WHAT ARE FOREX SIGNALS?
One aspect of successful trading is to spot profitable trades in the market and one of the easiest ways to do that is to use forex signals. A forex signal is used by traders to make critical decisions regarding potentially profitable trades. It can also be considered as a recommendation on how and when to act on a financial instrument, in this case, forex. There are many types of forex signals which are usually offered for free or for a fee by experienced traders. The challenge of traders is to find the best forex signal provider that will deliver reliable service with important information such as take-profit (TP) and stop-loss (SL) signals.
Forex signals should be timely since they would be vital in making trades. If a trader receives the signal too late, then he might miss a profitable trade. To deliver the signal to the trader in real-time, they use SMS, email, or dedicated apps to alert them.
There are two types of forex signals that can be delivered manually (seasoned and expert traders) or automatically (computer software-generated). These are fundamental FX trading signals and technical FX trading signals.
Fundamental FX Trading Signals
Company news or announcements
Economic growth indicators
Technical FX trading Signals
Technical FX trading signals refer to the historical movement of price and chart patterns. Using these signals allow the trader to predict their movements in the future if the patterns are similar. These can be generated manually by traders using indicators or automatically by forex robots. Risk management strategies accompany these technical FX trading signals to ensure that losses are minimized.
Some examples of technical FX trading signals include:
Support and resistance levels
Pros and Cons of Forex Signals
Forex signals present great benefits to all traders. For beginners, these signals help them understand the market and how to spot profitable trades. They also help shorten the time learning to trade because they will have to analyze every signal or recommendation they receive. If a trader is confident about the signals he receives, he could focus more on improving his trading strategy than spending more time looking for other trades.
These signals simplify the trading activity and provide useful information on when the trade should be opened and closed. The risks are also reduced since the signals also serve as guides to when take-profit and stop-loss orders.
On the other hand, one drawback when it comes to forex signals is that most of them are scams. They might show up like they come from an authentic signal provider when, in fact, they are not. Because of these scammers which usually offer free service, traders turn to paid subscriptions which is another disadvantage because they can be costly.
HOW TO FIND A GOOD FOREX SIGNALS PROVIDER
When it comes to finding a good forex signals provider, you have to be careful and thoroughly as there are many providers to choose from. While some do present accurate information, there are also many which provide inaccurate information that will only make you lose money. Here are some tips on how to find a good forex signals provider:
1. Check their track records. The best way to find out whether the signal provider is reliable or not is to check their verified track record. It will show the profitability of the provider and if they have built trust among their subscribers.
2. Sign up for a free trial. Most forex signals providers offer free trials for traders who wish to evaluate their services further. Usually, these are the providers who do not have to hide anything and are confident about their performance. A free trial is also a great measurement if the provider’s trading signals are compatible with the trader’s strategy.
3. Check the provider’s time zone. A trader would want to receive trading signals during the hours he is awake because the signals would be useless otherwise. If a trader signs up for a free trial, he can monitor when the signals are sent and see if he would not be missing any potentially profitable trades due to delays.
4. Compatibility. A trader would want to receive trading signals which are suitable for his trading strategy. For example, you are going for a long-term strategy, you don’t want short-term signals sent to you throughout the day. Long-term signals will provide you a higher success rate for your strategy. But whatever strategy you plan on using, the profitability of the signals should still be the main factor and if they are compatible with your style.
5. Look for the full package. It has been mentioned that trading signals are also a great way to learn more about forex trading which is why you would want to get a signals provider that offers the total package. Basic providers only offer entry price and TP/SL levels which are not enough. Get the services of a provider that also offers charts and market analysis so that you will be able to understand the reason behind the signals.
You could also look into providers who offer additional services such as educational videos or webinars for additional support. If the provider has these extra services, it only shows that they genuinely want to help traders be successful.
6. Compare forex signals providers. Since there are many providers available, make a shortlist of the most reputable providers, find those who offer free trials, and then compare their performances and the time they send their signals. Your goal is to find the one that meets your needs and also your style.
SHOULD I USE A FREE FOREX SIGNAL SERVICE?
Beginner traders are generally eager to find profitable trades without much effort which is why using forex signals is beneficial for them. However, they are also looking for ways to lessen their expenses. Most of the reputable forex signals providers come with a fee and new traders just do not have enough money for it. And so, they resort to using free forex signal providers. But is this the right thing to do?
To become successful and efficient in trading, you have to learn how everything works. By using a free forex signal provider, you would not be doing that as they only give you basic services, unlike paid plans which offer a total package. You could always study how forex trading works on your own, but if you want to shorten the learning curve, forex signals will help. The problem lies in looking for good forex signal providers as many of them are scammers.
