ZuluTrade finally made an important update to how it compensates signal providers – from now on those providers will be paid for volume made by their followers only if the month was profitable. This means that if signal provider lost money in a given month – it won’t get compensated by Zulu. This imposes several questions: what happens if signal provider was profitable but some/all of his followers lost? Also what happens to the commission Zulu charges clients themselves if provider has lost – will it credit clients back? Zulu charges clients about 2 pips on any trade and this adds up to substantial sums eating away profits even if strategy itself is profitable.
NFA today announced that it charged Zulutrade for some minor compliance deficincies. Text is laconic and this is all the information that was made available: “On November 15, 2011, NFA issued a Complaint charging Zulu with failure to maintain required books and records; failure to maintain required capital; and failure to give required notice.”
ZuluTrade’s announcement to signal providers:
“ZuluTrade changes again!
What to Look for in a Forex Technology Provider?Go to article >>
As part of our continuous effort to increase the quality of ZuluTrade’s Signal Providers and provide better strategies for your investment, a new rule has been imposed:
Signal Providers will not be compensated if a month is negative in pnl.
So from now on, rebates earned during a month with a negative overall Monthly PnL will not be paid out to Signal Providers. To see a detailed description of the new compensation scheme please visit our Signal Provider’s Guide.
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