Forex signals are pieces of information sent to you to help you make a trading decision. They provide details on which currency pair to trade and at what price. The signal could also provide other details, such as exit levels in the form of limit orders and stop loss levels.
Forex signals are either manual or automated. A manual forex signal will come from a trader who is analysing the market, looking for trading opportunities. An automated forex signal is a software programme or robot that provides the trading information.
How can you trust the forex signals?
There is an extensive number of forex signals available that you can sign up to for free or pay for. These can vary considerably in quality and also in price. That is not to say that price is necessarily indicative of quality. There are plenty of very expensive poor-quality signal providers available. However, as with every aspect of life,high-qualityy free services are very hard to come by or may not exist at all. With this in mind, if you are considering using reliable, trustworthy forex signals, be prepared to pay for them.
There are a few key pointers that are essential to keep in mind when deciding whether to trust forex signals.
Firstly, do your research! Use trader forums to gain as much insight as possible on the signal provider that you are considering using. Evaluations can be quite frank and you may be able to narrow down your search quite quickly. When using these forums look for evidence. The trader giving the evaluation should be able to provide at least a 6-month trading history, for you to be able to see the success of the signals. This way, you don’t just have to take the traders word for it.
Reputable signal providers will allow you to have a free trial. No good forex signal provider will expect you to part with your money before knowing what you will be receiving. Use this free trial wisely so that you can create an informed opinion as to whether the signals were useful and profitable or not. As obvious as it may sound, don’t test the free trial during days/weeks that you know you won’t be able to dedicate to trading as you should take time to try it out thoroughly.
Finally, it is extremely important that you examine and understand the method which the trader or robot providing the signal is using. In other words, that you understand how and why the signal was given. With this understanding, you have another tool by which to evaluate the quality of the signals you are being sent.
Where can I trade my forex signals?
Vantage FX is an Australian based, award-winning forex broker. As an ECN broker, they offer unparalleled transparency and some of the tightest spreads in the industry. Visit their website at www.vantagefx.com.
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