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If you know much about foreign exchange trading, you probably understand how much of a challenge executing a profitable exchange can be.
Determining when and how much to exchange involves a great deal of research, complex statistics, and technical analysis that not everyone is keen about. Unfortunately, most traders end up losing money on currency pair exchanges simply because they do not understand the market.
However, when executed correctly, foreign exchange trading can be a profitable, lucrative hobby. One of the best ways to increase your forex success rate is to take advantage of forex signals—informed recommendations about exchanges. You can find dozens of forex signal providers across the internet, but determining the right one for your needs may feel a bit overwhelming.
We’ve reviewed the top four signal providers to help you find the best forex service for your trading behaviors, budget, and experience. Read ahead to learn more about the best forex signal providers and how you can use these informative signals to your advantage.
Best Forex Signals Providers in 2021
- Learn 2 Trade: Best overall
- 1000pip Builder: Best for beginners
- Etoro: Best for copy trading
- ForexSignals.com: Best for learning Forex
#1 Learn 2 Trade: Most Accurate Forex Trading Signals
Learn 2 Trade is one of the best forex signal providers on the web. Based in the United Kingdom, this trading signal and education platform provides a wealth of insight into forex trading, crypto, stocks, and other financial products.
Learn 2 Trade sources its trading signals from professional traders who have over 15 years of experience in the FX market. These traders develop automated forex signals creating well-rounded, informative trading suggestions based on:
- Fibonacci retracement levels
- support and resistance levels
- trends such as the Elliott wave
- Bollinger Bands
- moving averages
When you receive a forex signal from this platform, it will contain six pieces of valuable information: currency pair
- market data
- entry prices
- stop-loss prices
- take-profit prices
The company sends up to ten signals each day depending on your membership level, and you can receive your signals in real time through Telegram.
This forex signal provider offers two membership levels: free or VIP. If you’d rather not pay for a membership, you can take advantage of the company’s free Telegram group. This membership tier provides:
- three signals per week
- exchange entry prices
- alerts about economic events
- daily technical analysis data
However, to receive the best benefits from this service, you’ll want to pay for a VIP membership. VIP plans include three to five forex signals per day with a 76% success rate, along with suggestions about how much you should risk per trade.
Learn 2 Trade also allows traders to open an account with one of its partner brokers. The forex signal service connects traders to brokers such as AvaTrade, LonghornFX, and Capital.com, streamlining the forex trading process.
Learn 2 Trade’s current success rate on winning trades is 82%, making it one of the most lucrative signal providers we have found. Additionally, your VIP membership comes with a 30-day money-back guarantee that allows you to test out the provider’s services risk-free.
Overall, Learn 2 Trade is a trustworthy, reputable forex signal provider and trading platform that offers a range of helpful features to assist you through the forex process.
#2 1000pip Builder: Best for Beginners
1000pip Builder is an established provider that has been producing forex signals for several years. This service provider offers detailed guidance about the signal trading process, allowing beginners to jump in and begin trading with confidence.
1000pip Builder sends its forex signals through email, Telegram, and text message. Each signal includes entry, stop-loss, and take-profit prices, so you can know exactly what you serve to gain or lose before executing an exchange. This forex signal service delivers bare-bones, “pure” signals, so you can use its professional recommendation as you see fit.
Once you create an account, 1000pip Builder will send you detailed information about how its signals work and how to start trading forex. The company advertises that its services are perfect for beginners as it walks you through every step of the trading process to ensure that you utilize its signal information correctly.
One of this provider’s best selling points is its partnership with lead trader Bob James. Bob has over ten years of mentorship and forex trading experience, and he currently conducts research and analytics for 1000pip. You can establish direct, one-to-one contact with Bob James every day to ask questions or receive advice, giving 1000pip Builder an advantage over less-personalized signal providers.
Another unique selling point is 1000pip’s verified trading results. 1000pip Builder is one of the only signal providers that has received verification from MyFXBook, so customers can feel confident in its trading performance. The signal provider boasts that its trading strategies have made 6,500 pips over 24 months, demonstrating just how successful its processes are.
