Traders use forex signals to find new, profitable trading opportunities. Forex signals are normally provided by forex brokers or forex analysts. Normally, they will monitor and analyse the forex market to identify trends, entry points, profit taking points, and stop losses. This information is then made into a trading signal and to traders via email, SMS or social media channels. The traders then review the forex signal and decide whether to use it.
Forex signals can be a huge help to new traders who are still getting used to the markets, and also to part-time traders who do not have the time to do their own market analysis. There are a lot of service providers to choose from, many of which offer both free and paid subscriptions. However, it’s important to take the time to find a good provider that you can trust and that can provide good signals on a regular basis. Here are a few tips to help you with this process.
4 Tips For Choosing A Forex Signals Provider
Look At Their Track Record
An experienced trader knows that there are ups and downs in this business. Sometimes you have a winning streak, and sometimes you have a losing streak. As such, persistence and experience are key when it comes to maintaining consistent profits in trading. Therefore, when looking for a provider, it is important check how long they have been offering forex signals. Check out their trading experience and their track record. It’s best to choose a provider that has at least three to four years of experience on the market. This is because more experienced service providers can generally manage their trades better and provide a higher number of profitable trade ideas.
Test Their Signals On a Demo Account.
Some forex signal providers are simply better than others. While past performance is never a true indicator of future performance, it still helps to know that your provider generally does a good job. When choosing a new forex signals provider, it can help to test their signals on a demo account first. While you won’t make money by doing this, you won’t lose any money either. And testing the service on a demo account first will help you understand what they trade, how they trade, and if their trading signals are good enough to use on a live account.
Find Out What Forex Brokers They Use
Every forex broker is different, and offers different trading conditions. It’s best to use the same forex broker as your forex signals provider, so you can make sure you are trading with the same trading conditions. That way, you can ensure that your choice of broker does not poorly affect your bottom line profits. However, make sure that the forex broker they use is regulated, trustworthy, and offers a high level of client fund protection. While it’s important to have great trading conditions, it’s more important to have a safe trading environment.
See What Special Features they Offer
Before choosing a Forex signal provider, make sure to check out the what extra services they provide. Most signal providers offer take profit, stop loss and entry point information as standard. Some signal providers also offer extra services, such as the opportunity to join their own live trading rooms. This kind of service is very useful and also shows that the company is serious about offering a good service.
Try Out Their Customer Service
Some forex signal providers charge subscription fees. If you choose to go for a paid subscription service, then it’s important that you choose one that offers great customer service. Unfortunately, some signal service providers focus more on their own profit then on their their customers’ profits. And unfortunately, this means that some traders end up paying for a bad service. Therefore, before committing to a paid subscription service, you should also check the quality and availability of their customer service.
Final Thoughts
Ultimately, it is up to you to find the best trading signals provider. Although this might be a tough task, this decision will determine your future in trading. Hopefully, by following some of the useful tips in this article, you will be able to choose the best service provider for you.
We hope you’ve gotten a better idea on what to think about when selecting a forex signals provider. For more helpful articles, check out our education section.
