Signals are suggested buy and sell points with target prices and the stop loss levels that are delivered to Forex traders as a basis for trading. At Forex Malaysia we have negotiated with our partner brokers so that new accounts get free signals when referred from our website. Once you have signed up with a broker, there are a few ways that the signals can be delivered, such as:
- Instant Messenger
- Mobile phone
- Live currency trading systems
- Direct feed to your Forex signal MetaTrader on your desktop
Trading signals can be unreliable and can lead to significant losses. Independent signal providers have flooded the market with subscription services that promise a high percentage of returns using their signals, which capture the attention of novice traders. That said, every trader must evaluate every single signal because they are just suggestions and will not always guarantee profitable trades.
How to Evaluate Forex Signals?
Here are some guidelines to use before you begin using Forex signals for your trading.
Track Record of Success
It’s smart to work with a Forex signal provider that has proven to be reliable and has a good track record. Most providers will advertise their track record. If Forex trading is new to you, it’s best to stick with the professionals at the forex brokers who will only be too happy to guide you and teach you more about forex signals.
It’s a good idea to know a little bit about the Forex trading system before making your selection. Don’t be afraid to dig a little into the company background and asked for the complaint history as well as their success stories. It will be of significant help if you use reliable and accurate Forex trading tools when trading in foreign currency.
Ask for Proof
A novice Forex trader can be led astray by a dodgy signals provider, but this is not too common. Ask for proof of their claims. Often, each of the services will advertise their success rate, so this should help you understand which is better before you sign up and check the quality and the reliability of the signals for yourself.
If you are going to start working with an individual trader rather than a company, it could be worthwhile asking the history of their signals. I would suggest that if you don’t know the person well, and you are ready to risk all your capital on the individual, I would not use their signals without doing your analysis.
Most signal providers will be happy to offer you a free trial service, and that will allow you, as a currency trader, to be able to sample the signals they provide for you and to assess their value.
Some Forex signal providers will offer you a few complimentary services along with the premium ones. Check to see which signal company provides things like email and chat support, assistance by phone, and perhaps even client mentoring. All these little extras can be of great value to new traders. Are the signals they provide compatible with multiple brokerage companies? Are the provided signals suitable for standard and micro Forex managed accounts? Are their signals compatible with different types of quote symbols? And what about some free VPS hosting for your Forex MetaTrader?
Many of the Forex advisors will give you an introductory session at no cost. Sessions like this will provide you with the opportunity to see how comfortable you are with Forex software, both at a personal and professional level. Always ask questions if you don’t understand or something is unclear. If you are signing up with a broker for the first time, it is essential to get a proper onboarding over the phone so don’t be afraid to take that call.
By operating a demo account trial, you will have the ability to verify just how good the Forex signals are in a practice situation. As a result of this, you can be sure that the signals will work long-term. Trading with real money and a live account is a result of the satisfaction that the product you have trialled is a good one, and you can use those signals to increase your trading profits.
The Financial Position
You want to know that the software you are using is financially stable, and the signal software comes with a built-in money management tool that can control the level of spending while you are trading online. You can check with other existing traders whether they have experienced any problems or significant delays, particularly when it comes to receiving your payments after making profitable trades.
It makes sense to check the reputation of the Forex signals trading system. Is this a popular trading tool? Why not ask for specific investment advice and then do a cross-check with other trading software or with another reliable trader to mark?
Performance compliance of the signal software should have a basic standard that has been created to level the playing field for traders and investors. If every trade you make is dependent on the accuracy of the signal, you need to make sure that you are getting just that – accurate real-time Forex signals.
Lastly, while it’s true that you have to pay for most Forex services, look out for some providers who offer reliable, accurate and free signals for life. Always opt for a free demo account to be able to try your Forex signals for a few days before becoming a paid member. Proper planning and strategy building are the basis of educated Forex trading, so be prepared for a steep learning curve before you start trading with your hard-earned cash.