Forex signal services are similar to forex robots but in this case the actual execution of the trades is left up to the trader, since these are not automatically placed. If you have read our chapter on forex robots you will already know then why forex signal services are better in this regards since the final decision about whether you will actually use the signal to place the relevant trade rests with you.
Forex signal services provide you with signals being generated either by an automated system, as is the case with forex robots as well, or by a human, an allegedly “expert, professional trader.” You get these signals for a fee to subscribe to the service and you decide whether to act upon each signal received or not.
However, as with forex robots, forex signals services come with pre-set , inherent limitations and they are equally likely to be plain scams causing you to lose money instead of making profits.
If the signals are generated by a human, how can you be certain he/she is indeed an expert and not making things up? And if they do know the way to always placing successful trades why are they not keeping this to themselves and make millions, but are willing to share for just a small fee?
If the signals are generated automatically by a system, then again this system cannot account for and adjust to the dynamic and ever changing forex market conditions and be sending out inaccurate signals.
Similar to forex robots the scam element in forex signal services has more to do with the way they are marketed than with what they are exactly. Therefore, only sign up for a service if you have first thoroughly researched the provider and you are entirely convinced they are honest and also approach their profit claims with a pinch of salt. Execute trades based on the signals only if you know exactly what you are doing and you understand what the risks are.
Since it is your money your risking, you should be in control of all the decisions at all times and none else. So, do not let any smart signals seller sweet-talk you into subscribing to a service that you don’t understand, that you cannot trust and that will ultimately end up screwing up your trading experience instead of facilitating it.
To be able to benefit from forex signal services you need to have amassed your own understanding and experience of the forex markets and how the signals are being generated. Otherwise, if you are a novice or rookie just stay away as you will most probably fall victim of scam.
This doesn’t mean that honest signal providers don’t exist. There are many of those around as well but to use them effectively you need to know the associated risks and how to manage them right, to exercise your own judgment about when to follow a signal or ignore it. Signals may be helpful but they are not always right. A 100% bullet proof, winning solution to forex trading simply does not exist and you should not allow anyone to convince you they have it and can sell you a piece!