The first question to ask yourself as a forex trader when trying to decide whether to subscribe to a signal provider service or not, is not only to have decide which type of forex signals you would like to use, but, most importantly how reliable the signals you will be receiving will be so that they will result in the generation of an effective forex trading strategy. Because there is a very large number of available signals services in the market, all of which claim to be the best and the most lucrative, the task of selecting the right service is extremely difficult, especially if you are a newcomer to forex trading.
Besides the right trading tools and techniques, a reliable forex signals provision service could potentially make all the difference in turning you into a successful trader. Therefore, some imperative characteristics you should look for in order to class a forex signals provider as worth your while, is whether the signals generated have a persistent and verified good track record and the percentage of profitable trades they result to is high. Moreover, it is best if the signals are sent out on a real-time basis and that they are regularly updated. Obviously, an affordable price tag is also very important, while any trial periods offered for free or at a very small fee, should be more than welcome and also count as a plus.
Undoubtedly, the potential risks and loopholes when it comes to signal services are numerous, mostly because the providers’ method of attracting customers is flashing around their impressive past performance records. It is, however, often very difficult to be absolutely sure whether the signal service has indeed performed as it claims to have done and this has led many traders signing on to signal services on the promise of very high success rates, only to be dismally disappointed soon after. Another point to keep in mind is that any level of past successes is by no means a guarantee of future successful performance.
Understandably, it is very rare for signal services to provide full explanations to traders about exactly how their signals are generated, in order to protect themselves and their “secrets” from competition, and to deny subscribers the possibility of generating signals on their own. This creates a relationship of dependency and it also raises trust issues, since a trader places a trade based on the signal sent out by a third party, but this third party is ultimately fully unaccountable if the trade fails, while the trader is the one who suffers the loss.
As expected, the forex signals industry is also plagued by crooks, who see this as an easy way to make money fast and set up illustrious scams in order to rip off the unsuspected trader. Even with the various signal services reviews out there it is difficult to know which ones are genuine and which are simply affiliates of the signal providers, on a mission to make them look better than they really are.
Notwithstanding all of the above, the obvious luring factor to using a signal service is that they do potentially allow every trader to profit off the expertise of others. Indeed, signals might be argued to be perhaps the only way that a non-expert could be successful in the complex world of forex trading. Therefore, if you manage to find a forex signals provider who does not manipulate results and does not make false statements in order to mislead you, then mirroring the trades of a service with a good track record, could be the ideal way of diversifying your trading conduct.
Of course it is not only a question of which, if any, forex signals service is right for you, but also whether you, as a trader, are suitable for forex signals, because it also has to do with your trading style, your character, the time and money you have available to dedicate to trading and whether you have or you are willing to acquire a level of expertise in the field of forex.
As the credibility of the many available forex signals providers varies, with a lot of scams managing to survive along with honest service providers, advance with caution and also have in mind, that anything related to the lucrative forex market, comes pack and parcel with an associated element of risk.
George Milios is the founder of onlineforextrading.net, the binary options and forex news portal which is dedicated to providing you with all the information you need to successfully trade.