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Client Magazine

ADMIRALS

summerautumn 2011

www.fxservice.com

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Content

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15182223

Tallinn, 10151, Ahtri 6A, 8 floor,Admiral House (section A)

+372 630 9303

Admiral Markets, [email protected],www.admiralmarkets.com

5000 ex.

Alexander Shtavbonko

Olga Konstantinova

Address:

Tel./fax:

Publisher:

Circulation:

Editor:

Designer:

Admiral Markets:Developing Togetherwith the Forex Market

Admiral.Pro a NewMilestone in the Historyof the Forex Market!

Admiral MarketsVietnamese Office

Mobile Trading:Boundless Freedom!

ForexBallTrading Competition

The Elementary andIncomprehensible ZuluTrade

Refer a Friendto Admiral Markets!

Some Places That You MustExplore In Australia

Client MagazineADMIRALS summerautumn 2011

Admiral Markets: Developing Togetherwith the Forex Market. This year is the 10year anniversary since the establishment of AdmiralMarkets and its CEO, Alexander Tsihilov, answersour questions.

Mobile Trading: Boundless Freedom!We are pleased to announce the launch of newplatforms for mobile trading, which Admiral Marketsoffers to their customers absolutely free.

The Elementary and IncomprehensibleZuluTrade. ZuluTrade means thousands of traders,dozens of tools and the broadest possible volumecontrol, which are able to offer an incredible arrayof profitable combinations.

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ADMIRAL'S SUMMERAUTUMN 2011

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An interview with the founderof Admiral Markets, AlexanderTsihilov, on the companys histo-ry, its priorities, and many otherthings to honor the 10 year anni-versary of Admiral Markets.

How did it all begin?

The companys history beganin the spring of 1999 when I, as adirector of a small Internet serviceprovider, Admiral Telecom, in St.Petersburg, came across a financialsite for the game "Forex", whereyou can trade currencies and earnprofits on the difference in quotes.The game was very primitive, hadno leverage at all, and did not al-low you to open short positions.

However, the principle itself inter-ested me. Interested not in termsof trading per se, but from thestandpoint that the Internet hadfinally become a viable instrumentfor carrying out financial transac-tions, and I realized that I had anew client segment to sell Inter-net access services to traders.

After a while, I was able to finda broker in St. Petersburg withwhom I made an agreement thatgave their clients cheaper accessto the internet through our ISP.After some time, the broker offered

to broaden our cooperation by hav-ing us setup a dealing room and adedicated internet channel for theirtraders. In those days, the internetwas not as wide spread and the con-

nection quality we enjoy today wasonly just a dream. With our agree-ment, we could provide computersand offices for traders to trade onwith a reliable internet connection.After working for just over a year,I started to think about ways to di-versify by starting my own onlinebrokerage company. Nevertheless,this required some startup capi-tal and after a bit of saving I wasable to amass the small requiredamount and was then able to startseriously thinking about a newbusiness direction.

How did the company developin the first years?

Admiral Markets was of-ficially established on the 5th ofMarch, 2001 when the first oper-

ating company was registered un-

der the name Admiral Investmentsand Securities Ltd. The first yearwas spent building an internalinfrastructure and training staffsince at this time there were littleto no specialists in Russia or evenin the world due to the newness ofthe online Forex market.

In early 2002 the company be-gan to enter into its first partner-ship agreements with the repre-sentatives of a few countries thatwere former Soviet Union states.There were representatives of thecompany in Latvia, Uzbekistan,and Ukraine. At the beginning theemphasis was on development ofthe company through the creationof a network of agents, mostlydue to insufficient company equitywhich made it difficult to createour own branches. This strategyhas become obsolete though asthe company has grown and moreand more branches have been cre-ated, giving us the current situa-

tion where we have 80% of our

income coming from the companybranches and only 20% still com-ing from agents. Nevertheless, inthe beginning we had to do whatwe had to do.

"The game"FOREX"was veryprimitive, had no

leverage at all, anddid not allow youto open short posi-tions. However, theprinciple itself inter-ested me."

"Admiral Marketswas officially estab-lished on the 5th ofMarch, 2001 whenthe first operating

company was reg-istered under thename Admiral In-

vestments and Secu-rities Ltd."

Admiral Markets:Developing Togetherwith the Forex Market

Alexander Tsikhilov, President & CEO of Admiral Markets


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Which regions have brought themost success to Admiral Mar-kets?

The turning point for the com-

pany was in 2003. This was theyear that we began to extract arelatively decent income from sub-sidiaries in Estonia and Latvia,which gave us the idea to changethe company's development strat-egy from Russia to the Balticcountries, where competition hasbeen significantly lower, and thebusiness infrastructure was muchmore developed. Experience hasshown that it was the right deci-sion in a few years, the threebranches in Estonia, Latvia, andLithuania brought in three-quartersof our total income. Accumulated

funds have allowed us to continueexpansion into Eastern Europe,where we opened four morebranches - in Bulgaria, Poland,Romania and Croatia. After the re-

gional development, the companyreally started to take off.

