Zulutrade Announces New Compensation Plan
If you've ever considered using Forex signals or a Forex automated trading system, you've probably stumbled upon Zulutrade, one of the largest signals aggregators and autotraders on the internet. The Zulutrade model is simple – it lists hundreds of Forex signals providers and their profit/loss ratios, and allows traders to choose which signals they wish to integrate into their trading platform. Zulutrade works in conjunction with some of the top Forex brokers including Forex.com, Ava FX, Alpari and FX Solutions, among others, and can be merged seamlessly into your current trading platform.
Until now, signals providers were compensated by Zulutrade based on several factors, none of which was the monthly profitability of the service. This changed last week, however, when Zulutrade announced that Forex signals end a month at a loss will not be compensated. Previously, signals providers were rewarded with 0.5 pip for each trade that was placed based on their signals, whether or not they were profitable. The announcement comes on the heels of a complaint against Zulutrade by the NFA, charging that the company failed to maintain required capital or to keep its records properly.
Zulutrade's statement in response to the NFA's claim did not address several key issues, including what would happen to the commissions that the trader paid for losing trades? Will these funds be credited back to the traders? Will they be held by Zulutrade?
Although it may be too early to confirm the answers to these questions, it is worth watching the evolution of this service in the coming weeks, to see if this policy reduces the amount of unsuccessful signals shared with the trading public.