ZuluTrade changes for EU residents 

In accordance to EU legislation which aims to increase investor protection ZuluTrade has introduced some changes to their social trading service for EU residents.

The following changes came into effect from December the 12th 2014:

• The first time they log in after the 12th, EU customer will to complete a short Suitability Questionnaire
• Only the top 500 Traders will be visible in the ‘ZuluTrade Traders Performance’ table and it will only be possible to follow and copy those. These Traders need to comply with the following criteria: Max DrawDown less than 30%, average pips per trade more than 5 pips and trading history for over 12 weeks. More information can be found on the ZuluTrade Trader Guide. EU customer who’s portfolio includes traders which are non-compliant will automatically have those traders disabled in their Portfolio after December 12th. This means no new trades will be opened for those traders, though the customers will still receive the closing signals for any open trades these customers have open in their portfolio.
• Going forward EU residents will also need to protect each trader in their portfolio using ZuluGuard Capital Protection. Please note that this a good practice anyway!
• In addition, the maximum accumulated Capital Protection for all the traders copied in their account cannot exceed their overall risk allowance (which can be no more than 75% of your available balance).
• Based on the customer settings, capital allowance and historical trader statistics, an upper limit restriction on the maximum lots per trade for each trader will also be applied.
• And finally, whenever an EU customer makes a new deposit they will need to manually re-set their maximum Capital Allowance.

While to some EU customers these changes may sound a bit restrictive, overall they’re no more than good practice which most experienced ZuluTrade users who appropriately manage their overall risk apply anyway. For those who like to gamble and take excessive risk in the faint hope to make large profits with limited capital, this obviously restricts their options (and they may as well visit a casino website instead).

 

Source: SocialTradingGuru

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