What are forex automated trade alerts and which are the best?
As a trader, it is likely that you have experienced several forex alerts. The main objective for any forex trader is to start learning how to trade successfully and make a profit from the forex market, rather than copying forex alerts that we are not confident about. With this in mind, the knowledge of these trade alerts and how to apply them is useful for traders of all levels.
In this article, we are going to be discussing forex automated trading, the benefits and risks, as well as the services offered by forex alert providers. We are also going to be discussing some of the providers in the market and what they have to offer.
What are forex alerts?
These are trade alerts for currency traders that notify them of when to enter and exit a trade. There are two types of alerts:
- Technical alerts
- Fundamental alerts
A technical alert is one that occurs when the pattern of a chart indicates that the price of an instrument is going to move in a certain direction. This alert can be generated by traders using historical indicators and data, as well as a subscription to alert services for automated alerts. Many traders use these technical alerts alongside many risk management tools to minimise losses when things do not go exactly as planned.
Fundamental alerts relate to economic events and market news as well as anything that can influence the market and the price movements of financial instruments. Using fundamental alerts means that you would have to keep an eye on news and announcements. You can stay up to date with things that are happening by using an economic calendar.
Benefits of using automated forex alerts
Here are some of the benefits of automated alerts for forex traders:
- Saves time: With these alerts, you do not need to build your trading strategies, which is a long and stressful process. All you need to do is follow a trader who has a risk profile similar to yours. This saves you a lot of time and energy, monitoring different markets, and placing trades.
- Diversify your risk: You can follow many FX strategy providers, so the outcome of your trade does not rely on the performance of just one strategy.
- More opportunities: If you have an expert advisor or a strategy you are already using, you can add extra strategies to your previous ones by adding these automated alerts.
- Saves you money on fees: Using automated forex alerts is an excellent alternative to other well-known money management strategies for trading.
- Low barriers to entry: With this trading strategy, you are not required to have a minimum account balance before you can start using these services. One of the few things you need to have before you start is the MT4 platform.
- No need for any paperwork: For this trading strategy, there is no need for any paperwork. All you need to do is follow or register for any copy trading service, and you are good to go.
- Maintain control of your account: The account you use for these automated Forex alerts is yours and is in your name, so you do not need to give power of attorney to anyone.
- You are protected: When you decide to follow a trader or register for an automated alert service, you can choose how much you want to invest in that strategy. You can also choose to place a stop-loss on your MT4 account just in case things do not go the way you expect.
Forex automated alert providers overview
There are different companies offering automated alerts for forex traders, and there are also top forex brokers who provide these alerts for the different accounts provided. Depending on the type of signal, some of these brokers offer these services for free while others charge between $5 and $10 USD per day or even more.
Even with how much these services are used by many traders today, the usage of this method of trading is going to depend on your personality as well as your trading plan. The application of these forex alerts, if you decide to make use of them, depends on your goals, your trading proficiency, and your expectations from trading.
Comparing 3 forex automated signal providers
Before you subscribe for any paid trading alert system, make sure you make the right decision and, in a bid to enlighten you more on this, we have done some work on some of the best forex alert providers:
- MQL signals
MQL is a community for traders who make use of MetaTrader 4 and MetaTrader 5 platforms. While there are different trades built into the MetaTrader platform, MQL5 gives traders many alerts that have been developed by other established traders in the community to meet your trading needs. To enable forex signals, all you need to do is sign up for MQL5, get a username and password, and then enter it into your FX trading platform.
The MT4 and MT5 platforms offer a complete library of forex alerts for trading via the integrated MQL5 signal service. With the demo and live account, you can subscribe to the demo or the paid signals, and if the signal provider makes any trade, it will be reflected on your account as well. You have to bear in mind that there are paid and free alerts, with the paid having more surety than the free ones.
ZuluTrade is a social trading network, as well as an automated forex trading platform that is popular with many traders. It is open to everyone, with a free and functioning demo account so that you can see what the platform has to offer. With this freedom, everyone can provide forex trading alerts with about 10,000 people or more giving trading alerts. The only thing that makes it better, in regard to choosing a provider, is the availability of a table of performances where you can see the ranks of all alert providers based on their success rate.
One thing we want to clarify is that, irrespective of the information provided in this article on forex alerts, the different types, and how they are applied in forex trading, we have no intention of selecting alerts for you. Instead, we are trying to give you an understanding of what is available, in case you want to include signals in your trading strategies.
Even with the benefits attached to these trading alerts, it is no substitute for experience and the gathering of trading skills.