Overall, 1000pip Builder is the best forex signal provider for beginner traders or those who would like a little extra cushion from their provider.
#3 eToro: Best for Copy Trading
Some traders prefer not to make trade decisions themselves—they’d rather imitate another, more experienced, trader’s moves instead. Copying another investor’s actions is called “copy trading,” and eToro is one of the best trading platforms on the web to offer this form of passive trading.
eToro offers an extensive selection of financial instruments, ranging from forex to cryptocurrencies to ETFs. Instead of sending forex signals to its customers, the company employs a revolutionary copy trading system that allows users to copy a professional trader’s forex exchanges with a few clicks of a button.
eToro’s copy trading process is simple. First, you will need to search for the trader whose exchanges you would like to copy. The platform features over 12 million investors, but you can narrow down your choices by inputting your investment goals and budget. We recommend following an investor with a profitable track record.
Once you find an investor to copy, you will need to indicate how much money to invest with this trader. Then, you can opt to copy all of their trades through eToro’s direct-broker service. Copying a trader means you will imitate their moves every time they make an exchange, saving you the time and hassle of acting on forex signals manually.
One unique feature of eToro’s platform is its risk-free demo mode. When you make an account, the company will give you $100,000 of fake money in a virtual portfolio that you can use to try out its services for free. When you’re ready, you’ll need to deposit a minimum of $200 to begin copy trading.
eToro’s copy trading services are ideal for forex traders who want to take a hands-off approach to trading while still making intelligent, informed decisions.
#4 ForexSignals.com: Best for Learning Forex Trading
ForexSignals.com is a popular forex platform that offers a wide selection of educational tools and resources. Contrary to its name, ForexSignals.com is not a signal provider—instead, the company focuses on educating its users about how to identify worthwhile forex exchanges themselves.
If you would like to turn forex trading into a long-term moneymaker, you’ll probably want to move away from signal providers eventually. ForexSignals.com takes an educational approach to trading, offering over 200 hours of video lessons, a wealth of interactive quizzes, and access to professional trading mentors. With these resources, you can work toward becoming an independent forex trader.
ForexSignals.com also features a community trading room that allows you to share trade ideas and discuss trading strategies with other users. This community room features four mentors who livestream throughout the day, allowing users to receive advice about trade ideas before executing an exchange.
ForexSignals.com teaches users a few strategies to identify profitable exchanges, including naked trading, FX propulsion, and swing trading. Knowing these methods allows you to develop your own trading strategy, eliminating the need for a forex signal provider.
Additionally, this company employs trading mentors who have over 80 years of combined forex experience. As a member of the platform, you can reach out to these mentors 24/7 for advice and guidance, and the company guarantees that it will answer every question its users ask.
Even though ForexSignals.com does not provide forex signals, it does offer a few tools that can help you make trading decisions. The platform’s risk management, momentum, naked trading, and support and resistance programs can help you learn more about the current FX market, giving you more specific guidance into profitable trading opportunities.
Altogether, ForexSignals.com is a valuable tool to keep in your arsenal if you plan to make trading a lucrative hobby.
What Are Forex Signals?
Forex trading signals are informed suggestions that help you gain insight into current market trends before executing an exchange. These signals can help you determine:
- Which forex pair to trade
- Whether to buy or sell a pair
- What time to enter the market
- How much profit you can expect to make
- How much money you could lose if your exchange fails
Forex trading signals can originate from two sources: human research or automated analysis. Human-generated signals come from seasoned traders who perform their own in-depth research into current market price action. Automated signals come from forex robots that run a pre-conditioned algorithm, allowing them to analyze thousands of scenarios quickly to determine your best move.
Forex signals are valuable tools that can help traders make critical trading decisions. Some forex traders follow their signal’s suggestions exclusively, while others incorporate these recommendations into a more complex trading strategy.
However you plan to use them, trading signals can provide valuable insight into trading opportunities, allowing you to make the most informed decision about your trade.
