual example of how this model works, please check the ZuluTrade Trader Guide. First of all, the Follower chooses how to pay the Trader, not the other way around. In case of underperforming however, the Reserve amount will be deducted (penalty) by 20% of the generated losses. In Profit Sharing Account, the spread cost for each transaction remains low/normal. One of the most notable benefits is that followers who choose to use the Profit Sharing model cannot interfere with signal replication. bcz right now follower can limit the no of trade. The Follower will be charged 20% out of the accumulated profit ($1000): $1000 x 20% = $200. The calculation of the amount is based on the profit above High Water Mark (“HWM”). Based on the Payment-Reserve Scheme, for the Trader: 50% of the Performance Fee paid by the Follower will be credited in the Trader’s account immediately: $200 x 50% = $100. then 1st 3 closed in loss and rest 2 covered all the loss + make some profit, then how trader will get compensated or punished? Yes, ZuluTrade applies a small monetary penalty. another thing is do u limit some option or add some more option for profit sharing section. You can even try it out with a Demo account. I signed up on zulutrade as a signal provider and successfully managed to get in the top 30 in the rank, it was a long road to get there and i managed to reach it with a 90% profit … The 50% Payment-Reserve rule explains how this 20% is paid and where the money comes from. You may cancel your subscription at any time. Thank you for asking this question, which allows us to explain the way our Traders’ Payment - Reserve Scheme works. Cryptocurrencies can widely fluctuate in prices and are not appropriate for all investors. From the other side, the follower pays the trader 20% of the profits he has gained thanks to that trader, every month. Registrants with ZuluTrade will have accessibility to these financial services via Windows, Android, Mac, and iOS. Some of these features include profit sharing accounts where investors trade with discounted commissions and then pay traders from their monthly earnings. First of all, we should mention that every Trader has a Reserve for all his Followers with Profit-Sharing accounts. Thanks a lot for your valid comment! As you may understand, both Followers and Traders will need to work together in order to achieve a common goal. In what way will i be penalized as a Trader, i mean what are the figures. The trader, however, is a bit more complex. All providers have a percentage of retail investor accounts that lose money when trading CFDs with their company. Profit sharing account is intended for beginner traders. Zulutrade provides two live accounts: the Classic and the Profit-Sharing accounts. This trading platform allows you to invest in the Forex market, crypto currencies such as Bitcoin and CFDs. With ZuluTrade’s Profit Sharing model, the trader earns 20% of the profits he has generated for his follower’s account every month. Every time you generate a profitable monthly PnL to a Profit-Sharing Investor, you will be credited a 20% Performance Fee. or he has to be open new signal for that, means build new record from beginning again. It is 80$! ZuluTrade Profit Sharing – What It Is, How It Works, Pros and Cons. ZuluTrade Account Selection . And that’s it for the follower. but in the section RECOVERING LOSS PERIOD mentioned that previous 20 is recovered in traders account. im little bit confuse, according to my calculation trader is not getting penalized fund. Follower’s Monthly Performance Fee (20% of the Profit above High Water Mark) is split, as follows: Case 2: Please read our. No action is required from your end! ... Profit Sharing Pay only if you have profit A performance fee of 25% is charged on the profits generated per trading system every month. Do you want to understand the pros and cons of choosing this mode? Forex … ZuluTrade Profit Sharing Account This new model aims to improve the relationship between trader and follower, empower the trader by making safe and secure trading more convenient ans dhift the trader’s focus even more on earning more followers. The 20% of profits of the trader is paid on a 50% Payment-Reserve model. More details will be available soon on our Forum and our Blog. It shall not be intended as operational advice for investments, nor as an invitation to public savings raising. Hello guys i am making this post to warn people who are planning to use zulutrade as a signal providers and a signal followers. From the follower’s side, 20% of the profits of the month will be deducted. With a profit sharing account: You don't have to pay ZuluTrade a commission per trade (volume-based fees) but rather a percentage of your profit only if the Trader(s) you follow has earned you a return on your investment. Therefore, for every profitable month PnL generated from a Trader that you follow, your account will be charged a 25% Performance Fee. (see example below). Profit sharing accounts are subject to a monthly subscription fee and a monthly performance fee per selected trading system. Monthly Reserve Amount = $100 This is why there are many Traders/Signal Providers who use risky and fast day-trading techniques (almost similar to scalping), just to generate higher commissions and earn more from followers. If the follower replicates an operation on EURUSD with 1 lot, the trader earns $5 (0.5 pips). The Trader will be penalized for the loss generated on the Follower’s account: his Reserve amount will be deducted by 20% of the losing amount: -$100 x 20% = -$20. This Fee will only apply for the amount above High Water Mark (“HWM”). Your email address will not be published. 