Picking the best signal service provider in the Forex market is a very tough task. Some of you might not have any clear idea about the signal service providers. Those who sell trading signals to the retail traders in exchange for money are known as signal service providers. Usually, they are highly skilled professionals who know the perfect way to execute the trade. Being a currency trader, you might think using the trading signals from other people is nothing but waste of money. But if you can find the reliable signal service provider, you can actually make your life better. Let’s learn the technique by which we can pick the best signal service provider.
The reputation of the company
The first thing which you need to consider is the reputation of the company. Have you ever heard about the company from the experienced traders? If not, start researching the online trading community and look for reviews. Usually, the naïve traders give strong positive feedback to reliable companies. If you find it hard to get positive reviews about the signal service provider, chances are high you are dealing with a new company. But never think the new companies are not skilled enough to sell signals. You need to assess their portfolio before you close a deal with them.
Assessing the portfolio
Before look for the signal service provider, you need to learn to assess the portfolio of the experienced traders. A good trader will be able to secure a profit at the end of the year. The maximum drawdown should never exceed 15% since it determines the safety factors of your trading career. If the signal service provider fails to present your verified portfolio, you should never buy the signals. On the contrary, if you feel satisfied with their proven track record, you can buy signals even from a new company. But the portfolio should have 2 years of trading data or else you should never buy the signals.
Copy trade service
If you search the term copy trading Australia, you will find highly skilled traders offering copy trading services. They are just like the signal service provider but they have embraced modern technology. Instead of manually executing the trades, you will link your real account to the master account. All the trades will be copied and you won’t have to look at your trading charts. Most of the reputed signal service provider offer copy trade service to the retail traders. However, you can assess their signals by linking the demo account. If you feel comfortable with their offered service link the real account.
Time frame
There are two types of signal service providers in the Forex market. The scalper offers signals in the lower period and the position traders give signals based on the higher time frame data. Those who have spare time should prefer short term signal service, providers. On the contrary, those who are busy with their day job should look for long term signal service providers. The selection of the time frame is very crucial unless you use the copy trading service. So, ask the signal service provider which time frame they use to analyze the market data.
Risk recovery factor
No one can win all the trades. Even the professional signal service providers lose money regularly. If you look at the skilled trades, you will never expect to win all the trades. So, expecting winning trades from the signal service provider is a very big mistake. They will also have some losing trades. Try to analyze the recovery factors of the signal service providers since it tells a lot about their offered service. You can do the basic match of risk to reward ratio and find their recovery factors. Never trade with the signal service provider who uses a low-risk reward ratio in each trade.
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