This article looks at the different forex signals services available to forex traders.
There are various trading tools available to an individual when trading on the foreign exchange market. One of the most popular technical trading tools is that of forex signals service. These forex signals act as indicators informing a trader of the best position to trade, as well as providing the most appropriate entry and exit points to the position.
There are two ways of receiving forex signals. The first is via independent technical analysis; however this can be very tiresome. The second is via forex signals services packages, which is more popular. The latter option is more convenient; however you will be required to pay a fee for certain services. It is important to consider payment schedules when using forex signals packages.
What forex signals are most important?
In order to trade efficiently on the foreign exchange market you will require forex signals. There are two types of forex signals available on the market – the entry signal and the exit signal. The entry signal will tell you when the best time is to enter a trade, and the exit signal will indicate the best time to exit a trade. It is essential to have both of these signals in order to execute profitable trades.
Certain traders believe that exit signals are not required, but rather an exit strategy. The exit strategy sees a closing of the open trade at a pre-determined time based on the profits you wish to make. It is recommended you have an exit strategy irrespective of whether or not you are using exit forex signals.
Do I need signal services?
Before you begin using forex signals services, you must determine whether you actually require them. As is aforementioned, it is possible to find signals through manual technical analysis of the market. However, there are traders who have other commitments and are not able to complete this time-consuming task. If you are one of these traders then you should consider purchasing a forex signals service.
Are there any scam services?
One problem traders face with paid for services is that the service is potentially fraudulent. These scam services will provide forex signals and then disappear with your money. There are other scam services that provide low-quality, random signals while charging a large monthly subscription fee. It is important you conduct background research into the provider and system before purchasing a forex signals package. You must also establish how the signals are identified to ensure you do not receive random signals as this can affect your trading greatly.
What forex signals services are available?
There are two types of forex signals available to traders – the paid for service and the free of charge service. Some traders feel that the free signals service is not as sophisticated as the paid service, however this depends on the signal provider.
The majority of forex trading platforms will offer a built-in forex signals feature. These signals are often reliable as they are offered by forex brokers. Of course, this depends on the reliability and quality of the forex brokerage.