Forex signals can be best defined as a detailed analysis or recommendation of a trade that could potentially earn you some money. The best sources of such signals are usually top traders themselves. Scores of online entities offer forex signals for a price, or sometimes for free, through their websites. But how do you spot the better ones? When I first started in the markets, back in the mid 90's, I used to get most of my information through old-fashioned telephone wires.
The signals I got then were, inevitably, very basic, almost to the point of being useless. If I wanted to know what the market was doing, I could look up the numbers on the Wall Street Journal website, and I might get a vague idea, but if it was a particularly complex trading decision, it was pretty much worthless. Thankfully, the Internet has changed all that.
Nowadays, there are dozens of forextrading signals providers out there, which offer accurate advice based on actual trading signals that have actually been calculated and verified by experts. These providers generally offer more data sources, including graphs, quotes, charts, and news articles – some of them are even integrated with social trading platforms like Facebook and Twitter.
Another thing that's made the internet revolutionized forex signals is the integration of forex signals providers with the various online trading platforms. It used to be the case that you had one broker that gave you advice, one that you bought from, and then you had to go to another broker to trade. The days are gone, though, and you can now trade via a variety of online platforms, from highly sophisticated proprietary software to fairly basic free platforms.
There are a variety of different forex trading platforms out there today. Some are based on the same technology that underlies the stock trading markets. Many traders prefer to trade via the MetaTrader4 platform, for instance. This is a simple interface that allows them to easily browse through the large array of available indicators, as well as copy and paste relevant codes into their trades.
Once a trade is picked, it's just a matter of clicking a button to place the trade on the market, and the results are displayed immediately. If the trade goes against the trader – which it likely will, since most of these trades involve a small amount of money – a loss is automatically caused in the trader's account.
The trader need only that he or she enter the time of loss into the platform, and that he or she confirm the order. MetaTrader also offers its own specialized service called the Expert Advisor. This is a tool that runs on the MetaTrader platform and is programmed to send alerts when it detects certain trends or price patterns. For example, if a MetaTrader trader believes that the USD/JPY is set to rise, an alert is triggered with the word ‘sell'.
Likewise, if a pattern such as the Fibonacci formula is found to be prevalent, the alerts will be of the mention ‘buy'. All these are based on the concept of Forex trading signals being able to trigger orders in accordance with their findings. However, MetaTrader isn't solely a trading platform. Many of its users take advantage of its advanced features and employ it not only for executing trades using its indicator-based platform, but also for creating their own Forex signal service.
This can be done by finding third-party providers that offer trading signals for use with MetaTrader. These providers can create custom reports based on your individual criteria and even offer custom indicators and scripts to use in your trades. In turn, you can have access to these programs and have them executed automatically on your trading platform.
So what's the big deal about MetaTrader having its own set of Forex signals? The fact that you can now access these programs from third parties makes the process not only more convenient (by eliminating your need to install software on your own computer), but also more cost effective. The fact that Forex Avatrade has its own trading platform, instead of relying on third-party brokers, also eliminates a lot of potential headaches.
At last, we've arrived at the final conclusion that while Forex Avatrade may have its drawbacks (namely its interface), it truly stands out among other brokers in its ability to provide its customers with both options. In this sense,
MetaTrader is still clearly the better option, despite the shortcomings inherent in its structure.