A signal on the MQL5 community shows 300% annualized return, 10% max drawdown, running for 8 months, 47 subscribers. Monthly fee: $30.
Tempting? Sure. Before you subscribe, you need to know what you're actually buying, how to separate the real signals from the disasters, and the mechanics that determine whether copy trading actually works for you.
And if you're on the other side, running a profitable EA, this guide also covers how to turn your strategy into a signal that generates subscription income without ever sharing your code.
What MQL5 signals actually are
MQL5 Signals is MetaQuotes' built-in copy trading service, integrated directly into MT4 and MT5. No third-party plugins, no external bridges.
The provider trades on their own account. Subscribers' accounts automatically copy those trades. Every signal's full trading history is publicly displayed on MQL5.com and pulled directly from the broker's server. The provider can't edit the data. This is the key difference from platforms where providers self-report their results.
How to find signals worth following
The MQL5 signal page lists thousands of options. Don't get distracted by the 500% returns at the top. Here's what to actually check, in priority order:
Track record length: minimum 6 months. Under 3 months, the data is meaningless. Twelve months or more gives you enough market regimes to judge. Many signals show 200% in two months and then blow up in month three. The blown-up ones disappear from the rankings. You only see the survivors.
Max drawdown under 30%. Drawdown is the most honest risk metric. A signal with 50% historical drawdown means your account might shrink by half during a bad stretch. Most people can't tolerate that. They unsubscribe at the worst moment, locking in the loss. We wrote about why drawdown matters more than return.
Recovery factor above 3. Total net profit divided by maximum drawdown. Higher = more profit per unit of risk. Below 2, the strategy doesn't earn enough to justify the volatility.
Sharpe ratio above 1. Risk-adjusted return. Above 1 is good. Above 2 is excellent. Below 0.5 means the return isn't worth the ride.
Reliability score above 70%. MQL5 calculates this from run time, drawdown, trading frequency, and other factors. Below 70%, skip it.
Red flags to walk away from
Smooth curve, less than a month old. A 45-degree line with zero drawdown is almost certainly Martingale or tiny position testing. Real trading curves have pullbacks.
Position doubling after losses. Check the trade history. If lot sizes go 0.1, 0.2, 0.4, 0.8 on the same pair after consecutive losses, that's Martingale. It might win 30 times in a row before the 31st wipes the account. And yours along with it.
Extreme leverage usage. A $5,000 account holding dozens of simultaneous positions has reached dangerous margin territory. One volatile session can trigger a margin call.
No stop losses. Look at the trade history. If most orders have no stop loss set, the provider is either reckless or doesn't understand risk management.
Copy trading mechanics you need to understand
Slippage is guaranteed. The provider opens EURUSD at 1.1050. Your copy might execute at 1.1052. Two pips of slippage per trade, compounded over hundreds of trades, can reduce your returns by 5% or more compared to the provider's results.
Lot scaling isn't perfect. MT5 scales lots proportionally to your account size. If the provider's $100,000 account trades 1 lot, your $10,000 account gets 0.1 lots. But if the scaled lot falls below your broker's minimum (usually 0.01), the trade gets skipped entirely. This means small accounts miss trades, which changes the result profile.
Your broker matters. Different broker = different quotes, different spreads, different execution. These differences compound for high-frequency signals. Use a low-spread ECN broker for copy trading.
MT5 must stay running. If your platform is offline, you miss trades. Use a VPS to keep MT5 online 24/7. MQL5 offers its own VPS service (~$10–15/month) optimized for signal copying, or use a third-party VPS near your broker's server.
How to subscribe (step by step)
- Create an account on MQL5.com and browse the signal list.
- Click Subscribe and pay the monthly fee ($30–75 depending on the provider).
- Open MT5 and log into your trading account.
- Go to Tools → Options → Signals tab.
- Log into your MQL5 account and accept the signal service terms.
- Set a maximum lot limit. This is your safety valve. Start conservative.
- Choose "copy only new orders" (recommended — don't copy the provider's existing open positions).
