For most traders, subscribing to a forex trading signals service can be a harrowing experience. From manipulated trade history to improper trade management and outright scams, hunting for a good trade signals provider requires time, efforts and a good deal of money (which you have to inadvertently risk) and patience (as you try to fight your refund claims) as you go about evaluating a forex signals provider.
The MQL5 Trade Signals service aims to eliminate all the loopholes usually found with a trade signals system and offers a neutral and a transparent forex signals marketplace for traders. In this article, we take a look at some of the most common loopholes in using a forex signals service and how MQL5 trade signals service can eliminate these critical issues. You can also read this article which provides an in-depth overview on the MQL5 trade signals and the market place..
Common loopholes in trade signals services
The most common ways signal providers manipulate their signals service and trade history.
Lack of transparency – Most signal providers advertise, claiming to make over 300 pips per day. For the naïve trader, this is an offer too good to pass up and fall for the trap, thus paying a rather heavy fee for a below standard signals system, which unfortunately can only be discovered once you are a paying customer.
An often used method for signal providers to scam traders is by falsely limiting their losing trades. For example, if the original signal had a stop loss of 20 pips, then the signal providers tend to show this as a 5 pip or a 10 pip loss. Thus, for traders evaluating potential signal providers, it can be hard to figure out if the losses are indeed true or manipulated.
Exorbitant fees for a below standard service – Some signal providers charge a monthly fee of $20, while some charge a fee of $100/mo and above. So how is a trader to know if the fees for the signals they pay are indeed justified? Sadly, there is no way to decipher this unless you actually part with your money, risk your trading equity for a month or two and then realize the bigger picture. By the time you do realize, it would be too late to make up for the losses.
Improper Trade Management – While subscription fee and trade transparency are a must, the most often overlooked factor is trade management. Do the trade signals follow a good risk-reward ratio? Unfortunately, some, if not most signal service providers use the most absurd trade management. The most common technique used by signal providers include using a very wide stops (wide enough to blow your equity) while target a 10 or 15 pip profit level. The trade is then bloated with a 1 Lot trade.. so in effect a 15 pip profit trade is made up to look as if it was a $150 profit, while subtly masking their stops.
No Refund Policy/Trial Period – If you read carefully into the terms and conditions of most signal providers, it is often in the fine print that you might read about their no refund policy (that is if they are a little bit honest). Refunds with trade signals are opinionated. While there are traders who try to take advantage of this, there are an equal number of traders who are legitimate in requesting a refund. While its always advisable to use a reputable eWallet or Credit Card so you can initiate a chargeback, the journey to get a refund is often riddled with stress and the ever looming fact that you might not get your money back.
How MQL5 Trade Signals Service addresses the above concerns
Flexibility to choose a signal provider based on your preference – Not all traders are the same when it comes to their trading goals, which is an important factor that isn’t usually considered. For example, Trader Smith is more interested in growing his account based on Pips, while Trader Joe prefers higher risk/reward thus would be interested in equity growth rather than the # of pips in profit.
When selecting a signal provider from the MQL5 trade signal service, traders can filter the signal providers based on different criteria such as growth, equity, pips, subscriber ratings (including price of the signals) and so on. As a trader this allows you to choose a signal provider based on your risk profile.
Trade Transparency – Signal providers with MQL5 Trade signals market place offer complete transparency, to the extent that you can actually look into the trade history and get an idea on the trading style and other critical information. This ensures that you are fully aware of the signal provider’s trading style and risk management.
Trade Slippage – If the trader’s broker is different from that of the signal provider, MQL5 signals marketplace allows you to view the slippage between different brokers. This is a very helpful feature for the trader so they know the average slippage between the time it takes for the trade to be copied from the signal provider to the trader’s terminal.\
Complete Control – Subscribing to signal providers via MQL5 Trade signals marketplace allows traders to choose the time-frame (if the signal provider allows for this option), which is weekly or monthly. You can also choose the starting date from when you wish to receive the signals, thus offering you complete control on the signals. The signals can be used directly with your MT4, MT5 platform.
MQL5 Trade Signals Marketplace
If you are a new trader or do not have the time to trade during the market hours, subscribing to forex signals from the MQL5 trade signals market place offers a transparent way for you to select a signal provider of your choice. An easy to use MQL5 wallet payment system with the option to filter the signal providers based on your preference makes the MQL5 trade signals service the most secure signals service provider.