Forex Signals

The foreign exchange market is one market where investors can get exposure in any way imaginable. There are the forex spot markets, the futures markets, options markets, and even international mergers and acquisitions in private equity groups are considered to be part of the foreign exchange market.

Of course, there are also a number of methods to trade the market. Some hire active managers who trade on their behalf, while others trade the foreign exchange market freely, buying and selling on their own accounts and with their own money.

There is a unique gray area between the role of an active manager and an individual investor, and thanks to the spread of forex signals, investors now have the ability to combine the benefits of both.

What are Forex Signals?
Forex signals are signals for the forex market. They tell an investor when to buy and sell, and how he or she should place his or her future forex trades. Signals are usually a paid service offered by a seasoned professional with a long track record of success.

Buying a signal service essentially means that you’ve purchased into the real-time wisdom of a professional trader. When the trader spots a potential trade, a message is sent to the signal subscribers on how to act. This may be a buy or sell order, or it may just be a simple notification about the upcoming market climate. Generally, signals are sold and delivered over the internet or through other telecommunication devices.

Receiving Signals
There are literally hundreds of forex signal services online with a myriad of options for investors. Some forex signal companies focus only on one pair, buying or selling EURUSD, for example, as a sole method of making money. Others focus instead on a certain timeframe or strategy. One signal provider might trade with technical setups only while another might play the purely fundamental outlook.

Signal providers might also choose to search for different size trades, as well. One signal provider might provide a flurry of 10-15 pip trades per day while another releases only one major 100-200 pip trade once a week.

It is important to not only pick a signal service that is affordable, and reliable, but also one that fits into your trading schedule. Those who work full-time and do not have access to a computer around the clock might be better suited with a signal service that does not require fast entry and exits. Traders with more time on their hands or a desire to actively trade might want to secure a paid subscription to a very active signal provider.

Generally, signals are provided either by email or SMS, and include anything from the current price, to an entry point, target profit and stop loss. The subscribers can then decide whether or not they will place the trade, which makes a very clear distinction between a managed account and a signal account. Those who are subscribed to signal services are still required to place trades themselves, and can opt out of following the professional’s advice at any time. An investor with a hired active manager would instead rely solely on the decision-making of the manager, and would have very little day-to-day interfacing time with his or her own account.

Paying for Signals
It is generally understood that you “get what you pay for” in the forex signals service market. Because signal services are basically a license to print money (provided they are profitable), many sell their services for $1000 per month or more. Remember, this is a high-quality product; you’re essentially paying for the wisdom of a professional forex trader.

Not all forex service providers are worth the money or the hassle, and signal services are a better way to make money than they are a way to learn how to trade. In fact, signal services enable even the most uneducated trader to profit in the market, since the trades are vetted by a professional.

Before purchasing a forex signal service subscription, evaluate the quality of the product and the trading record, if available. Always seek to purchase signals from vetted candidates, and those who offer at least some form of security. Finally, remember that very few people or strategies make money forever, and when a signal service begins getting popular it can move the markets all by itself.

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