This is a decision that will depend on your trading goals and ambitions. The main reason for this is that the inherent risk of forex signals is that your trading decisions are determined by a third party while you take full responsibility for the outcome of the trades.
That is, if your trade ends successfully, you get to enjoy the full profits; yet if you lose a trade, the full loss is yours and not the loss of the signal provider.
To ensure you take advantage of the lucrative opportunity of using forex signals, ensure you apply the following tips:
- Choose the Right Broker
This is a no-brainer. A good broker will have a reliable platform that will ensure the smooth execution of Forex signals.
- Choose the Right Signals Provider
This is the most challenging part of using forex signals. A good signals provider will have a success rate of more than 60% that will ensure a steady account growth with minimal drawdowns. This means that providers with some history will generally be more reliable than new ones whose trading results might be skewed. Additionally, 3rd party providers have a long history of providing quality forex signals.
- Trial Period or Back-testing
Before committing to a signals provider, ensure that you can ascertain their trading performance. Some providers offer a trial period, which ensures you only continue if you are impressed by its performance. For automated strategies, you should be able to perform back-testing to observe how the software would have performed in different market conditions. It is also prudent to try out the signals provider on a demo account (for forward testing purposes) before putting real money on the line.
A signals provider may not have the same investment objectives as yourself, which may mean that the signals provided may not be suitable for your trading account. Both ZuluTrade and DupliTrade have high customisation capabilities to ensure that you can align a profitable signals provider to your trading goals and ambitions, with reasonable risk.
If you understand that forex signals can boost your trading activities and accuracy, FXMA is here to make your dreams come true.