Making a consistent profit in the Forex market is not an easy task. The majority of the retail is losing money since they don’t have the skills to trade markets like the pro traders. It requires years of practice and a perfect understanding of the Forex market to secure consistent profit. However, you can also pick a reliable signal service provider and start making some serious cash by using the signals offered by the professional traders who have a proven track record. But make you need to pick the best signal service provider or else you might have trouble securing the profit. Let’s explore the top 5 features which you must consider to find the best Forex signal service provider.
Proven track record
Before you buy any signals from the online source, you need to assess the portfolio of the signal service provider. Since more than 96% of the traders are losing money, it’s very hard to find a profitable signal service provider.
By analyzing the portfolio, you can easily learn about the important parameters like monthly return, maximum drawdown and risk factors. Never buy signals from the companies which give the guarantee of making a profit. No one can predict the market direction with 100% accuracy. Losing is just a part of the trading business. So, stay away from the scammers who give you the false hope of insane return. Try to find a good Forex signal service provider who depends on realistic goals.
Frequency vs. quality
The new traders always want to get more signals from their providers. Those who give more signals are best to them. Instead of thinking about the number of signals, think about the quality of trade setups. If you get signals per day and lose 8 trades, there is no point to use such a service. The professional always try to focus on quality rather than quantity. At times you might not have signals and the professional will suggest staying in the sideline. Being a new trader, you should learn a lot about quality trade execution. Make sure the signals are based on a 1:3+ risk to reward ratio. Anything below 1:3 risk to reward ratio will make the recovery factor very hard. So, stop counting the signals and focus on the important parameters like a risk to reward ratio and quality of the trade setup.
Selection of the time frame
This is one of the most important things which you need to consider before selecting any signal service provider. If you get signals based on the 1-minute time frame, chances are high you will not be able to execute the trade. On the contrary, if you get one signals per month with wide stop loss and take profit, it’s not a great deal unless you consider trading your alternative source of income.
The professional traders always give signals based on 4 hour or daily time frame data. The retail traders get enough time to analyze the signals. If possible, ask them for trail signals and see how it works. If suits your personality and you can manage to make a decent profit without having any hassle, you are on the right track.
Finding a reputed signal service provider with years of experience in the Forex trading industry is very hard. Before you buy a signal from the professionals, make sure you do some research on the company. Public opinions say a lot about the quality of the service offered by such providers. However, don’t reject a signal service provider based on a few negative comments.
Make sure to read 50 comments (at least) or feedbacks before you choose any signal service provider. Some of you might say, the signal service provider which you intend to choose, doesn’t have enough public feedbacks or reviews. In such a case, you need to consider them as a new brand. And trading business it’s always better to stay in touch with the established brand who have a proven track record.
Last but not least, you need to analyze the performance of the signal service provider. A good signal service provider can easily secure a 1-10% monthly gain depending on the market condition. But if the average monthly return for the last six months fails to exceed 5% gain, you need to reconsider them.
You have to understand the fact, you are paying some heavy fees to buy the signals. Unless you can cover up the purchase cost and make some decent profit, you should not use the signal service provider. And a good signal service knows this fact very well and they always want to ensure consistent profit. They know the importance of stable performance in the signal service business. So, focus on the performance before you chose the signal service provider.