This week I wrote about FinFX replacing ZuluTrade with the Currensee social trading network, and I just got the news of another broker breaking up with ZuluTrade – and Mirror Trader: XEMarkets.
A few weeks ago the access of ZuluTrade and Tradency's Mirror Trader to Metatrader 4 (MT4) was cut off as Metaquotes, the publisher behind the most popular platform for forex and CFD trading, accused the networks of hacking MT4 protocols. Of course, the social platforms denied
this and answered with the contra-accusation that Metaquotes is trying to monopolize the business of copying trading signals but after that point things must have continued behind closed doors as no further information was released to the general public.
Terminating its agreements with ZuluTrade and Tradency makes a lot of business sense for the XEMarkets; I suppose that it would be much, much easier to find another network for trading signals, than to completely change its platform offering and migrate all of its users from MT4 to an alternative solution. This is the better option for traders as well, as the disruption for them switching signal providers will be smaller.
XEMarkets has not made it clear if it would be replacing the two networks with a different one. If they decide to do so, I am guessing that Currensee or FXSTAT would be the natural choice for a number of reasons.
First off, both networks steer away from the Metaquotes debacle, which means that they're in the clear and can link their services to MT4 and MT5.
Furthermore, these are both respectable companies that impose strict criteria for selecting their signal providers, thus ensuring the high quality of the trading alerts broadcast. The signals of both Currensee and FXSTAT are paid, which eliminates any possibility of signal providers “experimenting” and offering bad trades for their followers to copy – and at the same time, the fees followers pay are reasonable.
In the meantime, Tradeo remains an option for automated trading, however we should keep in mind that it was also amongst the companies accused of MT4 protocol hacking – so this may not continue a lot longer.
This is why I recommend for XEMarkets' clients to stick to the trading signals
provided by the brokerage's chief technical strategist Avramis Despotis – these have been live for over a couple of months now, and are offered free of charge.
July 30, 2013 is the last day of XEMarkets' partnerships with ZuluTrade and Tradency. The broker has already given notice to all of its clients, encouraging them to close all their open positions on the two networks prior to that date to avoid any losses.
XEMarkets is the trading name and the registered trademark of Trading Point of Financial Instruments Ltd, regulated by the Cyprus Securities and Exchange Commission (CySEC) and registered as a Cypriot Investment Firm (CIF). Trading Point of Financial Instruments Ltd operates its XEMarkets services for forex, precious metals, equity indices, and energies trading in compliance with the Markets of Financial Instruments Directive (MiFID) and with full European Union authorization.
The popularity of XEMarkets is first of all attributed to its strict no re-quotes, no rejection of orders and no hidden fees or commissions policy, along with real-time markets execution, with 99.35 of all orders executed in less than 1 second. Moreover, 24/5 multilingual Personal Account Managers ensure smooth client communications and professional support in over 15 languages.