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How professional traders use alerts?

Updated: May 02, 2024
Alamin Morshed
Contributor
Opinions expressed by Traders Union Contributors are their own.
Reviewed by
Ivan Andriyenko
Editor
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Table of Contents

  • How alerts help
  • Types of alerts
  • How to use trade alerts
  • Best Forex brokers
  • FAQs
Editorial Note: While we adhere to strict Editorial Integrity, this post may contain references to products from our partners. Here's an explanation for How We Make Money. None of the data and information on this webpage constitutes investment advice according to our Disclaimer.

Professional traders use Forex alerts as they help them increase the profitability of their trades. Moreover, alerts save traders from potential losses; professional traders use them to avoid losses. Forex alerts can be used by beginners and professionals as there’s no limit to use; however, the dependency and reliance on alerts matter.

This article will discuss how professional traders use alerts, types of alerts, and how alerts can help you trade and invest. We’ll also talk about how to best use the trade alerts.

Start trading Forex now with eToro!
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

How alerts help you trade and invest?

The way Forex alerts help is determined by the type of signal, and there are two types of Forex signals: automated and manual.

Manual Forex alerts are based on the analysis of experienced traders or analysts that use a variety of indicators to assess the Forex markets and base their recommendations on their research and estimations.

Manual alerts provide traders with present and future market trends. Moreover, the manual signals also help traders by providing deep analysis of currency pairs prices, political situations and news that may influence the market. This helps traders make informed decisions.

Data analytics performed by developers and based on the experience of analysts generate automatic alerts. These strong algorithms use historical data to analyze trends and discover potentially profitable currency pairings to propose to traders at favorable prices.

Contrary to manual alerts, automatic alerts are primarily based on technical indicators and employ mathematical calculations. As a result, these alerts are only as good as the algorithms that power them. This is one of the reasons why traders should only use trustworthy broker trading alerts.

The only element missing from automatic notifications is recent events and news. These notifications often do not take into account geopolitical news, natural disasters, or any human interference.

Another advantage of automatic notifications is that traders can define rules and parameters for technical indicators. They may specify the currency pairings they want to get price notifications for, such as EUR/USD or GBP/USD. You may also change the spreads.

In other words, you may incorporate Forex price alerts into your trading strategy to inform you of any price decreases or increases that may help you make more smart trading decisions.

Types of alerts that could help

Two types of alerts could help traders with Forex trading: manual and automatic trading alerts.

Manual alerts: These are based on the analysis done by professional traders or analysts who use various indicators to evaluate the forex markets. Manual alerts require deep analysis of currency pair prices and trends over time, as well as an examination of the current or upcoming socio-political environment and news that might affect the markets.

Automatic alerts: These are generated through data analytics made by developers and based on the expertise of analysts. They use historical data to detect patterns and identify potentially profitable currency pairs to recommend to traders. Automatic alerts rely purely on technical indicators and mathematical calculations, but they don’t generally take into account recent events or news. Traders can also customize the parameters of their automatic alerts to fit their trading strategies.

How to best use trade alerts?

The best use of trade alerts can be done in various ways. The Traders Union has mentioned the best use of trade alerts below.

Forex education and support

You can use trade alerts to get education on the Forex markets, trade tutorials, and support. A trader can learn the basics of trading and how to master it with the help of trade tutorials. Every trader also needs trade support.

Top 10 Forex Educators and Mentors

Mitigate risks

The trading alerts lower the risk of potential losses. Alerts provide you with materials and signals that help you make better and more informed decisions.

Time-saving

Trading alerts save you time. If you don’t use Forex trading alerts, you’ll need to research the market, analyze it, and look for educational resources, which can be time-consuming. Professionals use trading alerts to save time.

Profitable trades

Beginners use trading alerts to protect themselves from losses. Trading alerts guide them through their trades and help them increase profitability.

Best Forex brokers

1
9.4/10
Go to broker
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest.
Minimum deposit:
$50, $100 (for UK clients)
Bonus for deposit:
0%
Regulation:
CySEC, FCA, ASIC
Review

The eToro broker was founded in 2007. The company promotes itself as a social trading platform working with traders from over 140 countries. The broker has several divisions operating under different jurisdictions and licensed by different regulators. For example, eToro (Europe) is licensed by the Cypriot regulator CySEC (109/10) and eToro (UK) is licensed by the British regulator FCA (583263). The broker also has a representative office in Australia and the USA. eToro Profile Details

Pros/Cons

•the minimum transaction amount for copying is $1;

•handy functionality for passive investing;

•regulated by independent monitors;

•it is possible to purchase contracts for fractional shares (that is, to invest amounts less than the cost of one share);

•it is possible to buy shares at once (not CFDs) on the US stock exchanges.

•high spreads;

•periodic technical failures in order execution;

•lack of the most popular platforms such as MetaTrader 4 and MetaTrader 5 in Europe and the CIS;

•no access to ECN systems, orders are processed only according to the STP (straight-through processing) scheme with access to specific liquidity providers;

•there is a commission for withdrawing funds;

•impolite support staff;

•inconvenient website.

