What is a Forex Signal?
Forex signals are simply put, alerts that are provided to traders on opportunities that have arisen in the market to either buy or sell a currency pair with the aim of profiting from price movements.
The methodology of provision of forex signals have evolved over the last ten years. When the first forex signals services were provided, they were sent out mostly through SMS. These days, forex signals are now sent out in a variety of ways. In order to benefit from a forex signals service, the trader should follow this 5-step vetting process.
- Check for any reviews online.
- Verify any trade results posted
- Assess the sales pitch itself: does it look too ‘salesy’ or too good to be true?
- Is there an evaluation or trial period offered?
- Look for a money-back guarantee.
Checking for Reviews
Some forex signals reviews are obviously the work of paid agents. But then there are ways of looking for genuine reviews. Check to see if there are reviews from people who have actually used a forex signals service.
The Sales Pitch
If a sales pitch talks about success rates and indicates that the success rate for forex signals sent is 95%, this obviously does not tally with industry standards. If the sales pitch were to give profitability of between 65% and 70%, this is a lot more believable. Assess the sales pitch and check to see if the wording is reflective of what is actual and not what is ideal.
The evaluation period enables the trader to test the forex signals service to see if the claims made on the sales page are actually for real or are overestimated. Some forex signals services allow a free evaluation while others may offer it for a low price.
Any forex signals service worth its salt must be able to provide a money-back guarantee. The money-back guarantee is what gives traders that impetus that they actually have nothing to lose by using the forex signals service, since their money will be refunded if the whole thing does not work out.
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