In the middle of 2007 we de-

cided to rename the company toAdmiral Markets a name thatwas far more convenient from amarketing standpoint. We alsowent with a modified logo andconducted a full re-branding.

What were the major milestonesin the development of the com-pany?

When discussing the mile-stones during the development ofthe company the biggest wouldhave to be receiving the Euro-pean Financial License in June2009, which was granted by theEstonian Financial SupervisionAuthority and allowed AdmiralMarkets to operate throughoutthe EU. Since then, the compa-nys position in Eastern Europe

has become much more comfort-able. Currently, our company hasbranches in almost every EasternEuropean country and almost all

of our branches lead the marketin each country. It must be notedthough that this should not betaken as a sign of complacencyas we are actively developing newregions of the world South-EastAsia, Australia, Latin America,and the Arabic world.

What has changed in the Forexmarket over the past 10 years?

Over the past 10 years

the Forex market industry haschanged significantly. First, theclients themselves have changedsignificantly as the average trad-ers back in the beginning are nowquite professional. Combine thatwith the inter-bank market spreadson foreign currency instruments;immediate execution of client

orders, which are automaticallytransferred to providers of foreigncurrency liquidity, automated trad-ing systems, robots, scripts, andstrategies which are written in aspecially designed programminglanguage MQL; the emergence ofvirtual "offices" where the broker's

customer service is completely au-tomated - from opening accounts,to orders for the movement of in-vestment capital, as well as manyother very useful functions for theclient. Things are quite differentindeed.

What are the competitive ad-vantages does Admiral Marketshave?

The main competitive advan-tage that Admiral Markets has is

its flexibility and ability to adoptdifferent strategies, depending onthe current markets needs. Ofcourse, providing excellent cus-tomer service, continuously in-troducing new tools for traders,

and the implementation of newprojects that enhance the tradingand analytical capabilities of ourcustomers should not be underes-timated.

What has been achieved over the

past year?

Over the past year, thecompany significantly expandedits presence in different regionsthroughout the world by open-ing new offices in Italy, Spain,Turkey, Germany, Slovenia andVietnam. We are also currentlyin the process of opening officesin Argentina, Colombia, Australia,and the UAE. We also introducedprofessional trading accounts,

the money management systemPAMM/LAMM, automated trad-ing systems for clients, and muchmore. The company continues todevelop the competitive tradingcompetition ForexBall, which in-creasingly acquires the status ofthe World Forex Championship

with the number of participants inthe last round already exceeding7,000 traders.

What are the main priorities forthe further development of Ad-miral Markets

Further priorities are linked tothe continuation of active geo-graphic diversification. We planto cover all major regions of theworld and plan to be licensed inall major world financial centers inEurope, Asia and America. We willcontinuously expand our range ofservices, increase the number of

traded financial instruments, andintroduce new projects and ser-vices for an improved quality ofservice. The companys mission isto become a significant player inthe global online trading servicesmarket by providing a full rangeof opportunities for traders world-wide.

Admiral Markets Headoffice in Tallinn, Estonia

Dmitri Laush, Executive Vice President, Development Division Director

"In 2003 we beganto extract a relativelydecent income fromsubsidiaries in Estoniaand Latvia, which gave

us the idea to changethe company's devel-opment strategy fromRussia to the Balticcountries"

"The main competi-tive advantage that

Admiral Markets has

is its flexibility andability to adopt differ-ent strategies, de-

pending on the cur-rent markets needs"

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If you are a professional Forex trader, then this is the account for you.Admiral.Pro gives you the most modern trade and execution technolo-gies for you to take advantage of.

Admiral.Pro a New Milestonein the History of the Forex Market!

We provide direct accessto the liquidity of the world's larg-est banks via the ECN (ElectronicCommunication Network), five-digit spreads, instant executionNDD (No Dealing Desk ForexExecution), 0.1 pip spreads, andmore!

A few years ago it was impos-

sible but thanks to the develop-ment of Internet technologies ingeneral and online trading in par-ticular, today it is a fact - we offeryou direct access to the interbank

At first glance, this schememay seem that the trade goesthrough an overly long paththrough two intermediaries,and hence the price, namely

the spread and fee would in-crease with each step alongthe path, and the trader wouldbe better off trading directlywith any bank. But this is notthe case. Moreover, as oddas it sounds, trading directlywith one bank without in-termediaries is generally notprofitable and is quite uncom-

fortable. To understand howthis is possible, let's look atan example.

Imagine that you live in thecity, which has 10 Hypermar-kets. Each of them has its ownmarketing policy to attract

customers by announcing dis-counts on different products ev-ery day. Let assume that todayHypermarket 1 has the cheap-est bread in town, but milk isthe cheapest in Hypermarket 2,and the best price for meat isin Hypermarket 3, etc. Tomor-row the situation will changeand all these stores will offerdiscounts on other products.As a result, purchasing grocer-ies on a daily basis at the bestprice would be nearly impos-sible as you would have to goaround to all 10 Hypermarketsto get everything as cheap as

possible.

