Trader level: Beginner
In forex trading, information and good technical analysis are important to understanding when to get into at trade. These are called Forex signals and are either offered as a part of a feed from your broker or paid signal provider, or by analysts watching the movement of the forex market.
How are forex signals used?
Depending on the format of the information you are receiving they can be used in a number of different ways. I subscribe to a number of trader’s newsletters, and the delivery is more of an analysis and long-form writing. This has advantages in that a trader will learn a little more about the forex market, and get insights into different ways to analyse volatility.
The advanced trader will be able to notice how good the quality of the signals are, but for beginners, this is harder and could lead to bad trading and lost capital. I don’t recommend these for beginners, but do some digging and you will find many of these sites.
Other signal providers will often provide a feed of some description that either connects directly into your trading platform, or they can easily be copied & pasted. This is often easy to do, but you don’t learn much and can make trading a little less fun – even if it is paying off well for you because of reduced risk.
Best Forex Signal Providers:
- MQL5 – Provides technical trading signals fed right into your MetaTrader 4 or 5 platform.
- DailyFX – As part of the DailyFX Plus paid subscription, you get trading signals to help buy and sell different pairs as well as set your stops.
- Trading Central – The specialists in technical analytics. My personal favorites.
Free Forex Signals
Doing technical analysis, the work that creates signals, is hard and time-consuming work. Because of this I think you will find a free forex signal service that is 100% free and is full of profitable trading advice. Signals are used at your own risk, and since they can drive profitable trading strategy, it is worth finding a good signal provider that you enjoy receiving trading advice from.
That said, there are some signal providers that offer free trials and these are perfect for the beginner who just wants to understand trading before investing in it. So, as a short list, here are some good free trials:
- http://clearedgefx.com/ – 30-day free trial.
- http://www.metasignals.com/ – Offers a 200 Pips free trial and is emailed to you every day.
- http://www.signals24.com/ – 2 weeks free
- http://shark-tips.com/ – A 14-day free trial
- http://fxrenew.com/forex-signals/ – 7-day free trial
Finally, remember that if you are opening an account with a forex broker, you may often get some free signals as a part of that deal. Most forex brokers offer signals to the more premium memberships for free, or you can buy them through the broker if you have chosen a standard account. Pro-tip: Once signing up with a broker, and before making a deposit, ask the broker representative about this, and they may let you get a few months for free.