In Focus: FOREX Signals

by Tony Clifton

This article is for the readers who want to go beside the ponzi playing and even investing in the so called real HYIPs. This kind of investing/trading requires more money, some basic level of knowledge about FOREX and some of your free time. It can be compared to opening a Managed Account, but there are few differences. First let us see in short...

What are Forex Signals
These are paid services provided from currency traders. For a fee (usually monthly, for 3 months, yearly etc.) they will give you "tips" exactly when to buy and when to sell a given currency pair. This way you simply follow their trading and supposingly achieve almost the same results (differences depend on if you are able to act immediately on received signal, your account size, lot size etc).

There is no standard cost of the signal services, but they usually start from at least $100 per month. This of course means that your traded amount should be large enough so the profits cover this fee - if you want to be in profit.

Comparing Signals and Managed Accounts

These are both fraud free investments (if trading by signals can be called investment of course). Noone can run away with your money - and even if the signal provided disappear, dies or what so ever, you will loose only the prepaid amount for the service. However, since these both are vehicles based on real trading they don't produce the ROI of even the low paying HYIPs. You should consider yourself lucky if you find managed account or signals service which achieves more than 5% monthly. But for every serious investor even 2%-3% fraud free profit monthly is great if it can be achieved with low risk.

Signals advantages

- You can start with lower amount. Most managed accounts will require at leats $20,000 minimum. The signal providers do not care how much would you invest. However here is a very simple calculation: if the service you have choosen makes average 2% monthly and has a $100 monthly fee, you should trade at least 10k to see some profits. Still, this is sighlty better than the managed accounts in terms of minimum capital

- You can learn. Seing when the trader gives the pics in real time you can learn some secrets of the trading. And because you should trade yourself, you can get familiar wiht the rading platform

- You can change the signal provider at any time

- Most providers offer free trial (usually 2 weeks)

- If you find some trader's move stupid, you can skip the signal

Managed Account Advantages

- You don't need to trade yourself - you don't need to spend any of your time

- You don't pay monthly fee. If there is no profit you siply won't earn

- You don't pay brokerage fees directly (usually)

Who could use Forex Signals?

Basically everyone especially these who want to go into real investing instead of HYIP playing. However the signals are mostly appropriate for beginner traders, because they require some your time to trade.

3 Fast Signal Reviews

Let's take a look on some of the popular signal services:

4XSignals
Performance: 148% net profit for the last 19 months (see here)
Trial: $69.99 for 4 trading weeks
Monthly price: $195 - $295, discounts for longer period

FX Universal
Performance: 6415 PIPS (they have not calculated % ROI) for 2006 (for the moment)
Trial: $99 for 10 days
Monthly price: $199, $534 for 6 months

Forex Grand Capital
Performance: 70% cumulative since 2004
No Trial
Quarterly (3-Months) - $245

Conclusion
The Forex Signals can be your fraud free invetsment. However you still ahve to research and find good ones, so you don't give your money for crap. You should look for reasonable price, but the price should not be your main factor for decision. It is better to pay more but to achieve good results. You should look for longer performance record. Also, you should be able to understand the PIPs graphs, because most signal services show their performance in pips.

Published at Jun, 19 '06 ; read 1534 times;

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User comments:

clifton at Aug, 19 '07 10:03
Update: FX Universal is scam! Stay away.
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