What Are The Types Of Forex Signal Providers?
There are a number of types of Forex Signal providers and they provide signals on the basis of different factors. Let’s find out what they are.
Automated Signal vs Manual Signal
A signal provider can be divided into two parts regardless of the factors, they are Automated Signal and Manual Signal. Trading bots and algorithms that look for sequences in price charts and make predictions on how a certain instrument will move in the future are used to generate automated forex signals. Automated forex signals depend on code developed by a team of developers, as well as experienced advisors and expert traders, to run extensive historical analyses on price charts and provide trade ideas.
Manual forex signals are generated by expert traders and analysts who meticulously and extensively examine the markets, undertaking fundamental and technical analysis to identify desirable trade ideas.
Fundamental vs Technical
Different trading signal providers use different methods to promote their trade ideas: some fully depend on technical analysis, while others combine fundamental and technical data to provide accurate forex signals. There are a variety of technical indicators that may be used to predict how an instrument will move in the future and to build a trading strategy for it.
However, simply relying on technical indicators to generate trade ideas fails to provide a thorough examination of movement and fails to account for external factors such as macroeconomics, which can influence how an instrument moves.
Free vs paid
Signals you get for free or paid can be another vital factor to look for in a signal provider. Paid Services can be pay-per-use or offer a flat membership price for a defined duration, ranging from a month to a year. Some free forex signal providers only provide you limited access to information and need you to pay for extra information or service offered on their website or app.
How can you evaluate the provider's credibility?
Searching the internet for forex trading signals service providers will give far too many results, leaving you in a dilemma when it comes to deciding which one is best for you. One of the most crucial factors to examine is whether the service you choose provides accurate forex signals that are profitable.
Analyzing the service provider’s credibility can take a bit of time, but it is necessary because choosing an unreliable supplier can cause significant damage to your trading capital and skill instead of helping you in becoming a better trader.
You can learn about a provider’s credibility by checking for online reviews, trading user feedback, social media activity, and more. The finest forex signals service providers will have a large number of novice and expert traders supporting their trade ideas, as well as a large number of favorable reviews and feedback on popular social media platforms.
How to check the provider’s professionalism?
There are no guarantees of profit in forex trading, and risk exposure is unavoidable. A reliable forex signal provider would certainly not try to mislead its subscribers or members by promising profits and returns. On the other hand, the industry’s trusted names will be open about their performance, issuing reports on how effective their signals were in the past to provide you insight into their prior performance.
Consider the following points when you choose a signal provider.
- Frequency and diversity in forex signals
- Clarity into past performance
What should you search for on the app or website of a trading signal provider?
Here are a few things to keep an eye out for when researching and analyzing the best forex signals service provider for you:
A reliable forex signal provider would provide signals on almost all the major currency pairs along with the pairs which are not among the major pairs but have good liquidity. The more instruments they cover, the more chances are there to become profitable.
Frequency and Diversity
The ideal forex signals service provider for you should send a good amount of forex signals and trade ideas throughout the day, as well as a diverse range of trading instruments, including the ones you prefer to trade as well as other options, so you can diversify your trading portfolio and spread out your exposure by experimenting with new instruments. A good provider should offer a decent balance of long and short-term signals so you can attempt several types of trading methods, such as swing trading and intraday trading, in addition to trade ideas with a number of instruments.
Range of hours
The ideal forex signals service for you is one that sends enough trade ideas during your prime trading hours. For example, if you prefer to trade the US session markets, there is no need to choose a provider that sends out more signals during the Asian session, since this will result in too many missed opportunities for you. Also, be sure the source has a dependable mechanism to notify you whenever a new forex signal is posted, so you can determine whether or not to act on it right away. The longer you take to make a trading choice, the lesser your potential returns will be since other traders may beat you to it.
In the world of trading, information is not only important, but it is also quite handy when it is received fast. When it comes to forex trading signals, you need to be notified or alerted as soon as the information is published so that you may enter the trade at the right time. Make sure the signals service provider you choose can provide you timely alerts whenever a new trade idea is released, whether it’s via push notifications on your smartphone, SMS, or a mobile app.
When you’re choosing the right signal provider for you do consider looking up their information on the past performance. In order to enhance transparency, the majority of the credible signal providers would post this information on their websites and won’t hide information regarding how well their signals have performed over the last few years. It is important to highlight that performance evaluation over one or two years is insufficient to accurately represent volatility. A fair benchmark would be to look at the signals’ performance over the previous five years, as this would be adjusted for market volatility and would exclude any unusual volatility in global markets caused by economic crises, geopolitical conflicts, and so on.
How is MegaFX Forex Signal?
At MegaFX we thoroughly follow all the above-mentioned parameters that make a good signal provider. As you have already known how important a role of a signal provider plays in trading, we make sure you get all the necessary information and support you need to be efficient in pulling off successful trading.
We’ve already talked about how important it is to take the time to learn about and find the best forex signals service provider for you. Keep in mind that what works for one type of trader might not work for you, as you might be interested in a different choice of instruments, have different trading hours, or want to focus your experience in a different way than other forex traders. This is why it’s essential to think about all of the features that each trading signals service provider has to offer before making a decision.