If you want to trade on the foreign exchange market without having to invest a significant amount of time and money into research and practice, then accurate forex signals are what you need.
Forex signals give you everything that you need without having to figure out your own trades — but that doesn’t mean that just any signals will work. You need accurate, timely, and reliable signals if you want to maximize your profit and avoid losses.
What Does Forex Accuracy Mean?
Obviously no forex signal strategy is 100% accurate. But an accurate forex signal provider will be able to provide more accurate signals than inaccurate ones. FxPremiere accuracy varies and on average per year 70% successful.
The goal of a forex provider is not to give you the “right” trade every time, it’s to make sure that your profit exceeds your loss on average — this is how you make money on the market. So while a forex provider may not have 100% accurate trades individually, they should have generally accurate trades.
Their trades should, for the most part, make money — as long as you follow their directions. It’s important to note that any trading strategy that reliably makes money, regardless of how much money it makes, is essentially a “winning” strategy; this is due to the miracle of compounding investments.
But accuracy isn’t just about the signal itself, it’s also about the timeliness of that signal and the technology behind the forex signaling service. If your trades are being pushed to you an hour or even a few minutes late, it may be altering your actual performance. So forex accuracy doesn’t just govern the trading signals themselves — it also covers how accurate the distribution of the trading signal is to you.
Some forex signal providers have many ways of getting you trading information while other forex providers may operate through only a single interface. The harder it is for you to actually get your trading signals, the less likely it is that you will be able to make a profit.
How are Accurate Forex Signals Created?
Accurate forex signals are created the same way any other forex trade is identified; through the use of technical analysis.
Different providers use different forms of technical analysis, but all of them use the information they have about the market to develop winning strategies. Forex signal providers are run by experienced, knowledgeable traders who understand the market on an intuitive and intellectual level. Many of these traders have hit upon their own perfect strategies for trading — and some of them even have advanced technology, such as data mining and pattern recognition algorithms, that can help them time the market.
There is a lot that goes into creating an accurate forex signal; it’s not just a guess.
That means that not many companies can offer accurate forex signals, though anyone can offer trading signals on the Internet. There’s a huge difference between offering signals as a free service provider (essentially guesses) and offering signals as a professional forex trading signal business.
Read our guide on Free vs Paid Signals to better understand the difference in service quality.
The Benefits of Trade Accuracy
To put it simply: you can’t make a reliable profit without accurate signals. Without accurate signals, the foreign exchange market is essentially a gamble.
Those who use inaccurate signals are “betting” with every trade whether they will win or lose, and they have no way of telling which. Even with proper money management, the risks are too great. In the case of all markets, the deck is slightly stacked against you as far as random chance goes; this is because of the spread fee that you will need to pay with each trade. Thus, even if you’re banking on completely random change, you’re not likely to break even; your account will die a death of a thousand cuts.
Inaccurate signals can even be accurate in another way; they can be based on faulty analysis, and thus can actually cause you to actively lose money rather than gain it.
Working with forex trading signals can be very useful to those who have not yet learned all there is to know about the market. Not only are they an excellent learning tool, but they are a valid and valuable trading strategy in themselves.
Trading signals give an individual the opportunity to learn from the best traders and begin initiating the best, most accurate trades before they have had to sink hours of their time into painstaking research.
A trader working with accurate signals is essentially able to leverage information that some traders have gained over decades of their careers, without having to learn everything on their own. With the right signals, traders can make significant profits in just a few minutes a day — all they need to do is personally initiate their trades and watch their money management.
How do you Find Accurate Signals?
With as many forex signal providers as there are out there, how can you know who to trust?
You can’t simply go with the most popular providers, because it’s often impossible to tell how many people are actually using a signaling service. A forex service provider can claim to have thousands of customers, but there’s no way of telling whether or not they actually do. Instead, you need to find a few polished, professional forex providers and then investigate their reputation.
Conduct a web search for forex signal providers to begin. You can find a list of providers that are available and that use the currency pairs that you’re interested in. From there, look up reviews for their service online. You should be able to find testimonials and other information regarding whether other traders found their signals useful or not. Reviews are generally what matters, but make sure that you’re critical when reading them. Some traders will leave bad reviews simply because they personally lost money, even if they didn’t follow the trading signals as they should have.
Here are a few signs of a forex signal provider that is likely not to be accurate:
- No historical data. A good forex signal provider will be able to show you the profit/loss potential of their different trading strategies over time. Though past performance cannot predict future performance, this will still give you a good indicator of how their strategies perform in relation to one another and will show you that they have been accurate in the past.
- Hefty upfront payments. A good forex signal provider should be able to justify their worth to you before you have to fork over a significant amount of money. Many good forex providers will offer a trial or low cost beginner option; they know that once you start “winning” in the market, you’re going to keep going.
- Free services. A good forex signal provider is not likely to be completely free. The factors that make a forex provider good — expert knowledge, timely analysis — also make them valuable. If a forex provider is giving their signals away for free, they aren’t worth being paid for.
- New services. Forex signal providers come and go constantly. You want to find a provider who has been around for at least a few years. Otherwise they may have an unstable business model; even if their forex signals are accurate, they might not stick around long enough for you to make any actual profit.
Take a look at our guide on finding a signal provider for further help.
As you can see, finding accurate forex signal providers is essential to your success as a trader.
Accurate signals will give you everything you need to make a profit — while inaccurate signals are likely to eventually lead to the complete loss of your account. Save yourself time and money by finding and utilizing accurate trading signals.
FxPremiere is actually a forex signal provider that offers signals backed by skill, experience, and history. You can look up reviews and information on the website to determine whether they are the right trading solution for you.
Take a look at our How it Works page to see how to get started!