Top 8 FOREX Signals Providers
The FOREX market is fast-moving and hyper-competitive. FOREX signals providers play an important role in this area as they offer a way for traders to get ahead. FOREX signals are pieces of important information that tell you to act on a trade within a specific time window. Think of them as a reliable alert that tells you that now is a good time to place a trade or to sell up.
FOREX signal services are powered by technical and fundamental analysis. They can be generated either by human analysts or by an automated signal platform or tool. Signals help unsure traders by giving them information that, if acted upon, can allow them to make a trading profit.
The FOREX market is very daunting at first, and many traders struggle to get to grips with the overwhelming amounts of information they need to synthesize to make a winning trade. Rather than have traders disillusioned by constantly making losing trades, signals can help investors extend their careers by ensuring consistent early wins. We have written this article to introduce you to the top 7 FOREX signals providers on the market today.
An Important History of FOREX
New traders just joining the action should understand that FOREX trading has been around in some shape or form for centuries. Modern FOREX trading arguably has its roots in the great depression, when, in the early 1930s, ordinary people wanted to exchange their depreciating currencies for gold.
The prevailing way to peg a value to currency at that time was via the gold standard, a monetary system in which a country’s currency had its value directly linked to the amount of gold it had in its reserves. However, many major economies decided to abandon that method in the early 1930s, leading to the birth of fiat currencies as we know them today.
The most modern FOREX trading system we know today began in the early 1970s when the US allowed its currency to float freely in the FOREX market. This gave rise to traders and brokers taking up this activity on a more professional level. Why is this relevant to signals? Well, it simply underscores that the FOREX market is highly developed and very mature, and every trading trick in the book has been tried many times over. So, when new traders enter the market, they need every tool to assist them to succeed. Hence the rise of FOREX signals.
What are FOREX Signals?
In any mature market, such as FOREX, participants are always looking for an edge. One important driver of this need for innovation is the idea that participants are playing against the system. As we know, market makers across the industry help determine the price of FOREX pairs, with most of the prices being determined by the economic standing of the countries whose fiat currency it is. These exogenous price factors are far beyond the influence of the individual retail FOREX trader, whose job it is to understand the market and profit from it.
At the outset, we mentioned that the FOREX trading learning curve is steep, so traders need whatever assistance they can get to make winning trades. Signals have been designed to be nothing more than a prompt for a trader to act in a certain way at a certain time. This is enormously beneficial to traders who are unsure how to proceed.
A signal comes as a pulse of information about a certain pair of currencies in the form of a recommendation that the trader must perform an action at a predetermined price and time. Signals are either generated by highly skilled and experienced human traders, or by automated algorithms.
Imagine being a newbie in the market and being able to be profitable while still learning. This is the biggest benefit of signals. Signals can be configured to fit the lifestyle of any trader. The available methods for traders to receive signals include SMS alerts to their phones, email blasts, or even social media alerts. Depending on the platform they choose, traders could receive the notifications natively via their FOREX broker’s platform.
FOREX signals are generated from a complex Web of inputs. If you know anything about multifactorial decision-making matrices, then you have an idea about how FOREX signals are generated. Signals could be the result of foundational analysis, combined with everyday technical analysis from chart-based information, supplemented with information from news and current affairs. As with any system of this nature, the longer the system is fed with rich details, the more precedent it has with which to work, making its recommendations more robust.
Technical analysis is one of the most important sources of information to feed into signals. Technical analysis involves reviewing past price activity, a complicated type of analysis that hones in on prior prices and support and resistance levels. This form of analysis is a great way to uncover shorter-term trends that benefit traders who use intraday trading strategies.
By comparison, fundamental analysis is more suitable for longer-term investments based on important country-level macroeconomic information. Much more information goes into a fundamental analysis at a national level, such as inflation data, manufacturing output, and unemployment figures.
For the trader, a FOREX signal is useless if not acted upon at the right time. The market is dynamic and fast-moving, meaning that buy-and-sell decisions must be acted upon before the information becomes dated and unreliable.
