Guidelines for selecting a forex signal services provider

Forex signal service provides signal services to their customers so that customers can make informed decisions. Forex signal service providers are usually brokers or professional traders or market analysts. People interested in forex trading need to subscribe to a forex signal service as monitoring the market full time is difficult for people on their own. The reason being it is very time consuming. Forex trading signal providers assist their customers in reducing risks or loss while trading.

 

Often, potential customers donat know what to look for in a foreign exchange service provider. One thing they should do when conducting searches on the internet is to first check the provideras website. A site that focuses on appearances and impossible claims may be promising much more than they can actually deliver, and should be reviewed with some skepticism. One way to conduct some research on the service provider is to check online for reviews of foreign exchange service providers. A provider with many positive reviews and no negative reviews has a greater chance of being of high quality.

What to look for in forex signaling services is to find out about their customer service. You can send them a mail and find the response time, quality of response and how helpful the service provider is and then make your decision accordingly. If you get good and satisfactory responses then you have located a good service provider. If not then try to find another who is more responsive and helpful and who values your time.

Yet another feature in selecting a currency exchange signal provider is their profit margins. If they are not profitable themselves, it should send up red flags. How will you rely on their advice for making a profit if they cannot manage a profit for themselves? Review their past performances. If you feel comfortable with their profit/loss records over a period of time, then you can continue to consider them.

Something to specially note is the time delay in generating the market signals. Some service providers offer signals that are updated every few minutes to an hour, while others provide updates daily. Recommendations that are made less often are preferable because the client is not forced to check the status as frequently. The whole point of paying for a forex signal service is to reduce market monitoring.

Something to review and confirm is the frequency of the call trades made by the provider. It is preferable to select a service provider who calls trade less frequently because they are more apt to be turning a profit than one who does so more often. Extra services such as alerts via email or cell phone can be very helpful to the customer.

Whether or not the service provider offers special tools that are available for reading foreign exchange Level II quotes is something that should also be checked before making a choice. These tools are available but not offered by all service providers.

Other supplementary services that you might want to check into are spread and back testing results. Not all providers include information about spread in their updates, which hurts the market. The subscriber needs to be able to see the average number of positions performed for all currencies each month in order to find real profit. Sometimes, a service provider will edit back testing results and only present those displaying positive results. You should definitely check this before selecting a service provider.

Author: by Jay Visaya

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