Trading Signals and Social Trading in MetaTrader 5

Finarm.com
15 min readOct 12, 2021

Thanks to its wide functionality, MetaTrader 5 is one of the leaders among trading platforms. One of the popular features of the terminal was the function of copy trading through trading free signals, Forex signals. It allows you to automatically copy transactions made by other market participants.

Description of the tool

In MetaTrader, the use of best Forex signals is carried out using the Trade Alerts signal service. The essence of the work boils down to copying the operations of the trader for whom the subscription is issued, with a pre-established level of risk. Copy trading gives you the opportunity to earn using someone else’s skills and not go into the negative in case of failure. A certain commission is paid for repeating operations. Such conditions are advantageous for both parties — the supplier earns on his knowledge and shares from subscribers’ transactions, the user makes a profit without additional time costs.

Trade Alerts (trade Forex) stands out among similar Forex signal services of other trading platforms — it was developed by the same company that created the terminal. This has had a beneficial effect on the quality of work — the Forex signals arrive almost without delay, so the speed of their execution is very high. Fast copying of a transaction is especially important when using a speculative strategy in the currency markets.

How to choose a signal?

The popularity of the platform contributes to a huge selection of professional traders for whom a subscription is possible. In order to minimize risks in MetaTrader, the best Forex signals are monitored by several indicators. Quality assessment leads to a ranking of strategies by rating — the most successful ones are at the top of the list, the ineffective ones are removed.

There are two ways to view the available subscription options — in the terminal itself and on a specialized website in the Forex signals section. The “Tools” menu is located at the bottom of the platform window, and the “Signals” tab contains a list of possible suppliers. Clicking on the column title in the list that opens enables sorting by the relevant data.

By clicking on the name of the Forex signals, you can view detailed information about it: growth, the number of subscribers, maximum drawdown. It is possible to visualize the tool on the chart. A warning may appear in the same window, which will indicate additional points that can influence the decision — a new account opening date or an insufficient number of transactions for withdrawal. If it is difficult to make a choice right away, clicking the asterisk next to the subscription price information takes the tool to Favorites. Having marked several, you can compare them in more detail or return to them later.

On the website mql5.com, it will be more convenient to view information about the tools. The Forex signals (free signals) showcase has an automatic selection function. To do this, you will need to specify the broker’s server with which the account is opened, after which the program will analyze and offer suitable tools with minimal slippage.

There are filters that allow sorting by certain parameters, for example, broker or author, profitability and leverage. A function is available that will help you see the best Forex signals that are not included in the rating. The copy trading function can be paid or free. On the website, the price is indicated immediately on the “Copy” button. With a paid subscription, you should take care of the sufficiency of funds in the account to pay for the Forex signals.

How to subscribe?

It is clear that in order to use copy trading, it is necessary to have an installed MT5 terminal. Next, you will need to create a personal account on the site. To register, you need standard data — login, password and email address to which a confirmation link will be sent. After clicking on it, registration will be completed.

Then you need to go to the “Settings” section of the “Tools” top menu or use the keyboard shortcut Ctrl+O. A window will appear where one of the tabs will be “Community” — right here you need to log in using the registration data on mql5.com by entering your username, password and clicking “OK”.

You can subscribe directly to the terminal or on the website. In the first case, you will need to go to the “Signals” tab of the toolbar. After selecting the signal, you can click “Subscribe…” both in the general list and by going to the detailed information. A window will appear in which you need to confirm the action. After checking the parameters of the instrument and trading conditions, you need to accept the rules for using the Forex signal service provider and enter the password from your personal account.

After confirming the subscription, a window with copy settings will open. If necessary, you can make changes and click “OK — the panel will close, and the automatic copying system will start working. The second option is to choose the best Forex signal provider on the site. The “Signals” section presents a variety of options available for the subscription. Clicking the name will open the detailed information. The “Copy” button is available both in the general list and on the page with detailed data on a specific tool. After clicking it, a page will open where you will need to specify the duration of the subscription, the start date of copying, the broker and the account. After filling in the fields, you need to accept the terms of use of the Forex signals service provider and click “Subscribe”.

