How to Take Advantage of Live Forex Signals- Guide 2021

As a trader, you will probably have a full understanding of all aspects of Forex trading. Some of them are very specific and should be given extra attention. One of them, in particular, is the use of Forex live signals. All traders should have a basic idea about these signals, but a good understanding of their importance in trading and, therefore, their practical necessity and further use. You have probably read numerous reviews that have given some insight into what makes the best Forex signals. It is necessary to remove the uncertainty from this topic. So, today we will determine what makes a good live signal, how to identify the best forex live signals, as well as will learn how to, actually, use them.

What Are Live Forex Trading Signals?

First of all, live forex signal is a way to partially automate currency trading. Every day the new technology helps millions of traders from all over the world to get additional earnings. According to experts, free forex signals are of benefit not only to experienced market participants. If you have recently begun to master the analytical part of currency trading, signals will save you from having to spend all day in front of the computer. It is especially important for traders who combine trading with other activities.

Basically, a live forex signal is a recommendation that can be made by a human analyst or software or trading robot. The signal contains information to enter a specific trade on a currency pair with a specific price and time. We know that daily forex signals work in real-time, so they have different ways of notification. The most common are SMS, Twitter, websites, RSS, or email.

The type of signal is determined by the specific function it may have and how it usually works. Technically, two types of signals are constantly available in the Forex market:

• Manual live forex signals;
• Automated live forex signals.

Speaking about the first type, the trader has to sit in front of the computer, and using the automated ones the trader only commands the software. The human psychological stress associated with this process is completely eliminated. As a result, the software automatically interprets which action to choose: buy or sell a particular currency. Trading, therefore, can be quite accurate if the program has been executed properly and by a real professional.

Why Use Live Forex Signals?

Needless to say, all trading involves risk, but using live forex signals can significantly reduce losses for novice investors, as well as allow them to get some advice from experienced professionals. Forex signals are not only "training" for those seeing the chart for the first time in their lives; they are widely used by experienced traders willing to save time and maximize earnings.

Signals help shorten the learning curve of trading: the logic behind any trading suggestion gives a complete picture of what trading options a signal is based on. So, in case you are super new to trading and eager to learn from the best, live forex signals will be of great help. Just make sure to do due diligence choosing the reliable signals provider, which can be not that easy in our era of online scams.

 As the forex market attracts a wide and diverse audience, trust in information to make financial decisions can be a vital asset for investors. Therefore, there is a possibility that some trading signal providers will give investors insufficient or untrue information at a low price. Therefore, it is essential to be wary of offers that are too lucrative. For example, a scammer trading fake forex signals can be easily identified by the following distinctive features:

A scammer offers to buy signals for cheap. Sometimes a low price is justified by the fact that a signal-trading website (for example, a brokerage company) is just starting its work and offers discounts to its clients "in commemoration of the opening". There are also scammers, hiding behind the guise of "successful businessmen", who "have already earned their capital and now just want to share trading signals with other traders. Be careful and always be skeptical of too low prices.

The site that sells signals is designed too shouting: bright colors, intrusive calls to make a purchase. With all this site layout is no good, it looks unprofessional and cheap.

There are too many reviews. At the same time, such feedback is not in the form of comments, which users can leave in the "reviews" section. On the contrary, users' impressions are located on the main page. All "users" brag about how they "got rich on these trading signals", even though they have never even heard of forex. Of course, you won't find any negative comments here.

There are fake screenshots of "successful trades", which were supposedly made using the provider's signals. The trader cannot check the veracity of this information, but it creates the effect of genuineness, although most often the opposite is true.

In order not to run into fraudsters, study reviews by real users on third-party forums, read reviews by bloggers, check the monitoring services..

Before you buy trading signals, it is best to choose the trading offers you like, study them thoroughly, and compare them with each other. After such evaluation, it will be much easier to choose the trading signals that will be most convenient and safe for daily trading.

How To Find Live Forex Signals MetaTrader 4

Let us now talk about one of the best ways to look for live signals.The developer of MT4 made sure that getting signals was the most convenient for each trader, either novice or pro. To this end, we are provided such a possibility in the trading terminal. Now we offer you a step-by-step guide on how to subscribe to the trading signals in MT4.

To make the signals in MetaTrader 4 available, do the following:

Step 1. Open the " Options" window through the "Tools" menu of the terminal and select the "Community". If you are already registered at the developer's website, you have to enter your registration data. If you haven't registered yet, you must do it.

Step 2. After logging into your mql5 account, you can select a signal provider. To do this, open the "Signals" tab in the lower menu of MT4.

There you will see a list of traders offering to subscribe to their signals in MetaTrader 4. Next, you need to make the correct choice of a signal provider. You can see general information on each provider: the number of funds on the trading account, trading duration, and earnings potential, the percentage of successful trades and drawdown rate, as well as the number of subscribers and terms of subscription. For a better evaluation of the selected provider, you need to click on it. A window will open with more detailed information on the trading.

Step 3: After you have selected a signal provider, click on the "Subscribe" button on his page. Also, do not forget to pay attention to the subscription terms. It can be either free or paid. Then a window will open in which you will be asked to specify some details: your brokerage company, your trading account number, as well as the desired duration of the subscription, and its start date/time.