FOREX signals services come as different utilities to traders. Some are low-grade signals that almost anyone could figure out for themselves, such as a directional move of a currency pair. Others are much more valuable. The best signals include important information, such as information on when is the best time to take a profit or invoke a stop-loss.
Top 8 FOREX Signals Providers 2024
- Arincen
- Forexsignals.com
- Fxleaders.com
- Trading Central
- MeTatrader signals market
- Autochartist.com
- Learn2.trade
- FxPremiere
1) Arincen
Arincen is a powerful platform that includes a peerless social network and a thriving trading signals network. Traders of all experience levels can take part in this bustling marketplace where experts lead the way with signals based on their success. Elite traders and newbies alike can rub shoulders in this place and access to information is democratized. You can access top level signals in the following areas:
FOREX signals
Stocks signals
Crypto signals
Gold signals
Oil signals
There are a range of free FOREX signals, however, if you want to get the red carpet full service you can subscribe to the VIP signals section, a paid FOREX signals service, where even more features are unlocked.
In the highly detailed user-profile section, you can monitor the performance statistics of your chosen signals expert, on which market they are trading, such as crypto, oil or FOREX. Using FOREX as an example, you can track which currency pair gives the expert most success. You can also monitor the amount of positive pips they have won over a timespan of months or even years. You will also see detailed information such as winning and losing pips, most successful assets, the average winning signals, and a range of other highly informative data.
If you are ready to go up a notch and get into more elite territory, you can sign up to the experts page, where you will find a detailed list of experts from which you can pick according to your preferences.
2) Forexsignals.com
3) Fxleaders.com
4) Trading Central
5) MeTatrader signals market
6) Autochartist.com
7) Learn2.trade
8) FxPremiere
Who Provides FOREX Signals?
By now, you know the difference between manual and automated signal providers. Manual analysis is a more intensive exercise usually carried out by experienced traders, professionals, or broker-appointed in-house signal experts. Manual providers give you trading opportunities that are derived from their trading experience. They may all use the same fundamental and technical analysis tools, but many companies claim to have a "secret sauce" that is linked to their verifiable success rates.
On the other hand, automated signal providers rely on the power of software that is specifically developed to create trading instructions under the right conditions. Each of these types of signals has its place. EAs are well known in the market and are just another kind of automated signaling system. Their power and convenience come from their ability to make rapid sense of data-rich sources, such as moving averages, Fibonacci levels and stochastics.
Automated signal providers can choose to rely on only these highly technical sources, or they can supplement their analysis with more traditional methods, such as watching economic news releases and market sentiment. In some cases, certain FOREX brokers collaborate with third-party signal providers to supplement their own analysis.
Automated trading is so popular that there are several so-called auto-trading communities in the world of FOREX. In these communities, anyone can become a signal generator, provided they fulfill several conditions, such as proving their trading experience and success. Over time, community members develop reputations for success or failure. Some traders can be criticized for simply being inactive on the platform as the community exists to provide copy trading opportunities to other traders, so signal generators must be seen to be active.
How to Choose a FOREX Signal Provider
There are several factors to consider before choosing a FOREX signal provider. Remember that some platforms ask for a fee, and other platforms offer signals as a value-added service. The first thing you need to do is to ensure that you choose a good broker or a good signal provider. How do you know who is good? In the case of brokers, you would be looking for proof of regulation and a track record of success and sound management. With other types of signal providers, you can try to access the communities that frequent these platforms to hear what they have to say.
Making the right choice among all available FOREX signal providers is paramount. Remember, by embracing signals, you are deferring to the expertise of the partner you choose. You give up your right to complain once you have entrusted them with your money if you stick to their signals closely.
You need to choose well because the result of choosing badly will become obvious–you will lose money by making bad trades. Generating signals is not a part-time job, and your partner needs to take it seriously and have a track record backed up by credible expertise in the field.
You are looking for reliability and reputation. Communities are some of the best ways to learn about the entity you want to entrust your trading career to. Devote some time to studying their trading performances and strategies.
