The growth of Forex, especially among retail traders, has also led to the emergence of signal services. For most, making money in the Forex market is almost an impossible venture. The statistics are scary: over 90% of traders lose money in the Forex market.
However, quality signal services have helped to increase the profitability of many traders. These services have increased the winning rate, reduced analysis time, and eliminated unnecessary hurdles in the trading of Forex. Undoubtedly, they have made more profitable traders!
But those reliable and verified signal services are not easy to find. The industry is full of fraudulent signal service providers, and you should, therefore, be cautious. To that effect, here is a guide to help you find the best signal service that will be suitable for your needs.
What are Forex Signals?
In recent years, signals have become extremely popular among Forex traders — and for good reasons. They have proven to be effective and have enhanced the profitability of many traders. In fact, if not for them, all hopes of making money from the Forex market would have been lost for many.
But what are they? How do they come? How are they developed? A quality Forex signal is the recommendation to take a trade containing detailed information such as the entry price, exit price, stop loss, and the take-profit price.
It is important to note that any signal service you choose to use must be of a high standard. It must be a quality one. Else, it will lead to more losses than wins. To assess the quality of particular signal service, first, deploy it on a demo account. After then, you will know if it will be worth your use. The following guide shows you how to find quality signal services that you can rely upon.
Brokers Offering Forex Signal Services
Interestingly, depending on the kind of broker you use, you might not need to shop separately for a signal service. The following is a list of brokers of high repute that also offer signal services:
- IC Markets
- Vantage Fx
If your trading account is with any of those brokers, then you are in luck. They have integrated signal services on their trading platforms, which you can benefit from. ZuluTrade, especially, is well known for copy/social trading.
However, before you use any signal service, you should use the following checklist to assess their reliability. Let us dive in!
- What is your trading style?
Before you employ the service of any Forex signal service, you should start the assessment with you and the signal firm. What is your trading style? And what is the strategy on which the signals of the evaluated signal service is based? Do they fit? This is the starting place for your assessment!
Also, there are short-term and long-term signals. These are signals that require immediate execution and delayed execution, respectively. Your choice out of the two should be informed by the amount of time you usually dedicate to trading in the market.
- What is its time zone?
You must be aware of the time-zone of the forex signal provider you are considering to use. A provider that will be sending signals to you when you will be asleep will not be the right choice for you. Therefore, you must choose one that is preferably in your time zone, too.
To find out, check the website of the signal company. Check their location. You can then look up their time zone via a simple Google search. Alternatively, you can sign up for a free account first to find out.
- Are the trading results independently verified?
This is crucial. Virtually all providers make outrageous claims about their services. In fact, it can be challenging to know the truth about their actual performance. The good news: there are third parties that monitor signal services and verify their trading performances.
You should ensure that the signal provider you use eventually has the performance of its trades verified by one of such parties.
- Compare and contrast
There cannot be the act of choosing if there are no choices. This is why you should feel free to compare and contrast different signal providers before you finally choose the ones that tick off most of your preferences.
Feel free. Take your time. Between A, B, and C signal services, choose the one, based on thorough research, that will deliver for you the greatest returns.
- Does it provide analysis tools and other extras?
This might not be necessary, though. The aim of signals, in the first place, is to enable you to trade without having to go through any rigorous analysis. However, if your signal provider can also offer some simple tools for you to understand certain basic concepts of analysing the Forex market, it will be good.
Moreover, if it also supports some extra functions such as social/copy trading like ZuluTrade does, it might be worth going for.
Components of Forex Signals
For Forex signals to be effective and useful, they must be comprehensive in their details. As a result, a standard Forex signal must include the following fundamental information;
- The particular instrument and currency pair to be traded. That is, EUR/USD or USD/JPY.
- The specific type of order to be made. Is the signal a buy or a sell recommendation? This is the instruction itself to be executed.
- The time of execution of the trade. Is the trade to be executed right away or is there another definite time in the future at which it is valid?
- The prices. That is, the entry, exit, and the stop-loss price. These are prices at which you should enter the trade, exit it, and put your risk management instruction at.
There you have the tips to guide you in your search for the best Forex signal service provider that will deliver top-notch results on your trades. Therefore, at this juncture, search no more!
1000pip Builder is an independently-verified signal service company that is committed to generating high returns for their subscribers. You should open an account with them. You can do so here.