What Are Forex Signals?
A buzz-phrase that you'll soon hear being bounded about if you trade in foreign currencies is whether or not you receive ‘forex signals'. Indeed, so highly thought of forex signals, you may be forgiven for thinking that they're the answer to all your prayers! But what are forex signals? More importantly, can they really help your foreign currency exchange trading strategy?
Forex signals – an overview
Forex signals are alerts sent to you by your forex broker which give you an indication of how your forex broker thinks the currency you are trading in is going to move. Thus, if you sign-up to receive forex signals, you should have the inside knowledge of knowing the all important question: when to buy and when to sell forex.
Can forex signals help my foreign currency exchange trading strategy?
A crucial question you need to ask yourself before you sign-up to receive a forex signals service is whether or not receiving the forex signals will assist you in your foreign currency exchange trading strategy. The answer here will depend on a number of factors. Top of the list, however, will be how reliable your forex brokers' signals are! Because, you do not need to remember that a forex signal is only an indication of where your forex broker believes the currency is going to move. Here, in determining this, your forex broker is essentially working off the same information that is readily available to you, although admittedly with the likely benefit of years of experience. One easy way to help you determine whether or not the information you are going to get in your forex signals update is likely to be of any real value to take a look at the previous history of forex signals issued by the forex broker and how these faired after the event. If the forex broker made some astute calls, it may be worth your while subscribing to this service.
A secondary factor you need to consider with forex signals is how many other forex traders obtain the same information you do. If only a few forex traders get this information, then knowledge of the information ahead of time may be worth its weight in gold. However, if a mass mail-shot is sent to thousand of forex trader, the value of getting the forex signal becomes more diluted.
How are forex signals sent?
Ordinarily forex signals can be sent via email or sms.
Do I have to pay to receive forex signals?
Whether or not you will be required to pay for this service depends on your forex broker. Some forex brokers allow their customers to receive forex signals free of charge with their membership. Others will charge a subscription price to receive the information.
What happens if the forex signal is wrong?
Even if you are paying a subscription to receive the forex signal, if the information sent to you by your forex broker is wrong, you cannot claim against your forex broker for having supplied you with the wrong information – even if you lose money from having relied on the forex signal to execute a buy or sell order.
Electing whether to subscribe to a forex signal service provider will vary depending on the level of foreign currency exchange trading experience you have. On the one hand, if you are new to foreign currency exchange trading then receiving forex signals can be a very useful tool. On the other hand, if you have been trading forex for some time, and have your own successful foreign currency exchange trading strategy, then having forex signals sent to you may not be worth the subscription price.