Forex signals service is usually targeted to a certain niche in the forex trading community, made up of either beginner traders who are yet to build their own trading system or busy investors who have a demanding regular job, thus keeping them away from the computer. The growth of forex signals providers has been phenomenal in the recent years driven by increased popularity of forex and also the rise in the number of forex brokers that offer trading for as low as $5.
If you are looking for a forex signals provider, then read this article which I wrote a while back about the check list before choosing a signals service.
However, all that being said, not all forex signals providers offer transparency to their trade signals. For example, one of the commonly used methods by forex signals providers is to minimize their losses. This is done by different methods including prematurely closing the trades in order to minimize their losses. This is especially true among forex signals providers who do not link up their trading account to a third party verification website such as MyFxBook. Despite such practices, traders continue to subscribe to such providers with hopes of making it big in forex.
Introducing the MQL5 community
So, if transparency of trades is something that is of utmost importance, then look no further than the MQL5 community managed by the same people behind the MetaTrader platform that almost every trader is familiar with.
While there are lot of sections in the MQL5 community, the ‘Signals’ section is something that is worth exploring if you are in the market looking for a forex signals service.
Registration to the MQL5 community is free of cost thus making it possible for you to register and to easily browse a huge list of forex signals.
MQL5 Forex Signals Service
To start using the forex signals service, you simply need to register an account and click on the ‘Signals’ service which takes you to the forex signals providers page. From here on you can choose a signals provider of your choice and connect directly to their trades.
What’s best about the MQL5 forex signals service is that all this can be done directly from your MetaTrader platform.
A common misconception being that MQL5 is for only the MetaTrader 5 trading platform.
This is completely wrong. You can subscribe to the forex signals via MQL5 even if you trade on the MT4 platform.
Connecting to the MQL5 Forex Signals service
Assuming that you have already registered to the MQL5 community, you first need to login from your MetaTrader platform. To do so, click on ‘Tools>Options.’ From the pop up box, select ‘Community’ and then enter your MQL5 username and password. Refer to the illustrated picture below for visual reference.
Now that you have connected to the MQL5 community, you can then navigate to the ‘Signals’ tab. This can be found at the bottom of the ‘Terminal’ section (the place where you see your balance, equity, etc.
Once you navigate to the ‘Signals’ section you can see a list of list of signals providers. From this section onward you can filter the signal providers based on the age of the signals service (the longer the better), signals from a demo or live or contest account, pips, equity growth and so on.
Choosing the right forex signals provider from MQL5
To select the right forex signals provider, the first aspect to look into is the age of the account. This is a great starting point because the longer the account has been active, the more information it can provide you. For a conservative choice, it is best to filter signal providers that are atleast 3 months old. The reason behind this is because accounts that are under 3 months old usually tend to close their signals service and hence aren’t reliable.
There are two kinds of signal services available from the MQL5 community. Free and paid
The next filter should be choosing between a real or a demo signals provider. While this is purely subjective, let me explain what these types mean.
- Demo Account Signals Provider – The trading signals come from a demo account.
- Real Account Signals Provider – The trading signals come from a real trading account.
- Contest Account Signals Provider – Not applicable in our context.
I mentioned that this filter is subjective because there are two ways to look at this. Due to the fact that signals providers can connect to MQL5 directly from their MT4 or MT5 trading platforms, you can automatically see other details such as the account balance and so on. Most traders prefer to keep such information anonymous. Surely, you don’t want to attract attention if your real trading account has a balance of $50,000.
My recommendation is to check for both Demo and Real Accounts.
The next step is to sort the signal providers based on equity growth. Bear in mind though that signals service that shows a big spike in equity growth usually attracts a bigger drawdown (read more about drawdowns in forex). It is ideal to choose a signals service that exhbits steady and modest growth.
The next step is to actually visit the MQL5 website to learn more about this signals provider that you have selected. Every MQL5 signals provider is offered the option to describe their trading methods. Read this in order to understand the methodology which will help you in your money management.
Subscribing & Connecting to an MQL5 signals service
Now that you have singled out the forex signals provider from MQL5, the next stage is to connect the signals.
To do this, right-click on the signal provider’s name and click ‘Subscribe’. You will be prompted to accept the terms and conditions and you are done. An alternative is to go directly to the Signals section on MQL5 community, select MetaTrader 4 or 5, based on your trading platform, enter your broker name and select the server from the drop down and then enter your login ID in order to authenticate your account and to start receiving the signals directly.
Once you enter the above details you are all set to receive the trading signals.
Some quick notes:
MQL5 Trading Signals works only when your MetaTrader platform is running. Therefore, it is practical to subscribe to a Forex VPS service in order to keep your MT4/5 trading platform running 24/7. Here is my preferred VPS service provider.
Because you connect to the signals directly from MetaQuotes, there is no need for any expert advisors thus making it very simple