The best signal providers will give you a generous trial period with no obligations because they believe in their product. Having access to a trial period means you can conduct back-testing of trading signals, which is an important way to weed out good signal providers from average ones.
Another factor for which you should be looking is customizability. There are so many data points that are involved in creating a FOREX signal. You can choose to go minimalist or comprehensive, but your partner should be able to support the direction in which you want to go. Once you get going, the rest is simple: select a currency pair, determine an entry point, insert a stop-loss order, and insert a take profit, then you are good to go.
What is the Difference Between a Signals Provider and a Broker?
A FOREX signals provider and a FOREX broker are two different entities involved in the FOREX market. A FOREX signals service offers trading signals to traders in the form of trade recommendations or alerts that suggest when to enter or exit a trade, which currency pair to trade, and at what price.
The best FOREX signals providers deploy various analysis techniques, such as technical analysis or fundamental analysis, to generate these signals. Traders can subscribe to these services to receive the signals via email, SMS, or through dedicated platforms. The job of a FOREX signals service is to offer insights and recommendations to traders, helping them make informed trading decisions.
A FOREX broker, on the other hand, is a firm that facilitates the execution of trades in the FOREX market. FOREX brokers provide a trading platform or software that allows traders to access the market and trade various currency pairs. They act as a link between the trader and the market liquidity providers, which may include banks, financial institutions, or other brokers.
Recommended Brokers
What is the Difference Between a FOREX Signals Provider and Social Trading Brokers or Platforms?
FOREX signals providers and social trading brokers are different in terms of the services they offer and the way they operate. The best FOREX signals providers, as mentioned earlier, are entities or individuals that offer trading signals to traders. Social-trading brokers, such as eToro, provide a different approach to FOREX trading by incorporating social and community elements into the trading experience. These platforms typically offer features like copy trading, social interaction and trade transparency in the form of detailed information about the performance, trading history and risk profile of traders.
Why Do Traders Use FOREX Signals?
Understanding FOREX Signal Systems
Using FOREX Signals
The best FOREX signals providers transmit information about whether it is a good time to buy or sell. This can be done via a manual or automated system. Signals are not only a FOREX tool, but can also be used to find out the best time to trade stock prices, commodity prices, and bond prices.
As mentioned, FOREX signals can be sent over a variety of platforms, depending on the software used and the trader's preferences. The best FOREX signals don't just tell a trader when to buy or sell, they also provide detailed information on why the action is the right one now. Here we explain the main types of signals:
Manual Vs. Automated FOREX Signals
FOREX signals can either be manual or automated. A manual system features an in-house FOREX trading expert hovering over their computer screen, searching for signals and advising other traders whether to buy or sell. With manual signal trading, it is up to the trader who receives the signal to make the decision on whether to buy or sell, and the human factor plays a large role. Manual signals rely a lot on human intelligence and experience. It is often said that if someone has had enough exposure to an activity, and they have been successful at it, they develop a "nose" for it, which is simply a combination of experience, knowledge and intuition.
Manual signals often recommend bigger take-profit levels. They can offer better risk-to-reward outcomes simply because they are more adaptable and in tune with market fluctuations and volatility. Automated signals serve a real purpose, no doubt, but they cannot replicate the human experience that sometimes causes a trader to slow down on a trade when an automatic signal would recommend flying in. This is because humans can interpret and synthesize incoming news in a way that is much more nuanced than a machine.
Automated trading, after the parameters have been set, allows traders to function on autopilot, without the perils of human emotion creeping in. Automated trading signals are created by a computer or software that monitors and analyzes price action based on coded algorithms. Much like how using a map app to get to a new destination makes a driver inattentive to the road, automated signal trading is said to make new traders lazy and inattentive.
Automated FOREX signals strip away the human element from trading and provide recommendations with no emotional involvement. This often works out well in the FOREX trading world. Often, the biggest success factor of a signal is getting the trader to act in a speedy fashion before the market changes. Automated trades can also be back-tested to give users a greater sense of comfort.