Now imagine that a newcompany appeared in your citywhich, for a very reasonablefee, delivers groceries to yourhouse at the lowest prices intown. I.e. this company goesto each store and gets every-thing at the cheapest price

and brings the savings direct-ly to you, every day, savingyou considerable amounts oftime and money. What do youthink; would you use this newcompanys services?

This is the same principle be-

hind ECN in the Forex market.Instead of Hypermarkets and anew company in town we haveSupermarket banks, AdmiralMarkets, and ECN.

Banks expose their Bid andAsk prices, which varies de-pending on their own specificneeds. Often there is a situa-tion where it is not profitablefor the bank to sell EUR/USD,but they are very interested inbuying GBP against JPY, andat the same time another bankis more interested in sellingAUD for CHF, etc.

ECN gathers the bid and askprice for all currency pairs fromseveral banks, selects the bestBid and Ask prices for each cur-rency pair, and translates thisinformation directly to yourtrading platform without anychanges. As a result of mixingand matching the Bid and Ask

With this technology(ECN) you have theopportunity to take

on the Forex marketwith maximum pre-cision (quotes from0.00001) and withthe minimum spread(from 0.1 pips)

Forex market. We get quotes andthe liquidity of more than a dozenof the largest banks in the world,such as the City Bank, MorganStanley, Deutsche Bank, UBSand many others. In real time wechoose the best Bid/Ask priceand transmit them into the conve-nient and reliable trading platform:MetaTrader 4. With this technol-ogy (ECN) you have the opportu-nity to take on the Forex marketwith maximum precision (quotesfrom 0.00001) and with the mini-mum spread (from 0.1 pips).

Trader ECN

Morgan Stanley

Credit Suisse

Barclays

Goldman Sachs

UBS

Nomura

Admiral Markets

Pic. 1

What is anECN?

L iterally, the acronym ECNstands for Electronic Communica-tions Network. In the context ofspeculative trading in the interna-tional currency Forex market, it isa network that connects marketparticipants, namely, the tradersand banks. Schematically, the pro-cess of trading via the ECN canbe represented quite simply as Iwill explain.


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from different banks, you cantrade EUR/USD with a spreadof 0.1 pip which would be im-possible to do when trading di-rectly with a single bank.

At the same time, sometimesit is not profitable for a bank

to trade one or more currencypairs at a given moment. Dur-ing these times, the bank willdeliberately give an undesir-able quote that nobody wouldtake. In such situations, calledSpikes, the banks spreadfor a certain currency pair canreach tens or even hundredsof times more or less than thereal market value. In such situ-ations it would be a very badidea for one to trade directlywith this bank on that particu-lar currency pair.

Now you can see, if you have

an Admiral Markets Admiral.Pro account, you can buy 1 lotof EUR/USD from UBS andthen close your position withMorgan Stanley with a spreadof 0.1 pips. When you openthe position UBS has the bestAsk price but when you go toclose the order Morgan Stan-ley has the best Bid price. Allof this was made possible bythe ECN.

Since the Admiral Mar-kets ECN transmits the bestspreads directly to your trad-ing terminal without any edit-ing, a commission is chargedfor each transaction whichamounts to 0.004% of thetransaction amount, or rough-ly $4 per lot. As you can see,the total cost to trade 1 lotof EUR/USD will cost about$5$8 or, in terms of pips,0.50.8 pips. This is signifi-

cantly lower than the averagespread of 23 pips offered atindividual banks.

It should also be noted that,thanks to the ECN most of theproblems associated with li-quidity are solved. No matterhow huge the Forex market

is, it has limits. For example,if several traders try to buy atotal of 300500 lots for thesame currency pair, it might bevery difficult to find one bankthat will be able to offer an at-tractive price for this large of avolume. With the ECN, theselarge simultaneous volumescan be split among severalbanks in smaller chunks keep-ing a good price for all trans-actions. The same system isused to close the orders, split-ting the closing among severalbanks if needed.

What is NDD?

Before getting into the tech-nical details of the NDD, let meexplain the basic concept. NDDstands for No Dealing Deskwhich means exactly what itsounds like, we take out thedealing desk so you can tradewithout the intermediary, butthrough a slightly different butbetter intermediary which givesthe trader direct access to thebanks quotes.

Why, then, would the broker beinterested in giving this option?Since the broker usually makesmoney from offering slightlyhigher spreads than the banks,this seams counter-productive.To make up for this, an additionalfee is attached to each completed

transaction which is proportionalto the volume traded.

Since the broker no longer hidesthe real price, the trader is ableto have direct access to the bestspreads without having to worryabout additional inspections and

corrections by the dealing desk,greatly simplifying and accelerat-ing the trading process.

