MetaQuotes vs Third Party Signal Providers: ZuluTrade Speaks Out

As is to be expected, the backlash against MetaQuotes’ publication on its corporate website aimed at discouraging the use of copy trading platforms yesterday morning is gaining momentum.

The very same day, Tradency put an end to its seven year commercial relationship with MetaQuotes products as a direct result of the actions of the company. Today’s respondent is ZuluTrade, a company at which MetaQuotes directed the exact same allegation of being a facilitator for hacking in yesterday’s publicly available warning.

ZuluTrade’s CEO Leon Yohai spoke to Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term Magnates in order to provide his position on the situation, which also represents the wider consensus within ZuluTrade.

“In relation to the latest public announcement made by MetaQuotes, we would like to clarify that ZuluTrade does not hack any network protocol, and this has been communicated to MetaQuotes repeatedly. ZuluTrade uses completely legitimate and documented methods to connect with collaborating MT4 brokers and has never violated the terms & conditions of MetaQuotes” explained Mr Yohai.

Mr Yohai is not the first to subscribe to the point of view that MetaQuotes intends to internalize the entire signals sector by creating a difficult modus operandi for the third party landscape. “It seems to us that MetaQuotes has decided to monopolize the signals business, targeting fully legitimate competitive vendors like ZuluTrade, by using inappropriate methods such as secretly deploying mechanisms to broker MT4 servers to block a list of IPs. For ZuluTrade this caused only insignificant downtime (as opposed to other services) and currently all our services operate normally” is Mr Yohai’s take on the increasingly discussed corporate direction of MetaQuotes.

Software security and of course the wellbeing of traders’ accounts is one aspect, and Mr Yohai is aligned with MetaQuotes on this point, supporting the firm's endeavors to protect against unauthorized system entry and abuse: “Even though ZuluTrade is opposed both ethically and professionally to the methods engaged by MetaQuotes, we can still find some sense in their goal to stop protocol hackers", he concurs, “however, instead of blocking IPs, they could, for instance, build their protocol in a way that changes dynamically, without even having to issue a software update. Such a solution would instantly disable protocol hackers, leaving legitimate services such as ZuluTrade, VPS providers and users trading from multiple terminals, completely unaffected.”

The Future: Platform Agnosticism

“Taking into consideration the latest developments, ZuluTrade is looking forward to implementing alternative back-end integrations that would be entirely independent from the MT4 system, in favor of stability, Scalability Scalability Scalability is a term that describes the constraints of a network via hash rates to meet increased demand. In the context of Bitcoin, scalability reflects the issue in which a limited rate can process transactions adequately.Blocks within the Bitcoin blockchain are limited in both size and frequency. The overall transaction processing capacity of the network is dictated by the average block creation time of 10 minutes as well as a block size limit of 1 megabyte. Consequently, this leads to pain Scalability is a term that describes the constraints of a network via hash rates to meet increased demand. In the context of Bitcoin, scalability reflects the issue in which a limited rate can process transactions adequately.Blocks within the Bitcoin blockchain are limited in both size and frequency. The overall transaction processing capacity of the network is dictated by the average block creation time of 10 minutes as well as a block size limit of 1 megabyte. Consequently, this leads to pain Read this Term and overall trading experience” concluded Mr Yohai, confirming the notion that many software and signal providers could look elsewhere for their platform partners in future.

This, combined with a host of new platforms having become available recently, with the support of banks, and an open and customizable environment, could signal a greater move in that direction with MetaQuotes showing its cards being a substantial catalyst.

Forex Magnates will report further viewpoints from within the industry during the course of the day.