What to Look for in Good Forex Signal Providers
You will find dozens of forex signal providers on the web, but not all providers offer the same benefits. While some signal providers give sound suggestions and aim for successful trade results, others could be involved in foreign exchange fraud.
As you attempt to find the best forex signal provider for your needs, we recommend considering these essential factors that indicate a company’s quality and reliability.
Success rate (or win rate) is a telling indicator of how profitable a signal provider’s recommendations are. The best forex signal providers have a 70-80% success rate, meaning that most of their trading signals are winning and profitable.
Many forex signal providers state their win rate on their website—for example, Learn 2 Trade indicates its success rate on winning trades is 82%. If a forex signal service does not state its win rate, its signals may not be predictive of market activity, and you shouldn’t trust these signals to produce profitable trading results.
# of Signals per Day
The best forex signal providers give their traders anywhere from five to ten signals per day. If you plan to make trading a full-time hobby, you’ll probably want to search for a provider that sends signals frequently.
However, a provider’s reliability and accuracy are more important than the number of signals it gives. If a service sends ten signals per day, but only one or two are successful, you won’t be able to trust it to produce profitable trading results.
Receiving a signal in real time is crucial to making the signal provider worth the cost. If a forex signal provider lags in its send times, the information it found will become outdated, which could lead you to lose money.
The best forex signal providers send their signals through multiple outlets to ensure that they reach their customers as quickly as possible. These providers also send their trading signals through Telegram, a cloud-based instant messaging app that delivers messages faster than any other software.
Sending signals through Telegram ensures that users receive valuable trading information within enough time to execute the trade profitably. If a signal service does not utilize Telegram, it is probably not as reliable as other providers.
Years of Experience
Signal providers often employ professional, experienced traders to mentor customers, conduct research and technical analysis, and help develop signals. These traders typically have at least five years of forex experience, giving them an abundance of knowledge about the FX market trading processes.
As you search for the right forex signal provider, be sure to examine how experienced a provider is and whether it receives advice from professional traders.
Customer reviews can help you understand other users’ experiences with a particular trading platform or signal provider. The best forex signal providers have more positive reviews than negative ones, indicating that the average customer experience is positive.
You should make sure to look for customer reviews on websites other than the platform’s site. The best forex signals provider must include positive reviews on their websites as a marketing strategy, but these reviews may not represent customers’ experiences overall.
Type of Currency Pairs Traded
Some forex signal services limit their signals to only major currency pairs, such as EUR/USD, GBP/USD, or USD/CAD. Others include a broader range of major, minor, and exotic pairs.
A signal provider only offering major signals is not necessarily a bad thing—major pairs are by far the most popular exchange currencies, and many platforms capitalize on this popularity. However, if you plan to focus your efforts on minor or exotic currency pairs, you’ll want to look for a platform that offers signals for these currencies.
Forex signal services come in a wide selection of price ranges. Some platforms provide free forex signals, others offer several membership tiers, and some only give signals to users willing to pay upwards of $100 a month.
While free signals are probably not the most reliable or profitable, cost does not always indicate a platform’s success. Some signal providers charge higher fees to make their services seem more worthwhile, while others charge lower prices to attract more customers.
Finding a forex signal provider in a moderate price range will give you the best chance of procuring profitable signals.
What Does a Forex Signal Look Like?
The best forex signals include five different pieces of information: pair, order, entry price, stop-loss, and take-profit. A trading signal may look something like this:
- Pair: EUR/USD
- Order: Sell Order
- Entry: 1.117
- Stop-Loss: 1.1214
- Take-Profit: 1.107
The information in a trading signal should be all you need to make an informed trade. However, if you’re new to trading, you may not know how to read these metrics or use them to your advantage.
Let’s discuss what each of these five key data pieces means in the greater context of trading.
In forex trading, a “pair” refers to the two different currencies the signal is quoting against each other. In this example, EUR is the base currency, and USD is the quote currency.
