A well-known form of Forex Signals is called copy trading, also called social trading, where you can follow many traders and their trading signals. Each signal trader advertises its performance through its signal trading and tries to increase the number of followers.
The more followers a signal trader has with these portals, the more commission he can earn through his forex signal service.
ATTENTION: A signal trader earns commission on social trading platforms when opening new trades and copying them to follower trading accounts. This model can be detrimental to you as a follower, as it motivates your signal generator to over-trade.
When choosing a signaler in copy trading, be sure to pay attention to how the signalers are remunerated to avoid potential conflicts of interest.
How are the Forex signals provided?
Most forex signals providers provide their signals in such a way that the customer has to become active himself. He has to open and close the trades himself in his trading platform.
Common methods for deployment are email, SMS, or a closed user area. The major drawback is that the signal receiver must be available day and night during the trading week to apply the signals to the market.
A better method is the automated transfer of trading signals into your own trading platform.
This type of deployment is mainly offered on social trading platforms.
The signals and the resulting orders can be executed directly and fully automatically using the predefined risk parameters. However, the signal generator also has full control over the trading account.
What kind of forex signals is passed?
What good is a forex trading signal if you only get one order for market entry and receive the stop loss? What is missing here, however, is the profit-taking strategy or a price level at which the trade is to be closed again.
This information must at least have a trading signal:
• Starting price
• Price of the Stop Loss Order
• Price or strategy of profit-taking
• Risk of the trade (how much % of the trading account should be risked?)
Make sure in your research, which type of Forex Signals Free is transmitted to you and whether the single trading signal contains the basic components.
How can you recognize and verify the history of Forex Signals Daily?
When the trader offers his trading signals through a social trading platform, the past trades are verified by the platform.
The most important criterion here is that the trader trades his trading strategy on a real money account.