Reviews of the Best Forex Signal Service Providers
Subscribing to forex trading signals is a great way to diversify your trading by mirroring the trades of traders with a good track record. When choosing a forex signal service it is very important to find a reliable provider that doesn’t manipulate results and make false statements. More on that below.
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Forex Signals
A forex signal is a trade alert for the currency market. Forex signals can be obtained from companies that specialize in this service, and also from a number of top forex brokers who provide them for traders of standard or V.I.P accounts. The price of this service can be anywhere from free if you receive it from your broker, to a daily average of $5-10 and higher depending on the individual or company providing it. There are also some packages that offer long term access for a one time subscription fee. In this case the floor is at around $100-150, reaching up to several hundreds.
Services that you receive upon signing up with a forex signals provider differ from firm to firm. You may expect to receive anything from performance trackers, sms, email, and online alerts, to customer support via email or phone, and advanced analysis in some of the more sophisticated offers. Since signals providers must protect their strategies, trading with them involves some degree of blind trust in the company or individual behind the issued signals.
The credibility of the many choices on the web varies widely, as it is often the case with anything related to the lucrative forex market. It is perhaps a good idea to approach any claims about 80-90 percent success rates with a pinch of salt, in spite of their ubiquity in the world of online trading. But there do exist some firms that provide genuinely valuable information and alerts to clients.
Keep in mind that your ability to successfully exploit received forex signals depends greatly on the efficiency of your broker’s service. Especially with forex news based trading, you must act quickly, while being sure that any issues related to misquotes and slippage shall be minimal.
Forex Signals Can Be Classified Into Three Groups.
News Trading Signals: This is the fundamental approach to forex signals, and the purpose is getting at the news release as early as possible, and exploiting it to maximum profit in the short period of time after the release. Such signals often come with some commentary and analysis on weekly and daily bases.
Technical Signals: Technical trading signals are just trading tips on the basis of technical analysis. You trust the background and track record of the company or person issuing the signals, so you choose to trade on that basis instead of entering your own orders.
Technical forex signals are often issued along with various risk management strategies to ensure minimal losses if the plan does not work out as expected. The vast majority of online forex signals belong to this category, which makes sorting the wheat out from the chaff a bit of a difficulty.
General Trade signals: This kind of service provides general trading tips for traders. Their alerts often employ a multi-pronged approach combining both fundamental and technical analysis.
Final Word
Whether you will use forex signals or not will mostly depend on your character and your plan in trading. If you’re a highly active individual with little time to spend on analysis and study of the market, forex signals constitute an alternative to manual trading. If you want to learn the mechanics of trading, you will receive but a modest benefit from subscribing to forex alerts. A major discouraging factor about forex signals is the high price tag.