The U.S. Dollar is the most frequently traded currency in the forex market, so most forex trades quote another currency against USD. However, the market divides currency pairs into different groups depending on their activity and liquidity. The three types of currency pairs are majors, minors, and exotic pairs.
Major pairs are the most sought-after, most liquid currency pairs in the world. The EUR/USD pair in our example is the most popular exchange in this category, accounting for around 30% of all trades on the forex market.
Minor pairs are pairs that do not include the U.S. Dollar. These pairs typically contain one of the other three major currencies: EUR, GBP, or JPY.
Finally, exotic pairs include currency pairs from countries with a developing market presence, such as Sweden, Norway, or Mexico. These pairs are not very liquid and tend to be inconsistent in the market, making exotic trading riskier.
The “order” refers to the action that will take place within the trade.
In the example above, “Sell Order” indicates that this signal foresees the pair’s value going down, meaning that you should sell the order and attempt to make a profit. However, if market trends predicted the pair value to increase, the order would be “Buy Order,” indicating a profitable purchase.
“Entry” refers to the entry price, which is the price at which you will enter into an exchange to buy or sell. Determining entry price on your own can be tricky, so this is one of the most valuable pieces of information a forex signal can give you.
Let’s say the current EUR/USD price is 1.107, but your entry price is 1.117. This price difference means that your signal provider foresees the price rising to 1.117. Once you place your order, it will only go live when the EUR/USD hits your entry price of 1.117.
If the exchange never reaches your entry value after you place the order, your order will automatically cancel out.
The “stop-loss” price in your forex signal is the price at which you will automatically exit a losing trade.
In the example above, your entry is 1.117, and your stop-loss price is 1.1214. Because you are placing a sell order, you want your pair value to decrease, not increase. However, the pair value starts to rise, losing more of your money the higher it goes. A stop-loss order tells the broker to close your trade as soon as it hits 1.1214, preventing you from losing more money than you can afford.
Stop-loss orders allow you to implement controlled risk in your trading behaviors. Indicating stop-loss and take-profit prices ensures that you know exactly how much money you serve to gain or lose in any trade, making your trade less precarious.
Your “take-profit” price is similar to your stop-loss price but in the opposite direction. Take-profit indicates the lower value at which the broker will close your trade, allowing you to lock in your profits automatically.
In our example, your take-profit value is 1.107, ten pips lower than your entry. Once the exchange value reaches 1.107 in your trade, your broker will automatically close the transaction, securing your profits.
Some signal providers include two take-profit prices in their forex signals: one that is slightly more conservative and one that is somewhat riskier. If the provider had offered two take-profit prices in our example, they might have been 1.107 and 1.077. As the trader, you could choose which value you would prefer for capping the trade at, be it one of these prices, somewhere in between, or a different value entirely.
How Do Forex Trading Signals Work?
Now that you know the different parts of a forex signal, you may be wondering how forex signals providers determine these crucial metrics to include in their signals. Providers of forex signals can develop their trade recommendations in two ways: through automated processes or manual analysis.
Automated Forex Signals
Automated forex signals originate from automated algorithms that analyze thousands of possible outcomes based on historical market trends and previous trade exchanges. Many automated signals utilize AI technology or machine learning, along with technical indicators, to determine the best entry price, order, and entry time for a given exchange.
Automatic trade signals can be semi-automated or fully automated. If a signal service offers semi-automated signals, it will give you a trade suggestion without executing the trade. If you decide to act on the signal, you will need to place the exchange with your forex broker.
Fully automated signals pair their trading suggestions with action. If a signal provider offers this type of signal, it will determine your best move and then place trades for you. While these providers automate the entire trading process, saving you time, they also take away your opportunity to assess the signal for yourself.
Most forex signals providers utilize semi-automated signals. These companies work with hundreds or thousands of traders each day, so developing trade suggestions manually is not feasible. However, because their recommendations are semi-automatic, traders have the option to take their advice at face value or make changes before executing the trade.
Manual Forex Signals
Manual forex signals are human-generated trading suggestions. To develop manual signals, providers consider technical indicators, market analysis statistics, current events, political developments, and their own professional experience in the forex market. These providers conduct manual research rather than using automated algorithms or AI processes.