You have to do extensive research on these free forex signal providers to determine which is reliable. Below are some signs that a free signal provider is a scammer:
Unverified track record
Hidden trading history
No free trials
No public information about current open positions
Trading signal does not match trading history
WHICH BROKER IS BEST FOR FOREX SIGNALS?
Using the right forex signals helps you in entering and exiting your trades at the right time. These signals can either be free or bought from signal service providers. But there are already forex brokers who have developed their own trading signals so that traders do not have to look for a separate signal provider.
Some forex brokers who offer forex signals are:
WHERE IS THE BEST PLACE TO GET FOREX SIGNALS?
As a trader, you want to rely on the provider that would give you the best services. They should be transparent on their performances and be able to help you improve your own trading strategy. The best forex signal providers give out profitable trade alerts at the right time and you can either manually enter the signal orders have the provider enter them automatically.
Here are some of the best place to get forex signals:
1. eToro. eToro offers a unique option of automated forex trading service called copy trading. This feature lets you choose an experienced trader with a great track record, invest in them, and copy their trades. This is a good option especially if you do not have the time to assess and act immediately on these signals. Although you will be using eToro’s brokerage services, they are heavily regulated by licensing bodies.
2. Learn 2 Trade. Learn 2 Trade is a user-friendly platform that scans the market 24/7 and sends the signal via Telegram. Their signals are solely based on technical analysis such as chart analysis and market trends. Learn 2 Trade also has excellent customer service which you can access anytime if you have questions.
3. MQL5. The MQL5 Market provides diverse strategies and verified trading results from signal providers. They allow anyone with experience in forex trading to provide their signals, but traders can filter the results based on the results of these providers. Once you find a suitable trader, you can just copy their trades automatically using MetaTrader 4 (MT4) or 5.
4. JKonFX. JKonFX is one of the most reputable signal providers out there. They provide real-time insights and in-depth market analysis that will definitely help you make great decisions on your trades.
5.Forex Signals. Although it can be costly, Forex Signals offer traders a total package. They do not just send out signals, but they also give more information about them. This encourages traders to learn about forex trading and not just relying on other trader’s strategies.
Comparing Signal Providers
BEST FREE FOREX SIGNAL PROVIDER
5 Best Free Forex Signal Providers
To ease your mind looking among the hundreds of free forex signal providers, below are 5 providers that offer fairly reliable services:
1. Forex Signal Factory. This provider offers completely free services, unlike others which have hidden charges. Forex Signal Factory is a great guide for traders to look for quality trades, however, not all trades are reliable.
2. Daily Forex. Daily Forex provides signals for all currency pairs with written or video instructions. They also offer more information about the trade and specific directions as to when you should buy or sell it.
3. FOREX.com. One of the best brokers that also offer forex signals. They have tools that scan the market and identify chart patterns that will identify trading opportunities. They will also give reasons why the trade can be profitable and even give alternatives in case the market conditions change.
4. Forex Peace Army. Forex Peace Army offers free trading signals in a forum-style layout. Every trading day, they post the summary of a signal and the specific instructions on how to act on it.
5. Forex GDP. Forex GDP offers 2-4 signals a month with a target of 90-150 pips and a basic setup for entry and exit points. If you are looking for more features, you will have to upgrade to a paid subscription plan.
BEST FOREX SIGNALS APP
Almost everyone uses their phone for their everyday lives and trading is not an exemption. Forex signals can be received usually via SMS or email. But there are already dedicated apps that also do that job which also notify the trader of a good trade. With these apps, you can receive trading signals anytime, anywhere.
Top 3 Forex Signal Apps
If you are looking for apps dedicated to giving you good forex signals, here are 3 of the best forex signal apps that you can download:
Live Forex Signals – FX Leaders
Market Trends – Forex signals & traders community
Forex – Signals and analysis
DO FOREX ROBOTS REALLY WORK?
Forex robots work as long as you have the proper setup to begin with. Not every forex robot is created equal and not every robot is efficient. There are traders who do not want to exert extra effort in finding profitable trades so they rely on automated forex to do that particular job. For a forex robot to be efficient, it will need a skilled trader and a great programmer to work together. Forex robots rely heavily on technical analysis and it should be programmed with the technical parameters the trader has chosen. If the robot sees the indicators and market factors coincide with the trader’s strategy, it will generate buy and sell signals.
The bottomline is that the efficiency of forex robots will depend on the trader himself. If the configurations are correct, then a forex robot can give you accurate trading signals.
As always, best of luck!