Looking for the best forex signal providers of 2021? Here we will review the top forex signal service providers in the online trading market.
Make no mistake about it - trading forex online and making consistent profits along the way is no easy feat. In fact, the vast majority of traders lose money. With this in mind, it is useful to go for a forex signal service.
The signals services give you with the needed trading 'suggestions. Each suggestion comprises of the desired entry and exit prices - resultantly allows you to trade without conducting an in-depth technical research.
In this guide, we are going to explore the best forex signals providers of 2021. We will also give you some basic knowledge on how forex signals work, and what you need to look out for before choosing a provider.
A guide to Forex Signals
In simple words, forex signals are indeed trading suggestions that enables you to execute orders without performing your own research. Instead, you will be registering to a forex signal provider that go through the markets on your behalf.
This usually comes in two types - manual and automated market analysis. For manual trading, the traders conduct manual research and give outcomes with their findings. For example, these traders judge that the GBP / USD is heavily overbought, and them immediately suggests you to place a sell order at a reasonable price.
While in automated forex signals, market is analyzed by a pre-conditioned algorithm. In this process, the automated bot or a system scan a huge quantity of scenarios, press releases and other updates every second across dozens of pairs. Then, after analysing the market, the algorithm notifies the trader whenever a potential trading opportunity arises via signals and the traders take the required action.
How do Live Forex Signals actually look like?
In simple words, the best forex signal providers are always ready to send you trading suggestions that comprises of five key highlights of information. This helps you to gather all of the required information to act on the trading suggestion by reducing the risk and loss level.
Let's clear your confusion and explore what a trading signal usually looks like:
- Pair: CAD / USD
- Order: Sell Order
- Entry: 0.7250
- Stop-Loss: 0.7290
- Take-Profit: 0.7150
If you analyze the above data, you will get to know that the forex signal service provides all data for everything you need to start executing your order. Let's understand the meaning of each metric in detail.
A pair gives us information about the currency that we are trading in. In most cases, the best forex signal providers usually trade with most demanding and least demanding pairs.
The automated system analyzes that the chosen pair has significant liquidity and less bound to loss in any volatile trading conditions.
It is very important to understand the Entry point because it gives you all the information to begin your trade from a forex signal. After all, if you don't know what price to start your trade at, the signal is just worthless. We have usually come across a captivating title like 'free' forex signal providers but such claims are usually wrong and might blackout the required entry price. In other words, you will be charged for getting the desired information.
Now, it is note-worthy here that you will be required to place a 'limit' order as opposed to a 'market' order when working on a signal. This will confirm that your order is executed at the same price suggested by the provider.
- Let's suppose that AUD / CAD is currently priced at 0.7240
- The trading suggestion is to initiate the trade with an entry price of 0.7250
- When the order is 'placed', it will go live only when the pair AUD / CAD hits 0.7250
- If it doesn't hit that way, the order will be considered pending until canceled
Crucially, a lot of forex suggestions that you receive by the provider might end up being canceled manually, not least because the target entry price has not been triggered. This is because the best providers only want to enter the market at the time when the needed trading conditions have been met.
Just like the entry price, the stop-loss price is very crucial in the forex signals scene. For those who have no prior information, a stop-loss order enables you to exit a non-profit trade automatically.
- Your entry price of 0.7250 on CAD / USD meets the criteria, so the order gets live
- You need to place a sell order, in this case the value of the pair will be desired to go down
- Now the scenario is not favorable, so are entering further in the red
- If you have set up a stop-loss order at 0.7290, your trade will be closed immediately when this price is met
If you analyze the data above, you will get a clear idea that a stop-loss order ensures that you can trade in a lower risk level.
The final point that the best forex signal providers will notify you is that of a take-profit order. As the name clearly indicates that lock-in your trading profits automatically. It works in exactly the same manner as a stop-loss order, but in opposite or reverse manner.
What you will sometimes find is that a forex signal provider notifies you minimum 2 take-profit prices. The enables you to manage your trading account according to your desired outcomes.
It usually looks like the following:
- Take-Profit 1: 0.7150
- Take-Profit 2: 0.7120
The following metrics clearly indicates that, on a short-sell order on AUD / USD - the profit target is 0.7150. However, for those among you who desire to chase higher margins, the second take-profit target is almost 30 pips lower. With all the above analysis, you do have the option of setting your own take-profit price anywhere in between the two targets.
