Forex signals are defined as recommendations made to a trader, advising about an apt entry and exit position in the FX market. The entry position suggestions, made for a trade, is with determined price and time. Interestingly, these are real-time signals, provided by active seasoned traders. As a signal provider, these traders let others follow their trading and copy them too. The “on the go” real FX signals are sent to traders via SMS, email, RSS, Twitter, and Whatsapp etc.
Since signals are sourced out of active traders, it is easy to guess the types of signals available. They are either manual or automated or is a combination of both, depending on the style of trading that the signal providing trader uses.
Manual Forex Signals
These are completely manually generated. The trader sits across the screen for hours and hours, looking at the trends. Once he spots an upcoming position to either enter a trade or exit it, he will analyze the situation, draw his conclusions and send the signals to the traders who have subscribed to his services. The advantage of a manual signal is the skill and analysis that goes on in the background. A seasoned trader, with his experience can feel the market vibes. The only drawback of this type of signal is the time consumed by the manual process.
Automated Forex Signals
These are automatically generated signals by the trading software which have predefined instructions to follow. Automated signals are generated fast and accurately as defined. An automated system does not have any kind of human emotion hence there is no confusion or stress while taking a decision.
Kishore M, Forex experts says, “For new traders, FX signals are not only a big helping hand but also a great guide to trading”. While copying another traders strategy, many will be able to see the loopholes in them and arrive at their own conclusion or modify the same strategy to customize it to their liking.
Forex signals providers either render this service free of cost or with a fee. The paid ones obviously have some advantages over the free ones. Yet there are many who do not have any other signal service other than the free version. In fact for a reference, to understand how well these signals work experts have written blogs and Forex trading strategies with the same mentioned. A new trader must include these as reading material before they start trading.
The Top 6 signal providers of 2018 are:
One of the most popular signal service provider today, Zulu Trade is a not a signal provider as such. They act as the middlemen in between numerous traders and the ones’ who subscribe for signals. Zulu Trade lets traders have access to hundreds of signals, with the freedom to copy the trading style at will, for their own gains. The USP of this signal provider is that the signals provided to the traders via Zulu trade can be verified over an extended period of time.
Daily Forex :
A popular Forex signal provider, this is a free signal too. The signals generated here are mostly manual in nature. Traders in the expert teams of Daily Fx, constantly monitor the market. Hence along with the signals, subscribers are also given pointers about where to apply for the stop-loss orders or break even, exit positions etc. Daily Forex, however, provides signals based on lower time frames mostly.
Live Forex signals:
As the name suggests these are live signals i.e. real-time signals that are showcased during the day. The best part about these signals is that they come with the history of previous signals for a pattern establishment and analysis. The previous signals are showcased with the consequence on trading for better understanding.
Kishore M reviews this signal provider in the following words.
“The advantages of these signals are:
1) If a trader is late in entering the market they can still hope to start trading, to make profits, if the Take Profit or TP level has not been reached. This is almost the same as Stop loss orders where the signal suggests quitting the trade to take away profits
2) These live signals also help traders entering late to trade till the stop loss order is not reached”.
These signals are mostly free. However, a subscription version of the same is also available.
These signal providers are good with what they give. They have a combination of free and paid signals. The free version of the signals promises to help traders make about 90 to 150 pips per trade along with 2 trading ideas. This could be a good way to start off for the new traders. The free signals do not help with target level setting but they do help with the basic entry and exit suggestions.
Forex GDP has two subscription plans. The lower subscription plan gives traders a profit target of about 300 to 700 pips. Under this subscription plan, a trader receives about 8 to 12 signals for trading correctly. Forex GDP’s premium subscription let traders access 16 to 25 signals and aids with a target setting for 700 to 1500 pips.
An interactive signal provider, Tradeo lets traders interact with other experienced traders. These traders share their trading signals and the ones looking at optimizing on trade signals may pick and choose from. The interactive aspect of this signal provider makes this one of the best signal providers.
Basically news providers, FX Leaders also provide signals for free as well as for a subscription fee. The free version of signals will provide a trader with active and upcoming signals with SL and TP levels. However, the paid version provides with full signals. A knowledge of Technical analysis here aids traders to decipher an entry price.
Signals work for traders when they follow them. Sometimes though they may not. For the new traders, it is a learning. Over a period of time, the traders are expected to be able to trade on their own. FX signals are an aid when it comes to trading.