Forex signal services do everything a robot does except the actual execution of trade entries.
Besides possibly using an automated program, a “professional” trader may generate trading signals (for a fee, of course) for clients to act upon.
Forex SignalsHowever, you may be paying for a signal in which you do not know the rationale behind each signal and how the “professional” came up with it.
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As we mentioned earlier, the forex market is in a constant state of change.
While the forex signal service might have been profitable in the past, there is no guarantee that it will be profitable in the future.
One other thing to think about is if the forex signal service is so profitable, why would the creator want to share the profit?
Like forex robots, the scam isn’t the service itself, but the way it’s marketed.
You may see ads from scammers that promise you’ll make a bajillion dollars with their signals.
Many traders will look at the ad and think, “A bajillion dollars!? I could do anything I want with a bajillion dollars!”
Forex Broker Scams
Watch out for forex broker scams!
Believe it or not, there are some brokers who “cheat” their clients.
One way they do so is by manipulating bid/ask spreads.
Normal spreads between brokers would be around 2-3 pips but scammers would have spreads around 7-8 pips.
Seven pips might not seem like a lot, but it does add up.
Imagine each time a client trades, he has to pay a spread of 7 pips. Imagine if he takes just a few trades per day.
Forex Broker ScamsMultiply that by hundreds or even thousands of other clueless clients, you’d be rakin’ in the dough!
Daily FX SIGNALS
Remember, forex brokers know where clients place their stops.
Sometimes, they’ll make a run for those stops, causing their clients’ positions to close out.
Be careful, it’s often difficult to distinguish between regulated and unregulated forex brokers!
Basics First: An Introduction to Forex Signals
You can verify the CFTC registration and NFA membership status of a particular broker and check their disciplinary history by phoning NFA at (800) 621-3570 or by checking the broker/firm information section (BASIC) at the NFA’s website!
If you’re trading forex outside the US, you’re in luck! Other countries have regulatory agencies as well and protect individuals as well. More will be mentioned about them later.
If the broker in question is not registered or regulated by any national agency, then DO NOT deposit your money with them. We warned ya, so don’t complain to us if you don’t get your money back!
What are commodities?
Stay away from non-regulated firms! USE OUR RECOMMEDED BROKERS ONLY
Due to the unregulated nature of the spot FX market, this opens up the opportunity for forex scams and frauds.
While there is no international organization to protect forex traders like there is S.H.I.E.L.D. to protect the world, there are countries that monitor and oversee forex trading activity, including forex brokers, that occur within their borders.
If you are trading forex in the United States, there are two major regulatory agencies that you should be aware of.
Forex U.S. Regulatory Agencies
In the United States, we like to call the CFTC… Big Brother.
CFTC – This agency was developed in 1974 to protect individuals in futures and commodities trading.
Since futures include the currency market, the CFTC “naturally” protects forex traders as well.
From 1974 to the present, the CFTC has undergone many changes in hopes of improving trading conditions and creating a level playing field for everyone.
The CFTC is also responsible for publishing the Commitments of Traders Report (COT) every Friday (the CFTC receives data from reporting firms on Wednesday, which it corrects and verifies for release on Friday).
Five commissioners appointed by the President, the offices of the Chairman and the agency’s operating units make up the Commission. The Commission has 3 offices along with HQ located in Washington, D.C. – Chicago, Kansas City, New York.
Futures exchanges are also located in these cities. So if you have a problem with them, you can make your way over there and bust out your uzis and spray them. Just kidding. Don’t do that – they’re the good guys. They’re here to help you.
Imagine if there was no organization out there to protect you. There would be a lot more scammers, and brokers would cheat their clients in a heartbeat. The CFTC provides orders in a market that would otherwise be chaotic.
The mission of the CFTC is to protect market users and the public from fraud, manipulation, and abusive practices related to the sale of commodities and financial futures and options. In the “unregulated” forex market, this regulatory agency will help you determine if a forex company is reliable or trustworthy.
The NFA is an industry-wide self-propelling organization created in 1982 that regulates the futures market in the United States.
By self-propelling, we mean that the NFA collects dues in order to sustain itself without having to rely on taxpayers’ dollars.
If the CFTC is Big Brother, then we like to call the NFA…Little Big Brother. NFA’s activities are overseen by the Commodity Futures Trading Commission (CFTC), the government agency responsible for regulating the U.S. futures industry.
The NFA’s mission is to:
Ensure futures industry integrity
Protect market participants
Enforce NFA members to meet their regulatory responsibilities
Virtually every firm or individual who conducts futures or options on futures business with the public must be registered with the CFTC and a Member of NFA. NFA performs the registration process on behalf of the CFTC.
Forex Trading Apps
These days, almost every service has moved online, including trading. Today, you can trade Forex from a trading app or web service 24 hours a day. How does a Forex trading app work? They work like any other app.
It’s available on desktop, web terminal and as an app for your mobile devices.
- The fundamental forex strategies
- The technical forex strategies
- The popular forex strategies
- In the forex strategies articles
EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD, Gold, Oil and many many more..These are the three most traded currencies beside the US dollar. Minor pairs have a smaller market share compared to major pairs. Because of this they can exhibit lower market liquidity. Lower market liquidity will mean that a broker will give wider dealing forex spreads.
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