An insight into Forex Trading Signals working methodology
By now you are educated enough about visual appearance of forex signals, so now we will discover about the remaining process of forex trading signals. The question arises, how do forex signal providers acquire all the needed information? So, the answer here is that-it fetches the information by two methods, the first ones is the human analysis while the other is automated system.
This method of forex signal service is very rare in the online marketplace. This is because human analysis is very different than automated algorithm. However, theses service providers are generally managed by a seasoned forex trader that has an incredible experience in this niche.
They will manually perform a thorough research of the currency markets through a combination of their known strategies. Then, whenever a potential trading opportunity has been found, the human trader will notify about their findings and outcomes.
In most cases, your chosen automated bot or other system will utilize an automated algorithm to find the best trading opportunities. This technology will most likely be backed up by the likes of AI and / or machine learning or technical indicators.
It is worth-noting that the automated algorithms are more capable than the manual traders and can help you to generate a good profit:
- There isn't any limit to the number of pairs that an automated algorithm can analyze.
- Human traders are bounded with their emotion however an automated algorithm can scan the forex markets 24 hours per day.
- Automated algorithms follow a pre-developed set of rules. Therefore, it does not make errors nor does it suffer from emotion. There is even no risk of fatigue and any emergency.
The best forex signal providers keep on updating their automated algorithms on a regular basis. This enables the system to stay ahead of the curve in an ever-changing global forex trend.
What to choose: Semi-Automated or Fully-Automated?
Now you have two options to consider- whether your chosen forex signal provider offers a fully-automated or semi-automated service.
- Semi-Automated: Most forex signal providers usually offer a semi-automated service. This clearly means that you will get a forex signal, and then you will be required to place the trade yourself with your chosen forex broker.
- Fully-Automated: A fully-automated system takes up the sole responsibility of your forex trade and acts on your behalf.
Best Forex Signals Providers 2021
The main challenge is to analyze about the best service to sign up with. After all, there are so many options available in the market. In truth, most of these providers are usually scam and hardly meet the results they claim.
Now with all these things in mind, we are now going to analyze some of the best forex signal providers who are offering their services online. But its important to make sure that you perform a thorough research before selecting your service provider.
A comparison of Free Forex Signals & Paid Signals
After you have explored the best forex signal providers of 2021 - we will now analyze the free and paid signals. As some signals providers in the marketplace offer free forex signals without any prior registration, while others offer their services basis of subscriptions. Here we will analyze both forms of signals in detail so you get a clear idea though.
Free Forex Signals
Whenever you start using a free signal service, you will receive trading suggestions without having to sign up for any plan. Instead, everything is based on free to use basis.
Now, as we discussed before there is quite probability and common practice for 'free' forex signal platforms to 'blackout' their key information and hidden charges.
For example, you have a signal indicator like this:
- Pair: GBP / USD
- Order: Buy
- Entry: 1.xxxx
- Stop-Loss: 1.xxxx
- Take-Loss: 1.2905
If you see above, you will know that you need to place a buy order on GBP / USD, and that your take-profit target is 1.2905. However, the free forex signals provider has kept out the entry price and stop-loss price hidden.
As a result, the forex signal is of no need, as you don't have any information about what price to execute the trade at, nor do you have the required stop-loss price to mitigate your risks! And for sure, you want to get an idea on these two prices of key information, you will need to pay a fee. So, there is a sharp contrast between their free signal provision claim.
But there are many bots also available on the marketplace that are not exactly like them. There are also top-notch free forex signals provider online with real service that comes with no hidden charges and we can rely on their performance.
Paid Forex Signals
In most cases, paid signals usually come in the form of a subscription service. This means that you will need to pay a monthly fee to continue using the service provider. For example, you might need to pay $ 60 per month, which can be deducted automatically from your given payment method unless you cancel it by yourself. In some cases, you might also come across such providers that charges a 'one-off fee'.
We usually recommend not to go for such providers. The reason for this is that once the provider has taken your capital, they have no interest in your trading. You can also say that there remains no motivation for the provider to ensure that its signals continue to stand out the market, as it does not have the capability to earn any revenue from you.
On the other hand, those providers who operate a monthly subscriptions service must make sure that they remain ahead of the curve. Otherwise, they will very quickly lose their customers and no user will take the service for another month. In order to do this, they will continually make updation to the underlying algorithm.
