- Nick
Tips to find the best Forex signal service providers
These days, there are hundreds and thousands of Forex signal providers
available at traders' disposal, so investors need to pay special attention
to all the minor and major details, as they can make a difference.
So, let's start with the basics:
What is a Forex signal?
A Forex signal is a service where a provider sends signals to their clients for trading. These signals are usually sent in the form of a subscription. A signal provider takes hard work by analyzing different market parameters and finding good entries and exits points.
Generally, signals are provided through subscription models, monthly, quarterly, annually, etc. It can also be offered via commission, where the signal provider receives a commission fee on every trade. Hence it includes subscription fee + commission. A keynote to add here is this type of service doesn't mean traders would get bad trading signals. It postulates that traders would get the same forex signals as the provider.
Here are a few key things every trader needs to look for when finding the best forex signals provider
1. Profitability and track record
One of the most important aspects of signal services is profitability. No surprises here, as traders who opt for these signals want to profit for every trade. To find whether a signal service is worth it, traders need to look for providers' track records. By verifying the historical data, traders can make sure that the signals they are receiving are real.
The best way to do that is to look for third-party verification services, such as Myfxbook.com. When checking with Myfxbook, make sure that the "Track record verified" is checked.
If a signals provider doesn't link to Myfxbook or other verification services on its website, it's best to refrain from using these providers' services.
2. Trading history
One of the crucial factors in finding a good forex broker is to find a signal provider with a proven track record. Often, many providers show data of the past two months, claiming high profitability. Traders should be aware of this.
These signals providers rely on a system that will burn after 2 or 3 months and then try to launch a new one, showing clients past one or 2-month records. Unfortunately for many traders, this would be a final nail in the coffin.
3. Try for free if possible
Since the best signal providers don't hide their trading strategy, they mostly offer free trial periods for their clients. Trial periods not only let you test trading signals but also helps you in deciding multiple trading methodologies. Usually, there is a free trial of 1 to 4 weeks.
Since the best signal providers don't hide their trading strategy, they mostly offer free trial periods for their clients. Trial periods not only let you test trading signals but also helps you in deciding multiple trading methodologies. Usually, there is a free trial of 1 to 4 weeks.
4. Trading style
This is another essential thing to consider. Ask yourself: are you looking for short-term or long-term signals? Are the signals based on fundamentals or technical analysis or a combination of the two? All these factors can have a significant impact on signal evaluation.
A quality signal should be profitable regardless of the trading approach. Long-term signals ae usually have a higher success rate than shorter ones.
5. Support
A good customer support service shows how much a provider cares for his/her clients. All forex signals service providers should be able to answer every customer's query. Traders should also be able to directly contact the provider.
5. Support
A good customer support service shows how much a provider cares for his/her clients. All forex signals service providers should be able to answer every customer's query. Traders should also be able to directly contact the provider.
6. Comparison
After learning about forex signals, compare each broker. It is humanly impossible to compare every provider, so for that, a well-known forum, Forex Peace Army, can help you. It is a forum where traders share their forex signals services experiences. The website ranks different service providers. For example, if you check 1000pipbuilder's reviews, you'll see that it has 48 reviews with a rating of 4.6 out of 5.
7. Paid VS Free
Often traders come across free forex signals. They should know that these providers will sell them other services like courses, EAs, webinars, or other related products. This doesn't make them bad, but traders should be aware of this.
What should be included in forex signal services?
A forex signal service provider should have:
• The currency pair you will be trading (EUR/USD, GBP/JPY, etc.)
• The direction in which you will trade. A BUY or SELL button is used for this purpose.
• The status of your signal. There are three types of signals; active, get ready, and closed. Active signals are ready for use. Get ready signals are not yet active and will be available shortly. Close signals are expired signals.
• The entry price should be self-explanatory. It is the level at which the forex signal provider recommends entering the trade.
• The stop-loss should be in place so your trades can be closed automatically. Usually, the provider advises you where to put the stop-loss.
• The take-profit option should also be available so that you can take your profits at the right time.
• There should be a detailed real-time market analysis for the recommended setup. Also, there should be regular trade alerts.
A forex signal service provider should have:
• The currency pair you will be trading (EUR/USD, GBP/JPY, etc.)
• The direction in which you will trade. A BUY or SELL button is used for this purpose.
• The status of your signal. There are three types of signals; active, get ready, and closed. Active signals are ready for use. Get ready signals are not yet active and will be available shortly. Close signals are expired signals.
• The entry price should be self-explanatory. It is the level at which the forex signal provider recommends entering the trade.