After completing the subscription procedure, you should restart the terminal. After that, it is necessary to enable copying transactions through the platform menu through the “Settings” sub-item of the “sErvice” section. In the window that opens, in the “Signals” tab, you need to mark the lines:

● accept the terms of use of the service provider;

● allow subscription to receive Forex signals (trade signals);

● copy stop loss and take profit levels.

Next, the risk settings are set — the load on the deposit, the stop level and the limits of execution on the spread. Pressing the “OK” button will start copying.

How to reduce risks?

All Forex signals providers undergo a trial period and quality control. In the currency Forex markets, the opportunity to get subscribers is available only for traders whose account has sunk by no more than 60%.

Additionally, the terminal has the ability to configure three parameters that can minimize the risk.

The load is not more than a certain percentage of the deposit. This is the share of available funds in the trader’s account, which can be used for all copy trading operations. The program automatically distributes allocated financial opportunities between existing subscriptions, forming lots. The parameter helps not to go to zero due to unsuccessful supplier transactions.

Stop if the score is lower. The amount of the remaining funds is indicated here, upon reaching which all transactions are closed, and the copying process stops.

Execute within a spread. This number allows you to take into account the difference in quotes from different brokers, indicating the allowable difference in points.

There are other points that are designed to reduce the risks. The main one is the ability to subscribe from each account to only one trading signal. A new supplier will require the establishment of an appropriate account. Also, there should be no open transactions in the initial stage of the service.

Features of the MetaTrader trading signals

We would like to remind you right away that investing in Forex trading signal copying systems requires an investor to do much more technical analysis of the specifics of working in the Forex market than investing in PAMM accounts. Therefore, if you are facing the Forex market for the first time, it would be better to familiarize yourself with it by investing in PAMM accounts, and only after that continue working with tools such as trading signal copying systems. Trading signals in MetaTrader on the main information portal of MetaQuotes mql5.com, there is a separate section called “signals”. If you enter it, the first thing that will catch your eye is the division of all Forex signals into two main types — trading signals for the MetaTrader 4 trading terminal and trading signals for the MetaTrader 5 trading terminal.

To be honest, it is not entirely clear why MetaQuotes does not combine all these Forex signals into a bunch and does not implement the ability from the MetaTrader 4 terminal to subscribe to the trading signals of MetaTrader 5 and vice versa — it would be much more convenient, although perhaps my reasoning to the specialists from MetaQuotes will seem ridiculous.

The “problem” described above is not a problem as such. The fact is that I will only consider the trading signals of MetaTrader 4 — their number is an order of magnitude (ten times) higher than the number of trading signals for MetaTrader 5, and since technically, the process of subscribing to MT4 trading signals does not differ from subscribing to MT5 trading signals, it is quite logical that it will be enough to consider in detail the features of working with subscriptions to MT4 Forex signals. It is worth paying attention to the payment method for subscribing to trading signals. The subscription entry price is fixed, which is very unusual for a platform for auto-copying trading signals. Let me remind you that on other auto-copying platforms, the investor pays for copying signals with an extended spread or an increased commission, and thus the amount of remuneration of the signal provider directly depends on the number/volume of transactions made. This scheme works in Myfxbook Autotrade, ZuluTrade and other major auto trading platforms.

Accordingly, the question arises, what is better? So how is it implemented by MetaQuotes or as on other auto copying platforms? In my opinion, the best option is a fixed monthly subscription entry price. The fact is that with this approach, there is no conflict of interests between investors and suppliers of trading signals, which necessarily arises when paying for the traded volume in the form of an extended spread / increased commission.