Please note, if you decide to subscribe for paid signals, you will need to fund your mql5 account.

Step 4. Now restart your trading terminal. It must be active around the clock. Only in this case, the service "Signals" will work correctly. If this is not possible, it is recommended to use a VPS server.

Step 5: In the "Signals" window of the trading terminal, make the necessary settings.

It completes the process of connecting the "Signals" service to your trading account. Now you can start trading with the help of live forex signals.

Pay attention that you can limit the risks and prevent the deposit from being lost. It is useful, considering that a signal provider is an ordinary person.

You can set such parameters as:

• Stop-Loss, if lower - set the lower value of the deposit, if your deposit at a severe drawdown will fall below this amount, then the copying of trades will be terminated automatically. All current positions will be closed;
• to execute within N spreads - it is set as far as quotes can differ from that price on which the provider has placed the order. The matter is that even at the same moment of time quotes can differ at different brokers, and the time delay (even though small) is present. This value is set not in points but as a part of spread;
• A load of no more than n% of the deposit - the most crucial parameter. It allows not the entire deposit, but only a part of it, to be used for trading signals. For example, if you set the value of 30% in this field, then even under the condition of complete loss of your deposit by the live forex signals, you will lose only 30% of your capital. The other parameters are chosen automatically.

How To Identify The Best Live Forex Trading Signals

As you could notice, there is a huge number of signal providers in the MQL5 service. So how to choose the most suitable one? There are a few ways, let's analyze them to get a better idea.

To make our choice easier, the MQL5.com service estimates the quality according to a number of specific criteria.

Forex trading signals with the highest rating are shown first in the list, while those with too low a rating are hidden from the window both on the site and in the trading terminals, which allows preventing subscribers from low-quality strategies.

So, how to identify the best live forex trading signals?

There is a special function of selection with the best conditions for copying signals in the storefront.

It is desirable to choose, if possible, the same broker and server as yours - this ensures the best possible match.

The system will select the signals with the appropriate trading tool settings and the lowest slippage.

Make sure to pay attention to warnings!

When choosing a signal, carefully analyze all of the provided trading data. Pay attention to the warnings displayed on the left side of the provider's profile. For example, there may be notifications such as "this is a newly opened account" or "the number of deals on the account is too small to evaluate trading quality" and so on.

After you have made a selection using the rating, the selection function or the filter, you will be left with the signals to select the one you like.

We are now moving on to a detailed examination of a particular provider. Click on the namel and go to the detailed statistics.

Let's define the key indicators and consider each of them separately, what we would like to see there as an ideal option.

Growth

It would be desirable for the blue yield curve to be smooth, without sharp jumps that may indicate rare successful trades, but it is not a fact that the same result will not be obtained downwards.

It is impossible to trade equally well from month to month, and sometimes a losing month is also normal.

The red line is the yield trend ,except for the visual angle of slope it gives nothing. We look only at the blue curve and under the graph the monthly returns.

Drawdown

The drawdown should be assessed from two points of view.

The first is what was the maximum drawdown for the whole time. Very safe signals with drawdown up to 10 percent, but this leads to the second side.

With a small drawdown, rarely any trader can give a high yield. Therefore it is better to act like this: we estimate the size of relative drawdown by equity and compare it with the average monthly return. It is ideal if the drawdown is up to 30% and the average annual return is twice as much as the drawdown percentage.

Type of trading account of the signal provider

Of course, it is necessary to choose Real accounts, not Demo, as it makes the Provider responsible for his or her real funds as well.

Leverage

Here, everything is simple, ideally, your trading account should have the same leverage as the one of the provider you plan to copy.

Weeks

Of course, success in the past does not guarantee success in the future, but a long-lived account will give you more confidence than a new one unless the provider is well-known and confident in trading and has just opened a new account that has not yet gained enough time.

If you don't know the signal provider, then look at accounts over 12 weeks old.

Number of closed trades

The situation here is the same as with the lifetime of the account. If you know the trader, this parameter is not so important.

If you don't know the trader, look at the provider that has closed at least 100 trades.

Of course, there are much more parameters, but to evaluate them all and build a formula for the ideal signal is difficult, and most likely none of the signals will satisfy all requirements, but all of the above mentioned are the basic parameters to consider when choosing the best live forex signals.

How To Register As A Live Forex Signal Provider And Earn Income

As an experienced trader, you can easily become a live forex signal provider and allow other traders to copy your trades. In just a few minutes you can become a provider of trading signals, add your signal to a single database, and set the subscription fee.

To get started, log in to your mql5 account (or create, if you don't have one) and click on the green button "Create Signal" on the top left of the website.

Fulfill all the fields in the appeared window, including the one with the fee, and click "Add". Now you are on the list of the signal providers! The more accurate your signals are, the more subscriptions you will get. 

Conclusions on Live Forex Signals

Each trader uses different ways to achieve success - some of them are successful, others not so much. The choice of online advisors must be approached competently, weighing all the pros and cons. Do not forget that any trading signal is simply information based on the results of the analysis. It will tell you the moment of the trade, but will not provide an accurate prediction of the trend movement. So, the best way to succeed is to use all the tools possible but wisely.