Study Review
2
9.2/10
Go to broker
Your capital is at risk.
Minimum deposit:
No minimum
Bonus for deposit:
0%
Regulation:
FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA
Review

The name OANDA is an acronym for “Olsen & Associates” or “Olsen AND Associates”. It is registered in the United States and provides its clients with a wide range of financial services in most countries of the world. The company was founded in 1996 and is currently regulated in four jurisdictions. The main regulator of the broker is the UK Financial Conduct Authority (FCA). Oanda Canada is licensed by IIROC. The company has several significant awards to its credit, including a victory in the category "Best Forex Trading Technologies" from the UK Forex Awards, "Best Trading Platform" from FX Week, as well as "Best Customer Service" from the US Foreign Exchange Report.

Pros/Cons

•Minimum deposit from 1 dollar.

•A large selection of the most popular trading instruments.

•Several reliable and reputable financial regulators.

•Inconvenient and poorly functioning site.

•Lack of cent accounts.

•Lack of bonus programs.

Study Review
3
9.1/10
Study Review
Minimum deposit:
$1
Bonus for deposit:
0%
Regulation:
FCA, BaFin, ASIC, MAS, CySec, FINMA, BMA, CFTC, NFA
Review

IG Markets has been providing brokerage services for retail traders since 2014. It was established in 1974 in London to work with professional traders. It is a part of the IG Group with representative offices in 17 countries. IG Markets stocks are traded on the London Stock Exchange as a part of the FTSE 250 index. The broker is regulated by FCA (Financial Conduct Authority | the UK), CySec (Cyprus Securities and Exchange Commission), ASIC (Australian Securities and Investments Commission), BaFin (the Federal Financial Supervisory Authority | Germany), FINMA (Swiss Financial Market Supervisory Authority), and NFA (National Futures Association). The IG Group global representative office is supervised by BMA (the Bermuda Monetary Authority). The broker provides services of trading Forex and different CFDs through MetaTrader 4 and its in-house platforms for retail and professional traders.

Pros/Cons

•Regulated activities and participation in compensation funds;

•No minimum deposit requirements when opening an account with the international division;

•Leverage is available for trading currencies and CFDs;

•Wide range of trading assets and markets;

•Fee rebates for new and active existing clients with large trading volumes;

•Floating spreads from 0.6 pips for retail Forex traders;

•Bonuses for new clients and partnership programs for different client categories.

•The broker can reject opening accounts to traders with low capital or insufficient knowledge of derivatives trading;

•Deposits and withdrawals can’t be made with e-wallets, electronic payment systems, or cryptocurrencies;

•Trading conditions differ for various countries, so you have to look for the broker’s website in your country.

Study Review

FAQs

What are trading alerts?

Trading alerts are messages sent to traders informing them of potential trading opportunities, current market trends, and other relevant information. They help traders make better decisions by providing timely and accurate data.

Are trading alerts helpful?

Yes, trading alerts are a useful tool for traders of all experience levels. They provide timely notifications about market conditions and potential opportunities, helping you make informed decisions and potentially increasing your trading profits. Alerts allow you to stay up-to-date on market news and keep track of stocks, currencies, and other assets that you want to monitor.

Are trading alerts free?

Yes, trading alerts are generally free of cost. However, there are many platforms that offer a premium subscription for more in-depth and timely alerts. If you are interested in additional features and support, then a premium subscription may be the best option for you.

Will trading alerts save me from losses?

While trading alerts can help you make smarter trade decisions and minimize potential losses, they are not a foolproof way to guarantee that you won't experience any losses. It is important to do your own research and use trading alerts as a supplemental tool to inform your decisions, rather than relying solely on them.

Glossary for novice traders

  • 1 Broker

    A broker is a legal entity or individual that performs as an intermediary when making trades in the financial markets. Private investors cannot trade without a broker, since only brokers can execute trades on the exchanges.

  • 2 Trading

    Trading involves the act of buying and selling financial assets like stocks, currencies, or commodities with the intention of profiting from market price fluctuations. Traders employ various strategies, analysis techniques, and risk management practices to make informed decisions and optimize their chances of success in the financial markets.

  • 3 BaFin

    BaFin is the Federal Financial Supervisory Authority of Germany. Along with the German Federal Bank and the Ministry of Finance, this government regulator ensures that licensees abide by eurozone laws.

  • 4 CFD

    CFD is a contract between an investor/trader and seller that demonstrates that the trader will need to pay the price difference between the current value of the asset and its value at the time of contract to the seller.

  • 5 Forex Trading

    Forex trading, short for foreign exchange trading, is the practice of buying and selling currencies in the global foreign exchange market with the aim of profiting from fluctuations in exchange rates. Traders speculate on whether one currency will rise or fall in value relative to another currency and make trading decisions accordingly.

Team that worked on the article

Alamin Morshed
Alamin Morshed
Contributor

Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses who want to improve their Google search rankings to compete with their competition.

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Ivan Andriyenko
Ivan Andriyenko
Author at Traders Union

Ivan is a financial expert and analyst specializing in Forex, crypto, and stock trading. He prefers conservative trading strategies with low and medium risks, as well as medium-term and long-term investments. He has been working with financial markets for 8 years. Ivan prepares text materials for novice traders. He specializes in reviews and assessment of brokers, analyzing their reliability, trading conditions, and features.

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