Capital requirement: your account should be at least 10% of the provider's. Provider has $50,000? You need at least $5,000. Less than that and too many trades will be skipped due to lot scaling.
Becoming a signal provider: monetizing your EA
If you have an EA producing consistent results, selling signals is a way to earn recurring income without exposing your code.
Your EA runs on your own account. Subscribers see the trade results but never your source code or strategy logic. Unlike selling an EA file, there's no piracy risk.
Requirements to register as a provider:
- Real trading account (not demo)
- Minimum 4 weeks of trading history
- Account verified through MQL5's process (confirms broker connection and real trades)
- MQL5 seller profile registered
Pricing: most signals charge $20–100/month. Start low ($20–30) to attract initial subscribers and build a track record. After 6+ months of verified profitability, gradually increase to $50–75.
Revenue math: $50/month × 100 subscribers = $5,000 monthly. MQL5 takes a 20% commission. You keep $4,000. This is recurring income as long as your strategy stays profitable.
Building credibility: keep drawdowns low (subscribers fear drawdown more than they value return), maintain moderate trading frequency (2–10 trades/day), respond to subscriber questions on the MQL5 forum, and write clear strategy descriptions covering expected drawdown range and suitable account sizes.
Biggest risks of copy trading
The provider can blow up. If they get a margin call, so do you. And due to slippage, your losses might exceed theirs. No amount of signal screening eliminates this risk entirely.
Past performance is not predictive. A signal with 100% annual return over the past 12 months might lose 30% in the next 12. Market regimes change. Trend strategies fail during consolidation. Range strategies fail during trends.
Replication delay. There's a network delay between the provider's execution and yours. For swing trades (holding hours/days), this is negligible. For scalping signals (holding minutes), the delay can cause meaningful price differences.
Psychological trap. The most common copy trading mistake: add money during winning streaks, unsubscribe during losing streaks. You should do the opposite. Give any signal at least 3 months before judging.
MQL5 vs ZuluTrade vs eToro
MQL5 Signals: most transparent data, verified directly from broker servers, seamless MT4/MT5 integration. Interface is technical and less beginner-friendly.
ZuluTrade: supports more brokers, more intuitive interface, automatic ranking system. Signal quality varies more widely, and verification isn't as strict as MQL5.
eToro CopyTrader: easiest to use, strong social features, good for non-technical users. But eToro is the broker, so you're locked into their platform, instrument selection, and spreads. "Star trader" strategy transparency is lower than MQL5.
If you already use MT4 or MT5, MQL5 Signals is the natural choice. If you value social features and simplicity over transparency, eToro might fit better.
FAQ
Do I need MT5 running to receive signals?
Yes. MT5 must be online continuously. A VPS running MT5 24/7 is the standard solution. MQL5's own VPS costs ~$10–15/month with optimized latency.
Can I follow multiple signals simultaneously?
One MT5 account can subscribe to one signal. To follow multiple signals, open separate sub-accounts (most brokers allow this) and subscribe each to a different signal.
Can the provider see my account information?
No. Providers see aggregated data only (total subscribers, total funds under management). Your balance, positions, and personal information are invisible to them.
What's the minimum capital for copy trading?
No hard minimum, but practically $500+. Below that, lot scaling causes too many trades to be skipped. If the provider's account is large ($100K+), you'll need $1,000–2,000 to copy most trades effectively.
Can I get a refund if copy trading loses money?
No. The subscription fee pays for the signal service, not guaranteed returns. Profits and losses are entirely yours. Do thorough evaluation before subscribing — our how to choose an EA guide applies equally to choosing signals. Every EA in the FXTool marketplace that offers signal data has been through the same evaluation process we describe here.
About the author: The FXTool team builds and tests MetaTrader trading tools daily. We run every EA we sell on live accounts and publish the results. This guide reflects what we've learned from building 50+ EAs and working with thousands of retail traders.
Forex trading involves significant risk and may result in total loss of capital. This article is for educational purposes only and is not investment advice. Understand the risks and consider your financial situation before trading.