For most new traders, the decision of which Forex trade alerts to follow appears to be a simple one; choose the most profitable. However, for those who have delved into the world of Forex trade alerts, you will know there is a lot more to Forex trade alerts than simply profits. There are several key factors that traders need to consider when choosing which Forex trade alerts to follow, which can each play a significant factor in determining whether or not the trader achieves profitability.
When choosing a forex trade alerts service traders need to first consider which style of trading they are most suited to. For example, a trader who works a full-time job and is looking to trade in a more passive way with 1 – 2 set and forget signals each night is not going to benefit from a scalping service that generates large numbers of intraday orders. Similarly, a trader with more time on his hands who is looking to be more active over the day is going to find it hard to stick to a lower frequency swing trading service and will likely sabotage his results by trading outside of the signals.
New traders need to consider the amount of time they are able to dedicate to following signals and also which level of interaction they are looking for. Our signals follow a swing trading methodology using the Daily timeframe and as such traders have plenty of time to set all necessary orders with 1 – 2 signals given each day.
Another key consideration when choosing a Forex trade alerts provider is the matter of time zone. A signal service could be extremely profitable but if the provider is based in the UK and you are based in Australia then you will have a very hard time following all of the signals and will end up with a different set of performance results.
This is an issue that many new traders from different time zones found when looking to follow our daily trade alerts – to counter this we now issue a second set of alerts called LFX Asia Alert which comes out at roughly 9/10pm UK time as well as our daily trade alerts issued by 9am UK time.
A very important factor in picking a service provider relates to traders’ motivations for following the alerts. If a trader is simply looking to follow an alerts service with a view to hopefully profiting from the signals without ever really learning to trade themselves then typically they will be happy to follow an automated “black box” style system which generates alerts but no analysis.
However, if the trader is looking to learn how to trade as well as profiting from signals in the interim then they will want to find a provider who delivers high quality analysis alongside the trade alert. Our daily trade alerts come with full analysis and technical setups chart to help traders understand the reasons why the trade is being taken. In addition to this we have now launched the Pro Trader Package which, alongside access to the daily forex trade alerts, gives access to a weekly strategy session with our Pro traders looking at setups for the week ahead, reviewing prior performance, discussing strategy alongside open Q&A. These sessions offer a unique opportunity for traders to develop their trading approach week on week alongside our pro traders.
As we mentioned earlier, there is a lot more to picking a Forex trade alerts provider than simply going by the most profitable. There are plenty of signal providers out there who boast astronomical returns and thus lure in many naïve new traders. However, the majority of these providers also have huge drawdowns and are typically running very volatile, unsafe systems.
When picking an alerts provider traders should look for overall returns, max drawdown, average monthly return and crucially risk per trade. A stable system is one which has a uniform risk per trade, set at a conservative level, with a good returns-to-drawdown ratio. Our daily trade alerts have a returns-to-drawdown ration of 6:1 with over 3000 pips delivered since Nov 2015 and a max drawdown of 500 pips.
Price & Customer Service
This might seem like an obvious one but a lot of new traders can get sucked in to paying extortionate amounts to access an allegedly “high profits” system. Typically, these providers do not have the best interests of the trader at heart and are instead simply looking to profit from the naivety of new traders. If you are a new trader with a £1000 account, then paying £300 a month for an alerts service is a ridiculous move. The most reliable and trader friendly service providers charge between £50 – £150 for alerts and additional services.
Alongside a reasonable price, the best Forex trade alerts providers offer fantastic customer service as ultimately, the customer experience drives the success of the service. When joining a new signal service traders need to know that help is on hand to assist them in getting to grips with the functionality and helping them in getting the best out of the service whether that be showing them how to set correct position sizing on their trading platforms or discussing the reasons behind a specific trade.
At Littlefish FX, our traders can always be reached via email to answer and queries you might have about our service and we always receive high levels of positive feedback regarding our level of customer service.
As you can see, picking which Forex trade alerts to follow is far more complicated than just looking for the highest returns. Many new traders waste a lot of time diving in and out of different signal providers. Looking to find a stable alerts provider with a high level of customer service can offer long term benefits beyond merely achieving profits.
Take a look on how you can choose the best forex strategies if you’re interested too!