As you mentioned, motionlink is the best way to determine what is causing the fault because the drive will store the most recent fault codes (don't keep turning power off and on or the small history will have nothing but indications that the power was cycled).
Regarding your question about how to "clear the alarm and see if it works". The VFS5 clears all active faults each time power is cycled so you do not need to do anything to "reset" them. You must turn off the main disconnect to remove power from the drive to reset it though, just restarting the control will not clear the fault. If the fault light comes on immediately when you turn the power back, whatever caused it to occur is still present.
If the Fault light is not on when first powered up, monitor it as you start the machine. Does it fault when you power up the servos? Does it only fault when your spindle tries to move? Depending on when the fault occurs (and what motionlink shows as the cause of the fault), will help determine where to look next.