Forex signals are paid services offered by some brokers
and independent Forex annalists. Companies that offer forex signals
monitor and analyze the market for you, providing you with their data via
desktop alerts, email or even SMS and pager alerts.
Forex signal services analyze several factors when preparing their data.
They do a technical analysis of market conditions and use a combination of
indicators to identify trends and isolate profitable entry and exit
points. They then send you the results via the venue of your choice and
you can choose to use the signal in your own trading, or pass on it.
Most forex signal services offer signals for only a handful of the most
popular currency pairs, such as EUR/USD, USD/JPY, GBP/USD, USD/CHF.
Occasionally, you can find specialty services that offer signals for other
lesser traded pairs. Forex signals can be costly, even upwards of $100 /
mth. The benefit of subscribing to such a service is that they analyze and
crunch the data for you, saving you time. It should be noted, however that
using a signal service is no substitute for a proper education in the
Forex markets. Signal services give you data, you still need to know what
to do with it.
When shopping for a signal service, make sure that they provide you with
historical data so that you can see their track record for yourself.
Remember, that like any trader, Forex signal services also have loosing
trades. You shouldn't expect a signal service to be a sure ticket to
instant Forex wealth, but rather look at them as another tool in your