50% of the Performance Fee paid by the Follower will be reserved in the Trader’s Reserve Bucket: $200 x 50% = $100. The highest return ever achieved by the trader is the High Water Mark. The Classic compensation model provided followers with several ways to change the way traders’ strategy were replicated on their account (Fixed or Pro-Rata ZuluTrade mode, allowed trading assets, maximum lots, etc). Trade with Confidence. Profit Sharing Pay only if you have profit A performance fee of 25% is charged on the profits generated per trading system every month. but what will happen to current system? There is also 25% profit-sharing that goes to the trader that you choose to follow. i mean will a current signal provider can have the option to offer profit sharing. A Follower operating on a Profit – Sharing account is copying a Trader. Traders get compensated on a monthly basis according to the profits they generate on their Real Investors under Profit Sharing Account Model Every time you generate a profitable monthly PnL to a Profit-Sharing Investor, you will be credited a 20% Performance Fee. The monthly performance fee is 25%. ZuluTrade is a secure online broker founded in 2007 by Greek entrepreneur Leon Yohai. This basically means that for Profit Sharing Follower Accounts, the Trader will be compensated based on the Profit-Sharing Model, while for Classic Account Followers, the Trader will be compensated based on the volume of lots traded (0.5 pip/lot). Profit sharing accounts are subject to a monthly performance fee per selected trading system. Good news for the Traders! Note that for AAAFx clients, the trading cost will be reduced by 0,5 pips per standard lot traded. ZuluTrade can be used with a large variety of MT4 Brokers. ZuluTrade proudly presents a new innovative Traders compensation program, the “Profit-Sharing”, a breakthrough among Social Trading Networks around the web! 50% of the Followers Performance Fee will be credited from Total Reserve Amount reserved so far: $80 x 50% = $40. You can also define the Advance Settings, such as the number of max open positions, your ZuluGuard Take Profit as well as your ZuluGuard mode (fixed or trailing). The Trader will get compensated for his profitable trades and will be penalized for the losses he/she will bring on a Follower’s account! This means traders become actual money managers, and they can effectively apply advanced money management strategies, being sure that these strategies are replicated precisely on the followers’ accounts. If you don’t have a broker yet, we recommend AAAFX, which is the best ZuluTrade Broker available. The Traders should present their strategy and recommend settings for profitable trading results in their Followers accounts. The account has a $30 monthly subscription requirement through which traders get to enjoy share profits. Users choose the compensation mode when creating the ZuluTrade live account, and it cannot be changed (you cannot switch from Classic to Profit Sharing or vice versa). Followers can only use the Pro Rata ZuluTrade Allocation feature. Founded in 2007 by Leon Yohai and Kosta Eleftherious, they initially set out to build a trading software that would allow them to copy the forex trading signals of … The benefit being, your interests are totally aligned to the trader’s interest and pricing for the copy trade service is transparent. Secondly, the trader can only earn if he has really made a profit for its followers. credit: traders receiving amount So, the amount in the reserve bucket is 80$, NOT 120$, right? A sum amounting to 20% of the losses accrued by the trader is deducted from the Reserve Fund. Can the traders to choose to receive a Commission for transactions, or % of the profits? Total Reserve Amount = $80 (=$100 - $20), In August, the Trader makes a profit of $500 – New HWM $1400, Monthly Reserve Amount = +$20 (from Recovering Loss Period) -$40(credited to Trader from previous Reserve) + $40 (placed into Reserve bucket) = $20 but it may happen that trader opens 5 trade at a time, and follower only allows 3 only. For every profitable month from copying a trader, you will be charged a 20% performance fee. Why would Live Followers select the new model? I beg your pardon, but I think there is a mistake in the eabove equation: 80$-40$+40$ is NOT 120$!!! The profit-sharing model (25%) is bound per Trader, not per account. either u maybe missed some thing or trader will not recover/get which will be deducted as penalty fee. In addition to the current volume-based payment model, ZuluTrade introduces a new compensation scheme with a view to aligning Followers interests with Traders rewards and applying mutual fair copy-trading conditions. You may cancel your subscription at any time. In this case there is no Reserve. Total Reserve Amount = $100. With all the three accounts, you gain access to charts, data, alerts, and forex signals. The Follower gets a discount on the spread paid for each replicated operation. