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Investing in Forex: ZuluTrade vs. MQL5.Signals

There are benefits and drawbacks to trading Forex with signal services on automated trading platforms like ZuluTrade and MQL5.Signals. If you’re considering trading with signals, it’s best that you not only research the signal service you choose thoroughly, but also learn about those benefits and drawbacks before you commit to using a signal service. You also may wish to do some demo tests using the signal service you invest in before you invest additional money in trading live. This may sound like it would waste money if you pay for a signal service, but it will probably save you a great deal in the long run. Let’s compare and contrast the features and reputations of ZuluTrade and MQL5.Signals.

ZuluTrade

ZuluTrade has been around for a long time and is very popular. It’s owned by ZuluTrade Inc., a company headquartered in New York City. ZuluTrade doesn’t actually require you to spend any money, which is great—though it could cost you money in the form of lost trades if the signals you receive aren’t reliable. It’s a peer2peer (P2P) system that works like this: You sign up for free, and then you choose signals that are provided by professional traders around the globe. The signals are automatically converted into live trades in your account by ZuluTrade (there is no direct interaction between your account and the signal providers you choose). What do the signal providers get out of it? They get a commission on trades which you and other traders who subscribe to their service win. Affiliates for ZuluTrade likewise are paid a commission.

The website sorts the most consistent signal providers as well as the worst ones so that you can easily find the providers who are doing well. ZuluTrade has a lot of other great features including mobile compatibility through apps developed for iPhone and Android. You don’t need to be at your computer or have your computer turned on for trades to be placed on your behalf. Charts and a calendar are available on site.

MQL5.Signals

MQL5.Signals, like ZuluTrade, is a signal service that allows you to subscribe to expert advisors and trade signals from various providers. MQL5 stands for MetaQuotes Language 5, and refers to the programming language in the charting software which allows for automatic executions of trades based on signals which are included in the MQL5.Signals service. MQL5.Signals hasn’t been around for as long as ZuluTrade, but is popular because it is built into MetaTrader, one of the most popular charting platforms in the world. MQL5.Signals doesn’t have as many features as ZuluTrade, though MetaTrader itself is a feature-rich platform. It’s easy to subscribe to signals right inside the charting platform, so you can do all your trading in one place.

MQL5.Signals charges customers differently than ZuluTrade. Instead of providers taking a cut of profits every time their subscribers win, the system allows providers to set a fixed monthly fee. Payments can be made via WebMoney, PayPal or credit or debit card. As with ZuluTrade, there is no need to have your computer online for your trades to automatically execute based off of the rules you provide.

Which Service Should I Use?

Trading is a highly individualized activity, and these are both well-known and well-reputed automated trading platforms. The best way to go about choosing one to use is to check out both platforms and their features and see for yourself which you are most comfortable with. There is a different selection of signal providers for each, which also may influence your choice, since your goal is to choose a service which you find reliable. Also keep in mind that not all brokers partner with both of these services, either, so your choice of broker may also have an impact on whether you try trading through ZuluTrade or MQL5.Signals. The payment plans for each service are also very different, so you’ll need to decide whether you’re more comfortable with a fixed monthly fee or a commission on winning trades.

Benefits and Drawbacks of Automated Trading

Whether you go with ZuluTrade or MQL5.Signals, it’s important to remember that you’re casting the fate of your account into someone else’s hands. Neither of these services guarantees future performance, because that’d be impossible. Some of the signal sellers that use them provide poor services which will cost you money, while others provide great services which may help you to win. But no matter what, you’re handing over control of your trading to a third party, and investing in someone else’s’ talent—or otherwise.

Use caution before you embark on this path. There are middle grounds between fully automated and fully manual trading as well. Some traders subscribe to signal services but use them only to provide guidance, and then choose which trades to place on their own. This is a great technique to use if you want to stay involved in your trading. Staying involved will help you detect whether market conditions are changing. Sometimes you’ll need to adapt, and you may pick up on when it’s time for a change in your trading before the providers you subscribe to realize that circumstances are changing. After a time you might even reverse-engineer some of the good signals and create your own trading robot or expert advisor to become less dependent on the signals services.

2 Responses to “Investing in Forex: ZuluTrade vs. MQL5.Signals”

  1. Johhny on December 13th, 2012 10:33 am

    I am a long time Zulutrade user , happy with them especcialy now that they’ve released their new website. Some weeks ago i tried to try the Mql service but unfortunetly i didnt manage to copy any trade there and i saw that i wasnt the only one user complaing. I guess that their service would need time before maturing.

  2. xorpheus on October 22nd, 2013 9:43 pm

    “As with ZuluTrade, there is no need to have your computer online for your [MQL5 Signals] trades to automatically execute based off of the rules you provide.”

    This is incorrect. With the MQL5 signal service the client terminal must be running. If you shut it down trading will stop. You can run it on a VPS of course, but it must be online 24hrs a day.

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