Over the last few years, the forex market has shown a tremendous technological growth. According to a survey done in April 2010, the daily average forex market turnover is $4 trillion, which is approximately 20% higher than the data released in 2007. One thing you should know is that a lot has changed in the foreign exchange market over the last 20 years. This market was once dominated by global banks. However, the dawn of electronic forex trading has made it easier for even small financial institutions to get directly involved in the forex trading.
Surprisingly, the forex market daily turnover hit 42% in 2016 from 39% reported in 2013. With the introduction of social trading, forex trading signals, and other concepts in the forex marketplace, it’s expected that the daily transaction volume of this market will continue to increase as more financial institutions and individuals opt to join the trading race.
It goes without a saying the forex trading signals have made it easier for traders to become successful financially. These signals are like alerts to the forex traders to either pursue or abandon a currency pair at a particular price and time. Keep in mind that forex signal services are provided by companies that might or might not require you to pay a specified fee to access the signal information. So, how will you know a specific forex signal service provider is worth your time and money? Here are tips to help you choose the best trade signal service provider.
Opt for a free trial before you subscribe to the service
No one admits that they offer inferior services. Thus, you should expected every forex trading service provider out there to praise and gold-coat their services. Others will try to entice you with ‘amazing’ discounts and other ‘favourable’ pricing strategies. Experts advise that you should choose a signal service provider that offers a free trial period. This way, you can spot any flaw in the trade signal service.
Besides, you can determine the win-rate or the risk-reward ratio during this trial period. By the time you decide whether to subscribe to the service or not, you will be making an informed choice based on authentic information.
Available features
Before you decide to subscribe to any forex trade signal service, you should make sure that the company you’re likely to settle for offers a detailed, clean, and neat signal performance data. The performance page must-have features such as stop loss, entry points, and take profits. These features allow you to check all the aspects of the signal service and determine whether it’s profitable to subscribe or not.
Besides, you should opt for a forex trade signal provider with their own live trade room. This means that the company has stable and trustworthy signals that can help you create more stable forex trading strategy.
Understand what motivates you
One of the most important factors you should consider when choosing a forex trading signals service provider is what motivates you to follow the alerts. If you intend to follow the trade alerts with a view to hopefully profit from these signals without learning how to trade, then, you can follow the automated “black box” trade signals system that produces the alerts but offers no analysis.
But if you intend to learn how to trade and benefit from the trade alerts, then, you will want to find a trade signal service provider who offers top quality forex market analysis alongside the trade signal. Such signals are usually accompanied by an entire analysis and sometimes a technical startup chart to help you understand you should either purchase or sell a currency pair.
Performance figures
Every forex trader should understand that there is more to choosing a forex trade signals than simply choosing the most profitable service provider. There are countless trade signal service providers who boast of astronomical performance data and thus tend to lure in many new forex traders. The truth is that most of these companies have huge drawdowns and run very volatile, unsafe signal systems.
Before you pick any signal service provider, check the overall returns, average monthly returns, maximum drawdowns, and the risk per trade. Keep in mind that a stable trade signal system has uniform risk per trade, set at a conservative level, and has a better reward-to-drawdown ratio.
Price and customer service
This might sound too obvious but most newbies in the forex markets get sucked into paying extortionate amounts of money to access some of the allegedly “high profit” signal systems. Normally, such forex trade signal service providers don’t focus on the success of the forex trader. Instead, they focus on how they earn from the naivety of the new forex traders as well as those who haven’t mastered the art of forex trading. If you’re a forex trader with a $1000 account, then, spending $300 or more on forex trade signals services is a ridiculous decision.
Apart from choosing a service provider that offers excellent trade signals together with analysis, you should also check the company’s customer service. After all, the client experience drives the success of any given service. Before you subscribe to any trade signal service, you should be sure that help is on hand. Any platform can develop a hitch or your account develops an issue. Who will help you if the customer service representatives haven’t been picking your call or responded to your email for over six hours?
Conclusion
Choosing a service provider for the excellent forex trade signals can be a tough task given that there are countless forex trade signal companies out there. This is the primary reason forex traders are usually advised to take their time to do enough groundwork and choose the best service provider.
However, taking your time to choose the right companies and understanding what to look for in a forex trade signal service are different things. Implementing the tips discussed in this article will go a long way in helping you select the best forex trade signal service provider.
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