What is Zulutrade and how does it work?

Zulutrade is a company that have been founded in 2006. Since then they have been offering a service that permits traders to trade using the signals of somebody else. In their terminology somebody that offers signals is called a signal provider or SP. They are not the only one offering this kind of service. Remember when we wrote about Tradency... Well it is the same thing. What makes Zulutrade special is the large number of signal providers and the large list of brokers that can be used.

 The idea itself is great. Imagine that you can follow the signals of an expert trader and that you can make the same profits. Before getting to enthusiastic lets see how this service is actually running.

First of all why would any successful trader share his signals? Well the way the system works every signal provider will make money if they have followers that follow their signal. (0.5 pips per lot followed) It doesn't matter if the signal provider has a demo or a real account. If a signal provider trading with a demo account gives a bad signal he will still make money even if his followers who are following his signals with a live account are losing money with his bad signal.... Of course he will try to avoid giving bad signals because he will lose followers if he gives bad signals all the time. Recently Zulutrade has made a new rule stating that a signal provider will only get paid for each month with a positive return. This new rule has some strange consequences. Some signal providers will stop giving signals at the end of the month when they have a positive return so far. They do this to avoid having a bad trade with would risk ending the month in negative and would make them lose being paid by Zulutrading. We are going to test Zulutrade with a demo account and we will see how it turns out.....