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Looking for a reliable forex signals provider?
Its a difficult task to find a good forex signals provider that will work for most people. Some of the reasons being; The Internet is full of rubbish third party signal providers whom have excellent looking websites and convincing testimonial references that amount to nothing. It is very difficult to research and sort through so many signal providers to find a legitimate service that delivers good results consistently. Many people fall for the good looking website along with high priced subscription service rates, believing that an expensive looking website with expensive signals is an indication of
quality forex signals. They decide to try the signal provider for a couple of months and find out that they have just wasted not only money on the subscription fees but also lost money on the bad signals issued. Review sites A lot of review sites recommend signal provides that provide most referral fees for themselves. They would rather have your money than a clean conscience. No doubt you have already read many of the bad signal service reviews from ex-clients on various forex review sites. You will notice a lot of people have been hurt by using forex signal providers. Even if the problem is not always with the signal service provider, clients can also have the misfortune of hurting themselves in one way or another. Like being unfortunate enough to start receiving trading signals during a temporary losing streak. If the trader is not using correct money management principles relating to correct position sizing, this losing streak could wipe out the traders funds completely so that a recovery may not be possible. The trader should realize that losing streaks are a normal part of trading and needs to be factored into the position sizing, money management formula. What happens during a rough patch Even good forex signal providers can have a bad month or two within the whole year. The big question is; Can you or should you put enough trust in them to keep trading their signals after a rough patch? Will their performance return to normal? Or has something else caused the bad results? It would be unfair if the trader complains about the signal service provider's performance without giving the provider a reasonable length of time to get back on track. But, once again here comes the problem, can the trader trust the signal provider and enter recommended trades after several losing trades? More than likely the trader will sit on the sidelines and watch what happens after the losing streak. This means that the winning trades will not be entered and once again our trader is frustrated by not taking those positions. See the possible problems when the trader does not have complete trust in the signal service providers recommendations! Who can blame the trader for
not wanting to risk more of his money on possible future losing trades? Resignation of chief forecaster Other questions arise like what happens if the chief person responsible for market forecasts leaves the signal providers firm? Is there a person capable of taking over operations that will be as successful as his predecessor? Is the signal provider using a mechanical system or software that will be able to carry on should the key person resign from the firm? Correct position sizing Also, will the trader use the correct position sizing when trading the signal providers signals? As explained above if not, then the traders account balance may not survive a losing streak. (Losing streaks are a possibility with any type of trading system). Some signal providers issue too many alerts that encourage over trading. But then the problem is what if you don't take all the recommended signals? That means you could miss out on some of the best trades they issue? When you ask them why you have not done as well as their past performance history they will say that you did not take all the recommended trades. Can you trust the signal service provider or yourself? Can you really trust the signal service provider or yourself with all the issues listed above? My research into signal providers has lead me to believe that this is a MAJOR problem area for forex traders. So called "expert signal providers" charging large amounts of money for low quality
trading signals. Expert signal providers whom are willing to sacrifice large sums of your money on unsound trading principles. Yes, hard to believe but its true. They are out there. I have even come across one signal service provider whom said his firm will 'never-ever' take a loss as they will just wait for the market to 'turnaround' and come good again. That way the company can keep advertising its 100% accurate signals. Hard to believe, yet true! Recommendation to exercise EXTREME CAUTION For the reasons above, my recommendation is to save your money and stay away from third party forex trading signal providers. The only exception to this suggestion is that the forex signal service provider has held a good reputation for several years within the forex community with a satisfactory past performance record verified by a independent third party, and also explains their trading methodology so you can factor in any potential risk. You would also have to understand correct position sizing and money management so as not to over trade. Brainyforex has been testing a combination of different signal providers for many months through the ZuluTrade platform. The results have not been good. (Check out our testing through the link near the bottom to this page). It has proved to be difficult to work out consistent signal providers with low risk settings. If you think you have found a possible good forex signal service provider remember that they should provide you with past trading history results. If these prove to be false they can be prosecuted under the law for publishing false and misleading information. A good signal provider should also provide a free trial. Free trials show that they have confidence in their signals and they are not just trying to make money from you for a few months. Good customer support and service are also expected from good signal providers. WHOIS domain check Before you decide to trial a forex signal service provider who's reputation is not well known in the forex community it is prudent to do a WHOIS domain check. This can be done at www.internic.net Simply type in the name of the domain and you will find out when that website name was registered. If the trading history is for
a longer period than registration date, then we have to ask why? Be on the alert for scams with newly registered domains.
Recommended forex signal providersOne reputable signal provider on brainyforex recommended list is
ZuluTrade.
They have no reason or motive to skew trading results. Their software ranks numerous forex signal providers from all over the world, from which you can select the one that best suits your trading philosophy and risk level. Note : ZuluTrade is a FREE service. They receive their compensation through broker commissions so there are no monthly fees. Only currencies are traded. www.zulutrade.com ZuluTrade hosts a collection of automated signal providers. New high performance systems continually added.
Number 1 Ranked Signal Provider
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Who said automated trading systems don't work? Check out brainyforex robot testing page here.
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