Once you’ve made the decision to use forex trading signals you still need to find the right forex signal provider.
There are dozens of popular forex signal providers and hundreds (if not thousands!) of smaller ones. Choosing a reliable provider requires you to weigh-up a number of factors and do a little research – as with any online service.
Luckily, once you’ve found your provider you can simply sit back, relax, and enjoy all the benefits of using reliable trading signals.
Try reading our Complete Guide to Using Forex Signals
Types of Forex Signal Providers
The first thing you’ll need to do is narrow down the type of forex signal service that you’re interested in.
Some offer small amounts of tips at daily or even weekly intervals — others will offer a cascade of signals throughout the day. Some of them are generated automatically via an algorithm, others are carefully considered by professional, expert analysts. And some signal providers are entirely free, while others may be extremely expensive.
The type of forex signal service that you’re looking for should fit into the type of trader that you are, or plan to be.
If you’re looking to get into forex trading and test out the waters at a lower volume, an affordable forex signal provider may be best for you. If you’re looking to get started right away and dive into the deep end, you may need a signal provider that will be more active. And either way, you need to find one that supports the currency pairs that you’re interested in trading.
You may even be able to find a signal service that can automate your trading for you — though this is usually an advanced technique that should be done with some caution.
Benefits of Using a Forex Signal Service
There are many benefits to using forex signals rather than trying to initiate trades on your own. A signal service (as offered at FxPremiere!) gives you direct access to years of valuable trading experience and knowledge — something that could take a serious amount of time for you to develop.
In forex trading, the faster you start the more money you make, as your earnings compound within your account. Some people simply don’t have the time to delve into the theory and techniques behind currency trading, or may not want to have to spend all of their time tracking news data and global economic forecasts. Yet trading blind is a perfect way to empty out an account; if you don’t understand the intricacies of your trading, it’s more like gambling.
Forex signal providers also keep you consistent.
An emotional trader is not a profitable one. Those who initiate their own trades may be tempted to modify these trades based on their performance rather than sticking to a strategy. In trading, sometimes it isn’t about the specific technique or analysis; it’s about consistency. Trading is about statistics — you’ll always have some losses, but the goal is to find a system that has more wins than losses. If you don’t stick to the system, you won’t be able to identify areas of improvement and your results will be unpredictable.
Features to Look For in a Forex Signal Provider
Now that you understand the basic types of provider and why you would use one, here are the major features that you should look for. Note that all forex signal providers have different advantages and disadvantages; there is no “best” forex signal service, just the one that works best for you…
Some forex signal providers are entirely free, but that may not necessarily be a good thing. Free signal providers cannot invest their money into developing new analysis patterns or algorithms; instead they usually make their money based on selling information or tutorials. Paid signals providers tend to be far more reliable because they are able to invest money into growing their strategies.
- Past performance:
Any reputable signal provider should be able to show the profit that their strategies have made over the past month, quarter, and year. If they don’t have substantial history to show you, they may be new. Anyone can be profitable for a few months. A reliable forex signal provider should have substantial past performance to show how effective they are.
- Technical analysis:
They should also be able to tell you exactly what analysis is going into their trades and be able to support their analysis. They may not support all their trades — they may not have time — but they should have some explanatory documentation.
The more trades that are initiated, the more opportunities you have for profit. It’s a good idea to go with a forex signal provider that offers at least a few trades a day — though don’t be worried about lulls. There are various good moments and times to trade forex, but there are also times in the market when it isn’t a good idea to trade, and a solid signal service provider will know that.
- Platform support:
You’ll need to be able to receive your trades quickly. Ideally, your selected provider should support multiple methods of contact — email, text messaging, and apps, just to name a few. The more ways that the provider has of contacting you, the better.
Some traders want this, others don’t, but having automation services available is always a good idea. Sophisticated providers of forex signals will be able to automate accounts so that trades are initiated without requiring you to do anything at all. See our Automated vs Manual Forex Signals guide.
- Currency Pairs:
Naturally you need to find a service that offers the currency pairs that you want to trade. If you want to learn about, for instance, USD/JPY, you’re not going to be able to learn a EUR/USD strategy and then translate it — different pairs operate in different ways.
Who is running it? The best providers are run by experts within the business who have been in the business for decades. Anyone can start a forex signal service, so you need to make sure that you’re dealing with professionals – or at least someone who has proven results.
24/7 support is absolutely essential. What happens if the service goes down? It’s important that you have a point of contact when your forex trading performance is on the line.
Finding a forex signal provider does require an upfront investment of time — but, as noted, it is a crucial investment in time.
Once you’ve found a provider that matches your trading style and plan, you’ll be getting forex signals as and how you need them. You can then focus on what’s most important: managing your account and enjoying the fruits of your labor.