Should you follow trading signals?
Professional or amateur traders provide trading signals to beginners to help them in their financial journey. They provide their ideas through WhatsApp or telegram channels and charge a monthly fee for the service. There are tons of services in the markets which promise to make hundreds and thousands of pips each month. It cannot be apparent to select the right one for your needs. Our article will go through whether investors should like trading signals and pay for the service.
Key Features Of Signal Providers
The best signal services aim at maintaining transparent records and having a genuine customer care service. Let us see the vital features of signal providers which traders can consider.
- Records. Trading records should be tracked through verified websites such as Myfxbook. Most of the signal services only show their records through a manual approach on their respective pages. This is not a proper approach to follow and hints that the provider is not genuine.
- Transparency. Social media channels which promote open conversations amongst various users of the signals show that the service is transparent. The provider will also provide their trading portfolio with detailed records.
- Channels. Top signal services provide their trades through automated means. They may come under the category of account management, but this reduces the latency between trades and eliminates the manual hassles that a trader may have to go through.
- Customer support. Customer support should be available on most hours. Even if live chat services are not present, the response time on the email must be adequate.
What are scam signal services?
Most of the trading signal providers in the financial markets are scammers. They sell their services through social media channels in which Telegram is the main hub. It is pretty easy to identify them as they are frequently seen bosting about big profits and money without providing any records to back their claims.
By charging customers a monthly subscription that can range from $100 to $1000, they are able to make quick bucks and then vanish after a while. There is a free group that contains a few signals to attract traders onto the pro channel.
Benefits and demerits of following signals
Traders can find the following benefits while using trading signals.
- As mentioned before, beginners can get a good idea of how the market operates by following trades from professionals.
- Traders can make a good amount of passive income by using account management services.
- This can help beginners avoid the losing curve which is present in the initial years of trading.
- Professional traders can make a good amount of passive income without investing any good cash.
While the disadvantages are as follows:
- Most of the signals services are a scam and do not care about teaching traders. They look for robbing them of their cash by providing fake statistics
- Most traders can get confused when the trading style of the provider does not match their routine. This can make it extremely hard for following the positions
- Slippage can be a big issue when the providers are scalping on the market
- Most of the trading signals do not come with proper performance tracking. The manual records available on their portfolio are tweaked to attract customers by showing better than actual results
Signal services are a great way for beginners to learn, but selecting the right one can be confusing with so many options out there. It is better to read out the customer reviews available on noted websites to verify the providers’ performance from the viewpoint of other traders. This can help save you from losing cash on monthly subscriptions.