This article looks at the different service you can find that offer forex signals.
When you look at a forex signals service you have to consider the type of service you are getting. You also have to know about the ways that the signals are being generated. There are four different types of forex signals services and two ways that the signals can be generated. It is important that you know which one you are getting and the type of service you are signing up for.
The Way Forex Signals are Generated
There are two ways that forex signals are generated. These ways are through human market analysis and through forex robots. Both methods are unable t provide you with 100% accurate signals because of the nature of the forex market. There are no guarantees on the market because there are a number of factors that can affect how the market moves. You should find out which way your signals are being generated because many traders feel that human generated signals may be better than forex robot generated signals. Of course, this is purely personal preference as neither is completely accurate.
The Kind of Signal Service You Get
When you look at signal services you have to consider that there are 4 different types that you can get. Each of these service types will have their good points and their bad points:
- A paid service from a single provider – this signal service can offer signal that are robot generated or human generated. The generation of the signals will depend on the company creating the signals. You have to be careful when you look at these services because there are some scams on the market.
- Forex platform signals – the forex platform signals are a generally robot generated signals. Not all forex trading platforms will offer forex signals so you need to check if your platform has this. Only highly integrated platforms generally have a signal services.
- An unpaid or free signal service – there are a lot of traders that recommend not using a free signal service. This is due to the traders questioning the reliability of a free service. These services may also be human generated or robot generated.
- A paid service from more than one provider – these services aggregate the signals from a number of different sources. The signals can come from robots or humans and you may receive a mix of the two.
The Scams with Forex Signals
There is a common misconception about signal services that states that they are all scams. This is not true as there are many services that offer the service that say they do. However, there are a number of scams and you have to know how to find them.
The best way to determine if a signal service is a scam is to see what other traders have to say about it. You can find reviews on the system by searching for it or you can see what forex forum users have to say. When you look at these reviews you have to separate the facts from fiction. Some reviews or forum members are annoyed that they lost money on a trade and could be blaming the signal service. You have to find out all the details before you commit to anything.