Once a trader has started his journey, there are only two ways that his trading can do. He either does well and ends up being a profitable trader or he can do badly and continue to make losses and blow up accounts. The traders who belong to the second category are likely to either give up trading totally or are likely to go ahead and find providers , suitable for beginners, who give them trading signals for free or paid.
Providers of free forex trading signals are generally very difficult to find and even if you do manage to find them, then it is very likely to be a losing proposition as if a forex trader is successful, he wouldn’t need to be giving away signals for free. He would rather continue to trade himself and make a good profit on a consistent basis rather than give his secrets away and begin to lose his edge in the market. Most of the time, the same logic holds good for paid trading signals as well and most of these turn out to be scams run by traders who are disgruntled and would want some way to get back at the market and fellow traders and somehow earn back their money. They may not even know what is a forex trading signal.
Of course, like in any business, there could be hidden gems who could be traders who run signal groups and give out not only trading signals but are also willing to teach the traders the logic behind each trade so that it is doubly useful for the traders. But these are very few and so the trader has to do a lot of background work for him to be able to find someone who can give consistently good signals at a reasonable price.
The Best Forex Signal Providers for Forex Trading (Free and Paid)
No, we are not going to give you a list of the best forex signal providers or those that provide accurate forex trading signals. There are simply too many out there and what constitutes a good forex signal provider varies from person to person. So, it is better to not go into any kind of list but what we would love to give you is some pointers to help you select the best ones. To start with, right off the bat, we can rule out the free signal providers. There is simply no reason for a person to give you free trading signals that work on a consistent basis unless he is either your good friend or a relative.
Of course, there would be many who do that and some of them might also work for some time but it just means that the trader is giving out signals using you as a scapegoat and as a means of testing himself and setting himself up for bigger goals.
So, let’s move on to paid trading signals groups and there is a lot to choose from. Some are cheaper, some are costly and others are in between. There is no specific rule that states that those that are costly are better than the ones that are cheap and vice versa. There are a lot of hidden gems all around the world and there could be many who give out good signals for cheap as well. It is up to you to do some good due diligence, have a look around, discuss with others, look for reviews online, and maybe see whether you can get some good referrals. Do not believe any kind of ads or any kind of advertising material as they can easily mislead you.
Try to get some solid references as they are the ones that are likely to be the best. Most of the paid groups have some trial period for a week or two. If not, ask for such trial periods and if they are good and genuine, they are likely to give you more often than not. Also, ensure that you get at least 3-5 signals during the trial period as many forex signal providers give a trial period but pick and choose the best ones to give, maybe 1 or two, and that is surely not representative of what actually happens in their group. So these matters are key when you choose the right trading signal group. Of course, you can always choose one and then move on to another one if the current one is not good but of course, choosing a bad one means that the subscription money would go to waste.
How do Forex Trading Signals Work?
Once you have enrolled in a signals group, it is important to ensure that you follow the signals strictly and correctly as that is the best way to judge them. There is really no point in joining a specific group and then not following their rules and trades correctly. If they give a buy signal or sell signal, it is important to follow it diligently. Do not try and do an analysis yourself and then pick and choose the trades that you want to do and then blame the signal provider if the signals do end up in a loss.
Give them a chance and follow their signals correctly and keep your self-analysis aside when you take those trades. If they give a stop loss and take profit, take those as well and put in those as well, and only then will you be able to evaluate them in the right manner. Else there will be a lot of confusion in evaluating them.
Before you join a specific group, find out the timings when they give the signals and make sure that it suits you. There are groups that give signals during specific times of the day while there are other groups that give signals whenever they see it in the market. Likewise, make sure that they trade the same instruments that you have access to and that you are comfortable with. Also, make sure that the margin, leverage, and trade sizes that are suggested by them are adjusted for your account size and you are comfortable with all these parameters for yourself.
If these do not match your comfort range, then you may miss certain signals which may end up being in a profit and this would affect your bottom line. These are some of the many things that you need to evaluate before you begin to start trading the signals that they give. As a trading strategy, it is important that you are comfortable with the signals provided as well as that is likely to make the difference between profit and loss overall. Once the signals are taken as trades, allow them to run till they hit the stop loss or take profit or till the signal provider asks you to exit and do not do anything else till then.
It is also important to see the method by which the signals are given as some of the groups give signals through WhatsApp, some through SMS, some through email, and some through phone calls as well. All these details need to be collected and analysed before you start taking the signals so that there is no confusion at the last minute when you have an open trade running and you stop receiving signals because you cannot access the signals at that time.
Forex Signals for Scalping
Some of you might be scalpers. By scalpers, what we mean are those traders who enter and exit trades in a matter of minutes or seconds. Very rarely do you come across forex signals for scalpers and so most of the time, the scalpers are all on their own. The reason for this is that scalping needs very high precision and so there are only a few good scalpers around and even they cannot afford the type to send out trading signals as they need to pay attention to their trades as the trading window is very short. If they focus on their trading, they cannot give out signals and vice versa and this is why most of the time, the signals for scalping do not work out as planned.
So, if some signal provider tells you that he is going to provide you with signals for scalping, it is important that you check them twice over before subscribing to such signals. Also, it becomes doubly important for you to check out all the parameters that we have defined above as scalping requires a very high level of precision and even the slightest mistake can make everything go wrong.
How are Forex Signals Sent?
We had explained earlier that know how the signals are sent by the provider is also a very important point for the trader to consider before signing up for such a service. The reason is that each provider uses different ways of providing signals. Some of them use the latest technology like WhatsApp to send out signals as it is easy, cheap, fast, and convenient as well. The subscriber can be sitting in any part of the world and he would be able to receive the WhatsApp signals at basically no cost to himself as well as the provider as well.