So, what again is the NDD? TheNDD is a system where there isa complete lack of hidden spreadmarkups giving an unimpededflow of quotes from the dealer tothe trader. This is a simple andreliable mechanism for tradingwhich makes the whole processmore transparent, comfortable,and profitable for the trader.

Without a doubt, Admiral.Pro,based on the ECN, is quite at-tractive to nearly all categories oftraders. The advancing technolo-gies that are the ECN and NDDin combination with very tightspreads and low commission takenby Admiral Markets will allow youto implement even more advancedtrading strategies.

The NDD is a sys-tem where there

is a complete lack

of hidden spreadmarkups giving anunimpeded flow

of quotes from thedealer to the trader


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on a few commodities such as rub-ber, coffee, and cotton.

The second hurdle that mustbe leapt is the strict foreign ex-change policy that bans peoplefrom investing outside the coun-try without a special license from

the government and restrictionson the free flow of capital in andout of the country.

Lastly, although the amount ofpeople in Vietnam getting onlineis continuously growing at an in-creasing rate, the percentage ofthe population currently online isstill low in comparison to othercountries.

During his trip to Vietnam,Admiral Markets President and

CEO, Alexander Tsikhilov notedthat even though the conditionsin Vietnam right now are notperfect, Admiral Markets hadmoved into many other EasternEuropean countries with simi-lar conditions and through hardwork and perseverance, had

managed some remarkable suc-cess stories. The biggest factorsto success will be the educationof the populace and innovativemarketing strategies.

In January, AlenaNeposidyaka,the Regional Director of Asia andBoard of Directors member, ar-rived in Vietnam to open the newAdmiral Markets office. After allwas said and done, the new of-fice opened in the Saigon TradeCenter in an excellent building in

Hochiminh, the financial centerof Vietnam. Currently there are3 employees headed by DanielNguyen all committed to devel-oping Admiral Markets in Viet-nam and we look forward to thefuture.

The new officeopened in the

Saigon Trade Cen-

ter in an excellentbuilding in Hochim-inh, the financial

center of Vietnam

Daniel Nguyen, Vietnam Office Director

Admiral MarketsVietnamese OfficeThe Admiral Markets Vietnamese office isthe 4th office in the ASEAN region after theoffices in Shanghai, Malaysia, and Indonesia.

With a population of rough-ly 84 million, a quickly developingeconomy, and a growing percent-age of the population coming on-line (30% according to the latestVNNIC), Vietnam is a promisingmarket for Admiral Markets.

Not all is perfect though andthere will be challenges in thecoming years. On the top of thelist is the lack of knowledge aboutthe FOREX market among theVietnamese people, who are justgetting introduced to the market.

For the last 10 years, there weremany local electronic gold trad-ing brokers which was very goodbusiness for the local banks butthis business was banned by thegovernment starting from March2010. For the citizens who under-stand English, the FOREX marketwas the logical place to go afterthe ban and many have startedtrading with Admiral MarketsLtd. Together with this move tothe FOREX market, there are alsotwo stock exchanges in Vietnamwhere the Vietnamese can trade

Vietnam is a promis-ing market for

Admiral Markets.Not all is perfect

though and therewill be challenges in

the coming years


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Contestants aredivided into divi-

sions based on thegeographical regionthat they live in and

only compete againstother contestants in

their own division

ForexBall is an international trading competition that is carried outon Admiral Markets demo accounts.

ForexBall Trading Competition

Basically, it is a competitionusing virtual money that pits Forextraders against each other to seewho can generate the most profitwithin a fixed time frame. The topearners get a cash prize with atotal prize pool of $50,000!

The ForexBallRounds

There are a total of 4 roundsin the ForexBall 2011 competi-

tion. All 4 are standard rounds inwhich each of the traders startwith $5,000 in demo money andtrade whichever currencies theywant to make as much money aspossible within the round's timelimit (schedule). Contestants aredivided into divisions based onthe geographical region that theylive in and only compete againstother contestants in their own di-vision. At the end of each of thestandard rounds, the top 5 earn-ers in each division will be de-clared the winners.

Mobile trading is now possible in Admiral Markets!

Mobile Trading:Boundless Freedom!

We are pleased to an-nounce that mobile trading is nowpossible with Admiral Markets fol-lowing the recent launch of trad-ing applications for the followingplatforms:

iPhoneiPadBlackBerryAndroidWeb Browser

These new solutions will giveyou the freedom to trade regard-less of where you are at the mo-ment, and even if you dont haveaccess to a PC. All you need is

any form of internet connectionon your iPhone, iPad, BlackBerry,Android, or web browser. Justlaunch the application and your allset, giving you the ability to keepyour finger on the markets pulseany time you want!

