Using services that provide forex signals have their pros and cons. These services are easy to use, but usually donít give advice on how much to invest (in relation to account equity) and how to handle forex portfolio risk management (diversification etc.).
The services providing signals donít usually tell you how exactly their systems work. This way, if you like the historical performance of the system, your only way of getting information on how the system works is to subscribe to these signals.
The signals are normally e-mailed or send as a text message with the recommended trading call. The best delivery method (if you have your cell phone text messaging ready and with you) for day trading is to get text messages of the signals as day trading opportunities often disappear quickly.
Choosing Providers of Forex Signals
When you choose a provider for signal service, the historical performance and trading style are some of the most important factors.
Even if the historical performance of the system seems to be very good, there are no guarantees that future performance will be as profitable or produce profits at all.
Furthermore, many of these historical results are based on simulation (no actual money is ever placed by the provider of the signals), so the results may be uncertified.
If youíre trading on a long-term strategy basis, donít choose a signal service that provides signals for intraday opportunities (and vice versa).
The best providers of FX signals give out the full details of their trading system (usually for a fee) and the signal service is the support feature that lets you implement the system easily.
Providers of Forex Signals
There are many providers for forex signals available. Furthermore, the dept of these signal services varies from full portfolio weighting recommendations to pure buy-sell (a currency pair) signals.
Itís best to look around at the signal providers to find one that you feel comfortable with. Here are a couple of exemplary companies that you can take a look at. Also, look for technical analysis services from the major banks that may provide forex signals to subscribers (to in-house clients).
- Team Forex
- Currency Market Watch
- Technical Research Limited
From Forex Signals page to Forex Guide index