What Are The 2 Main Types Of Forex Signals?

29 October 2011
By

Forex signals are a great help for many people because although everyone wants to make money trading the currency markets themselves, the reality is that many fail to do so. So by accessing third party forex signals you can still generate profits without having to make any trading decisions yourself. When looking for signal providers you basically have two options.

The first option is find a profitable forex trader who will send their signals to you whenever a set-up occurs. They find the signals and send them directly to your inbox, or maybe send them to you via text message or via an instant online messenger service. It is then up to you to place the same trades yourself in your own trading account.

This is the basic offering, but many subscription services also include a live trading room these days as well. So this basically means that the subscribers can watch the trader in action, ask them any questions and learn some useful tips and strategies along the way. They can also generate some decent profits because the trader will announce their trades in real time, and often before they actually place the trade, so you have lots of time to place the same trades yourself.

Of course not everyone has the time to stay in a live trading room all day and wait patiently for the trader to give them potential trades. That’s why the second main option is often the better one.

I’m talking here about automated trading signals. Automated signals enable you to generate profits from forex trading without having to place any trades yourself. Therefore they are ideal if you do not have a lot of spare time during the day, or whether you simply cannot be bothered to trade yourself.

There are a few websites that offer this service and they generally look to bring signal providers and people who are looking for signals together. They offer this service for free because they make money from every trade that is placed, and there are many benefits for all parties.

For those people looking for profitable signal providers, you should have no problem finding them. There are hundreds, if not thousands of different providers on some of these sites and in many cases it’s just a matter of doing your homework to pick the best ones. To help with this task, there are usually detailed trading records and full statistics so you can see what kind of draw-down you can expect, for example.

The only drawback is that you have to open an account with one of the brokers that the host company currently works with, although this isn’t a major problem. Once you open an account you can trade the signals of as many different providers as you want and there are no subscription fees whatsoever. The trades are placed in your account in real time and you will therefore achieve exactly the same results as the traders that are providing the signals.

So the point is that you have two main options when looking for profitable signal providers. You can either get your forex signals from a paid subscription service where the signals are sent to you for you to trade yourself, or you can choose an automated signal service, which is more of a hands-off approach. They can both provide you with decent profits, so ultimately the final decision rests with you.

Plus500

About the Author

Click here to read a full Zulu Trade review to learn about one of the best automated signal providers, and to learn all about the Forex Profit Accelerator software.

Tags: , , , , , , , , , , ,

Comments are closed.