eToro and ZuluTrade Comparison
ZuluTrade and eToro both offer the capacity to automatically execute the trades of other traders on their respective networks in the client's own account. Both offer online trading platforms which have tools for social and copy trading. However they have differences.
What is a similarity between ZuluTrade and eToro ?
ZuluTrade and eToro both offer Copy Trading. They allow traders to find and copy the trades of other traders on the network and provide performance data about these traders.
What is a difference between ZuluTrade and eToro ?
ZuluTrade requires a broker to execute trades, which needs to be signed up to and authorised to use ZuluTrade. However this said, ZuluTrade offers the ECN broker AAAFx which it owns, but it still needs to be signed up to (the application to sign up to AAAFx includes registration for ZuluTrade). Also there are 50+ brokers to choose from. eToro on the other hand provides its own brokerage services. Thus to sign up to eToro is to access Copy Trading as well. A comparison of AAAFx vs eToro can be found here.
Do both companies provide Social Trading ?
If Social Trading is defined as the addition of data from other traders to the tools the trader uses, then yes both do. They each have a feed of activities of other traders, who can be followed and copied. ZuluTrade offers Social Charts which provide charting with information about trades taken, relevant to the chart being examined.
How extensive are eToro's brokerage services ?
eToro has over 1000 markets available to trade covering Currencies, Indices, Commodities, ETFs, Stocks and Cryptocurrencies. These can be traded as at other brokers, but they can also be traded with data from the Social Network of other traders and their activities, to inform the trader, and with the potential to allow auto trading, by copying the trades of selected traders.
What is AAAFx ?
AAAFx is an ECN broker with 60+ markets to trade. AAAFx can offer low spreads with a commission charge. It is also possible to request trading without a commission charge and higher spreads.
Can Cryptocurrencies be traded at both AAAFx and eToro ?
Yes, though eToro has a wider range. However at FCA and CySEC regulated eToro offers real Cryptocurrencies to own. Thus these are unregulated products when going long (buying) and are not available with leverage.
Can Cryptocurrencies be copy traded at both ZuluTrade and eToro ?
Yes, both allow Cryptocurrency Copy Trading.
What are Copy Funds ?
In addition to copying other traders, eToro offers Copy Funds, which allow thematic investing in top traders, markets and partners. Included in this offering is a Cryptocurrency Copy Fund.
Are traders ranked ?
Traders are ranked on ZuluTrade (using the 'ZuluRank' algorithm) but not on eToro. eToro provides a 'People Discovery' tool for finding people on their network who can also be found from the Social Trading tools.
Is there a fee for Copy Trading ?
Neither ZuluTrade nor eToro charges a fee for Copy Trading. Both are compensated through the bid/ask spread.
Summary
These companies differ in that eToro can offer brokerage services, copy trading and social trading, while ZuluTrade offers a copy trading service, which allows the trader to choose from a range of brokers (which may be one they already have an account with). This service includes social trading tools. It also has a broker AAAFx, which can be chosen by the trader. AAAFx is an ECN broker, which charges commissions and can offer low spreads. However the trader can use a range of other brokers offering different kinds of trading.