How to Choose the Best Forex Signals Provider
So now that we have analyzed the free v / s paid signal service provider, we are now sharing our strategies on how to choose a forex signal service yourself. After all, the marketplace is largely dominated by traders that make bold claims that are never fulfilled.
Below you will find the most important indicators to look before choosing the best signal service providers.
A good record of winning rate:
When you go for a forex signal provider, the platform will often make claim about such features that would attract you with its outcome in means on money. It usually refers to the 'win rate'. In very simple terms, the win rate refers to the percentage of signals that are profitable. It is proven that the higher the win rate, the stronger the signal provider is.
- Let's assume that the signal service provider has an average monthly win rate of 80%
- The provider notifies 50 signals throughout the month
- In this scenario, this means that 40 signals returned a profit
- As such, 10 signals generated a loss
There are two key analysis to make here. Firstly, the win rate doesn't let you know how much profit you actually make. This is because it all relies on the size of the profit / loss applicable to each trade.
For instance, you might make 3% gains from your first trade of the day, and then make a 4% loss on the second. If your stakes remain stable, then you would have lost more in your second trade than you earned in your first.
On the other hand, it is very common for the provider to market a win rate of 80%. However, how do you realize that these claims are valid? With this in mind, you need to find and research various methods to verify the legitimacy of such claims. The most credible providers out there will always publish a genuine record of their trades, so that this can be verified by a well-developed third-party source.
In the global world of forex signals, you really do get the profit for what you invested for. This means that you should never go with a provider just because they offer a low-cost service. Once again, you need to realize and think about what goes on behind the scenes.
If choosing a provider that has built an in-house automated algorithm, this would have taken many months or even years to perfect. Then, the provider in long terms will need to continuously update and improve the algorithm to ensure it continues to compete in the markets.
As a result, those that charge a higher monthly price often do so to show the expertise and dedication that has been done for the product. At the other end of the scene, a provider that takes a somewhat 'blasé' approach to the underlying algorithm and ongoing updating is likely to offer both a budget price and service.
This is a metric that is often not considered by newbie traders, but it's really important. So, when you use a forex signal service, providers will often execute orders during standard market hours. For example, if you are using a provider in the UK, then signals will most likely be distributed between the hours of 8 am and 5 pm - GMT.
However, if you're based in Canada, this means that you will receive the signals at other hours of the day. As a result, you need to discover what time zone the forex signal provider operates on. In an ideal world, you will be using a provider that operates on a 24/7 basis –that means that you will not miss out a single profit-making opportunity.
Pros and Cons of Forex Signals
- Start trading in the forex markets without having any prior knowledge of how it actually works
- No need to conduct in-depth technical research
- Benefit from the advanced features of automated algorithms
- The best providers will continuously maintain and update the underlying algorithm
- You will be provided with all the desired entry and exit prices
- The space is dominated by scams and there is no monopoly in the marketplace
- The best providers charge a higher monthly fee
In a nutshell, a forex trading signals give you the opportunity to make consistent profits without any prior experience. Similarly, you also don't need to know about reading charts or performing any technical analysis - as the entire process relies on the automated system.
This is because you will be given with the required entry and exit prices to act on the advice with just a simple click of a button.
We have provided you with all of the required information to find a forex signal service that best meets all your revenue generating goals.
Should I go for a free forex signal service?
Imagine, if you had spent many years building an algorithm that is able to consistently stand out in the forex market, would you give it away for free to the users? Therefore, the best forex signal providers always charge a monthly fee.
How to identify the best forex signal service?
This is although a difficult question to answer, as it depends on the type of service you really need. If you want to choose the best service provider, make sure to research about its review, pricing and time zone.
How does forex signals usually operate?
Some providers will send forex signals through email, while others may utilize RSS feeds. Additionally, some providers use Telegram - as this notifies on your phone the second a signal is provided.
What is a good forex signals target win rate?
As said above that the higher the win rate, the more revenue you are going to make in the long term. With this theory, the provider needs to have a win rate of at least 50% to remain successful. However, you should be targeting providers that range from the 70% -90% threshold.
Do all forex signals provide with a stop-loss and take-profit price?
Yes, the best forex signal providers in the market will always provide the required entry price, stop-loss price, and take-profit price. This ensures that you have the selected the genuine service provider.
What is the estimated cost of forex signals?
The amount of forex signal providers is varied in the market. You can expect from free service to more than $ 100 per month.