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Last Updated on August 27, 2022 by Henry Chikwem
Trading in financial markets involves buying and selling assets for the purpose of making financial gains. These buy and sell decisions can be based on your personal trading strategy, or on the experience of other traders through trading forex signals.
This guide will explain what trading signals are, how to choose the best forex signal provider, and how to tell the difference between good and bad forex signals.
📌After each trading session in the bitcoin trader platform, a service fee is calculated and deducted by the system. These are reasonable and the deduction process is fairly transparent.
📌Some signal providers do not focus on a single financial market, nor send signals on stocks, forex, or even crypto-currencies rather teams consisting of different individuals do the monitoring and send you signals based on the opportunities identified.
Which Trading Signal Provider to Choose?
You can find free or paid trading signals on a number of platforms. But which one to choose? Which brokers offer the best trading signals? To sum up, here are the 3 recommended platforms to get forex signals, according to our criteria.
eToro is a well-known broker, launched in 2007. It quickly became a major player in stock trading. eToro is notably the world leader in social trading, with several million users around the world.
Some eToro offerings and tools that will be of interest to investors attracted to trading signals include CopyTrader and CopyPortfolios advanced social trading offers that make eToro an excellent source of signals.
Traders can indeed copy the positions and investments of the best and most profitable traders. In addition, eToro also allows you to track the performance of other public traders on the platform and to contact them, all for free.
- Regulated, reputable, and well-established broker
- Intuitive and easy to use platform, ideal for beginners
- Very low spreads and trading fees
- 0% commissions on stocks
- Trading stocks and crypto-currencies in CFDs and buying in physical
- Large choice of financial instruments
- Social and collaborative trading with CopyTrader and CopyPortfolios
- Excellent customer service
- Withdraw $5
- Lack of advanced trading tools
- Deposits in USD only with conversion fees
The AvaTrade broker was created in 2006 and has evolved very quickly to have more than 200,000 clients around the world a few years later. AvaTrade is regulated by the Central Bank of Ireland.
AvaTrade offers its traders a wide range of financial instruments in the forex markets, stocks (including US securities such as Tesla, Amazon, Google, and others), commodities, indices, bonds, cryptocurrencies, ETF, and options.
AvaTrader also offers trading signals through its DupliTrade and Zulutrade offers.
- DupliTrade is an ideal copy trading platform for beginners, which automatically copies successful traders directly to your AvaTrade trading account. This free trading signals service, but a minimum deposit of $2,000 is required.
- ZuluTrade is automatic trading software offering signals, available for all levels and easy to use. Zulutrade is free for AvaTrade traders.
- Regulated trading application in Europe and internationally
- Wide choice of forms of trading
- Allows you to use MetaTrader 4 and MetaTrader 5
- Trading training articles and tutorials
- Quick and easy account opening
- Free deposits and withdrawals with multiple payment methods
- Minimum deposit of 100 euros
- Currency options only
- Application not ideal for beginners
- High inactivity fees
3. Bitcoin Trader
Bitcoin Trader is an automatic cryptocurrency trading software that has been around since 2017. The platform analyzes bullish and bearish trends in financial markets and generates trading signals.
To use Bitcoin Trader’s trading signals and automatic trading, just open an account and install Bitcoin Trader. The software thus takes positions for you and generates (theoretically) gains while you do other things.
The Bitcoin Trader platform is completely free. After each trading session, a service fee is calculated and deducted by the system. These are reasonable and the deduction process is fairly transparent.
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- Very easy to use platform
- No fees deducted (totally free signals)
- Fast transaction processing
- Presumed high winning rate
- No profit guarantee
Why Use Forex Signals? Advantages and Disadvantages
At this point in this guide, you should have a clearer idea of what it is all about. Let’s summarize what we’ve learned so far by listing the pros and cons of signals.
Benefits of Trading Signals
Let’s go over the strengths of these tools to get started.
1. Benefit From the Experience of Seasoned Traders
For manual trading signals, they are offered by experienced investors. Indeed, you must have proven yourself and have good market analysis skills to claim to provide quality trading signals. The trading signals enable you then to rest on the experience, sometimes very large, traders who send them.
2. A Way to Profit From the Markets Without Wasting Time
Trading signals that you can easily copy to your trading account are a way to take advantage of market opportunities without having to train in trading, a process that takes at least several months. You also won’t have to keep monitoring your charts for opportunities.
3. The Possibility of Choosing Between Many Suppliers and Strategies
By choosing trading signals, you will have the opportunity to compare hundreds of traders and trading systems based on various parameters.
You will be able to take the time to study the trading strategies on which the signals are based, and to methodically choose the best ones.
4. A way to keep an eye on all the markets
Finally, note that some signal providers do not focus on a single financial market, nor send signals on stocks, forex, or even crypto-currencies.
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Rather teams consisting of several individuals monitor the markets for you and send you signals based on the opportunities identified.
This is a very interesting point, given that it would be impossible for you to monitor all the markets on your own.
Disadvantages of Trading Signals
Now let’s focus on the weak points of these tools.
1. Risks of Scams
It is easy to come across scams in the world of trading signals. For example, this can take the form of false information about performance.
However, please note that the signal providers discussed in this guide are very secure in our opinion, and are not scams in any way. On the other hand, if you decide to deviate from this list, be extra careful to avoid unpleasant surprises!
2. Won’t Bother About Learning
The second major disadvantage of forex and other signals is that copying signals from other traders will not inspire you to learn to trade. You will therefore not be able to learn how to build your own strategies, and the performance of your trading account will therefore depend on other people than you, which can sometimes be stressful.
A happy medium would be to follow trading signals, trying to understand the reasons for the signals, for each signal.
Frequently Asked Questions (FAQ)
1. Are there any legit forex signals?
Forex signals themselves are completely legal, and the legal status of the company is nothing to do with you, so you’re in no hot water from using the service.
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2. Do Forex robots really work?
If you want a strictly technical answer, yes, forex trading robots do work. The thing is, though, they are tools. And like all tools, the outcome depends on what they are used for, and how well they are used.
So, there are FX traders who comfortably rely on robots for success, while others have problems.
3. How do I sell my forex signal?
The best way to your forex signal is via Facebook, Google+, Twitter, Community chats and forex forums. The other mode to ‘sell my forex signal’ is syncing with leading forex signal providers. The host renderer will charge a small fee from you, and that is just about it.
4. When should I buy and sell Forex signals?
Many traders agree that the best time to buy and sell currency is generally when the market is most active – when liquidity and volatility are high.
Knowing the best forex signals that are free to use will give you opportunities that would enable you to compare hundreds of traders and trading systems based on various parameters.
You will be able to take the time to study the trading strategies on which the signals are based, and to methodically choose the best ones. This in turn would be very beneficial for you as you trade.