If you’re a forex trader looking for trading opportunities then this article is a gold mine for you. Ever heard of forex signals? If not, don’t worry! Here you’ll get everything you need to know about forex signals from its usage, types, need for signals and how to choose the best among different forex signals services. So, sit back, relax and read through the article.
By definition, forex signals are trading recommendations on specific financial assets that help you in identifying the right trading opportunities at the right time. With these ideas executed at predetermined time and price, traders are relieved from one of the most daunting activities. Irrespective of your experience as a trader, forex signals will help you enhance your financial trading activities.
Experienced/Seasoned traders can use signals for their advantage as it widens up the scope of profit. For newbies, forex signals are of great use, as the trader can keep learning more about the market and how to trade effectively and make profit while still making money in the process.
Types Of Forex Signals
Forex signals can be classified mainly into three parts.
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Manual vs Automated Forex Signals
This type is based on how forex signals are generated. A signal generated by an expert and/or professional trader is called manual forex signal. Whereas forex signals generated by computer software on the basis of analysis of prices by algorithms is termed as automated trading signals.
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Paid VS Free Forex Signals
This classification is done on the basis of charges taken by forex signals services. Some signals provider stake payments for their services while the others offer their services free of cost. Free signals can be for a particular period (trial period) of time or for unlimited time period. Whereas paid signals will require either a one-time fee or charges based on a subscription model.
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Entry VS Exit Forex Signals
This classification is done on the basis of complexity of details in a trade suggestion. Entry signals are those signals provided by a signals provider which tells the customer when to open a trade position in the market. On the other hand, Exit signals are those signals which are provided by a forex signals service that tells when to close any relevant open trade position that you may have running.
How Do You Get Forex Signals?
Without further ado, let’s get straight to the answer. You can get forex signals from a signals provider in the form of software that will scan the forex market and suggest you best possible trading opportunities.
Anyone as long as they are associated with Meta Quotes Community can be a forex signal provider. You can also get in touch with a forex signals services company that provides trading signals, mostly via text messages, WhatsApp and email. Many brokerage companies are also in the business of providing forex signals to their clients. But still it’s hard to identify the one that is good for you. Forex signals providers can be categorized broadly into three groups:
- Traders : In terms of reliability, this group is best for you. Trader signals are more than often good in the long term.
- Affiliates: This group publishes forex signals with a hope that you’ll create an account and they’ll receive commission. This might not be the most reliable one, so make sure to investigate the signals before using them.
- Scammers: As you’ve already guessed by the name, this group targets you in order to profit themselves. This scam could be anywhere between trying to take your money to simply your email address or hacking into other valuable data.
Best Signal Providers 2021
Here’s a list of some of the finest free signals providers that will help you make the right decision while trading.
1.1000pip Builder
2.ForexSignals.com
3.Learn 2 Trade
4.Forex.com
5.MQL5
No matter from where and how you get the forex signals that you follow, whether your focus is on forex trading or you’re active on both forex and stock market, ultimately your profitability depends on the accuracy of signals provided to you by the provider over a given period of time.
How it usually works is you’re given signals by the provider and then you manually enter orders suggested to you. But it takes time and this delay can affect the profitability. So, to prevent this, some providers can automatically enter forex signals for you. By this, you’re not left behind the market.
Also see: Is Forex Trading Profitable?
Conclusion
Also If you’re looking for forex signals, the chances of you coming up with loads of results are pretty high. But unfortunately, the majority of these results are nothing but scams trying to trick you. So being careful with these lucrative signals is very important, especially when you’re taking free forex signals as they come from disreputable sources. So keep in mind that signals that are worth trading, are also worth paying for. Ultimately, reputation is what you should trust in order to get the best results from these signals.