There are other groups that provide signals through SMS or calls but these can get very messy at times. The reason for this is that the SMS can take very long to reach the subscriber by which time the market might have run away from the price that the trader was supposed to enter. Many times, the SMS may not reach at all and the situation is worse if the provider and the subscriber are in totally different countries. So be careful if someone promises to provide signals through such methods.
One more method of providing signals is by a website. A professional provider is likely to have a website and a section within the website which you may need to sign in using a username and password and they would then give out signals within this section. This is the most common way of giving out signals by professional signal providers as this helps to bring all the subscribers to a single place and so the point of failure, if that happens, is d=reduced to that single place. It also helps to keep all the signals in one place which the traders can use for later reference as well. For these reasons, such an arrangement is generally preferred by the provider and subscriber and if any such provider provides an arrangement like this, please do go ahead assuming that you have done your other bits of due diligence.
Pros and Cons of Forex Signals
Like everything in this world, forex signals and their providers also have pros and cons. The pros are the fact that, as long as you are able to find a consistently profitable provider, you would be able to make some good money which would help to remove some pressure off your finances, make you forget some of your trouble, wipe out the losses and the deficits that you trading may have made you. It is likely that you will gain confidence as time goes on and then this would make you believe in yourself and in trading as well as you would see with your own eyes that forex trading can be a profitable venture.
You could also glean some knowledge from the profitable entries and exits, find some patterns and could use it or apply it to your own strategies and maybe you would make it work better for you. Some of the providers may be helpful enough to explain the logic behind their trades and these are likely to be the best for you as you would be able to understand their thinking and could ,glean valuable lessons from it for your own trading.
As for the cons, there is always nothing that can match learning trading by yourself. You cannot rely on someone else to provide you with trades all through your trading career. Though it may be nice to get some profitable trades under your belt and it may also lull you into a sense of false fulfilment, you need to remember that such signals are temporary. The signals may go bad when markets change, the providers may hike prices beyond your means or they could simply vanish. So, it really cannot compensate for you being able to trade by yourself and so it’s very important that you use this time to continue to learn to trade and get better in due course of time so that you can trade by yourself sooner rather than later. This is the biggest disadvantage of trading with signals provided by others.
The other issue is choosing the right provider rather than a scammer and that is a very difficult task to do as there are 100s out there and it is very easy to get scammed. So choosing the right one that is not only profitable but also suits your style is very important and needs to be done very carefully else it may also lead to blowing up of your account.
Do Forex Signals Come with a Stop-Loss and Take-Profit Price?
Rather than this being a question, this has to be a necessity. We strongly suggest that you choose a signal provider that provides trades with stop loss and take profit. That way, we know that the trader is in control of the trade and he knows what he is doing. If not take profit, make sure that he provides a stop loss for each trade and also make sure that the stop loss is within reasonable limits as this shows how professional the provider is.
Another reason for ensuring this is that once you have taken the signal and put the trade through with a stop loss and take profit, then you can forget about the trade and move on with your work. If not, then you have to keep monitoring your trade and also the signal group to wait for the exit signal from the provider and that could spoil your entire day and this is really something that you shouldn’t be signing up for.If you do subscribe for a signal provider, then ideally you would like to be free to go about your work or do some learning for yourself rather than being tied down to your screen all day waiting for the exit signal. So do make sure that your provider does provide you signals with stop loss and preferably the take profit as well.
How Much do Forex Signals Cost?
This really varies widely. There are free ones, there are paid ones and among the paid ones, there are cheap ones and very costly ones as well. There are signal providers that charge you more than $1000 a month. What they do charge you shouldn’t really matter. The point that you should be looking at is how good and consistent they are, their success rate, the currency pairs that they trade-in, what sort of track record they have, and whether you are comfortable taking their signals. Of course, you should also see that with their past record and your current account size, whether you would be able to afford them, and even after all the payments to them, you should calculate whether you would still be profitable enough. If you do these calculations and still believe that it suits you, then you should be going ahead without any second thought on this.
So, in conclusion, as a trader who wants to turn things around or get some time for yourself, it is indeed a good choice to go for a forex trading signals group. But due diligence is the key and this could make the difference between being profitable and losing the entire account and so do this process very regularly and in a thorough manner. There are 100s of scammers out there who are ready to leech off your money and so it’s important that you be careful and not get trapped in their plans.
Likewise, as we had said before, use this time to take some personal time for yourself to relax and recharge your batteries. Also, use this time, when the profits from the trades that you made through the signals are rolling in, to work on yourself and on your trading so that you can get back to profitable trading at the right time. Spending your entire trading career on someone else’s signals isn’t really the right plan for you and so it is important that you work on your trading, learn from others, learn from the provider himself if that’s possible and apply it to your trading so that you can get better and become profitable by yourself. This is what you should be trying to achieve when you subscribe to trading signals. Save up the profits that you have made for yourself and your family and maybe you can save some for your own trading as well and try to get into the right trading habits so that it serves you well in the long term.
There is no such thing as the best trading service just like how there is so such thing as the best trading platform. All of these are quite subjective and what ultimately matters is the fact about which one of them is comfortable for you in the long run. In any trading career, the most important thing is the trader himself and that is why it is important for the trader to be comfortable and at peace with what he is doing than worry about any other factor. It is your money at risk and may not affect others in any manner. Signals may not be suitable for all investors who are involved in foreign exchange trading and so stop looking for the best forex signal providers and focus more on yourself and your success.