Social Trading is very hot at the moment with all the major CFD providers coming out with their own social trading platforms or providing support for other social trading platforms such as ZuluTrade and Tradeo. I decided to investigate whether social trading works or whether it doesn’t live up to the hype. For this I decided to open demo account at the most popular social trading network ZuluTrade.
I started by opening a ZuluTrade demo account with £5000 play money. I then proceeded to pick four different signal providers with a good track record and limited Draw Down, in the hopes of minimizing risk. After having made my various picks I waited and let the signal providers make there moves. Apart from this I used the default settings suggested by the providers and ZuluTrade.
According to ZuluTrade if I had followed the signal providers I had chosen from 2010 until now my £5000 play account would have grown have doubled in size and been worth over $10,000 now. It wasn’t until the next day did any of my signal providers open any positions, however things got off to a good start with the said signal provider opening three positions all of them being reasonably profitable.
After this I simply left the four signal providers I had chosen to do their work and trade the Forex markets. After 14 days about half way through the month the traders I had followed had made me £250 from my initial £5000 deposit. From the below graph it appears that my account hasn’t had a negative day, which is really quite impressive. In half a month I had made a 5% return which is very impressive over such a short period of time.