MetaTrader 4 and the recently introduced MetaTrader 5 are electronic trading signals used by online retail Forex traders. The software consists of both a client and server component and is licensed to foreign exchange brokers who provide it to their account holders. The server component is run by the broker. The client software is used by the trader to see live streaming prices and charts, place online orders and manage his or her account. Meta Trader Signals is a social trading service and with millions of traders subscribing to the same platform, the opportunity for additional profits is obvious.
The "signals" in the new Meta Trader trading platform allow traders to connect to any signal issued by a provider anywhere in the world. A trader can select and then subscribe to any trading signals provider and can then duplicate these deals in his own trading account. Though there are certainly advantages of this system as outlined below, it’s vital that you learn Forex and understand the market before using any signals service.
Advantages of MetaTrader Signals
What are the advantages of the Meta Trader service for traders?
First of all, signing up for the Meta Trader service is straightforward and even a novice trader can get on board with only a few clicks. Once the Meta Trader terminal has been installed, a trader needs only to select a signal provider and he can initiate trading.
With the Meta Trader platform, a trader is not required to come to any formal arrangement with a provider. Only the pricing and trading terms of the signal provider require an upfront agreement. The Meta Trader signal provider market is the largest market around, listing thousands of successful traders from all over the world who deliver their signals in the market. Additionally, there is no stipulation that a trader must maintain an account with the same brokerage company as his or her signal provider. There is total freedom of choice when it comes to selecting a brokerage company.
With Meta Trader, there are no commissions to the provider. A trader pays only for what has been agreed upon when signing up for the service. There are also multiple payment options available to a trader.
Chances of scams or fraudulent behavior by signal providers using the Meta Trader platform is almost none existent since providers are scrutinized extensively to ensure that only profit making providers enter the provider market. It is, of course, vital that the signal provider chosen is trustworthy so a certain amount of research should be done before selecting a broker offering this service. There are several broker review sites such as DailyForex which provide all the data a trader needs before making a choice.
With Meta Trader, chances of loss are less than with other investments since a trader can select a signal provider with a track record that meets a specific trader's expectations and whose trades can then be duplicated on his or her own trading terminal. Trades are synchronized in real time and are automatically placed.
Secure and Anonymous
An important aspect of the MetaTrader platform is that it is secure and anonymous. A trader does not have to worry about trader privacy since a traders' information is not visible to the signal providers.
There are several features of the MetaTrader platform that a trader can copy. Foremost is the Stop Loss and Take Profit Levels of their signal provider. For novice traders, who do not know when to place a Stop Loss or when to book profits, this can be a real advantage. In addition, a trader has the option to designate the percentage of the amount he or she wishes to trade. This prevents unexpected losses and maintains a cushion for his account. Another option terminal that can be duplicated is the "Stop if Equity is less than A" feature which puts a break on all actions if the equity level in a trader's account falls below a pre-specified level. All positions automatically close and pending orders are also removed. This limits one's losses.
Cina Coren is a staff member of FXAcademy, an online program where a trader can learn Forex in depth.