Forex trading signals are notifications or alerts that inform it is a good time to buy or sell a particular forex pair. There are several methods for informing you of these recommendations, with the most common being SMS, Twitter, email or via RSS. They can be automated or provided by humans and fall into two categories. These categories are news trading signals and technical trading signals.
News trading signals are for a fundamental approach to forex trading. An approach where you consider economic data and geo political news. These signals look to provide information to you the trader as quickly as possible so that you can get a trade running shortly after the news release.
Technical signals are the other principal category of signals. They are trading tips which are based on technical analysis. The vast majority of forex signals fall within this bracket. With these signals it is hugely important that you trust the provider of the signals and that you know they have a good track record. Otherwise, it could prove to be a very costly mistake.
Benefits of using signals
The benefit of automated trading signals is that they take the emotion out of trading and the can be provided to you any time, and can cover a wider range of pairs, much more than any human could watch. Furthermore, good signals can actually be quite accurate as long as the programme being used has been created in a proper, professional way.
However, don’t be fooled that by using signals you can avoid learning how to trade. This is not the idea behind trading signals. They can be particularly useful whilst you are starting out in trading, or if you find yourself short of time to do all the analysis necessary yourself. But you must make sure that you understand the signals that you are receiving. When you receive the signal do your own analysis to confirm the signal that you received. This is a very good way to start trading and enables new comers to learn the ropes relatively quickly. But it’s not just new comers who can benefit from signals, those traders that are time poor can also find such services extremely useful, cutting down and directing the analysis that needs to be done.
Drawbacks of trading signals
A vast majority of trading signal providers are very costly. Additional services that you are offered when you sign up to a signal provider also range from nothing to comprehensive. Realistically you could expect to receive anything from emails, SMS or WhatsApp messages to performance trackers, customer support and comprehensive analysis.
Services can also vary greatly in the quality of what they send through. It is therefore good to know that some exceptional brokers, such as Vantage FX, offers clients free trading signals, through the world renowned MT4 platform.
MT4 Trading signals
Trading signals on MT4 allows you to automatically copy the trades done by other traders in a live environment. It works like this, successful traders share their forex trade in a public space, either for free or for a small fee, turning them into signal providers. If you go to the Signals tab on the trading platform you can find the list of signal providers. This has been conveniently arranged to show the most successful ones at the top. All you need to do is simply chose the provider and subscribe to their signal and start copying the deals they do. Place the trades into a demo account or straight into a live account.
MT4 trading signals have all been thoroughly tested before being pre-approved by the platform’s developers. MT4 is the world standard for forex trading, therefore if you know the signals have been approved by its developers, then you can feel comfortable knowing that you are using top quality signals, which are credible, helping to prevent you from heavy losses and leaving you more time to focus on your trading strategy.
In short, Forex broker iReviewforex brokers works in close partnership with MT4 to offer its clients access to a large number of trading signals, many without any cost at all.