Forex signals have completely changed the way the forex market operates. This is the way newcomers and normal traders can make profits if they do it right. So, what is the role of a forex signal provider or such services? Forex signalling services are all those services that are provided to traders, with the sole objective of helping them analyze the market conditions and take the right decisions.
Every forex signal has some important information related to a currency pair which includes stop-loss rates, take-profit, and entry price. The providers of such a service usually provide such trade alerts to the users through mobile forex signals app, or email or even through SMS. These trading signals are time-sensitive which means they are valid for a certain time only. The providers usually send out such setups to the subscribers through different methods as mentioned above.
Types of Forex Signal Providers
- Technical Analysts
- Fundamental Analysts
Technical analysts usually base trading decisions on different chart analysis which include price channels, candlestick patterns, resistance levels, and technical approach.
Fundamental analysts usually base their trading decisions according to news-related and economic data. This can be in the form of analysis of long term interest rates, employment reports, central bank policy, and sentiment surveys.
Forex signals are one of the most necessary tools for the forex community. They help traders succeed in trades and make profits. However, traders can be disappointed with the results if the signals are not correct. So, it is crucial to select the forex signal provider with caution.
Here are some factors which are to be considered:
Do not ignore the time frames. Remember, trading signals might not work well for strategies like scalping. The time frame is important here because by the time the trader gets the signal, the opportunity will go. Each FX signal is about preferences and personal methods of the signal providers. Thus, each system is quite different. Here are the two systems on which it is based. This includes
- Fundamental analysis focused
- Technical analysis focused
Signal providers analyze current events. They derive different trade opportunities from the impact of different events which include asset prices.
You need to find the best forex signal provider because the quality of the trading signal can break or make your profitability. Here is a checklist that you need to consider.
- Time Zone of the Provider – As you begin, do not miss checking the time zone of the provider. Will it help if your trading signals trickle in as you are asleep? They will not be of any use to use when you are not around. You can sign up for just a free account here.
- Try a Free Trial – It is always recommended to try out a free trial or test of any service provider. This is a scope to understand how the provider is, without any worry about losing.
- Do not Forget to Compare – Never be stuck with the first provider you come across. It is always recommended to compare the FX signal services you come across so that you are assured that it is suiting the style of your trading. Once you make a comparison, you can select the best provider.
- Do Not Miss the Track Record – Have a look at the track record of the signal provider. If you analyse the track record, you will know everything about the set-up and that too performance-wise. Remember, you need to use track records that are verified by any 3rd party.
- Look for Extras – There are many signal providers who will offer you additional services. These can be social trading-oriented or educational. If you are dealing with a variety of trading signals, these perks will offer you a good setup value.
- Total Analysis – You need to go for a package that will offer you complete analysis. You should not consider low-effort signal providers. It is important to understand that your signal should work. Thus, your FX signal provider will provide you with charts that will offer the right market analysis.
- Focus on You – When you are looking for a signal provider, you need to ensure that the style of signals is as per your trading requirements. Forex signals are usually of different styles. These can be in the form of long-term or short-term signals that are focused on intraday breakouts and more. Remember, profitability must be your priority.
Importance of Comparing the Signal Providers
When you are comparing different forex signal providers, it can be quite work-intensive. Though this is worth all the efforts and you will get proper dividends, every little value which you discover through such a process shall add to the profitability. You can carry out a search on the forex signal ranking. You will find that there are scores of websites through which you can compare signal services.