The concept of using a forex signal service sounds impressive. You receive an alert, place trade and see the profit pour in. But, it isn’t quite that easy. It’s no surprise that forex signal service has changed the way traders used to manage their trades earlier. Beginners especially can benefit from other trader’s judgment to establish a profitable strategy. However, it boils down to the selection of the best forex signal service provider.
A culmination of the best forex signal providers has changed the forex business forever. Today, you can start working as a forex trader without even physically contributing to the trading process. Yes, you got it right. Subscribe to the forex signals service to get timely alerts, invest in one or more indicators and buy a reliable forex robot to generate a stream of passive income for yourself.
Despite all these positive aspects, many times you can’t trust forex signal providers. Why? Let’s see…
They Often Are Just Looking to Make Money
When it comes to selecting a reliable forex signal provider for your trades, you have to be extremely vigilant and careful. You should pay extra attention to the results especially if you’re selecting a free signals service for your trades. As free signals are usually provided by the seasoned traders who want to share their valuable opinions in hope to help other traders, you cannot find consistency in their provided signals.
Even if you’ve chosen a paid service, you cannot expect 100% results all the time. Many times scammers and fraudulent computer geniuses offer such service to ruin other trader’s business. Many commercial signal providers transmit worthless alerts to their subscribers that can do more harm than good for their trading business. Thus, you should do thorough research on your part before selecting a signals service for yourself.
They Aren’t Skilled Traders
Sadly, there are many self-proclaimed signals service companies whose sole objective is to make some quick cash by offering alerts to their registered users. However, most of them aren’t able to conduct proper market research due to their incompetence or lack of expertise.
Well, signals are nothing but a valuable piece of text-based information that a trader or a signal provider generate after doing an in-depth market analysis. But, if a trader isn’t able to conduct proper research, you cannot expect any valuable information is coming your way.
They Don’t Always Provide Proven Trading Results
Any dependable forex signal service should have been verified in independent third-party websites such as Myfxbook. One of the ways to assess the credibility of your selected signal service provider is to see whether they have kept their details accessible on Myfxbook. A reliable signal company has nothing to hide. Further information respecting capital and withdrawals should be available for the visitors to help them in the decision making the process.
It’s important to understand that not every alert in Myfxbook is reliable. For instance, if a signal points out a profit of 100 pips but the open trades mentions a loss of say 1500 pips in a 4000 account, it is a weak signal. Keep in mind; some alerts will only display the closed profits and conceal the open trade losses to hide facts from the trader.
There is no Trial Period
A dependable signal provider will always offer their clients a test period. Make sure to confirm this thing before signing up with any service provider. If that is not part of their policy, at least ask for a money back guarantee for a specified period. This way you can get your money back within the stated timeframe if you’re not satisfied with the service.
Trading Signals Don’t Match with the Trading History
Another way to gauge the reliability of your signal provider is to compare their trading signals with history. In some instances, you may find a signal with great results, but your account shows completely different results when you test it. There is a possibility that the signal provider may be showing results from another trading strategy. Such fraudulent acts are very apprehensive, and you should pay attention to spot such frauds.
Many times, you may stumble on a signals Service Company located in your country and asks you to make payment through wire transfer or any other anonymous source. This is a clear indication that something is not right.
Do Your Research, Get the Right Provider
In the end, it all boils down to your research. Luckily, it’s effortless on the internet to investigate any particular company. Plus, there are numerous legitimate review websites and renowned resources that can help you find a reliable signal service provider for your trades. Make sure to go through different forex communities to get a better idea about what other traders or your peers think about any particular service.