There’s money to be made in Foreign Exchange trading! One estimate says that people can make about 20% profit on their investment. That’s a lot better than bank interest!
To make money in Forex trading though, you have to know when to buy and sell. Otherwise, you just hope that your few assets will continue to rise.
Who can help you know when it’s time to go big and when it’s time to call it quits?
Thats where Forex signals providers come in. This article will show you how they can help you with Forex trading and what you need to know about free vs. paid providers.
Before we get into the differences of free and paid Forex signals providers, lets look at a basic description of Forex signals.
Forex trading signals are alerts that let people know when there are changes in the Foreign Exchange market. These signals let people know if they should buy or sell and at what prices they should buy or sell.
Without these signals, it’s almost impossible to know enough to make a profit. Forex signals are great for beginners as they learn to follow market trends on their own.
Forex Signals Categories
Now let’s take a look at types of Forex signals. There are three different categories:
Different providers will give you different types of signals.
General signals are just that, general. They don’t give you much specific information to go on.
Most signals are technical. The provider uses market analysis to determine your best course of action. They send the signal with labels of different risk management strategies.
Many people rely on these signals alone when selling or making purchases rather than entering their own orders.
Technical signals are completely based on the knowledge and skill of the provider. This means you have to find a provider with a good track record whom you can trust. Otherwise, you’ll be getting questionable information.
News trading signals let people know what is affecting exchange rates around world. These signals help people to know if they should buy or sell quickly. These signals are released daily or weekly depending on the provider.
Forex signals can be programmed to execute orders with a confirmation click, or they may just provide the information you need to go to the exchange and make a trade. This is important to consider depending on how much time you have to spend making trades every day.
Forex Signals Providers
There are several different sources of Forex signals. Many brokers will provide this service for free when you have an account with them.
You can also get Forex Signals from skilled advisors with a lot of experience or from companies who specialize in trading markets. The cost varies, depending on the provider. Companies may charge around $100-$200 a month for long-term access.
Many good companies offer 1-2 months of free Forex trade signals. This can be a great way to test a company’s strategy and see if matches your own.
Free vs. Paid Providers
The biggest difference in Forex signals providers is whether they charge money or not. Obviously, you hope to get a free source, but are they as good as paid providers?
The answer is complicated.
Free providers may be expert traders who just want to help others succeed. They may feel indebted since someone helped them out when they were learning.
You can also get a free trial from most website services which give you reliable signals. This is also a great way to see if a providers trading style matches your own.
Some companies also offer free signals for a limited time. This lets you try out their company, and they increase interest in their service.
Paid Forex signals providers can be good too, but you also have a bigger opportunity for scams. Scammers aren’t going to offer free signals unless they are trying to force you to upgrade or purchase a subscription. If they don’t offer a free trial period at all, they’re probably trying to scam you.
Many of the best traders are willing to give Forex signals too for a small fee. Paid providers can end up giving you great trading signals or worthless ones.
Whether your Forex signals provider charges for their service or not, you want to make sure you are using a trustworthy and reliable source.
Good Quality Forex Signals Providers
There are a few things you can do to find the best Forex signal provider for you. Let’s take a look at a few of them.
If a Forex signals provider claims to have a high success rate, make sure to check them out. Forex Peace Army and Myfxbook are great websites to verify if a provider is honest or not.
Also, don’t be afraid to ask a free Forex signals provider to back up their success claims. Ask for proof and documentation. If they can provide it, then you know they’re legit.
Try to go with a company that has a lot of training available for new traders. This could be in the form of videos, blogs, or Q&As. If a company is really interested in providing a good service, they’ll have information for beginners too.
One more benefit of free trial periods like we mentioned above is that you can see the provider’s level of service. Are they helping you along the way? Or do they send the signal and leave you to sink or swim?
Another way to check out the quality of a Forex signals provider is their speed. If you’re not getting signals in time to make orders, they’re not doing their job well. Make sure you’re getting quality service in good time.
As always, before you try out or purchase any service, do your research. The sites listed above can help you check the reputation of Forex providers, but make sure you’re looking at reviews in other places too.
Now You Know
Okay, now that you know a bit about free vs. paid providers, it’s time to learn even more about Forex Signals Providers. Check out this great article on 9 tips for picking the best provider for you.