FOREX Trading Signals - Are They Worth It?

FOREX Trading Signals - Are They Worth It?

by Yusoff Allian

Someone new to FOREX trading may be tempted by the promise of easy profits made by companies that offer FOREX trading signals as a paid service. Indeed there are signal providers out there that do consistently provide decent profits over the long term, but the vast majority of FOREX signal providers are unable to live up to their promises. A new FOREX trader is much better served by learning how to identify entry and exit points themselves, but if they do choose to employ the services of a FOREX trading signal provider there are a few points they should be aware of before handing over their hard earned money.

Keep in mind that FOREX signal providers can charge anywhere from $50 per month to $500 per month, so you'll want to be sure that you get your money's worth. The mere fact that providers are charging money for their signals is usually enough for most professional traders to avoid their services - the thinking being that if their signals were any good they'd be keeping them to themselves and making a bundle from trading alone.

Still, as mentioned above, there are some good signal providers out there so you want to be able to determine the honest providers from the less reputable ones. An easy way to shorten your list of candidates is to focus only on the FOREX signal providers that offer you a free trial. Any provider worth their salt will allow you to try their signals out for a month without any financial obligation. While you're trying out their free service take a look at their past results - have they been consistently profitable over the long term? Any legitimate FOREX signal provider will not hesitate to show you their past results.

Let's assume at this point that you've found a FOREX signal provider that has given you a free month trial, shown positive results in the past, and offers their services at a reasonable monthly rate. Take advantage of their demo account (any broker you use should offer free demo accounts that let you use real data with fake money) and apply their signals to your fake trades. How is it performing? Are the entry and exit signals yielding generally positive results? No signal will ever be 100% accurate, so what you're looking for is a positive result over the long term. Try the signals out for the month and if you're consistently seeing profits then you've likely found yourself a winner.

It's important to realize that although you can pay others to send you FOREX trading signals you'll be much more profitable in the long run if you understand the concepts yourself. Take the time during your free month trial to fine tune your trading strategy and focus on building up your trading discipline.