The first nightmare that a new trader encounters in joining the forex market is jargon. Typical of any niche, some words have particular meanings when used within the ecosystem. The forex market has many words and phrases that only make sense within it. They include simple words like ‘pip,’ ‘resistance,’ ‘support,’ and more. What about a forex trading signal?
Explaining a forex trading signal
Forex trading is complex, and the market moves very fast. Only the traders that have sufficient knowledge of how to play the market can turn up a sizable profit. That is why expert traders and forex expert advisors offer trading signals for the benefit of other traders. A forex trading signal is a cue that prompts the recipient to either enter or exit a trading position. Mainly, the signal helps to maximize profits and to minimize losses.
Many traders, both seasoned and novices, take advantage of the signals, mainly, to save time. Usually, a trader needs to perform technical and fundamental analyses to facilitate better decision-making. When one does not have the time or the expertise to perform the analyses, the forex trading signals become invaluable. That is why the market for these systems is lucrative. Consequently, bad actors are taking the opportunity to defraud innocent traders by offering bogus signals.
Is there a way of identifying a genuine forex signal?
Yes. Forex signal services abound on the internet, but their similarity makes it difficult to pick out the genuine ones. Interestingly, even algorithmic FX trading systems encounter this problem. Luckily, there are tricks through which you can distinguish legitimate forex signals from swindles. They include:
- Can you verify the profitability of the trading signal?
Usually, all forex signal providers tout their products as the best in the market in the line of profitability. Since this is the objective of all traders, you might easily fall for a scam. Here, it would help if you insisted on verifying the profitability of the signal service. You could do this by studying the record of accomplishment of the trading signal. A legitimate forex signal provider has a record of monthly activity concerning the profitability of the signal. If such a record is not available in the trading signal’s trade history, then that is a super scam!
- Try out the signal for free
Legitimate trading signal providers will allow users a grace period to try the system. After all, if the provider is confident that the system is worth the hype, he/she will be open to a trial period. During this period, you should push the trading signal to the limit. Conduct some backtests using historical data and see how it performs. The results of the trial period should inform your decision.
- User support
Often, signal providers create systems that answer their questions or questions that they think are common. During the trial period, check and see if there is an aspect of the signal that confounds you. In case you find some difficulties, reach out to the signal provider. If you get timely and satisfactory support, you should rest easy because that provider is looking out for you.
With this in mind, these are the best forex trading signal providers.
Whether you are using the best forex indicators or the best FX expert advisors, trading signals are invaluable. Besides signals, traders need help with monitoring of the trades, unless they are using automated trading systems. Interestingly, this is precisely what Interactiv Trading offers. The company is close to five decades old as a forex signal provider. Besides, it provides portfolio analysis and tracking services to facilitate better trades. The signal provider is ideal for traders across the spectrum because it offers coaching daily. However, the signals are only available to paying customers.
It is an alternative forex trading signal provider that targets all traders across the board. Notably, users get free and unlimited access to alerts. In Particular, the trading signal service uses advanced forex charting tools to identify potential trade opportunities. Also, the signal conducts technical analysis of the market to be able to foresee price actions. Furthermore, FOREX.com’s users have free access to a portal that facilitates easy and fast technical analysis.
Forex Hub takes copy trading a notch higher by focusing on risk management. Typically, trading signals have a bias towards the profitability part and end up falling short on minimizing losses. To this end, Forex Hub offers speed and fluidity, especially when the market is moving against you. As such, you have enough time to think through available options and to settle with the best.
This trading signal provider is among the newest in the market. Notably, the provider makes automated forex trading more fun and less risky. Interestingly, Trad Online operates as a community of traders and developers who share their individual experiences. Therefore, there is unprecedented transparency in terms of the information that describes the signals on offer. The notification systems are real-time, and they can come as push notifications or via SMS.