• The stop-loss should be in place so your trades can be closed automatically. Usually, the provider advises you where to put the stop-loss.
• The take-profit option should also be available so that you can take your profits at the right time.
• There should be a detailed real-time market analysis for the recommended setup. Also, there should be regular trade alerts.
How to use trading signals?
1. Take Profit and Stop-Loss
If you think that the trade's potential is better than what the profit level allows, feel free to place a take-profit. You can also remove the take-profit if you want but remember that this bold move can backfire.
Moving your stop-loss can save you from a doomed trade. Like take-profits, the stop loss is set at a fixed pip value. Sometimes, the stop-loss is closer below a moving average or at a resistance level. In this situation, moving the stop-loss above the critical point is a good idea.
The entry price should also be set properly. The signals providers tend to give an entry point, which is on the safer side. Moreover, as the price develops, a better entry point is also visible.
Manually closing a trade is a better option when there is market uncertainty. Signals providers can't predict world events, so you should close your trades manually if there is sudden news.
2. Trade Size
You can increase your trading lots on high probability signals, as things will go according to plan. However, if you are not sure about signals probability, it is better to trade with smaller trade sizes.
3. Correlation
Keeping an eye on correlated forex pairs is a pro technique. For example, if you get a signal for the AUD/USD, the same signal can be applied for the NZD/USD. Often, the trade resulting from this method will turn out to be more lucrative.
Traders sometimes forget to consider the spread when setting their stop-losses and take-profits. Do not make this error. Adjust your automatic closing points accordingly. Keep in mind that the spread varies from pair to pair.
1. Take Profit and Stop-Loss
If you think that the trade's potential is better than what the profit level allows, feel free to place a take-profit. You can also remove the take-profit if you want but remember that this bold move can backfire.
Moving your stop-loss can save you from a doomed trade. Like take-profits, the stop loss is set at a fixed pip value. Sometimes, the stop-loss is closer below a moving average or at a resistance level. In this situation, moving the stop-loss above the critical point is a good idea.
The entry price should also be set properly. The signals providers tend to give an entry point, which is on the safer side. Moreover, as the price develops, a better entry point is also visible.
Manually closing a trade is a better option when there is market uncertainty. Signals providers can't predict world events, so you should close your trades manually if there is sudden news.
2. Trade Size
You can increase your trading lots on high probability signals, as things will go according to plan. However, if you are not sure about signals probability, it is better to trade with smaller trade sizes.
3. Correlation
Keeping an eye on correlated forex pairs is a pro technique. For example, if you get a signal for the AUD/USD, the same signal can be applied for the NZD/USD. Often, the trade resulting from this method will turn out to be more lucrative.
Traders sometimes forget to consider the spread when setting their stop-losses and take-profits. Do not make this error. Adjust your automatic closing points accordingly. Keep in mind that the spread varies from pair to pair.
Scams
There are plenty of forex signals service providers, not every one of them is reliable. Crooked providers have ample room to exercise their operations. Because the forex market has no single authoritative body, many scammers take advantage and lure beginners with unrealistic claims. While we have already discussed how to find the best signals provider, you should look for a few things:
• Services with unrealistically and unverified track records are almost guaranteed to be frauds.
• Forex signal providers offering to lure you into trade with your money are scams as well. Such a setup is not signal-based trading but auto-trading on a stolen account.
• If a provider uses various pushy and sneaky promotional methods, it arouses doubt too.
• If you feel something does not add up about your signal provider, move on to the next one.
There are plenty of forex signals service providers, not every one of them is reliable. Crooked providers have ample room to exercise their operations. Because the forex market has no single authoritative body, many scammers take advantage and lure beginners with unrealistic claims. While we have already discussed how to find the best signals provider, you should look for a few things:
• Services with unrealistically and unverified track records are almost guaranteed to be frauds.
• Forex signal providers offering to lure you into trade with your money are scams as well. Such a setup is not signal-based trading but auto-trading on a stolen account.
• If a provider uses various pushy and sneaky promotional methods, it arouses doubt too.
• If you feel something does not add up about your signal provider, move on to the next one.
The Bottom Line
So, what is the best forex signal, the provider? The best provider is the ones with a reliable track record, meets your trading needs, has an excellent support service, and provides good entry and exit points.
Just remember that there are many brokers out there, do your research, compare them by visiting forums like Forex Peace Army, and then select your provider.
So, what is the best forex signal, the provider? The best provider is the ones with a reliable track record, meets your trading needs, has an excellent support service, and provides good entry and exit points.
Just remember that there are many brokers out there, do your research, compare them by visiting forums like Forex Peace Army, and then select your provider.