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Forex signals have emerged as a natural innovation in the financial industry. In fact, they facilitate the most difficult task facing any trader: Identifying the right trading opportunities at the right time. By definition, a Forex signal is a trading idea or recommendation for a specific financial asset to be executed at a predetermined price and time. In other words, it is a kind of advice on when to open or close a position in the market. Regardless of a trader's level of trading skill and experience, Forex signals can help you improve your trading performance if only you manage to get a reliable source of information.

It is important to note that in a market as fast and dynamic as the foreign exchange market, a Forex signal is as useful as it is timely. This is because a signal can be the key to a successful move, but it can also become unsustainable if a trader executes it too late. To ensure that traders receive relevant Forex signals at the right time, providers send them to traders via convenient communication channels such as SMS, email and push notifications. Some traders can also install various platform plugins to receive Forex signals directly from the platform.


Manual Forex signals are generated by a person who may be a professional and/or experienced trader. And automated Forex signals are generated by computer software that tracks and analyses price action in the market based on coded algorithms. As you might expect, the difference lies in the trader's ability to interpret them: The software may be faster and allow for less human error, but it may be unable to recognise some variables as the trader does.


This is a classification based on the price of the signal provider. Some providers offer free signals (they may be unlimited or with a trial period) while others require payment. Paid signals can be provided for a one-time fee or on a subscription model. Free signal sources are often available, but unfortunately many are unreliable as there are not many reliable trading signal providers, so it is important to inform yourself about the providers before making a decision.


A type of signals based on the level of detail of the trading offer. Some signal providers may only provide entry signals, while others only provide exit signals, which are signals to close all relevant open trading positions that a trader may have in their account. The latter mainly applies to long-term trading signals for financial assets that have a long term trend. As a rule, in short-term intraday trading signals, the trading idea contains both entry and exit signals. In addition, signals may contain recommendations on how much to set as take profit or stop loss for a certain position.


As mentioned above, there are manual and automatic signal providers. Manual signal providers can be professional and/or experienced traders, market analysts and strategy providers. They generate Forex signals based on their trading knowledge, experience, fundamental analysis and/or technical analysis skills. And automatic signal providers are computer programmes that generate trading instructions when certain parameters or conditions set in the market are met.

Automated signal providers such as Expert Advisors (EAs) and other types of trading bots mainly apply technical analysis techniques based on mathematical prediction indicators such as moving averages, Fibonacci levels and Stochastics. There are also those that can be designed to apply fundamental analysis techniques, such as tracking economic press releases and market sentiment.


This decision depends on the trading goals and ambitions of each user. It is important to know that Forex signals are inherently risky and that your trading decisions are determined by a third party, while you are fully responsible for the outcome of trades. In other words, if your trade is successful, you will receive all the profits, however, if you lose the trade, all losses will be yours and not the signal provider's.

Ultimately, while you are benefiting from the knowledge of those who tend to be more successful than others, you are also sharing their risks. That said, it is also important to keep in mind the benefits that can be gained from using signals. In particular, for novice traders it is a unique opportunity to learn about the behaviour of the most experienced brokers on the market and apply the knowledge gained in the future. In any case, regardless of whether you are a beginner, an average broker or even an expert, the opportunity to receive trading signals allows you to relieve the time spent on analysing and trading.