Manual signal providers typically take advice from seasoned, expert traders who have years of experience and verified success in trading forex. When you hire these trading signal providers, they will conduct independent research to identify lucrative trading opportunities, then distribute these findings to their customers.
Which Is Better?
While both manual and automated trading signals have their pros and cons, we prefer automated signals overall. The FX market is vast, dominated by seasoned professionals. Automatic signals give traders the best chance of producing profitable trading results.
Automated algorithms can analyze an unlimited number of currency pairs 24 hours a day, seven days a week. They do not act on emotion or impulse: instead, they follow predetermined conditions that allow them to make the most rational, low-risk, informed suggestions without the possibility of fatigue or opinion playing into their recommendations.
Though the market is unpredictable, these algorithms utilize technical analysis of historical trends to predict future value changes as accurately as possible. Even the best traders cannot predict the future, but analyzing thousands of previous exchanges is the best way to get as close to reality as possible.
Overall, automated signals outperform forex markets more often than manual ones, making them the more lucrative option. However, the type of signal you choose ultimately depends on your personal preference.
Free Forex Signals vs. Paid Signals
Some forex trading platforms offer free trading signals to their users. While taking advantage of these signals may be tempting, we’d recommend against following free signals.
Learning about the best forex signals requires a great deal of research, analysis, and technical insight to produce, which is why providers tend to charge for their services. If a platform offers signals to non-paying users, it probably has acquired these signals through a less-involved process, meaning they may not be as accurate or profitable. These free signals may also include less information than paid ones.
If you plan to follow trading signals, we recommend paying for a reputable forex signal service. Otherwise, you may end up wasting your time and losing the money you invested.
The Pros and Cons of Forex Signal Services
If you’ve never used a signal service, you may be wondering if these services are worth the monthly cost. Can following trading signals actually improve your chances of making a profit in forex?
To help you decide if a signal provider is worthwhile for you, let’s examine the pros and cons of utilizing a forex signal service. A signal service can:
- Conduct research and analysis for you
- Help you make informed trading decisions quickly
- Produce more profitable trading results than trading blindly
- Use up-to-date, market-standard algorithms
- Offer extensive resources and mentorship to aid your forex decisions
- Cost a monthly subscription fee
- Are not always reliable or verified
If you’re a serious trader, following some of the best forex signals’ recommendations can improve your success rate dramatically. However, if you only dabble in foreign exchange every now and then, you may not want to spend the money on a pricey service.
Types of Forex Trading Accounts
Forex trading is a different kind of animal from other kinds of investment trading. One reason for this is that you, as an individual investor, can compete head-to-head not only with other individuals but also with banks and hedge funds.
You can set up one of three kinds of forex trading accounts:
Which to choose? Each type has its pros and cons, depending on your risk tolerance level, how much money you can initially invest, and how much time you plan to stay involved on a daily basis. According to Investopedia, the most common type of account is “a standard account with 100:1 leverage and standard lots up to $100,000 in notional value.” That article details the pros and cons of each type of account depending upon whether you are a new or established trader.
Once you have a good handle on how forex trading works and have established a trading platform, it will be time to formulate your trading strategy to get the best trading results. That’s where the best forex signals enter the picture.
Finding the Best Forex Signal Provider for Your Needs
Taking advantage of the best forex signals providers can improve your forex game, help you learn about lucrative and unprofitable actions, and increase your overall forex earnings. However, finding the right provider of forex signals can be challenging, especially when so many unverified, unreliable services exist across the web.
Thankfully, signal providers like Learn 2 Trade, 1000pip Builder, eToro, and ForexSignals.com offer insightful, knowledge-based forex services that can help you make more informed trading decisions. These platforms provide services in a range of prices, so determining which one is right for you may come down to your budget and overall forex activities.
Now that you know the advantages of using the best forex signals from a reputable forex signal provider, you can jump right into making more profits with the foreign currency exchange.