Forex Scalping Using Signals

Forex Scalping Using Signals

Forex Scalping Using Signals

Scalping the forex market can be a daunting task for a novice trader, especially considering the high level of technical skill, focus and time required to succeed in this fast-paced trading style.

That is not to say beginner traders need to be experienced to take full advantage of the many opportunities the forex market offers. Forex signal providers have become increasingly popular over the past few years and have helped many traders identify the best trading opportunities at the right time.

However, there are many forex signal providers out there, and not all of them have your best interests at heart. So, in this article we will delve a bit deeper into the world of forex scalping signals and discuss whether these signals are worth it, what indicators they are based on, and what to look out for when choosing a scalping signals provider that is right for you.

Are Forex Signals Worth It?

Forex scalping signals are trade recommendations made by a third-party service that can help a trader with the following four crucial decisions:

  1. Which Forex pair to trade
  2. Whether to buy or sell a forex pair
  3. When the best time is to enter a trade
  4. Where to place a stop loss and profit target

These four decisions eliminate all the guesswork required to find profitable trading opportunities, saving you time regardless of your experience level.

Not all forex scalping signal providers are reliable or offer high-quality signals. Finding a reputable signal provider should therefore be your top priority to make this worth your while.

A forex signal provider that has a proven performance record based on expert analysis and comes with good user reviews are essential requirements to help you increase your profits from scalping.

01 Forex Scalping Using Signals

What Are Forex Signals Based On?

Reliable forex scalping signals are based on proven strategies that have high percentage win rates. Signal providers often have many strategies to choose from based on various scalping indicators.

Indicators such as the Smooth Moving Average (SMA), Bollinger bands, Stochastics, and Relative Strength indicator (RSI) are amongst the most popular indicators used to provide scalping signals.

When a trader subscribes to a forex scalping signal service, they can receive an SMS or email with the trade recommendation and proceed to enter trades themselves manually.

Some signal providers also offer fully automated signals whereby all trades are automatically executed on your trading platform – this is also referred to as copy trading.

02 Forex Scalping Using Signals

More technically experienced forex traders may opt to develop their own forex scalping strategies and signals based on the scalping indicators mentioned before or even code their own algorithms to take their trades for them automatically.

Knowing what strategies these scalping signals are based on and under which market conditions they typically perform best can also benefit beginner traders by expanding their knowledge of the forex market.

Where Can I Find Forex Signals?

Most online forex brokerages offer forex scalping signals or use third-party providers, but not all of them might be the right choice for you. With so many brokers available, it can be a difficult task to select the best signal provider while avoiding possible scams.

Here are a few critical factors to consider before choosing the best forex signals provider.

  • Experience – A good forex signal provider should have been around for a while, with a transparent and consistently profitable performance record to back up its claims.
  • Easy-to-follow signals – If you are following trade recommendations delivered by SMS or email, they should be easy to understand and follow. Good signals providers will make everything as easy as possible and guide you through everything you need to know.
  • Quality and not quantity – Trading more often is not necessarily going to make you more money. Successful scalping strategies require high win rates to remain profitable over the long run while only trading the highest quality signals to turn a profit consistently.
  • Automation or not? – Not all traders will have the time to manually enter all the trade recommendations offered by a signal provider. Choosing a scalping signals provider that caters for your specific time constraints is an important decision.

Forex scalping signals providers that do not meet the above criteria are best avoided, and it might take some time to research all the signal providers in which you are interested. Still, it will definitely be worth it and probably save you from losing money.

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You might even come across free signal providers, but one has to question the quality of such signals. Most forex signal providers offer paid monthly or yearly plans which is another important consideration you need to be aware of before you commit.

The best piece of advice when it comes to any service, free or not, is that you perhaps try out the forex scalping signals in a demo account to see whether the profitability claims are legitimate. Keep in mind that there will be losing trades; this is just part of trading, so it is essential to have reasonable expectations before starting trading.

The Best Forex Brokers for Scalping

Broker Features Regulator Platforms Next Step
Number One Broker tickmill_logo-174% of retail CFD accounts lose money Founded: 2014
74% of retail C...
  • Well regulated
  • Ultra-fast and high leverage trading
  • Spreads as low as 0.0 pips
  • Comprehensive research tools
  • Relatively limited number of markets
  • Does not accept US traders
FSA SC MT4, MT5
Blackbull LogoYour capital is at risk Founded: 2014
  • User-friendly platform with great trade-analysis tools
  • Leverage Up To 1:500
  • Spreads as low as 0.00 pips
  • Quality trade execution thanks to high-spec IT infrastructure
  • $0 minimum account opening balance
  • 26,000 tradeable instruments
  • Not available in all jurisdictions
  • Regulatory infrastructure
FSPR MT4
Your capital is at risk Founded: 2006
Europe* CFDs ar...
  • Multi-asset broker offering a wide variety of markets
  • Strong regulatory framework
  • Innovative risk management tools
  • Choice of market-leading platforms
  • Wide spreads on some markets
  • Expiry date on Demo Accounts
ASIC, FSA, FSB, MiFID MetaTrader4, Sirix, AvaOptions, AvaTrader, Mirror Trader
Between 74-89% of CFD traders lose Founded: 2010
Between 74-89 % of retail investor accounts lose money when trading CFDs
  • Low trading costs
  • Great market flow
  • Research and analysis which helps spot trades
  • Wide range of Copy and Social Trading options
  • Limited range of non-forex markets
ASIC, FCA MetaTrader 4, MetaTrader 5, cTrader
eToro Logo77% of CFD traders lose Founded: 2007
77 % of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
  • Social and Copy Trading Platform
  • Beginner Friendly
  • Risk-free Demo Account
  • Top-tier regulation
  • Limited means of raising queries
  • Withdrawal process isn’t really ‘client-focused’
ASIC, CySEC, FCA eToro Platform
XM LogoYour capital is at risk Founded: 2009, 2015, 2017
  • Low minimum deposit
  • Super- tight bid-offer spreads
  • Impressive trading platforms
  • Tier-1 regulators
  • Difficult to contact tech support
  • No Crypto
ASIC, CySEC, IFSC MT4 Terminal, MT4 for Mac, Web Trader, iPhone/iPad Trader, Droid Trader, Mobile Trader, MT5
FxPro LogoYour capital is at risk Founded: 2006
  • Very well regulated
  • Comprehensive education section
  • Fantastic customer service
  • No cryptocurrencies
  • Fees could be more competetive
CySEC, DFSA, FCA, FSB, SIA MetaTrader4, MetaTrader5, cTrader, FxPro Edge (Beta)

    Conclusion

    Forex scalping signals are meant to provide traders of all experience levels with consistently profitable setups that are based on proven scalping strategies. Here, we have discussed the importance of finding a reputable signal provider, what forex signals are based on and where you can find forex signals.

    Deciding on the best forex signal provider is the first important step you need to take to avoid scams and increase your profits from scalping while saving you time.

    Hopefully, the process of choosing the forex scalping signals provider that is right for you will be a more straightforward endeavour after reading this page.


    Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.