Forex $ocial Traders


What is zulutrade minimum deposit amount required to copy their signal providers?

minimum amount to follow/copy zulutradeCouple of days ago one friend of mine asked me the following question:

“I have €800 to invest. Do you think it is big enough amount of money to deposit into my Zulutrade account and start to copy signal providers on Zulutrade forex social investment network?”

My first answer was: If you set your lot size to 1 microlot, you should be fine with that deposit size.

After thinking for a while, I asked him:

Which Zulutrade signal providers would you like to copy?

He said, he was already testing top 5 traders from Zuluranking on his Zulutrade demo account and those signal providers were doing very well.

So I decided to have a look at those top 5 Zulutrade forex traders copied by my friend. Then after a closer look at those forex traders some doubts start arising in my mind and I had second thoughts, that I might have given wrong answer to my friend previously.

Then, I asked myself similar question again:

What is really in fact the minimum deposit amount required to copy signal providers on Zulutrade?

To find out more you can watch video below or just continue reading.

Below you can see a screenshot from Zuluranking in that time, which shows a list of those top 5 forex signal providers copied on Zulutrade.

At first sight, those top 5 Zulutrade forex traders look perfectly fine. Their equity charts seems to grow very nicely, their profits looks great, their annualized ROI is outstanding in territories of hundreds percentages per annum and in 2 cases even over 1000% annual ROI. Also, those top 5 Zulutrade forex traders keep their drawdown percentages well under 20%, where 3 of those traders maintain their drawdown even below 10%

List of top 5 Zulutrade forex traders for minimum deposit amount requirement example.

Someone might say with confidence…

”That is great! Go ahead my friend; you can safely copy those top 5 Zulutrade forex social traders with amount of €800 deposited, if your lot size is set at 1 microlot.”

But HELLO!!! Wait a moment please. Do not hurry so much!

There is one more column: Maximum drawdown (DD) but this time expressed not in % but in PIPS.

At the picture below the column with max. drawdown (DD) expressed in PIPS have been highlighted for you to clearly see.

Maximum drawdown expresed in pips for those Top 5 Zulutrade traders in example for minimum deposit required amount article.

So, what can we learn from the information contained in the last column?

  • PooTumVV is fantastic…his max. DD of open trades is only 103 pips.
  • 2 other signal providers experienced max open trades DD of around 400 pips.
  • in case of Afacanlar his max. drawdown reached 2000 pips.
  • in case of “One Way Win” maximum drawdown reached even 3,300 pips.

So, what does it mean for us to establish properly the answer about Zulutrade minimum deposit requirements to copy their forex signal providers?

To better understand, how important analysing maximum DD expressed in PIPS, might be for your trading balance, plus how it might help you to decide what would be your minimum amount of money to deposit into your Zulutrade forex trading account.

Let´s follow a quick example:

  • Let´s pretend that your deposited amount of trading capital to Zulutrade is $800 USD.
  • You follow and copy top 5 Zulutrade forex signal providers as listed on the screenshots before.
  • To play it safe you set your lot size to the lowest possible, which is 1 microlot

Maximum drawdown expressed in PIPS have been summarized in table below for all those 5 top forex signal providers from our example.

At the bottom of that table we can see:
Total max. DD equals to 6,253 pips.

Table with top 5 copied Zulutrade forex signal providers plus their historical maximum drawdowns

Although, it is very unlikely that all your copied Zulutrade signal providers would experience their max historical drawdown all at the same time, but we MUST take into consideration this possibility, when deciding on Zulutrade minimum deposit amount to assign for copying those traders.

On the other hand side, on a number of occasions history showed to us that many Zulutrade forex signal providers who made very quick progression to the top of Zulu ranking table, suffered later 2 or even 3 times bigger drawdowns compared to DD suffered before. This is usually due to the fact that some of those top listed traders have usually a tendency to get involved in reckless trading behaviour.

See some examples:
How reckless trading activity blown up accounts of many top listed Zulutrade forex traders in the past.

There is a saying: “Better be safe than sorry!”

Therefore we need to be prepared for any possibility.

Let´s take a look at possible risk in our example with our zulutrade minimum deposit amount of $800 USD.

  • You trade 1 micro lot
  • Total max. drawdown for all 5 signal providers you follow is 6,253 pips.
  • In terms of money that is approximately $625, which represents roughly 78% of our initially deposited trading balance amount of $800 USD

How would you feel in that case?

Would you be able to wait and hope that market turns and your red open trades will turn into at least break-even or become profitable?

Certainly, most people would not be able to withstand the pain, when looking at those red numbers in their Zulutrade forex trading account.

We are back then to our original question:

What is Zulutrade minimum deposit amount requirement to safely copy or follow Zulutrade forex signal providers?

Well, as you might already guess. There is no exact number. It depends on many factors like:

  • Your risk tolerance or risk appetite.
  • Number of forex signal providers that you decide to copy or follow.
  • Total max. drawdown in PIPS of all your chosen signal providers.

Although, Zulutrade FAQs section provides us with just one answer somehow related to our question, namely:

  • Q: What is the minimum deposit to open a new account?
  • A: It depends on the broker, but generally you can start with as little as $300.

But the above answer provided by Zulutrade in their FAQs section is rather related to the minimum deposit amount requirements set by individual forex brokers associated with Zulutrade, rather than answering our original question; What would be minimum required deposit amount in order to safely copy forex signal providers on Zulutrade social trading network?

Basically, in this article we just wanted to demonstrate that it is not enough to simply pick top 5 or top 10 zulutrade forex signal providers, by only checking their equity charts, profits and annualized ROI.

But, we would like to emphasize that firstly your need to calculate your possible risks. Then decide, whether the amount of money you wish to deposit to your Zulutrade account is big enough to hold during bad times, while copying signal providers on Zulutrade social investment network.

There is much more for you to learn about social investing and trading. For that purpose I have created series of articles on our blog called Zulutrade Follower Academy (click here for the list of covered topics)

Feel free to post your questions or comments below.

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I wish you all the best, wonderful day and many, many green trades.

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