Forex signal services do everything a robot does except the actual execution of trade entries. Besides possibly using an automated program, a “professional” trader may generate trading signals (for a fee, of course) for clients to act upon.
However, you may be paying for a signal in which you do not know the causes for and how the “professional” came up with it.
You have no idea what the basis for the trade is, just that the “professional” is telling you that it’s a good time to buy or sell.
In the end, you are relying on the analysis of a third-party sources that is not your own.
In a typical forex signal service, the programmer creates a set of technical indicators and rules and the program runs to those specifications.
If price action satisfies the conditions of the signal service, then an alert or pop-up will show up for the user to react.
It is ultimately up to the user to decide whether or not to take the signal and trade it.
While this may sound more beneficial as you have a choice on whether or not to take a trade, the signal service is still programmed to a constant set of rules.
Like we mentioned earlier, the forex market is in a constant state of change. While the forex signal service might have been profitable in the past, there is no guarantee that it will be profitable in the future.
One other thing to think about is if the forex signal service is so profitable, why would the creator want to share the profit?
Like forex robots, the scam isn’t the service itself, but the way it’s marketed.
You may see ads from scammers that promise you’ll make a bajillion dollars with their signals.
Many traders will look at the a and think, “A bajillion dollars!? I could do anything I want with a bajillion dollar!”
Now stop. Think about it.
If that were true, they most likely wouldn’t be running a forex signals business. Instead, they would focus on trading and make a bajilion dollars for themselves.