Forex signals are an increasingly common offering in the FX world – but are they worth buying?
Forex signals are a service provided that allow you to copy the trades of ‘profitable’ traders to make money alongside them. On paper the idea is all well & good; 5 or 10 minutes a day to make some serious money by copying the movements of a professional? Brilliant! But in reality… is your experience going to be positive? Could it really be that easy?
The simple answer…No.
Forex signals as a standalone service generally do not work for the individuals using them for a number of reasons. Let’s take a look through some of the reasons why signal services don’t run as smooth as you may initially expect – and come to a verdict on whether they’re a good investment or not for less experienced traders & people looking to make a side income alongside their job or other commitments.
Finding a Reliable Provider
The first major hurdle in buying forex signals is choosing a reliable provider. In the modern day, social media & the web is littered with fake traders & marketers who are out to get a quick buck via broker commission agreements. The process goes something like this:
- They flash an Audi, a Rolex & endless beachside holidays on Instagram
- You get pulled into the lifestyle dream they are selling and buy their signals
- They get you to sign up with their ‘broker of choice’ (perhaps for a ‘free trial’)
- They recommend high trade sizes and send out 5+ forex signals a day
- Your account gets blown up and you lose your whole investment
- They walk away with a hefty commission from their broker deal & a smile on their face
These types of commission scams are all too common nowadays and unfortunately some brands in the industry have even developed themselves quite large followings by selling dreams. It’s human nature to go after what looks good to us on the surface, but it pays to dig a little deeper before handing your trust & your cash over to a signal provider.
So the first step is finding a signal provider who isn’t a faker or a scammer – a harder task than I’d like to admit. I’d never recommend buying into someone who flashes a lifestyle at you without showing any trades, charts & results. Traders who show losses & provide knowledge are who you want to be selecting for your service to save you some tears.
Remember: VALUE over LIFESTYLE
It’s possible that even when trading with a reliable provider you’ll still lose money over time. You may look to blame then but more often than not the issues lie within. There are a lot of variables that can make it hard to win while following someones commands. For a start risk management must be deeply considered and adhered to on every trade you take using the signals; if you choose a reliable provider they’ll tell you this. If you aren’t risking the same amount of money on each trade you take then you risk blowing multiple wins with a single loss which would mean you fail to make money even when your provider and other members of the team are winning.
Another variable is missing trades; we are not always active 247 – perhaps your signal provider is in a different timezone and starts their trading sessions early in the AM when you’re still asleep. Perhaps you’re busy at work and physically not able to catch every trade sent out. Regardless of the reasoning missing trades can be detrimental. Trading is made up of multiple wins and losses so if you’re missing the wins and only catching the losses you’re going to end up in a bad state, even when the signals provided are profitable over time.
These variables make it difficult to succeed with copy/paste signals even if you do manage to find a reliable provider. Consider this if you work a day job where you don’t have immediate access to your trading account or if you choose a signal provider in a different timezone.
Lack of Learning
A big pitfall with forex signal services is a total lack of learning. Most services provide copy-paste text with no explanation of why a trade was taken and how it’s going to be managed. This in my opinion is entirely counter-productive as it puts all responsibility of your success in someone else’s hands and cuts out all aspects of education for you as a service member. The ultimate goal when entering the world of trading should always be developing your skills to the level you can trade and profit self-sufficiently. What happens if your signal provider quits one day? You’re on your own with no skill and no means of making money. Whether you’re looking at this as your dream career or just a side hustle for a little bit of extra money you should always be striving for self-sufficiency; you will thank yourself greatly in the end.
Best practise would be finding a forex signal service that provides analysis and explanations with the trades sent out. These services allow you to learn from every trade taken be it a win or a loss. By being involved in this hands-on part of trading your skillset will develop much much faster than just copy & pasting numbers putting you closer to the ultimate end goal.
In conclusion I’d go ahead & say a forex signal service is NOT the best investment you can make when entering the world of forex trading. To ultimately succeed as a trader you need the learning side of things too like trade breakdowns & educational content. Variables make it hard to win on a stand-alone signal service even if your provider is legitimate – if you are looking to start earning with forex trading you need to go deeper than the dream of copy-paste money, you need to learn processes rules & methods to help you win.
What Do I Recommend?
For anyone considering buying forex signals I’d recommend taking into consideration the pitfalls we’ve discussed here, and instead opting to invest your money into a mentoring-focused Trading Team or an Educational Course. A trading team will provide you with the trade ideas & signals you desire, but will also show the hands-on side of trading that really matters – the processes behind each trade taken & the step by step management on each trading position. Best yet you’ll have a committed mentor & team leader on hand ready to help with all hardship you encounter.
Put education first and accept the commitment that you need to make towards your success. If you are serious about trading then joining a team is an enjoyable and highly rewarding step to take. If you are interested in fast money only and don’t want to learn the processes behind the market then go elsewhere – forex is NOT for you.
Start Your Journey To Success
I run a trading team over here at JeaFx – I send out my trades with SL & TP levels included much like a forex signal service, but every trade I send out is broken down entirely with chart screenshots & in-depth weekly videos to help you learn the market processes & develop your personal trading skills. My trading team also has access to my private members area where I post regular educational videos to continually better your skills as a forex trader. Here you can earn & learn at the same time:
I’ve also got a 10+ hour long Educational Trading Course teaching every step of my successful methodology, and provide private 1-2-1 session for traders who want to brush up their skills on a face-to-face basis. Take your education seriously! Invest in yourself & commit to learning this life-changing skill: Self-sufficiency is worlds better than unsustainable fast cash.