Forex trading requires an understanding of technical analysis to find trade setups in the forex market to trade them. But not everyone has a profitable strategy on the forex market. Some traders are “lazy” to find opportunities on the market because of insufficient knowledge or don’t have much success with their strategy of trading.
And to make money on the foreign exchange market, some traders use forex signals. With trading signals, traders don’t need to analyze the market from themselves but only need the forex signal services from the provider. And in this article, we will go through forex signals, explain if they’re worth it and how to find the best forex signals in the forex trading.
What are forex signals?
Forex signals are suggestions or information given to you from the signal provider about forex currency pairs. With a signal provider, you receive signals about the upcoming movements of currency pairs in the market. Usually, the forex signals are given to you via emails, SMS, telegram, apps, etc.
The signal provider will inform you when to open a sell position or buy a position on the currency pair. Other details as stop loss, take profit will be given to you. Trading signals will also include details when to close the trade and most of the signals include technical analysis images to explain the reason why that trade was given. Most of the trading signals are provided in the example below:
- Sell USD/JPY @ 107.100
- Stop Loss @ 107.400
- Take Profit @ 106.100
Traders can find free signals which are usually public and without any charge of payment to receive signals. With paid trading signals, you pay the signal provider on a monthly basis to send you forex signals. There’s also the ability to receive signals with forex robots or expert advisor (EA).
Are forex signals worth it?
If you struggle on the forex market because your trading strategy or trading style (day trading, scalp trading , swing trading) doesn’t work, then forex signals could be an alternative. But not all signals provided by the trader can be successful and guarantee profit for you in the forex market. There are many so-called forex signal providers who promise profitable signals but in fact, they fail with that.
Forex signals subscriptions can start from $25, $50, $100 or above. And looking at these numbers that you have to pay for a month, you may say “this is nothing compared to the profit I will make”. Well, not all forex signal providers are successful and some of them try to scam people. And this makes the hunt for a good signal provider risky and challenging.
Forex signals could be worth finding a proven signal provider. And trying different signal providers could lower your account with unsuccessful trades. But a recommended way to see if forex signals are worth is by asking for a trial (free signals).
With free signals provided to you, then you wouldn’t have to pay a subscription. Because you will receive the signals for free and you could trade them on a demo account. By trading on a demo account, you wouldn’t lose any money. And, trading on the demo account could conclude if the signals are worth paying or not.
How to find reputable forex signals?
Once you have decided to try forex signals, then finding a profitable forex signals provider could be difficult and challenging. First, you have to search for signal providers based on reviews and feedback. But some signal providers manipulate with feedback and reviews, which makes many victims fall for forex signal scams.
An important step to finding successful forex signals is by verifying and analyzing the trading signals. Don’t fall for images or videos that show successful forex signals record. Most of these images or videos are manipulated and are created to attract the victim so he can trust him as a successful forex signals provider.
The only way to find the best forex signals can be with trading statistics check. With trading statistics, you can see all the past trades opened by the signal provider. Trading statistics can be checked on 2 methods:
With the MQL5 signals website, you can track and see the forex trading results on full statistics. If the signal provider has an account on MQL5, then you can verify his reputation and decide if the signal provider is successful or not.
The website gives details such as drawdown, the total number of trades, available trading balance, withdrawals, deposit, etc. In general, you can check all statistics of the signal provider on detailed stats with charts, numbers, and more.
Myfxbook is an analytical tool that provides the trading history of the user. With Myfxbook, you can check the trading results like balance gain, losing and winning trades, etc. The website allows the user to connect his real trading account and share the details of the account. To find a successful signal provider, you can use the Myfxbook to determine if the signal provider is successful or not.
However, signal providers can use Myfxbook to fool the victims. And you should always check if the track record and tracking privileges are verified or not. Also, make sure that the account has been updated recently. And don’t pay signal providers who share images of Myfxbook which could be fake and could scam you.