As a result, the Forex signal providers through MetaTrader can maximize its take profit only by having a good positive trading history, regardless of the specifics of the trading strategy. Moreover, there are almost never trading signal providers on other auto copying platforms who have a large success rate of return in points per transaction, and with a very small number of trading transactions, because even with a large number of investors who have subscribed to this supplier’s trading signals, he may not earn anything on them. This problem does not exist when subscribing to Forex signal providers in MetaTrader because even if the manager’s strategy involves opening deals, not every month, he will still receive his remuneration steadily. But such a payment scheme has certain disadvantages. Moreover, in my opinion, these disadvantages are exclusively “psychological in nature”.

In particular, an investor may say that he will not pay upfront for unknown results and may refuse this tool altogether.

And the trader, in turn, can say that he wants to receive a reward comparable to the number of the investor’s funds, which on the one hand, is fair, but in this case, it is simply not technically feasible. As a consequence of this misunderstanding, a situation has arisen that free trading signals cause massive demand, and the number of subscribers to paid trading signals for the entire site will not exceed 1000 (at the end of January 2014), despite the fact that the average subscription cost is no more than $ 20 — $30 per month.

If we assume that the usual margin of a PAMM account for management is from 30%, with a target yield of about 6% per month for an investor (this is the average PAMM managers should strive for), then a simple calculation shows that with an investment volume of over [($20/30%)-$20]/6% = ~$778 subscribing to investments worth $20 becomes more profitable than investing in PAMM accounts on the conditions outlined above. It is obvious that the amount is not large, and large investors could allocate from $ 5,000 and above to this autocopy platform — this type of investment should attract. Well, those who do not have the money to pay for subscriptions of these amounts can “indulge” with free Forex signals, which the platform also abounds with — especially since they can be connected, including to demo accounts.

Nuances of the operation of the MetaTrader “Signals” service

The copy-trading function requires round-the-clock operation of the terminal, which is not always possible. To maintain the autonomy of the process, MetaTrader offers an excellent solution — a VPS server. It provides uninterrupted trading with a good communication channel without installing additional software.

With successful Forex trading indicators and the desire for additional profit (loss and take profit), the service allows you to register as a Forex signal provider. Step-by-step instructions and conditions are provided at the link. The size of the deposit is not so important, and the determining parameter will be the effectiveness of the transactions.

The tools developed for the MetaTrader 4 trading platform are incompatible with the fifth version. When choosing suppliers on the website, you need to click on the appropriate section.

Another important point in the work of Trade Alerts is that you can write an Expert Advisor for automatic Forex trading yourself. Another option would be to create custom Forex signals from experienced freelancers. The possibilities of trading signals in MetaTrader 5 open up wide prospects: the use of someone else’s successful experience, even with a small initial deposit, will allow you to quickly get a taste of profit. At the same time, a well-thought-out risk minimization policy will save you from a complete loss of money.

Important features of the signal service

All technical tools and free Forex signal services are already integrated into the terminal itself. The Metaquotes Forex signal service is already built into the Metatrader trading platform, which is why interruptions are rare; the service works quickly and efficiently. You will not encounter external errors, which simplifies the use of the system.

The subscriber’s account and the signal seller (buy or sell) are synchronized. This function protects the user from him, but the advantage is that during the initial synchronization, there should be no open orders on the subscriber’s account. Otherwise, the server simply will not work. And also, at first, the orders present on the signal provider’s account are copied only if their profit is negative or zero. And there is a rule: one account = 1 subscription to the signals of 1 seller, which simplifies the system of use. Such restrictions are introduced so that the subscriber does not lead his account to a margin call using his manual transactions or subscriptions to other signals providers. If you want to subscribe to several signal providers at the same time, then you need to open several accounts.

Forex signal providers are being tested. Before any Forex signal provider appears in the list, it must pass a month of the verification period. If the Forex signals provider loses 60 percent or more, its signals remain unavailable for the subscription. After all, in Forex, past profitability does not guarantee the future, but it is still a kind of insurance.

