An Introduction to Forex Signals and the Best Way to Use Them

Thousands of Forex traders use Forex signals, and you’re probably wondering whether they will be a useful tool for you. Here on this page we plan to introduce you to the idea of Forex trade signals and explain the best way to use them. Once you’ve read all the best information here, you’ll be in a great position to make an informed decision.

What are Forex trade signals and how do they work?

The best Forex signals help traders make critical decisions regarding their trades. They have become a very important tool for a large majority of traders, and most will have made use of them at least once or twice in their Forex trading journey. They come in a range of shapes and sizes, some of which are free, while some are offered in exchange for a fee.

  1. Forex signals service
  2. Top Forex Brokers
  3. How to pick Forex signal service provider

Forex signals are basically a set of analyses that help a trader decide whether to buy or sell a currency pair at a particular time. Also known as Forex signal systems, they can be based on charting tools, news-based events, or on technical analysis. Successful Forex traders often make use of a number of different signals, all working together to help with trading decisions.
Forex signals are sent to traders and contain trading instructions. A Forex signals service works by sending notification to a trader about upcoming trading opportunities. It is then up to the trader to react and act or ignore the indicated trades. A trading signal service is usually offered in a couple of different ways. It could be one that follows the trades of other real traders and then copies their actions, or be a subscription service offered by various software platforms. The software analyses the markets and makes appropriate suggestions.

Different types of Forex trade signals

As we’ve already mentioned there are basically two types of Forex signals available for the day trader.

This is the most popular type of Forex signal and is called copy-trading signals. The clue is in the name, as to how they work. It involves following the trades of other real traders, and copying the trades that they make. There are a number of different copy-trading signal providers, such as eToro. Traders are given the opportunity to enter the service to become signal providers, but there are usually a number of specific requirements, such as set trading volumes. Other traders can choose to use the platform and follow these signal providers. Copying another person’s trade can happen automatically, or the signal service will send a notification and then it’s up to the individual trader to execute the trade manually, should they want to. It is usual for this type of signals service to charge a subscription fee, or take commission from a trader’s profit. The signal providers who are being followed charge commission on the profits of the traders that are following them. This type of signal service has become very popular, because all the participants of the business only make money if the traders using the service make money.

This type of signals service doesn’t use real people to generate the signals. Instead, these are automated or algorithm-based signals, which scrutinize various charts and make predictions, and can be relatively accurate Forex signals. This type of Forex signal uses the same tactics and strategies a manual trader would use, but there is no human emotion involved, just a set of clear cut rules to follow. Fundamental and technical analysis, along with a variety of indicators are used to uncover any developing trends. Trends are predefined and often predictable movements of currency pairs, and once the software has uncovered them it sends a signal to the subscriber, and advises them to make the appropriate investment. Automated Forex signals can be quite accurate, but historically, not all have proved to offer the same level of accuracy. So much so that a large number of traders still prefer signals generated by a real live human being. But not all automated signals are cut from the same cloth, and there are some that do make relatively accurate predictions. Many traders, even some of the most advanced, choose to use signals generated by algorithms on a daily basis. However, they will tend to evaluate the signal themselves before acting on the prediction.

Is it a good idea to use a Forex signals service?

forex signalsUsing the services of a signals service is a very popular tool, used by thousands of traders, regardless of how much Forex experience they have. So it seems pretty obvious that the best Forex signals providers have something worthwhile to offer. Using signals will improve the chances of making a profit and get you on track to trading success. But what is it that different traders find so appealing?

What can you expect from the best Forex signals providers?

Best Online Forex Brokers – List

Broker Min Deposit Welcome Bonus Rating
$ 10 N/A ★★★★★

Alparilogo $ 100 Cashback ★★★★★

$ 200 N/A ★★★★

$ 100 N/A ★★★★★

hycm logo $ 100 up to $5000 ★★★★★

forexcom logo $ 50 Check Website ★★★★★

$ 25 50% up to $2,000 ★★★★

$ 100 20% ★★★★★

etoro logo $ 200 N/A ★★★★

fbs logo $ 1 $50 ★★★★

*The Bonus is not available for Clients whose accounts fall under HF Markets (Europe) Ltd. The Bonus availability depends on Client's Country of residence.
**Trading bonus are not eligible for clients registered under Trading Point of Financial Instruments Ltd and Trading Point of Financial Instruments UK Ltd.

See a Full List of Forex Broker Companies

You may already be considering using the services provided by a signals provider. However, you may be confused about what will be offered, and whether this is the right kind of tool for you. So let’s take a look at a number of different services offered by the leading Forex signals providers. They include:

Many signal providers offer their services for free, and some also offer a trial subscription at a lower price. But we should point out that there may be an ulterior motive for offering this type of service for free. And that is to entice unwary new clients, and to encourage them to trade more than they really should. The services mentioned above are the most common, but not all providers offer them all.

How to pick the best Forex signal service provider

You’ve probably got enough information to consider accurate Forex signals a good tool to use. But how should you go about picking the best one? There follows 6 important factors you should check before picking the best Forex signal service provider for you.

How best to use Forex signals to guide your trading decisions

Once you’ve made your decision on the best Forex signals provider to use the hard work is pretty much all done. With live Forex daily signal services you are sent instant alerts, along with in-depth analysis of the recommended trades. The analysis usually takes place 24/7, and provided you’ve picked the best provider, the signals will be very accurate. Which means you can rest assured the decisions you make based on these signals will be sound. Forex trading signals point the way to success and they are a great saver of time. Free trials are a great way to get started and get a feel for the way that they work. And once you understand the information you’re being given you can upgrade to a subscription service. This paid for service will at the very least offer automatic alerts and on-demand analysis.
Now you’ve had a basic introduction into Forex signals, let’s finish up with a few tips for your Forex trading success.

Tips to help you become a more successful Forex trader

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