Forex Trading Signals

Forex Trading Signals

Forex trading is becoming a very popular form of trading due to the increasing number of online brokers who are offering easy to use trading platform along with a wealth of tools to help even the most novice trader a better chance to succeed. Most Forex brokers provide live market data which includes live news feeds, charts and information on important economic data. Most traders will use the information provided to work out how an asset will perform given the information at hand and so reducing the potential risk and increasing their chances of making a return. There are also other tools that can be used such as signals.

Forex trading seems a fairly simple trading method, but as with most if not all forms of financial trading they can come with a steep learning curve and you will need to understand how certain news and events affect certain currencies. However even a complete novice can trade like an old hand by using a well established signals provider. Good Forex trading signals are more often than not provided by veteran traders who will provide information that point you in the right direction. For instance, a signal provider will issue information that predicts with a high degree of confidence that the price of a given currency will rise in a given time frame, they will notify their subscribers in the form of a trading signal, these can be delivered in the form of a text, Skype or email message. The subscribers can then either do exactly as the signal tells or compare it with their own research before making a final judgement. By using a good Forex signals provider you can potentially circumvent years of learning, it is a smarter way to trade as your investments have a degree of professional insight behind them instead of simple guesswork.

As the price of currency pairs on the Forex market are constantly moving a fast rate it is imperative that any signals that are delivered to a subscriber arrive instantly as a difference of even a single pip can make the signal useless, especially since they tell the user not only what course of action to take but also when they should take action and more importantly when to place a trade.

Forex trading signals providers use certain delivery methods to get the information across to their subscribers, here the main ones used:

A text message which is received on a subscribers mobile, they are fast and are instantly delivered. In modern smart phones, push notifications can be used as well; these display more detailed information, are faster as well as cheaper. The only possible downside is if the network providers are having technical difficulties, however these are for the most part unlikely. Despite the many different technologies that have come about, SMS continues to remain one of the most popular forms of signals; since most brokers have an accompanying mobile app along with a web browser based system, text messages can allow them to execute the signal quickly.

Skype/IM groups have for some time been a very popular method for delivering signals to multiple people within one group. This method is still used quite widely, and can work very well. There are however limitations and even slight delays in the ‘instant message’ being received can result in the trades becoming invalid.

Emails have also been used in the past for announcing signals, but they lack the speed required for instant signals and so, for short term signals at least, are no longer be first in preference. A further problem sometimes faced by email recipients is that the signals can at times get sent to their spam folder instead of the inbox resulting in missed signals.

Some of the more technically adept signal providers have created websites with a member’s area where traders can read the signals and act accordingly, or even watch them trade “live” and ask questions. Others display instant live signals within their member’s area, along with instant live results, offering a particularly transparent service.

There are a growing number of providers who align themselves with a number of Forex providers and they integrate their signals within the broker’s online trading platform. This in effect gives the subscriber the opportunity to set their trading parameters such as Asset, expiry time and stake and then set to auto. If the provider issues a signal the system will automatically execute a trade within the defined parameters. Technically a trader does not even need to be logged into their account for this to happen.

Providers of Forex trading signals will all claim to be able to provide highly compelling results, and often quote figures like 60% to 90% success rates. Almost all of them are operated by seemingly experienced traders who claim to know exactly how the market works. However, like all things, nothing on the internet is always to be believed. There are a growing number of so called get rich quick schemes that supposedly offer unrivalled success if you use their signals when trading Forex and if they offer success which is too good to believe, the chances are it is a scam of some sort.

Any good signals provider will offer a free trial service which is not conditional on opening any accounts with a broker. This will allow you to evaluate their offering using your own broker’s online platform. If your broker offers a demo account even better as you can try their signals risk free before subscribing. As with anything you need to do your research and reach your own conclusions as to the merit of the provider, don’t solely rely on online reviews as these could be as fake as the signals.