Forex signals are information which indicates about a particular move to be taken in relation to the proceedings of a particular foreign exchange transaction. They are basically trade signals which tell the trader about an impending opportunity in the market, and to which, if he acts might stand profited. Trade signals have a long history. Trade signals existed right from the time of emergence of trade. The only changing factor is the medium through which these signals are transmitted. A signal can be an audio or visual indicator which is transmitted through a medium across to the trader.
A good signal or strong signal is that which when acted upon yields sure profits. Vague or uncertain signals are those which have less probability of bringing definite profits. They are known as weak signals. The trader has complete discretion to act upon a signal or to ignore it.
Who gives a forex trade signals?
Anyone can give you a trade signal. Forex signals are definite tips on forex currency prices. These tips or signals are arrived at by the provider through some calculation and some estimation done on the basis of the present and past market events and analysis. Any person who watches the market closely can provide you with a useful signal. They provide you signals for a price.
Forex firms, forex agents, forex brokers, and several trading firms provide forex signals to its clients. Nowadays, there are several business news channels and websites which provide forex and other trade signals as a part of their program. Apart from these entities, there are private parties who provide signaling services which include finance managers, hedge managers, stock dealers and brokers, and investors from different financial markets.
A forex firm or trading firm provides the signaling service to its client for a certain amount of subscription which may or may not be included in the fees for their other trading services to the client. For this reason a trader, who signs up for this service, is generally termed as a subscriber. The subscriber can be a professional trader, private investor, or a firm.
The trading firm or agency that provides signaling services enters into a contract with their client for this service. This contract is time based, that is, the term of the service can be varied, and accordingly the size of the subscription or fees also varies. The amount of subscription, on an average, ranges from 200 to 300 dollars per month. However, these rates are not fixed; it is different for different providers depending on the quality of the service, reputation, and size of the providing firm. Also the nature of the subscriber is taken into consideration. The rate of services for a private investor may not be the same as the rate offered in case of a company or investing firm.
Apart from the abovementioned providers, there are automated signaling softwares and apparatus which are programmed to provide forex signals.
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