There are many Forex signal providers around. Among them, there are good ones and there are bad ones. The internet is replete with stories of traders who got scammed by the group of the latter. Hence, you should be cautious when shopping for a signal service to use.
Even, apart from credibility, you must also ensure that the provider you use is one that caters to your trading needs. If it provides additional highly valuable services, better. You can apply the tips discussed here to help you pick a credible signal service that will not only fulfill your trading needs but that will also go further to give you a big bang for your buck.
- Are the provider’s signals profitable?
Of course, the profitability of a Forex signal service is the first factor to consider. This makes sense because your aim of scouting for a signal service anyway is to enhance your trading results. Most likely, you are currently struggling to succeed in the market, so you are looking for a powerful tool to turn your story around.
A profitable signal service is that. Hence, before you pick any signal provider, check for its track record. How many trades does it suggest per day? How many pips does it clinch? What is the overall winning rate? What are its risk management rules? For every pip the provider wins, how many does it risk?
Finding answers to these questions will enable you to visualise fully its market performance.
- Are their performances independently verified?
Many signal providing companies make mouth-watering claims. They say they win thousands of pips every month. However, while profitability is an essential factor you want to assess, you should not be swayed by empty claims.
Therefore, ask for proof. And the best that you can get is a verifiable track record of success. For this purpose, some third-parties exist. Their examples include MyFXBook, FX Blue, and ForexFactory. Also, any signal provider that guarantees a fixed return should be doubted. The Forex market is unpredictable, and no one can make any guarantee about it.
- Does the signal provide additional commentaries and analyses?
So, you have confirmed that the signal provider you are evaluating is profitable, with its performances being independently verified by third-party agencies. Then, you should ask: does it provide additional services in the form of commentaries and market analyses?
You want to be using signals. The truth is that they can make you dependent. That is, they can make you stop working towards becoming an expert trader yourself. This is why it will be great if the provider of your signals seeks to, at least, explain the bases for its trading decisions to you.
In fact, any provider standing in the way of your development isn’t one you should use. And an effective means by which a signal provider can contribute to the development of your trading skills is via high-quality commentaries and analyses on the trades that it takes.
- Does the signal match your trading style?
Do the signals provided match your trading style? This question is essential. If you are a scalper, for example, keeping up with the market will be impossible If your signal service is a day trader and vice versa. Also, you should ask: how many trades does the signal service recommend per day?
Usually, any signal service that sends out a lot of trades daily will most likely be a scalper. On the other hand, if the number of trades recommended daily is small, it most likely means that the signal provider is committed to a long-term approach to the market.
Then, which particular instrument does the signal provider have the most affinity for? You should also find out. You might already be comfortable trading the instrument. Otherwise, the provider might be offering new ways to diversify your trading and reduce your risk.
Furthermore, you might also want to confirm the school of analysis that it sticks to. Signal providers use fundamental or technical analysis or a combination of both. Find out if the method of market analysis the service employs matches yours, too.
- Does the signal provider operate in the same time zone as yours?
For your convenience, use only a signal provider whose time zone matches yours. Otherwise, you will be signing up for missed trading opportunities and, overall, a negative user experience. Your signal provider’s time zone matching with yours is crucial. For instance, you will not want to use a provider that sends its signals to you at night.
Besides, the North American and European trading sessions are the busiest. It will be a massive advantage for you if your signal provider is most active during these two. This is even more important if it uses a short-term approach, as you will always need to have your trades instantly opened.
- Does it provide a responsive customer support service?
Finally, does the signal service have a responsive customer support team? How easily can you reach them? Do they have a dedicated email or phone line through which you can contact them virtually any time in the day?
Even though independently verified profitability and time zone match are more urgent requirements, a signal provider offering a customer-oriented service is a boon. It will be an added advantage for you as such a provider will always want to come up with innovative ways to please its subscribers.
1000pip Builder is a signal provider that has all these characteristics, and more. You should check out their services here.