Forex Trading Signals: How to Select the Most Reliable Provider

Written by admin on October 16th, 2011

Article by Alex DeGuzman

One of the popular tools used by new traders in the currency trading market is forex trading signals. You can get different types of signals such as paid signals from a signal provider by personal or algorithmic analysis, signals supplied by software known as a forex robot, paid signals from a multiple source provider and free signals. A signal provider can transmit a “Buy now or Sell Now” signal sent to you instantly to your Meta Trader account by email, SMS, RSS, tweet or thru their website.

What are forex signals? They are recommended tips coming from service providers delivered to their members to trade for a currency pair based on the technical and/or fundamental analysis and interpretation of indicators by an expert trader or by an automated robot. Technical analysis such as candlestick charting provides short and long term price trends. Fundamental analysis sends longer term while price action sends out short term trade ideas. A sample foreign currency exchange signal delivered via SMS goes like this: Trade Alert: AUD/USD Buy/Long @ 0.9861, T/P @ 0.9937, S/L @ 0.9843. They are recommendatory buy and sell advice to implement trades in real time at a specific price.

Let us explore some of the well-known and effective forex signal providers. Most of the top companies provide both a manual and automated currency exchange signal types. Their highly experienced professional traders come up with signals which can duplicate the professional traders’ account giving you as a subscriber the opportunity to enjoy the same profits and protection. They also have the forex robot type of signals which look for trends that can render big profits.

You can receive the direct signals in a matter of milliseconds for you to be able to duplicate their professional traders’ system of trading. They vouch for the reliability of their auto signal duplication software. Their full transparency policy includes tracking and monitoring by an independent third party. These companies mostly offer a 24/7 technical support to attend to any questions or queries you may have.

They also normally offer a trial period for their proprietary forex signal services. These are non linear types of technical signal which are applicable for all major currencies. When you subscribe to them, you receive forecasts based on data on the economy, political events, economics of supply and demand, movement and valuation of currencies in a given time against the USD, and market trend together with the best instruction to deal with it. You don’t need any installation or plug in to your device. They just recommend that you follow wholeheartedly the instruction in their forex signal

When you become a member of a forex signal provider, some of the benefits and services you are entitled to are one-on-one mentoring or add-on interaction such as forums, blogs, etc. Should you desire, you can assign the trading of your account to their account management team. Another data you will be provided are entry, exit, stop loss, take profit for trading on one or more currency pairs. Historical data on pips profit/loss per month and other relevant info such as graphs and analysis are also provided. There is no doubt that these forex signals can make the difference between profit or loss of your trading account.

If you have not yet subscribed to one but are planning to, it is to your best interest to accept the fact that forex signals are not 100% accurate indicators and instructions. You may follow some signals where you may lose and others where you will win. Based on data and other information available on the websites of these providers with respect to their performance statistics, you can make an intelligent decision on how to tie up with the most reliable forex signal service provider.

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