When you first begin trading forex, you spend hours sitting in front of your computer (or bank of computers) looking at forex indicators and analyzing forex data to find the perfect moment to enter and exit the market. This is a great way to learn the fundamentals of trading forex, but is this a sustainable way to make a living?
For most of us, probably not.
The good news however is that once you know more about trading forex there are products and services available to make trading a less time-consuming ordeal. Some people use forex trading robots while others use a forex signal service. In this article we'll discuss forex signal services.
What Is A Forex Signal Service?
The best way to understand a forex signal service is to think of it as your trusted advisor. This service suggests trades for specific currency pairs based on currency market analysis made by human traders or forex trading robots. Forex signal service providers send you daily signals throughout the day so you never have to miss a trade opportunity.
Many signal services alert traders by email or text message because of the time-sensitive nature of trading forex.
Types of Forex Signal Services
In general there are 2 types of service providers; the first is via forex trading software and the other is professional, live traders.
Forex trading software allows you to determine under what circumstances you receive signal alerts. Many forms of currency trading software rely on automated trading robots to examine large quantities of data and let traders know optimal times to enter and exit the currency exchange market.
The other type of forex signal service providers send you daily signals from professional traders who either analyze the data themselves or rely on robots of their own and pass the information on to you, the customer.
Do Forex Signal Services Increase Profits
The jury is still out on whether or not forex signal service providers can actually help increase your profits. The main factor that determines how lucrative these daily signals are, is accuracy. If the forex signal service that you ultimately decide to sign up with is reliable and legitimate, they may be able to provide you with more accurate forex indicators.
However there is a lot of money to be made trading currencies, which means there are plenty of vultures preying on your desire to earn extra income by offering flawed trading services for a lot of money.
There are many forex traders who swear that the daily signals they received have helped them earn more money while also spending less time analyzing trading indicators.
Should You Try A Signal Service?
The question you should be asking yourself now is, should I try a forex signal service?
The best answer is yes you should try a forex signal service, if you can find a free forex signal service provider to test out first. Each of these providers claims that they offer the most accurate and up to date daily signals, but you can't really know until you try.
If you can afford to pay for a signal service up front, then you should always look for ways to give yourself an edge when trading foreign currencies. If you don't yet have the capital to invest in a costly forex signal service provider, a free service will let you know if this is something you can use.
Keep in mind that many of these providers may use the same data and forex indicators you could use on your own, to send daily forex signals.
Andrew Daigle is the owner and author of many successful websites including ForexBoost, a free Forex educational site to learn Forex trading strategies