Forex signal providers are providers of signals that are supposed to be used to make trades in the Forex market. These providers have in the past been independent of each other, but more companies are coming into the fold. They offer a signal service to all the traders in Forex trading. If you are looking to use a signal provider, you first need to know what kind of signal service do they provide. This article will shed some light on this topic.
Basically, forex signal providers are a recommendation for entering into a trade on a particular currency pair at a certain time and price. The signal generated by them is either generated by an expert human analyst or an automated Forex system provided to a registered subscriber of the forex signal provider. The latter has built-in mathematical "guesses" which are based on market trends, historical data, and so forth. These guesses generate alerts (or signals) that trade with predefined settings. The alerts are sent to the subscriber via email or SMS.
One type of signals are called "scalping signals". These are based on moving averages, pivot points, RSI, MACD, and other such indicators. A good number of traders subscribe to these services in order to make use of resistance levels. Resistance levels are indicators of possible future market moves.
On the other hand, there are also a number of free forex signals service providers. A free forex signals service is one which generates signals for free. There may also be a number of signal providers who charge a fee for their service. There are a number of advantages and disadvantages in using these signals.
To begin with, it helps traders make money. As was mentioned earlier, a signal provider analyzes the movements of a particular currency pair over time and then generates trading signals. The signals are sent either automatically or manually. Many traders find it convenient to receive their forex signals by email, especially if they are into trading more than one currency pair.
However, many traders still prefer to receive their signals by manual means. For them, it still makes more sense to use forex signal providers. In fact, many signal-based trading services do not send out signals automatically. They usually send out signals once a trader opens his or her trades. Therefore, they are not able to tell whether the trade signal is profitable or not.
In addition, signal providers are better when it comes to finding profitable trades. Traders can look for trades using several indicators. However, it will take longer for them to find the best forex signals providers in relation to the number of indicator based on which they generate their trade alerts. Some traders simply prefer automated software that can tell them what trades are profitable without the hassles of manually analyzing the market.
There are a lot of signal providers that claim to be top contenders in the business. But it is also true that not all of them can give you the best signals. It is therefore important to know what signals are accurate and worth your time and effort. The best way to know this is to try out the free trial services provided by some of the well known and reliable forex signal providers. By doing so, you can get a glimpse of what is needed from a signal provider to make it worthwhile.
First thing to consider is the signal frequency. Since the forex trading strategies used by the providers vary, it is important that they have a signal frequency that matches their strategies adopted. As a beginner trader, you should learn how frequently the signals are updated. Ideally, you want signals to be sent at least once per day and preferably once per hour. This helps you evaluate the profitability of your strategies during the time when you are not trading.
The second thing to consider is the relevance of the signal. Some forex signals are exclusively meant to be used for short term trades. While others offer long-term opportunities for traders to profit from. It is important for the signal provider to provide a platform that is easy to navigate. The user should be able to access the information and place his trade without any delays due to poor connectivity or non-availability of the trading system.
The other aspect that must be looked into before choosing a forex signal service is the quality of information provided. You should be provided with all the relevant details that are needed to execute the trade. Some providers may provide you with indicators and signals, while others may send you charts that show price trends. In order to choose the best, check if the provider has a money back guarantee to prove that they are confident about their service.