Paid FOREX signals service Vs. Free FOREX signals service
FOREX signals can cost you money, or they can come for free. Naturally, there is work that goes into producing these signals. Some of the best FOREX signals providers use their expertise in creating signals as something they can monetize, hence the fee. Other firms simply want to drive engagement and loyalty or position themselves as experts in the field. They might offer free FOREX signal services as a trial for a long period of time to encourage users to frequent their site.
Algorithmic FOREX signals
Some traders find it easier to use trading robots or Expert Advisors (EA) to generate their FOREX signals. An EA is created when a set of rules is input into an algorithm that places trades under certain criteria.
Entry Vs. Exit FOREX Signals
This category of signals is based on how much detail is in the signal. Some signals only provide entry information, which is a cue for the trader to enter the market. Other signals only provide exit information. Now that we know how signals are created, it is easy to see how customizable they are. Exit signals work best with long-term FOREX trading signals for investors who engage in position trading. Of course, it is no surprise to learn that the utility of a signal increases when there is more information contained in the signal, so a combination of entry and exit signals is to be welcomed.
Three Important Signal Types
Action Signals
Take-Profit Signals
Current Market Price
Advantages and Disadvantages of FOREX Signals
The best FOREX signals providers can give you invaluable information on the market and how to proceed. Here are some of the most important advantages and disadvantages related to this activity.
Advantages
Signals Are Highly Customizable
Each trader is on their own journey. Granted, there are vibrant trading communities and copy trading is a popular activity, but parting with your capital is a personal act. Therefore, traders may have their own timelines for when they want to open and close trades, and they may have their own risk tolerance. The ability to customize trading information is highly valuable. Each trader needs to be comfortable that they are trading based on what is important to them.
They Are Easy to Track
FOREX signals are easy to track because you can automate alerts via email, text, or other communication channels. Rather than remain on your trading platform indefinitely, you can use signals as pulses of useful information to keep you in touch with the market, even if you are out with family or friends.
They Provide Recommendations
In such a fast-moving and dynamic marketplace, it is not uncommon for traders to be confused about how to proceed. The term "analysis paralysis" could capture the dilemma of the new trader trying to figure out what to do next while studying reams of information on FOREX trading theory. A recommendation gets you started. It can give your career that vital impetus that breaks the mystery of trading and provides you with a first trading win or loss. The value of a recommendation to an undecided trader can be huge.
Disadvantages
Signals Are Not Exact
If you have developed the sense that signals are infallible, they are very much not. Even if you input the correct information all the time, the market contains enough variability and volatility to make even the best-researched signals miss the mark.
False Signals Are a Constant Threat
Garbage in, garbage out. This common mantra captures one of the biggest risks of following signals. If the analysis is incorrect because of dated or inaccurate data, then the signals will surely be incorrect. Therefore, choosing a good partner is the best thing you can do for yourself. Your FOREX signal partner needs to have shown they have been active in the market learning their stripes as this reduces the likelihood of error.
Over-Reliance on Signals Can Make You Lazy
Using the map app analogy, if you spend all your time on your driving journey looking at a map on a screen, you will lose sight of the scenery around you. Relying on signals is a good strategy, but until a trader can remove the training wheels and make at least some of their trades using their own experience and knowledge, they can never be truly independent.
FOREX Signals in Action
What You Need to Know Before You Use FOREX Signals
Know a Good Signal Provider from a Bad One
Understand Your Risk Appetite
Understand The Market
The Bottom Line
FOREX traders are in a constant battle to take advantage of every available edge. FOREX trading is the biggest market in the world and has rightly made many traders wealthy. FOREX signals providers are just another way of eking out another bit of efficiency in decision-making. However, you should know that signals, as helpful as they can be, are not infallible, and not all FOREX signal providers or even FOREX brokers are created equal.
FAQ
Are FOREX signals reliable?
What are the benefits of FOREX signals services?
Can signals take away the risks of FOREX trading?
What are the dangers of FOREX signals?
Which are better, manual or automated signals?
