So you’ve been in forex trading for a while, doing your own research and developing your own game plan. But, it can be exhausting and time-consuming.
You can own your time and be able to place profitable trades without slaving doing tons of research. Yes, you read that right. You can do this using a forex signal provider.
But, here’s the thing not all providers are created the same. That’s why we’re here to tell you what you should look for in great forex signal providers.
Ready to learn how to spot them?
Forex Signal Provider Basics
Before we go into what you should look for in forex signals services, we’ll go over the basics of these tools. What are forex signal providers?
Forex signal providers are systems that analyze the market and tell forex traders when to buy and sell. We know that the forex market is very complex. It requires a lot of research, practice, and knowledge to become a successful trader.
These tools are also known as forex signal systems. These services take out the guessing and intense research from forex trading. They let forex traders focus on what they want to do, profitable trades.
What to Look for in a Top Forex Signals Provider?
So you’ve been in forex trading for a while, and making profitable trades, but it takes so much time. You know that getting a top forex signals provider can take your portfolio to the next level. There are so many options in the market that you’ve no idea where to start.
Not all forex signal providers are created the same or fit your trading goals. Here are some of the things you should look for to choose the right forex signals services for you:
1. Great Track Record Makes the Dream Work
When you’re going to buy a car, you don’t just buy it because you like how it looks. You might check the model reviews, the engine, take it on a test drive, or how many miles per gallon it gives, among other details.
When it comes to choosing the top forex signal provider, you must check more than just their marketing jingle. Do your own research about its performance, the age of the account, among other details. Knowing these details about the system will give you an idea of how it works and if it’s a great fit for your trading goals.
You might think that the age of the account isn’t important but, it actually is. You can use the age of the account as a guide to know how it has worked in the past. If you’re a seasoned forex trader, you know the market’s behavior in the past so looking at the system’s performance you’ll know if its information was useful.
2. Their Broker
When choosing the best forex signal provider, you must make sure that both of you are on the same page. You must be thinking but what do you mean by this.
As you know not all forex brokers are created the same. This is why when you are choosing the right signal provider, you must look for one that uses the same forex broker you’re using.
You might be thinking but what does that have to do with my trades. I’m the one that makes the trade order on the forex broker I use. Well if your signal provider doesn’t use the same broker, you might end up not hitting the target levels.
If you don’t hit them, it can translate quickly into losing positions because of the spreads. Yet, if you find an amazing forex signal system that uses another broker don’t close the door on it. You can use it but always keep in mind that you should adjust your trading levels considering the spreads to minimize losses.
3. Automated System
This might not seem like a big thing to you but, it can make a difference and be crucial in taking your trading game to the next level. We know that the forex market is complex, and to be successful forex trader you must act fast.
The best forex signals provide options for you to automate your trades. Some systems provide you the option to receive text messages and email alerts. Then you can use these to place your trades.
You could always look for the options available that can automate the process placing the trades in accordance with the alerts from the system. Every trader knows how much risk they can handle.
That’s why you should always analyze to see if this is the best option for your trading goals. Even if you don’t decide to use the automated option, it’s good to know that you have that option in the future.
4. Overall Profits > Average Number of Pips
Like any service provider, forex signals advertise their services trying the best hook. Usually, they go for advertising the average number of pips they make. But, we know that the forex market isn’t that simple.
The number of pips may not translate into a profitable trading. This is why when you look for the best forex provider you must not fall for this tactic.
You should check their overall profits instead because that way you have a better idea of how much money you might be able to make using the system. Also, you should check their metrics. An example is how the drawdown metric can tell you how many losses you might’ve trying to make profits using the signal provider.
Many forex traders might not care about the cost of the system because they don’t need the money or focus on the profits. But, for some of us, the price of the system will determine if we get it or not.
You can find good providers for free, so you might want to take a look at those. Others offer both options, paid and free subscriptions. Just remember to check that the signal providers fit what your needs.
Can You Find Great Free Forex Signal Providers?
Yes, you can find a great forex signal provider that doesn’t break your bank account. Remember to focus on their track record, overall profits, forex broker, and automated options to find the right option that fits your budget and trading needs.
Are you a forex trader looking to use forex signals services to take your trading to the next level?
Check our Forex Trading Guide to learn more.