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. then 1st 3 closed in loss and rest 2 covered all the loss + make some profit, then how trader will get compensated or punished? Open a Profit Sharing account and AutoTrade Bitcoin, Litecoin and Ethereum with reduced commissions. In other words, this is a new method used to pay traders who generate signals that are then copied automatically by followers. As you can see, the Reserve amount is dynamic and changes based on the Profits / losses generated on a Follower’s account on a monthly basis. 50% of the Followers Performance Fee will be credited immediately: $80 x 50% = $40. The trading account comes with zero trading commissions. How much can the follower save? How does it work then if a trader keeps losing trades open at the end of the month to ensure they remain in profit and receive their followers fee, then they close the losing trades the next month and the follower takes a loss after having paid the commission to the trader. In other words, this is a new method used to pay traders who generate signals that are then copied automatically by followers. The trader profits 0.5 pips for each operation replicated by the follower. This is due to the fact that this account is easy and has a simple way to trade, and no experience required. On the other hand, the spread paid by the follower for each transaction is slightly higher. If you wish to change the model, you can open a new account (still using the same registration account) and choose the Classic Model. ZuluTrade Profit Sharing Account model means you will share 25% of your overall profits at the end of the month. This means that you won’t be charged with any Performance Fee during Recovering Losses Period (check the example below). Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. In ZuluTrade Classic Account, you may be charged a little higher spread as compared to the average spread rate on ZuluTrade. The other 10% is paid by taking money every month from the Reserve Fund, if available. Using the High Water Mark clause, the performance fee the Trader can charge to the followers is calculated not just taking the positive returns into account, but also considering any previous losses. Global Network. ZuluTrade proudly presents a new innovative Traders compensation program, the “Profit-Sharing”, a breakthrough among Social Trading Networks around the web! The follower DOES NOT pay performance fees to the trader at the end of the month. Support for mobile handsets exceeds expectations, holding leverage valuations at 1:10. Profit-Sharing Account. This new model aims to: improve the relationship between traders and followers As the name suggests, in a profit-sharing account, you share the profits with the trader you are copying. Stay tuned! It is in the signal providers own interest to make profit as they can attract more followers and thus, earn more commissions. The same amount (50% of the Performance Fee paid by the Follower) will be credited in the Trader’s account from the Reserve in case there is available amount. Case 1: hold : which is in bucket, credit : 100(from junes profit) + 0 (from july) + 40 (from august profit) + 40 (from hold) = 180 ZuluTrade’s Profit Sharing mode is an improvement that definitely favours followers. Performance Fee will apply for the Follower, only for the $400 (amount above new HWM): $400 x 20% = $80. That’s because the fee you need to pay to the signal provider is automatically adjusted within the spread. Classic accounts using automated trading are charged $10 for forex trades and $0.80 for CFDs. Profit Sharing, however, is a different model, and using this model over the other, is up to the followers. The speculative activity in forex market, as well as in other markets, implies considerable economic risks; anyone who carries out speculative activity does it on its own responsibility. Trading cryptocurrencies is not supervised by any EU regulatory framework. Your capital is at risk. In case of a Recovering Losses Period, Performance Fee will not apply, yet the Trader’s reserve will be increased by 20% of the generated Profit. The Trader is compensated according to the account type selected by the Follower. The classic compensation mode ensures Traders earn from opening and closing operations, regardless whether those trades have generated a profit or a loss. this is really great. Don’t worry, we’ll explain everything in detail. The 20% Performance Fee is paid on a High Water Mark basis, therefore only for months closed with profits, if the profit has exceeded the last High Water Mark that had been reached. ZuluTrade Profit Sharing Account model means you will share 25% (for example) of your overall profits at the end of the month. You are using an outdated browser. ZuluTrade is established globally, it is regulated in EU