Forex signal services offer investors the ability to trade the foreign-exchange market without their own analysis and with the ability to follow an expert with their own trades. Unlike managed forex accounts, forex signals are merely information on which a trader can trade, it is not access to an account managed by an expert. You have to make the trades yourself.
Using Forex Signal Services
Forex signal services usually offer their positions in a variety of mediums. Some forex signal services broadcast messages through text message or email in order to get the position to the trader as quickly as possible.
What’s in a Signal
Forex signals will often be sent with an entry price, a stop loss, and a take profit. The numbers can then be analyzed by the end user, and traded. Usually a signal service will cater to a certain currency pair, and a certain type of trading. Most signal services offer day trading advice, or swing trading advice and charge by the month.
Cost of a Signal Service
Signal services vary wildly. Some services may cost just a few dollars per month while others will run into the thousands of dollars. Typically, signal service providers will offer a trial period, where the trader can use the service for a period of weeks or months. In this time, if a signal service is attractive the the trader, he or she can subscribe for future updates at a cost.
Finding a Signal Service that Works for You
Finding the right signal service is difficult, as you have to find one that fits within your budget, but also your allotted time to trade. With the foreign-exchange market being a 24/7 marketplace, many signal services may offer trades while you’re sleeping, which is of little benefit. If you work full-time, you may not have the time necessary to make use of a signal service. The full-time worker may be more interested in a signal service that finds long-term trades, where entry times and costs are not as important as in short term trading.