We not only offer the opportu-nity to trade from virtually any

location with an Internet connec-tion, we offer all of these featuresand applications absolutely free ofcharge! Do not miss the chance toexperience the unlimited freedomof movement while having con-stant access to the major financialmarkets around the world!


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In a special round called the"Gold Rush" round, only GOLDwill be available for trading onthe contestants demo accounts. Inthis round, contestants will not be

separated into divisions and willinstead be competing against ev-eryone at the same time. At theend of the "Gold Rush" round, atotal of only 5 winners will be de-clared.

At the end of each round, in ad-

dition to receiving prize money,the round's winners will be auto-matically placed in the "WinnersBracket." After all 4 rounds haveconcluded, there will be a FinalRound for all of the contestants

ForexBall RoundsSchedule:

Round 1:

21.03.2011, 12:00

(London/MetaTrader)01.04.2011, 21:00(London/MetaTrader)

Round 2:

16.05.2011, 12:00 (London/MetaTrader)

27.05.2011, 21:00(London/MetaTrader)

Round 3:

05.09.2011, 12:00 (London/MetaTrader)


Round 4:

07.11.2011, 12:00

(London/MetaTrader)18.11.2011, 21:00

(London/MetaTrader)

Final: 05.12.2011, 12:00

(London/MetaTrader)


The start and end time

of all the major and any special

rounds of the ForexBall inter-

national trading competition are

shown for London, United King-dom.

NB!

who have made it to the WinnersBracket. Out of the thousands ofcontestants who participate dur-ing the entire ForexBall season,no more than 125 will make it tothe exclusive Winners Bracket tocompete in the Final Round whichtakes place at the end of the year.

In addition to the main Forex-Ball rounds, there are specialrounds which are held locally be-tween traders of one country orseveral countries in one region.

The success story of a ForexBall contestant

"I came to the ForexBall site by accident, clicking on a banner on oneof Forex sites where I usually read news and analytics. I did not expectto win and joined just to fulfill my curiosity, since the registration andparticipation is 100% free, and the prize fund is 100% real!

Additionally, I was interested in the global com-petition and the large number of participants

from all over the globe. I wanted to testtheir strength and see where I stood asa trader. The round lasted for 2 weeks.At first I was not even in the top 20 ofmy division, as I had chosen rathercautious trading strategy, but in thesecond half of the week I had movedinto the top five. The most excitingand tense was the last day of the roundwhen I was able to successfully close acouple of deals and take first place! Itwas a feeling of triumph! I was pleasedwith my result and, more than that, I re-ceived a prize of $1000! Incredibly,without spending a dime, I man-aged to earn $1000! In just2 weeks! Now I am wait-

ing for the final battleat the end of the year.Going with the sell,and hoping to win.I recommend alltraders to try theirhand at the inter-national compe-tition ForexBall.It's worth it!"

Winners of all special roundsreceive real cash prizes but donot go into the final round of thecompetition.

We are glad to announce the

winners and prizes of the SpecialRound of the ForexBall for Rus-sia and Ukraine that ended onFebruary 25th. More than 1025traders from those two countrieswere competing independentlyon demo accounts. You can readmore about this special round andall other rounds on the ForexBallwebsite: www.forexball.com.

ForexBall RussiaUkraine:

one on one

February 2011 brought us avery special ForexBall round, Rus-sia vs Ukraine. Anyone familiarwith these two countries history oreven modern relationships can ap-preciate the rivalry that this roundre-ignited. This time, the partici-pants were not only interested in

material gain but also in supportof their country, seeking to defendtheir native lands honor.

Only participants from these twocountries were admitted into the

round with the rest of the contestconditions remaining the same.Participation was, as always, freewith each trader receiving $5,000in demo money. As usual, thewinners received a real cash prize,credited to their live trading ac-count with Admiral Markets, but,because this was a special round,the winners do not automaticallyqualify for the final round of theForexBall competition. They mustcompete, and win, in the regularrounds to gain access to the finalround.

The tense struggle lasted fortwo weeks, from the 14th tothe 25th of February. More than1,025 traders competed for hon-or, country, and money. The totalprize money was $2000, with 1stplace receiving the lions shareof $1,000, 2nd place $500, 3rdplace $300, and bringing up therear was 4th and 5th place bothreceiving $100.

The Russia-Ukraine ForexBallround was a special even for bothcountries. Neither country wasable to clinch all 5 top spots. De-spite the rivalry and competitivenature of the ForexBall, the over-all idea of this event was to bringtraders from these countries a

little closer by engaging in an ac-tivity that both could enjoy. Weare confident that this round willlong be remembered by tradersfrom both countries.

Special rounds are held sepa-rately from the main ForexBallcompetition. Participation inthese rounds gives traders an ad-ditional opportunity to practicetrading in Forex, compare theirstrength to others, try differentstrategies, and perhaps to betterunderstand the essence of thetrading system.