and Japan and it is trusted by millions of users worldwide. With ZuluTrade’s Profit Sharing model, the trader earns 20% of the profits he has generated for his follower’s account every month. At that point, the new High Water Mark will become the new milestone, and so on. Powered by Discourse, best viewed with JavaScript enabled, 50% is credited in the Trader’s account, while, 50% is credited from Reserve Bucket (if applicable - see the example below). With the Profit-Sharing Program, Followers auto-trade with discounted commissions and they only pay off Traders that generate profits in their accounts! another thing is do u limit some option or add some more option for profit sharing section. The trading happens only through the ZuluTrade platform. Each Trader holds one Reserve Bucket for all his Profit-Sharing Followers. ZuluGuard™ monitors each Trader’s trading behavior and automatically takes action when a radical change in his trading strategy is detected. As you can understand, it is totally up to the Followers to select between Classic and Profit Sharing Account type. hold: 100(from junes profit) - 20(from july) + 40 (from august profit) - 40 (to credit) = 80, in total his earning (credit + hold is 180+80 = 260. but this amount should be 280, bcz his total profit is 1400, so 20% is 280 . Help us continue to provide the best free broker reviews by opening your account with our links. All of this is pushing, and will keep pushing, traders to operate securely, with real tested strategies that return profits over time. In Profit-Sharing Model, the Trader is the Master of the Game, the Followers may not interfere with the transmitted signals, they are only allowed to place the following custom settings: The Profit-Sharing scope is to endorse the direct communication between Follower and Trader. bcz right now follower can limit the no of trade. ZuluTrade Profit-Sharing Account This is the most popular account among most of the ZuluTrade users. AAAFx also charges a commission on each trade, with defined rates for different account types. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. The decision to use the Classic Compensation Model or Profit Sharing is up to the Follower. 50% is placed into the Trader’s Reserve bucket in order to ensure future performance. Profit Sharing Compensation Scheme Traders get compensated on a monthly basis according to the profits they generate on their Real Investors under Profit Sharing Account Model. For the Profit-Sharing ones, you will be compensated based on the new payment scheme! Profit-Sharing Account is most recommended to all types of users, either a beginner or a professional. Do you want to find out how a ZuluTrade Profit Sharing account works? Thank you in advance. Additionally, in 2018, ZuluTrade has introduced Profit Sharing Account Type Currently, this account type is Available only for AAAFx Broker accoun t. ZuluTrade presents a new innovative Traders compensation program, the “Profit-Sharing”, a breakthrough among Social Trading Networks around the web! With ZuluTrade’s Profit Sharing, the follower can choose to pay the Signal Provider with 20% of any eventual profit generated by the trader for the follower over the last month. ZuluTrade reports a lower fee for this model, from around 2 pips to 1.5 per transaction. In July, the Trader has a negative month (-$100) – HWM remains $1000. Profit sharing – This option is recommended for beginners as you get to learn by copying others. ZuluTrade is an online and mobile copy trading platform where millions of users can share and copy the signals of other traders. improve the relationship between traders and followers, hold traders responsible, making for safer and more secure trading investments, further shift the trader’s focus on growing his followers, 50% is immediately paid to the trader on his account, Traders receive a reward amounting to 20% of the profits generated for the follower, The spread paid by followers on operations is reduced, The 20% commission is paid only if a month is closed with profits, on a High Water Mark model, The trader earns a 20% commission for his performance on a 50% Payment-Reserve model. However, the Profit Sharing mode leaves few choices available. Though we may receive a commission from brokers we feature, this does not impact the results of our reviews or rankings which are conducted with complete independence and objectivity, following our own impartial methodology. For further information read this article. 