How to Find the Best Forex Signals Providers
Daily FX Signals | If you are an intermediate trader you may have already encountered a number of different Forex signal providers. The main task for any beginning Forex trader is to learn how to trade efficiently and gain an understanding of the Forex market. That being said, the knowledge of what these signals actually mean for a trader, and how to apply them, is useful for traders of all proficiency levels.
The most difficult aspect is to find the best Forex signal provider. In this article, we will give an overview of the services provided by these providers, along with some of the current providers on the market and what they offer. We will also explain what Forex automated trading signals are, along with the benefits and potential risks of using them and how to generate your own trading signals and become an autonomous trader. Let’s get started!
What Are Forex Trading Signals?
A Forex signal is an alert on a trading opportunity, usually in the currency market, but also in other markets. These signals are provided by experienced traders or specialised companies through written messages, which are given either free or for a fee. Trading signals help novice traders with accurate transaction details recommended by real-time Forex signal providers.
Trading signal providers will tell you when to buy or sell an instrument, and at what level to set your take profit and stop loss. The best trading signals will also share with you the reasons behind their position.
This means it is a great way to try new strategies and see how other traders make their decisions. Most FX alerts and FX trading signals can be split into two distinct groups:
1. Fundamental FX Trading Signals
The first entry in the list is the fundamental approach to Forex signals. Fundamental analysis relates to economic events and market news, all of which can influence the price movements of financial instruments. A fundamental signal is simply one of those events, such as an interest rate announcement, which a trader can use to make informed trading decisions.
To access fundamental signals, traders will need to keep an eye on the news and on company announcements. An economic calendar is a useful tool for staying up to date with upcoming events, helping traders to ensure they are ready to act as soon as the news breaks. Clients can also see breaking news provided by Dow Jones in the MetaTrader trading platform.
Example: If the European Central Bank (ECB) President’s speech was favourable for the euro, the Forex signal will then aim to buy the Euro against the US Dollar (EURUSD).
2. Technical FX Trading Signals
While fundamental analysis looks at news and economic events, technical analysis focuses on historical price movements and chart patterns. By seeing how instruments have behaved in the past, traders can predict how they might behave in the future – should similar patterns present themselves.
A technical signal is when a chart pattern indicates that an instrument’s price is going to move in a certain direction. Traders can generate their own signals using historical data and indicators. They can also choose to use FX robots or subscribe to Forex signal services for automated alerts, which we will discuss later in this article.
Technical Forex signals are frequently issued along with different risk management strategies, in order to ensure minimal losses occur if the current plan does not turn out as expected. Most online Forex signals tend to fall under this category, which can make searching for the best Forex trading signal provider a long task.
Example: EURUSD breaks above a bullish resistance level as part of a bullish trend. This can be a trading signal to take a long position with the currency pair.
Did you know you can see professional traders perform live technical analysis of the markets through the FxPremiere Markets Trading Spotlight webinar series? Three pro traders offer live sessions three times a week. Some of the topics they cover include how to do technical analysis, how to identify common chart patterns and trading opportunities and how to implement popular trading strategies while helping you to find some of the best Forex signals in the market right now!
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How Can I Find the Best Forex Signals?
Finding the best Forex signals providers can be a daunting task, and for good reason. There are thousands to choose from, and some of these may well be Forex scams.
For starters, it is necessary to differentiate between choosing the best free Forex signals and the best paid-for trading signals. This is an important first step because they are two different products that are difficult to compare directly.
We can then look at some key data from the signal providers. This will include the subscription price of paid trading signals, seniority and the existence of a verified track record. This is one of the most important items to look for from a Forex signal provider. The results must be verified by an independent third party and made available to the public.
You should also read as many reviews as possible about the provider you are researching, in order to have a clear idea of what real traders think of their services.
After compiling all this information, you can begin to evaluate the best providers for you. However, caution is still advised. There will certainly be offers that seem too good to be true, which, as you should already know, means that they usually are. Be wary of any extravagant promises of high earnings and profits (especially if they also claim to be low risk). You need proof. Search their websites for verified backtests and be very careful before committing yourself.
We will now look at some different types of Forex trading signals.
Types of FX Trading Signals
The type of signal is determined by the particular function it may have and how it generally operates. Technically, there are two types of FX signals which are permanently available in the Forex market, and they are:
Manual Forex signals
Automated Forex signals
Manual Forex Signals
When using manual Forex signals, a trader has to sit in front of the computer for an extended period of time searching for signals to make a final decision on whether to buy or sell a certain currency.
The decisions made by a trader are all based on the trader’s interpretation, and that can potentially be a time-consuming process. The use of these Forex trading signals has an interdependent connection with manual trading.
A human trader is able to assess the foreign exchange market in a way that programs cannot – they can see when it is moving in an unpredictable manner, and therefore are able to pull out of trades. A trader has certain skills and experience, and is not limited to codes and programmed settings like automated systems, so they can get a feeling of whether certain trades will be profitable or not.
Automated Forex signals
Automated FX signals are signals where the trader asks the software to seek out certain signals to look for. The human emotion involved in the process is completely eliminated. As a result, the software will automatically interpret which action to choose (i.e. to buy or sell a currency pair). Trading in this manner can be quite accurate, as long as the program has been properly written by a professional.
Forex robots can process much more data compared to a human. This means that you are able to manage several different currency pairs at one time, and you will also be able to monitor all the charts you desire 24/7, without missing any significant signals. Nevertheless, the most successful application of signals is often achieved by using a hybrid of both types, which is what most Forex gurus do.
How to Find Manual and Automated FX Signals
As for the purchase, both manual and automatic Forex trading signals can be acquired online. When you intend to buy, check first that the Forex signal provider offers you a free trial. Legitimate businesses will allow you to test the information first, and make sure it is good quality prior to buying it.