The ForexBall competitiongets bigger with each passingyear with a rapidly growingnumber of participants. Thisis not surprising, given the re-quirements for participationdont require any investmentand the gains are 100% real!Participation is available toanyone who has a demo accountwith Admiral Markets, who or-ganize the competition for trad-ers from all over the world. Theidea is to give traders a way toshow their skills off for some fi-nancial gain, and a little fame.The competition can be foundon the website www.forexball.

com which also holds the his-tory of past rounds and the cur-rent round standings. We inviteyou to join us and show us yourstrength and knowledge of theForex market and we sincerelyhope to see your name amongthe winners!

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The Elementaryand Incomprehensible

ZuluTrade

If you are seriously involvedin the Forex market and wantto earn your millions as a traderbut are not familiar with Admiral.ZuluTrade or the company Zulu-Trade Inc, then it is time to take

a closer look. Well, I may havemisspoke when using the phraseearn your millions. This is oftena trite and deceptive advertisingslogan instead of a fact although itcan become a real situation for anaspiring trader. Lets start fromthe beginning.

The company ZuluTrade Incwas founded in 2006 and in onlya few years they have achievedtremendous popularity among theForex community with equallyimpressive financial results. Cur-

rently ZuluTrade is partnered withnearly every major Forex broker inthe world. To paraphrase a famousChinese proverb: if the broker isnot among the partners of Zulu-Trade, they do not exist.

Since the inception of trad-ers there has been various ways

"Currently Zulu-Trade is partnered

with nearly everymajor Forex brokerin the world"

to rank them according to theirperformance. With the advent

of monitoring services whichmonitor the different trades fromaround the globe in all the dif-ferent currencies it has becomeeasier to rank each trader. Us-ing these services, it is easy tocompare the net earned capital,percentage yield, trader expecta-tions, and hundreds of other pa-rameters. From the beginning ofthese monitoring services, we, thespectators, have only been able tosit back and watch the triumph ofthe leaders and fall of yesterdaysheroes in the financial arena thatis the Forex market.

However, the different rank-

ing systems each used their ownvariables and one could argue thestrengths and weaknesses of eachsystem. In 2006, Leon Iohaymuhad the brilliant idea of creating ashared public rating, which wouldbring the thousands of traders to-gether, each looking for wealthand fame, under one ranking

system. It was a very simple, oras stated in the title, elementaryidea. Enter: ZuluTrade.

Any trader who has a tradingaccount with a partner of Zulu-Trade, such as Admiral Markets,can register on the ZuluTrade

website and start to get rankedright away. It doesnt matter ifyou are using a real or demo ac-count, the only important thing isto make your account part of theZuluTrade system and it will startto rank you as a user based onyour trading stats and the rankingalgorithm created by ZuluTrade.All of this is quite common butnext comes the magic.

Here is where the investors getinvolved. Any investor who hasan account with a partner of Zu-luTrade (Admiral Markets for ex-ample) can connect their account

to the ZuluTrade platform. Afterconnecting your account, you canbegin to choose from any of theranked traders in the ZuluTradesystem, connect them to your ac-count, and let them trade for you!All transactions that the tradermakes are simultaneously madeon your trading account as well,all in real time.

As a result of using the Zulu-Trade platform, a talented tradercan quickly amass thousands ofinvestors and actually managemillions of dollars while the inves-tors get the opportunity to me-ticulously put together their list

of managers (traders) to managetheir accounts.

Next up is the part that isthe most important, the part that

keeps it all moving forward, themoney. Let us take an exampleinvestor with an initial deposit of$10,000 on their trading accountwith Admiral Markets. Our inves-tor then goes to ZuluTrade andtakes a look at the different trad-ers available and their rankings.

Now comes the hard part, decid-ing which trader(s) our investorwill trust to turn their $10,000into the coveted million.

At the time of writing, the high-est ranked investor was customerAAA227510F with a 2339% an-nualized ratio of income. Recall-ing our high-school math class,we get:

$10,000/100%*2339% = +$233,900

which is the result after thefirst year of investment,

$233,900/100%*2339% = +$5,470,921

which is the result after thesecond year of investment.

Of course it is highly unlikelythat the investor would continueto see such results two yearsstraight. The investors account isoverloaded with signals and withsuch a large volume of informa-tion. If the information overloaddoes not slow down, this accountis sure to tank via a virtuallyguaranteed StopOut. But thisdoes not matter for the moment,as this investor is now viewed asa hero.

Let us try again with a moremoderate investor. At the timeof writing, investor AVA114517Fhas three active traders manag-ing their account with a 161%annualized return. With the helpof excel we can see how, if thisreturn is sustained, this investorcan get into the millions:

With the ZuluTradeplatform, a talentedtrader can quicklyamass thousands ofinvestors while the in-vestors get the oppor-tunity to meticulouslyput together their listof managers (traders)to manage theiraccounts.


