Subscribing to a good forex signals provider is essential to your success as a currency trader. A forex trading signal tells you when a currency pair is about to experience a price movement, which could indicate a profitable trade. The service will then alert you either through email or by some other means, such as SMS if you’re signed up for text alerts, so you can open a trade. These providers can either be independent brokers or affiliated with financial agencies or other institutions and their services are appropriate not just for traders who are just starting out in the currency markets but also those with advanced skills and experience levels.
But choosing a forex signals provider can be challenging unless you know somebody who can recommend a good one to you. However, if you’re conducting the search on your own here are some tips that can help you find the right provider to ensure that you will make a profit in the forex markets:
- Check out how they generate their trading signals. There are two ways that signals can be generated – by using forex software that analyzes the markets using purely technical analysis techniques and from analysts who actually look at the charts and locate trading signals using a mixture of methods, including fundamental analysis. Of course, the signals provided by analysts are much better.
- How have they performed in the past? Forex signals providers, of course, often brag about how they can offer their clients high yields even if they can’t really back up their claims. One way to determine which providers have legitimately performed well in the past is to check them out on reputable ranking sites that rate the best signal providers. Signal providers that are members of recognized professional organizations are also likely to offer credible claims regarding their performance.
- How fast do they deliver their signals? The earlier you enter a trade, the better, so going with a signal provider that provides you with signals in a timely fashion is a must. Also keep in mind that some signals may be valid for as little as a few minutes so the faster you can open a trade the higher the possibility you will make a profit.
- Look for one that offers a trial period so you can check out their service. It’s difficult to determine if the services of a particular forex signals provider are appropriate for your needs unless you get to try them out first. A trial will also allow you to get familiar with the trading program the provider uses to transmit its signals online, so that you can start trading at once with no learning curve to navigate if you decide to subscribe to their services.
- Learn as much about the forex signals provider you are considering before you sign up with them. You can go online and do a search for them to determine if there are any major complaints against them. You can also check out review sites to see how experts rank their services.