It is also important to only work with companies that are willing to provide previous, evaluated results. Furthermore, those firms that validate their information are much easier to trust, rather than companies who refuse to grant traders a free trial and access to audited results. That is definitely the policy of top Forex signals providers.
There are four main ways to receive Forex signals. Your choice will depend on your objective, available time, level of activity, desired level of control and your personal risk profile.
1. Text Message
A Forex signal is in this case communicated to the trader by a message, which can be in the form of an email, SMS or via a mobile messaging application. It is then up to the trader to do the rest. This is often a paid Forex signal service.
In this case, the trader always manages their own trading account and simply follows the signals by entering the recommended positions on their own trading platform.
This allows the trader to have a greater feeling of security, as a third party will not have any control over their trading account.
However, this trader will have to bear a psychological risk. For example, when the signal provider suffers a series of losses, it is sometimes difficult for the trader to continue to follow them and thereby potentially miss the moment when the gains return.
2. MetaTrader Software and Copy Trading
A copy trading service simplifies the use of Forex signals. Using this method, the account of the Forex signal provider and the trader’s account are linked. When an operation is placed by the signal provider on their account, it is automatically entered into the account of the client trader.
The MetaTrader trading platforms (both MT4 and MT5) provided by FxPremiere Affiliates, offer trading signal software and allow copy trading. This is an intermediate solution as trading becomes automated. The supplier remotely enters positions in the customer’s account, using a special password which only allows them to filter through trades and not access any account services like deposits or withdrawals, etc. In this instance, the trader also retains control by being able to intervene freely if they wish.
With the MetaTrader trading platform, users can access a wide variety of trading indicators and technical tools, trade directly from the chart ans even become a signal provider themselves.
FxPremiere Affiliate Markets offers the following MetaTrader platforms, which are all free to download:
MetaTrader 4 (MT4)
MetaTrader 5 (MT5)
MetaTrader Supreme Edition (A custom plugin for MetaTrader 4 and MetaTrader 5
3. Automatic FX Trading Signals
The trader can also use automated trading software such as the MetaTrader platform and its Expert Advisors (EAs), which will automatically generate trading signals in real-time or even automatically enter positions.
EAs, also known as trading robots, are available for free or for sale on MetaTrader platforms and can also be sold by Forex signal providers.
Automated trading signals manage the account by entering positions, while semi-automated Forex signals highlight trading opportunities, but it is up to the trader to decide whether to enter these trades or not. How to Find the Best Forex Signals Providers
FxPremiere Markets does not provide account management products or services.
What the Best Forex Trading Signal Services Offer
The best providers of free and paid-for Forex signals offer several elements of trading, including:
The exact levels of entry, stop-loss and exit positions.
Analysis or comments in support of their Forex signals.
A history of transactions showing gains and losses, and statistics regarding historical results. Preferably verified by a third-party external service.
The ability to interact with them.
While these are the main services of a good Forex signal provider, this is by no means a complete list.
Forex Signal Services
There is a wide range of Forex signals providers in the marketplace, and we have shared an overview of some of the most popular ones below. However, it is still important that you do your own due diligence before choosing a signal provider.
1. GPS Forex Robot
The number of trading signals sent out by this Forex signals provider undoubtedly has something to offer to traders. If you already have some experience and moderate knowledge of the financial markets, you may benefit from using these signals. How to Find the Best Forex Signals Providers
If you are trading using the MetaTrader 4 terminal, it would be preferable to use the advanced trade copier. Traders who invest a lot in the FX markets each month often favour this product. There is no monthly subscription at GPS Forex Robot, signals come with $247 one time payment.How to Find the Best Forex Signals Providers
There are risk protection features available, including an automatic stop loss function, and lot size restrictions which are defined by the user. It is also paired with a mobile app which can be used to check the charts of the preferred instruments and active trades 24/7.
The Best Forex Signals Software for MetaTrader How to Find the Best Forex Signals Providers
Alongside the best Forex signals providers are a range of software programs you can use to generate trading signals, the main one being MQL signals.
MQL signals are trading signals within the MT4 and MT5 trading platforms. The first crucial thing to mention is that MT4 and MT5 trading signals allow you to mechanically follow or copy the trades of FX signal suppliers, directly out of the MetaTrader platform. Additionally, signal suppliers are able to share their signals inside the wide community of various users.
There are many easy-to-use Forex trading signals to be followed, which are easily accessible in your MT4/MT5 account underneath the tab labelled ‘Signals’. If you decide to turn them on, the only thing you need to do is to sign up for an MQL5 community account (which you can do directly from the MetaTrader trading platform).
After authorisation, you can enter it with all the necessary settings in your trading platform. There are also advantages to social trading for FX traders, one of which is that it makes it easier to find accurate Forex signals. You can also save in fees and the risk is diversified. If you have your own manual strategy or, for instance, an Expert Advisor that works well, the MQL may approve it and thus share it.
If you do not want to build your own strategy (as it can often be quite a difficult and time-consuming process) you can instead opt to follow a particular trader whom you deem to be trustworthy. Your account is also protected, so you do not have to worry when you make a decision to follow a trader, as only you can control your account.
There are two more important features of MQL. The tireless amounts of paperwork are now a thing of the past, so you can start copying reliable Forex signals immediately. Finally, there are low barriers to entry, so as you can see, utilising the MQL can really prove useful for your trading. How to Find the Best Forex Signals Providers.
Viewing Signals in Real-Time on MetaTrader Charts
It is possible to view a supplier’s trading signals directly from the MetaTrader trading chart to study the effectiveness of their strategy.