Best Forex Trading Signal Providers
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As a trader, you are likely to have encountered a number of different Forex signals. The main task for any beginner Forex trader is to learn how to trade efficiently and gain an understanding of the Forex market, rather than simply copying signals they may not fully understand. That being said, the knowledge of what those signals actually mean for a trader in general, and how to apply them, is useful for traders of all proficiency levels.
In order to benefit from signals, you need to know what role Forex trading signal providers play in trading. You also need to look at how the Forex trading community rates affect different providers, and find a reliable provider that doesn't manipulate results, or who makes completely false statements. In this article, we're going to address these matters and provide you with some guidance to help you choose the best Forex trading signal provider.
What are Forex signals?
First, let's establish what Forex signals are. Signals act as a trade alert for the currency market. They notify traders when to enter or exit a trade. Signals can be split into three distinct groups:
The first entry in the list is the fundamental approach to Forex signals. The aim of this signal is to get the news release as quickly as possible, so the trader can gain the maximum level of profit within a short period of time. These signals will often come with daily or weekly commentary and analysis. Technical trading signals are simply trading tips that are based on technical analysis.
That means that you trust the background, and track the record of the provider of what you may consider to be the best Forex signals service issuing certain signals. You may prefer to trade on this basis, rather than enter your own orders. Technical Forex signals are frequently issued along with different risk management strategies, in order to ensure minimal losses occur, if the current plan does not work out as it was initially expected to. Most online Forex signals tend to fall under this category, which can make the search for the best Forex trading signal provider a much longer task.
Forex Signal Providers Overview
Having general knowledge of Forex signals will help you in finding the best Forex trading signals provider. Forex signals can be obtained from various companies that specialise in this service, as well as from a number of top Forex brokers who provide them for traders of standard or VIP accounts. The price will vary depending who you get the service from. It is important to consider that when you are using a broker, some may offer the service free of charge, whilst others might charge between 5-10 USD per day, or perhaps more. For long-term access, there are packages with a one-time subscription payment, often ranging from 100-150 USD, however, these can be as high as a few hundred dollars depending on the provider.
Services that you gain upon signing up with a Forex signals provider generally differ from firm to firm. You might expect to receive almost anything from performance trackers, email, SMS alerts, customer support via email, or phone, and of course, an advanced analysis of more sophisticated offers. Because Forex signal service providers must protect their strategies. Trading with them always involves blind trust, to some extent, in the chosen company or individual behind the issued Forex signals.
The trustworthiness of options available on the Internet will vary widely, and the same is true for anything related to making profit within any market. If you encounter providers boasting 80-90% success rates, you should take those claims lightly – if it seems too good to be true, it probably is. Of course, there are companies with good success rates, but if they are genuine, they will be able to provide evidence and information to back up their claims.
You should keep in mind that your ability to successfully utilise the obtained Forex signals depends on the efficiency of your broker's service. That especially comes to light with Forex news based trading, where you must act as quickly as possible, making sure that any issues that are related to slippage and misquotes will be minimal. Whether you are going to use Forex signals or not will depend on your personality and individual trading plan.
For instance, if you are a highly active individual with little time to spend on conducting thorough analysis of the markets, Forex signals offer an alternative to manual trading. If you want to learn the mechanics of trading in detail, you will gain a very modest benefit from subscribing to MQL5 Forex alerts. The application of signals depends on your level of proficiency in trading, your expectations, and your main goals.
Admiral Markets Signals: Webinars and Real-Time Daily Trading Ideas
The number of trading signals sent out by this Forex signal provider undoubtedly has something to offer to traders. If you already have some experience and moderate knowledge of the financial markets, you may benefit from utilising these signals. As for MetaTrader 4 (MT4) and MetaTrader 5 (MT5), Admiral Markets users can utilise these webinar signals with ease. Admiral Markets offers signals each working day with Real-Time Daily Trading Ideas webinars. The webinars are hosted by various professional day traders, and offer a detailed insight into trading ideas and signals. This unique approach should guide you safely through Forex & CFD trading. You may notice that we have not mentioned any free Forex signals providers within this article. The reason – their quality is often debatable, and they often lack the evidence to back up their proposed success rates.
Forex Signals in MetaTrader
The MT4 and MT5 trading platforms offer a comprehensive library of Forex signals for trading via the integrated MQL5 signal service. With a live account or a Demo account, you can subscribe to demo or real money signals. If the signal provider makes a trade, it will be executed on your account as well. It is important to note that there are free and paid signals available. Chargeable signals are linked to a monthly subscription, which can be cancelled at any time.
However, you should be aware that there may be a fee for the service, so you should check carefully if the signal is suitable for you, and your own strategy. MetaTrader offers extensive statistics for each individual trading signal. In the terminals of MT4 or MT5 you will find the menu tab 'Signals'. Here you will receive an overview of all available trading signals offered in MetaTrader.
In this overview, you can already view important statistics that are necessary for your decision for, or against a Forex signal such as:
- The growth of the signal over the entire period
- The number of weeks the signal exists
- The number of subscribers
- The maximum decrease in percent and the profit factor
- The subscription costs
Source: MetaTrader 5 - Accessed May 2018
Of course, it makes sense to choose a signal that has existed for a long time, and has consistently achieved success. So you can already action your initial filtering here. If you now click on a signal, you will receive additional comprehensive statistics about the signal. In this window, you will see a trace, and you will receive statistics about the most important parameters of the signal.
Here you can make your final selection, as all the information is collected here. For example, you can use the curve and the various statistical reports to estimate the risk of the signal that traded, trading instruments are seeing, and decide whether that Forex signal is right for you. With the 'Visualisation' button, you even have the option of displaying all trades in the history directly in a chart.
Source: MetaTrader 5 - Accessed May 2018
Before you subscribe to a paid trading signal, you should make sure that you have made the right decision. Keep in mind that subscribing to your account will result in genuine trades that will of course affect your balance - in case of doubt, and not just positive. So do not be rash, and instead, analyse the existing offer thoroughly. Forex signals offer a possibility for earning money even with little experience in the Forex markets.
In this article we have discussed Forex signals in detail, defining what they are, their types, and their application in general Forex trading. In particular, we considered how to define a top Forex signal provider through the use of theoretical information, and tips. Our intention isn't to encourage you from using signals, but rather, to provide you with an understanding of what is available, should you want to include signals in your trading strategy. Remember, however many benefits signals may appear to offer, they aren't a replacement for experience and trading skills. Build up your knowledge and gain a proper understanding of the Forex trading market before you start to rely too heavily on signals. If you would like to learn more about Forex, or trading in general, make sure to check out our articles & tutorials, which cover a variety of trading topics.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not a reliable indicator for any current or future performance, as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.