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% APR 161.00%

Start $10 000.00

1st year $26 100.00

2nd year $68 121.00

3rd year $177 795.81

4th year $464 047.06

5th year $1 211 162.84

As you can see, this investorcan make a million in 5 years!Pretty great, huh?

Obviously both the first andsecond examples are more an ex-ception than a rule. If everyonecould make such a return on theirinvestment we would all be rich!Nevertheless, these are real ac-counts controlled by real peopleand to dismiss this fact would besilly.

A general rule would be to tryto initially get a 50% yield peryear. The loss of $5,000$10,000is a very sad event, but it is not

fatal. Life may give a secondchance where one can start withthe same initial capital but withmore knowledge, one of the mostvaluable things a person can have.Some people may even be able toinflate their accounts to an incred-ible sum and in one quick clickof the mouse, lose it all. This is

where greed trumps commonsense, which all traders must bewary of, but that is not the pointof this article. The point is to showyou the possibilities ZuluTradebrings to the table, and how youcan use them wisely for your ownpersonal gain.

Ok, so let us now take a look atthe traders, the people who makeit all happen. Let us imagine justa single trader, trying to reachthat million as well, striving forthe dream house, the yacht, etc.

Under the standard agreementwith ZuluTrade Inc, the brokeragrees to pay 2 pips from everytrade that takes place on an ac-count that is connected to Zulu-Trade. For example, when 1 lotis traded, the amount that will goto ZuluTrade will be roughly $20,give or take $5 depending upon

the currency pair being traded.Then, in turn, ZuluTrade will give0.5 of the 2 pips taken to the sig-nal provider (trader). Lets take acloser look at the signal providersincome.

zulumaster1 has 3,515 sub-scribers with a total balance of$9,582,063.96 which translates toa rough average of $2,700 per liveaccount. Another signal provider,SystemsFX LIVE has 2,401subscribers and $1,780,116.01 ofcapital, averaging out to be $741per account. Here I wont gothrough every single signal pro-viders stats but just wanted to

give you a general idea. Next wewill take a look at the economicsof a signal providers income.

Assuming that each trader (sig-nal provider) makes an average of3-4 trades per week, we can as-sume 14 transactions per monthon an average of 3,000 accounts.

Then based on our quick look atthe capital per subscriber, we canuse an average balance of $1,000on each investors account, givingus 0.1 lot which will be traded foreach transaction. So, we do somesimple math and get 14 transac-tions * 0.1 lot * 3000 subscrib-

ers * 0.5 pips * $10 as the priceof 1 pip = $21,000 per month or$252,000 per year. Add into thatthe return from trading on theirprivate accounts and you can seea quite comfortable living beingmade. Additionally, anyone canrefer new investors to ZuluTradeand will then receive 0.4 to 1 pipfrom each transaction that is ex-ecuted on the investors account.Pretty sweet deal!

That is not all though. There isa reason that this article is titledThe Elementary and Incompre-hensible ZuluTrade. I will now

attempt to explain the incompre-hensible parts in general terms.

The idea behind any trading sys-tem that is based on technical andstatistical analysis is quite simple.Just select any indicator(s) tocontrol the opening and closing ofany position, add some capital anda capital management system, andyoure ready! This is very close tohow ZuluTrade functions with thetraders themselves being the in-dicators.

For example, you see that Trad-er1 trades very well during strongtrends but stays quiet in the more

turbulent times. On the contrary,you see that Trader2 rakes in theprofit during the risky times. Ifyou connect the two traders toyour investor account, these twotraders should give you a smoothand steady situation. Once you be-ing to rummage around the trad-ing history of the signal providers,

"Anyone can refer newinvestors to ZuluTradeand will then receive0.4 to 1 pip from each

transaction that isexecuted on theinvestors account"

you will find hundreds of combina-tions that you could make, com-bining complimentary traders toassemble your ultimate tradingarsenal. If you distribute your cap-ital and volumes between themin an intelligent way, dependingon the market, the profitability of

your account can sometimes ex-ceed the yield of one particularsignal, greatly reducing risk. Thisworks not only with just one in-strument but can be used in com-bination with many different cur-rency pairs or instruments to addin a level of diversity.

As you can see the only limita-tion is the investors own imagina-tion and a dash of experimenta-tion. Thousands of traders, dozensof tools, and the ability to adjustthe volume provides an incrediblearray of profitable combinations.You can even go as far as to find

the worst traders, the ones whocannot ever seam to make a profit,add them to your account and in-stead of having it make the sametrades, you can invert the tradesso that every time they buy, yousell, giving you the profit!

The ever changing trends, ahighly volatile market, traderscoming and going, trad-ing systems becomingmore advanced, it iseasy to see that thingschange. For all theinherent simplicity inthe ZuluTrade system,there is still a huge level

of complexity. It wouldbe nearly

impossible to fully comprehend allof its features from end to end.

