ZuluTrade Announces New Profit-Sharing Model: Details

ZuluTrade (zulutrade.com)

Reports suggest one of the leading social trading sites, ZuluTrade, confirmed plans to drop profit-sharing charges from follower accounts as of next year (1 January 2023). That marks a substantial shift in its trader compensation model.

Furthermore, the trading company will remove the $30 monthly subscription fees charged on the profit-sharing accounts. Meanwhile, the current ZuluTrade copy trading profit-sharing model indicated that traders that provide signals copied (automatically) into follower accounts would receive 25% of returns from the follower account within the month.

ZuluTrade CEO Tajinder Virk stated that Finvasia transformed the zero-commission industry with its value-driven system. Meanwhile, the move reinforces Finvasia’s efforts to pioneer the Zero-commission business model. Virk added that they are working to ensure a network that’s democratic, ethical, peer-to-peer, and transparent.

Market players will have everything to assess and finalize informed decisions. Finvasia Group’s co-founder Sarvjeet Virk commented on the move, stating that they have cheered ZuluTrade’s evolution. He added that the project would launch multiple changes in the upcoming months.

Furthermore, everything remains investor-centered. Remember, Finvasia Group acquired ZuluTrade in December 2021. Finvasia Group is a tech-driven fiscal service provider based in India. Fazzaco reports of early this month indicated that ZuluTrade incorporated with a CFDs and retail FX broker Moneta Markets to enforce the latter’s social trading services.

ZuluTrade’s present profit-sharing replica pays leaders (traders) that offer the auto-copied signals into follower accounts. Further, the follower pays a monthly subscription fee ($30) and also pays 25% of accumulated profits (per month) to the leader. That means higher follower profits translate to heightened leader compensation. Nevertheless, users only incur the 25% fee in months closed in profits.

Now, here is the caveat. The leader doesn’t incur any loss if the follower account witnesses losses. That means putting money on a leader that will enjoy rewards but remains shielded from any risk. Moreover, it indicated that the client’s performance effect in the long term could be substantial because of increased profit-sharing costs.

Therefore, the acknowledged psychology of the profit-sharing model promising users to pay only when they receive profits remains lucrative only on paper. Moreover, followers face challenges when they have many accounts or leaders to follow. For instance, presume a user follows two leaders, one making profits while the other losses.

That translates to a negative P&L cumulative aggregate. In such a scenario, the follower shares part of the gains with the winning leaders and suffers no charges for the losing strategy. However, that’s not to justify a fair case for the follower.

Considering all these scenarios, ZuluTrade will likely introduce substantial changes in follower charges. The firm will halt profit-sharing costs from follower accounts by 1 January 2023. Immediately, it will block individuals from opening new profit-sharing accounts. Also, ZuluTrade will drop the subscription fee ($30) charged to the follower accounts.

To find out more, reach out to [email protected].

Email: [email protected]

CEO: Darren S. Harrison

Website: https://www.zulutrade.com/

Phone number: +487155479952