ZuluTrade Announces It Will Drop Profit-sharing Fees from Investors’ Accounts
Thursday,24/11/2022|06:49GMTby
FM
The change in the compensation model comes in line with a new management approach.
Undertaking a major change in its leaders' compensation model, ZuluTrade has announced that it will drop the profit-sharing fees from the followers’ accounts. The radical change in the compensation model comes in line with the new management approach to make ZuluTrade more investor-friendly and forward-looking by reducing costs and increasing quality and transparency on the platform.
ZuluTrade’s current profit-sharing model pays traders (a.k.a. leaders) who provide signals that are copied automatically into the follower’s account. The follower pays $30 as a subscription fee per month per account and pays the leader 25% of the profits gained in his account in a month. As such, the higher the profits on a follower’s account, the higher the leader’s compensation. The 25% Performance Fee is paid only for the months closed with profits.
However, on the flip side, if the follower’s account suffers a loss in the following months, the leader is not charged for the loss incurred. This implies that the followers are putting money on a leader and sharing their rewards, but they are not really sharing the risk in the long term with the leader. Also, this means that the long-term impact of the client’s performance can be significant due to added costs of profit sharing.
Thus, the popular psychology behind the profit-sharing model claiming that you pay only when you earn profit looks good only on paper. Another challenge that the followers face is when they have more than one account or more than one leader that they are following.
Assume a follower follows two leaders where one leader makes money while the other loses money wherein a cumulative aggregate P&L stands negative. In this case, the follower will share a portion of their gains with the winning strategy leader and incur no fees for the loss accrued on the losing strategy. Again, this does not justify a fair scenario for the follower.
Taking all these scenarios into consideration, ZuluTrade is set to make significant changes in how followers are charged. The company will drop the profit-sharing fees from the follower’s account as of 1st January 2023 and effective immediately no one will be able to open a new profit-sharing account. ZuluTrade will also drop the $30 subscription fees being charged to profit-sharing accounts and make it Zero.
Tajinder Virk, CEO at ZuluTrade, said: “Finvasia is known to create a value-driven system and has revolutionised the Zero-commission ecosystem. This move further cements Finvasia’s efforts in pioneering “Zero commission” business models. We are working towards creating a platform that is democratic, peer-to-peer, transparent and ethical. Everything will be right there for people to analyse and make informed decisions.”
Adding to the comments, Sarvjeet Virk, Co-Founder of Finvasia Group, said: “We are happy with the direction that ZuluTrade is evolving towards, and I see significant changes coming in the months ahead that will put our investors at the centre of our product.”
Undertaking a major change in its leaders' compensation model, ZuluTrade has announced that it will drop the profit-sharing fees from the followers’ accounts. The radical change in the compensation model comes in line with the new management approach to make ZuluTrade more investor-friendly and forward-looking by reducing costs and increasing quality and transparency on the platform.
ZuluTrade’s current profit-sharing model pays traders (a.k.a. leaders) who provide signals that are copied automatically into the follower’s account. The follower pays $30 as a subscription fee per month per account and pays the leader 25% of the profits gained in his account in a month. As such, the higher the profits on a follower’s account, the higher the leader’s compensation. The 25% Performance Fee is paid only for the months closed with profits.
However, on the flip side, if the follower’s account suffers a loss in the following months, the leader is not charged for the loss incurred. This implies that the followers are putting money on a leader and sharing their rewards, but they are not really sharing the risk in the long term with the leader. Also, this means that the long-term impact of the client’s performance can be significant due to added costs of profit sharing.
Thus, the popular psychology behind the profit-sharing model claiming that you pay only when you earn profit looks good only on paper. Another challenge that the followers face is when they have more than one account or more than one leader that they are following.
Assume a follower follows two leaders where one leader makes money while the other loses money wherein a cumulative aggregate P&L stands negative. In this case, the follower will share a portion of their gains with the winning strategy leader and incur no fees for the loss accrued on the losing strategy. Again, this does not justify a fair scenario for the follower.
Taking all these scenarios into consideration, ZuluTrade is set to make significant changes in how followers are charged. The company will drop the profit-sharing fees from the follower’s account as of 1st January 2023 and effective immediately no one will be able to open a new profit-sharing account. ZuluTrade will also drop the $30 subscription fees being charged to profit-sharing accounts and make it Zero.
Tajinder Virk, CEO at ZuluTrade, said: “Finvasia is known to create a value-driven system and has revolutionised the Zero-commission ecosystem. This move further cements Finvasia’s efforts in pioneering “Zero commission” business models. We are working towards creating a platform that is democratic, peer-to-peer, transparent and ethical. Everything will be right there for people to analyse and make informed decisions.”
Adding to the comments, Sarvjeet Virk, Co-Founder of Finvasia Group, said: “We are happy with the direction that ZuluTrade is evolving towards, and I see significant changes coming in the months ahead that will put our investors at the centre of our product.”
From Holiday FOMO to Focus: How Traders Can Avoid Emotional Decisions in December
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
Executive Interview | Charlotte Bullock | Chief Product Officer, Bank of London | FMLS:25
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this interview, we sat down with Charlotte Bullock, Head of Product at The Bank of London, previously at SAP and now shaping product at one of the sector’s most ambitious new banking players.
Charlotte reflects on the Summit so far and talks about the culture inside fintech banks today. We look at the pressures that come with scaling, and how firms can hold onto the nimble approach that made them stand out early on.
We also cover the state of payments ahead of her appearance on the payments roundtable: the blockages financial firms face, the areas that still need fixing, and what a realistic solution looks like in 2026.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