For those who have made it thisfar, I will give you a farewell bo-nus. Sadly, I cannot finish on themost hopeful of notes. If you havethe impression that you will be

able to join ZuluTrade, make a fewsuccessful trades, and have mil-lions of dollars thrown at you thenyou might as well just send meyour money. You would have losteither way. Money does not comeso easily, you must make sometough decisions, seek the sweatand blood, and be prepared.

P.S.To all who haveread a book on trading, made adozen or so successful trades, andthen immediately thought of them-

selves as a trader: you should finda new profession. In this article Idid cite a few examples of traderswho have truly made it but theirroad was long and arduous. Hun-dreds of ideas and systems, thou-sands of tests, and years of contin-uous trading have separated themfrom the rest. Only continuouslysmooth, regular, and consistenttrading will convince investors tobelieve and trust in you. The lon-ger you stay on that path, thebetter you will look to potentialinvestors and the more knowl-edge you will gain yourself asa trader.

At the same time, the caution-ary tales also hold

true for inves-tors. I have a

lot of experience with this cat-egory of people and believe me,there are only a few competentand properly trained ones amongthem all. Most of them do notunderstand the basic ideas of aninvestment. They will open an ac-count and deposit $10,000, attacha trader that shows 60% per year,and then expect to be able to pay

rent off a monthly $500 profit.What they end up doing is watch-ing for month-to-month gains in-stead of the long term gains. Or,they will see a 3% loss of theirdeposit, get angry at their tradersand go to new traders who willeventually end up doing the same.The investor will quickly run outof capital and be out of the game.After seeing this on a few occa-sions, one could easily write thebook 1000 Tips to Destroy Your-self in the Shortest Time Possi-ble.

In general, the financial marketis a dog-eat-dog world and will not

tolerate laziness. Therefore, nomatter how great the ZuluTradeplatform is, the trader must beable to work smoothly and steadi-ly, the investor must be able tocontrol his nerves and risks, andthey must both clearly understandthat no good comes to a man inthis world without hard work.

Thousands of traders,dozens of tools,

and the ability toadjust the volume

provides an incrediblearray of profitable

combinations

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Refer a Friendto Admiral Markets!

Dear traders,you now have the opportunityto invite all your friends to Ad-miral Markets! It's easy, fast

and most importantly profit-able!

To send invitations to yourfriends, first enter your Trad-ers' Room username (e-mail ad-dress) as well as your live trad-ing account number. Then youcan enter your friends namesand e-mail addresses and wewill send an invitation to them

with the required information.Once your friend(s) follows thecorrect links and opens a real

trading account, both you andyour friend will receive a $20 de-posit from Admiral Markets!

If the referer and referee residein different countries with differ-ent bonus levels and bonus col-lecting requirements, the new-comer will receive their bonusaccording to the referrer countrysettings.

Some Places ThatYou Must Explore

InAustralia

For many dreaming of their va-cations, Australia is often one ofthe places dreamt about. However,many of them probably have al-ready been to the country a fewtimes and have probably seen mostof the more popular sights. Thus,one may wonder if there is any-

thing more to see in the country.

So the question remains, isthere anything new to discover onthis continent? Well, the truth is,there is a lot more. Australia isa huge country with many hiddentreasures and unexplored areas. Ifyou are still looking for that gem,

here are a few suggestions that Ipersonally suggest you try out.

The Kakadu National Park

in the Northern Territory is anamazing place for any buddingexplorer to start their journey. Itwould be nearly impossible for a

single person to explore the entirepark as it is the same size as theentire country of Solvenia! Withsuch vastness there are morethings to discover than could becounted. Each section of the parkvaries from the next with everchanging landscapes, climate, andwildlife.


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In the neighboring state ofQueensland, the Daintree Rain-forest is another excellent placeto visit for those looking for some-thing a little different. As youenter the rainforest, you will geta feeling of traveling back to theJurassic period, which would be

perfectly natural since this partic-ular forest has remained virtuallyunchanged for over one hundredfifty million years! To top it off, asyou emerge from the rainforest onthe eastern side, you will be greet-ed by the crystal clear waters ofCape Tribulation, a relaxing sightindeed!

An old classic, the Great OceanRoad in Victoria, located in thesouth-eastern area of Australia,is truly spectacular. Althoughthis road is already frequented bymany travelers and tourists, thisshould not put you off as it reallyis a beautiful road to travel. One

of the most popular stops alongthe way is the Twelve Apostles,a group of twenty free standinglimestone formations which aresomething to marvel at.

As your trip is winding down,a good final stop off the beatenpath would be the NingalooReef in Western Australia. Thisis a must see if you are interestedin the varied and exciting marinelife found all around Australia.Here you will be able to encoun-

ter some of the gentle giants suchas whale sharks, manta rays, andmuch more. Since this reef is welloff of most tourists to-do list, youwill be able to explore some trulypristine areas.

Of course there is more to explore in Australia and we hope that you would be able to find something thatsuits your tastes. So what are you waiting for? Pack your bags and get exploring!

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