Social trading in the MetaTrader 5 trading platform

What is social trading? This is a joint and mutually beneficial work of traders and investors: successful traders put their Forex trading on monitoring, and potential investors can thus monitor their success and copy the trades of the trader they liked.

Keep track of who and how trades in real-time, connect to the most successful traders and automatically repeat their trades — this is the essence of social trading. For beginners and inexperienced traders who have decided to work in the financial markets in order to increase income, this is probably the best way to start their business.

In order to trade Forex professionally, it is not necessary to be a professional trader with a lot of knowledge and skills. It is not necessary to follow the news of the financial markets, analyze them, come up with Forex trading strategies and then implement them, and in case of failure, change the strategy and monitor its success in the changed market conditions. All this, thanks to social trading, becomes optional because you can simply take and copy the transactions of those most experienced traders who follow the news, analyze the markets and come up with profitable strategies.

Is it easy to start mirroring transactions, and what is the entry price of the issue? If we take hedge funds as a way of investing, then few could afford to invest in them because of the high entry threshold (hundreds of thousands and millions of dollars). And social trading is an extremely democratic system that is available to absolutely any trader with any income level. This is a huge market with wide opportunities that you can take advantage of.

The advantages of social trading are obvious:

Additional income for both the trader and the investor

● Investment diversification

● Connect to the most successful traders in the industry and automatically copy their trades

● Low entry threshold — you can start with a minimum budget

● You can practice — there is a possibility of test Forex trading on demo accounts

● Saving time

● Ease of use and user-friendly interface

Suppose you decide to take advantage of social trading opportunities but don’t know where to start? The most proven and popular platforms for social trading and mirroring transactions (mirror trading) are the MetaTrader 4 and MetaTrader 5 platforms. And the most convenient and advanced service for social trading on these platforms is the built-in Forex trading signals. Social trading works in the MetaTrader trading platform simply: the user selects the signal he likes directly in the terminal, subscribes to it, and all transactions from that moment are repeated on his account.

Social trading with the help of MetaTrader will give you the opportunity to track the trading activities of successful traders and their profitability, and the most interesting thing is to copy their trades. Have you noticed a positive trend in one of the Forex traders giving signals? Connect to it and start copying its trades. The trading terminal automatically handles all transactions of the signals Forex provider on your account, and manual intervention is not required here.

Thus, without much effort, without having the skills and experience of trading, a subscriber trader can earn with the help of Signals.

Social trading should be simple, understandable and not cause difficulties for traders with any level of knowledge. You will surely agree with this. And the Forex trading signals of MetaTrader fully meet this criterion. Their use is available to any user, even with the most superficial trading experience. There is no need to conclude a contract with the supplier of the selected signal or broker, there are no papers and manual control, and all operations occur automatically. All that is necessary is to specify your broker and enter your account number on the broker’s server. Nothing else is required, and the registration will take quite a bit of time.

Difficulties can only be caused by choosing the right supplier with the most attractive signal for you. Sorting by quality is enabled there by default, which means that signals with a high level of subscriber confidence and good technical indicators are in high places and more noticeable. However, for the convenience of choosing a Forex trading signal, you can also use sorting by monthly growth, the number of subscribers, entry price and other criteria.

Social trading in the MetaTrader trading platforms is easy, understandable and accessible to everyone. From thousands of best Forex signal providers, you only need to choose the one that suits you best, and you set the criteria yourself!

Results

Today, from a technical analysis point of view, this is probably the most advanced solution on the market. And global coverage (the majority of Forex traders use the Metatrader terminal) will soon provide a large number of both signal providers and subscribers.

In addition, the service is gradually developing, and they promise to introduce the TET (Trusted Execution Token) function soon — a special kind of power of attorney that will allow you to copy transactions directly through your broker. I.e., you will no longer have to keep the terminal turned on.

Stay tuned and follow the upcoming articles on Finarm.

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