A forex signal is a suggestion for entering a trade on a currency pair, usually at a specific price and time. The signal is generated either by a human analyst or an automated Forex robot supplied to a subscriber of the forex signal service. Due to the timely nature of signals, they are usually communicated via trading and social trading platforms, websites, or another relatively immediate method.
Services provided fall into four categories:
The Forex Trading Signals service, which enables automatic real-time copying of trading operations from one trading account to another, is available straight from the MetaTrader platform. The service principle is simple: a trader provides public access to the deals he or she executes on financial markets, while other users can subscribe to this signal. The forex signal provider's deals are automatically executed on subscribers' trading accounts.
Thousands of free and paid signals are featured on the Signals tab of the MetaTrader platform. For convenience, all signal providers are sorted by their trading results and are provided with detailed statistics, growth, balance and equity charts, as well as full trading history. Choose the desired signal and subscribe to it — and all the professional trades will appear on your accounts! The first one thousand signals sorted by rating are featured on the platform's showcase, while the full list of signal providers is available on the MQL5.community website.
According to the service rules, all signal providers are carefully screened for credibility. If a provider's results over the previous month are far from satisfactory, this signal will not be featured in the showcase.
Additionally, the Trading Signals service enables successful traders to earn extra income on a regular basis by selling signal subscriptions to thousands of users around the world.
The built-in MetaTrader Copy Trading service is beneficial to both signal providers and their subscribers. Signal providers receive fixed monthly subscription fees, while signal subscribers automatically execute trading operations of professional traders on their accounts.
source: AM Broker Copy Trading Dashboard
A service that allows your account to automatically copy trades of one or more chosen expert traders. To help you identify the top traders most suitable for your needs, these services include trader rankings complete with detailed data on their styles, performance, maximum drawdown, and other risk data, experience, and so on. Most major brokers are either linking up with existing social trading services or building their own. Why?
Because social trading or copy trading ﬁlls an important unmet need, a shortcut to trading success without needing to trade yourself, but with better transparency and lower entry costs than with traditional forex managed accounts. You’re more likely to actually make money by letting an expert do it for you. For those interested in becoming star traders themselves, they can raise their chances of making money sooner by using a portion of their accounts to trade via experts until they reach a similar level of performance. OR, to become one themselves and receive additional income through efficiently managing investor funds.
Basically, you select one or more of your favorite experts based on the data available on them and set up an account that mimics their every trade (copy trade service), based on different settings allowed for managers. Experts are compensated based on performance measures that vary from broker to broker, such as proﬁtability and number of followers. You set up a trading account, then select the trader(s) that your account will mimic. When that star trader makes a trade, your linked account simultaneously makes the same trade automatically.
A forex robot is forex trading software that automates trading decisions. The most popular robots for retail traders are built around the MetaTrader platform. These robots run on MetaTrader as "expert advisers" and they can do just about anything, from giving you a signal to place a trade, to placing and managing the trade for you automatically.
If you have an accurate forex strategy that's strictly mechanical and that doesn't require a human in the decision-making process, you can program your forex robot to trade for you 24 hours a day.
Assuming the forex expert advisor is well designed, it is backtested, and its performance is monitored, programmed trading has some obvious advantages:
- Never miss an opportunity: a forex EA can work 24/7.
- No emotion, full discipline: an Expert Advisor take the emotion out of forex trading as long as you’re disciplined enough to let the system work even when you believe the rules don’t apply under current conditions.
As forex market is popularly touted as a get-rich-quick method there are a number of services that supply signals of debatable quality, which do not answer the users' expectations for profits.
The majority of signal providers focus on supplying signals based on technical analysis and a minority work on fundamental analysis or price action. Technical analysis, such as Ichimoku and candlestick charting, show both short and long term price trends giving the signal provider flexibility in supplying a range of trade options. The fundamental analysis gives longer term trade ideas. Price action gives extremely short term trade ideas, often more suited to scalping.
Understanding what types of forex signals are available and how to choose one is important, but if you need help AM Broker provides access to all the 3 types of signals described above.