What is a Forex Trading Signals Service?

A forex trading signals service is a paid-subscription service that sends you alerts when the conditions are ripe for a currency trade. Using cutting-edge software, forex trading signals services constantly monitor all major currency pairs for the emergence of technical indicators that signal high-probability trades. They use historical data to match up current chart patterns with old charts that led to profits in the past, and you can judge a forex trading signals service by its record of recommendations, which is always provided at the service's Web site. (Or if it isn't, you had better look for another, more reputable forex trading signals service).

Are forex trading signals services for beginners? The answer is yes and no. Some forex trading signals services are specifically for advanced and experienced traders, but others are geared toward novice and intermediate forex participants. It is important, however, that you have a basic knowledge of how the forex market works before using a forex trading signals service to recommend your trades. In fact, most forex trading signal services recommend that you gain experience through a free "practice" account before subscribing to their service.

"...unless you use a forex signals trading service to also automatically execute your trades or notify you about new signals via email or SMS text message"

Another issue to consider with your forex trading signals service is the time-frame of the recommendations. Some signal services have remarkably short trading windows; i.e. their recommendations are only valid for a few minutes or hours. Others have recommendations that generally stay valid for a day or more. This is important because the shorter the time frame of the recommendations, the closer you need to stay to your PC in order to execute your trades -- unless you use a forex signals trading service to also automatically execute your trades or notify you about new signals via email or SMS text message. This is an add-on service some forex trading signals services are now offering.

Another consideration, obviously, is price. Some forex trading signals services do offer discounts if you use a particular forex broker to make your trades. Typical subscription fees start at $200, but some are much more. Be sure to check the service's historical results, which should be easily located through their Web site, and then calculate if their fees are worth it. If you spend $300 a month for the recommendations but they allow you to make an extra $600 per month, then that is a far better deal than a $50 a month service that actually costs you money by providing bad recommendations. Remember, value is more important than price!