50% of the Followers Performance Fee will be reserved in Reserve Bucket: $80 x 50% = $40. ZuluTrade proudly presents a new innovative Traders compensation program, the “Profit-Sharing”, a breakthrough among Social Trading Networks around the web! In case a month is closed at a loss, 20% of the loss is deducted as a penalty to the trader from the Reserve. Thank you very much for your valid comment, indeed, the equation was incorrect, the Total Reserve amount is $80, and we have updated our comment accordingly, to avoid confusion. What will be the rate that the commissions decrease for the follower, if the follower decides to switch to the profit split-method??? I hope my message was clear and helped you understand exactly how his new model works, Hi, i have a question as a Trader, for example, if my followers make profits then they i take 20 % commission of their profits, however if they suffer losses no commission will be received. In June, a Trader makes a profit of $1000 - This will be the HWM. Please upgrade your browser to improve your experience. On the other hand, the Trader is compensated based on a 50% Payment-Reserve Scheme. but it may happen that trader opens 5 trade at a time, and follower only allows 3 only. This includes a 20 percent performance fee when users are profitable, and only applying for amounts above a ‘high water mark’ (HWM), defined by the follower-trader pair’s historical performance. A Profit Sharing ZuluTrade account is available for hands-Off investors, ideal for beginners. Any real or simulated result shall represent no warranty as to possible future performances. Followers may also have multiple accounts so as to use both account types. The specifics of each account are discussed below. Forex … As a Trader, you may have both type of Followers copying your strategy: the ones operating on a Classic Account and those who have selected the Profit-Sharing Model. Total Reserve Amount = $100 (=$80 +$20). The 50% of the accrued commissions are being credited in the Trader’s account, while the remaining 50% is reserved to ensure future profitable trading performance. For a monthly subscription of $30, you can follow and invest with as many professional traders as you like. For the Followers operating on a Classic account, the existing compensation scheme will not change (volume based model will apply). It also has a Demo account that allows users to simulate trades and test the platform’s full functionality. Your email address will not be published. However, ZuluTrade Profit Sharing is completely different. You will only pay the Trader (a 20% Performance Fee) in case you have a profitable monthly PnL. No need to open a new Trader account, no need to generate separated trading signals per Follower account type! Over the following months, the trader will earn his 20% commissions only if he has produced a higher performance than that previous milestone. The present page is intended for teaching purposes only. If you already have an account, just open a new demo account from the link below: ZuluTrade Profit Sharing is the new compensation mode for Signal Providers. Now, the trader has received 10% of the commission (20% – 50%). Trading CFDs, FX, and cryptocurrencies involves a high degree of risk. The Follower is charged a 20% fee (Performance Fee) only when the monthly PnL from the Trader is profitable. ZuluTrade’s classic compensation model (which is still available) is based on the volume of operations replicated by the follower. More than 250.000 top Forex Traders algorithmically ranked and vetted by ZuluTrade's community. Note: Zulutrade platform offers 2 types of accounts: Profit-Sharing and Classic Account. ZuluTrade filters every trader with the utmost care, using advanced algorithms and a dedicated Trading Desk, so the investor can have the maximum potential profit. The most competitive pricing environment is granted at AAAFX, the brokerage owned by ZuluTrade via Dayo. Therefore, for every profitable month PnL generated from a Trader that you follow, your card will be charged a 25% Performance Fee. Required fields are marked *. We can answer all your questions on ZuluTrade’s Profit Sharing. ZuluTrade is always introducing new innovative features. We have updated the calculations - we hope it is more clear now. That would be fair for all,logical and in line with the best industry practices.Cheers! Great isn’t it? Copyright © 2020 InvestinGoal.com – All rights reserved. Its online platform provides users with a number of unique features including Profit-Sharing accounts, which rewards traders based on If I lose money in a month, will I pay the trader? ADVERTISER DISCLOSURE: InvestinGoal is completely free to use for all. Traders get some benefits from this mode as well. ZuluTrade is one of the largest, broker-independent, social trading ecosystems that enables investors to follow and interact with traders globally, compare trading strategies and copy trades to their own accounts. ZuluTrade’s Profit-Sharing Program enables a wide range of benefits, including the ability for customers to trade with reduced trading fees. Open a profit sharing account and trade cryptocurrencies with reduced commissions; Broker recommendation. If the trader generates a higher profit than the last High Water Mark, he is entitled to 20% of the profit obtained thanks to him from every follower. ZuluTrade Profit Sharing is the new compensation mode for Signal Providers. From the other side, the follower pays the trader 20% of the profits he has gained thanks to that forex trader, every month. Traders will be compensated when you profit and penalised when … Traders will not be able to select a specific Compensation Model. The Follower gets a discount on the spread paid for each replicated operation.
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