Forex signal services perform all of the functions of a robot except the actual execution of trade inputs.
A “professional” trader may provide trading signals (for a price, of course) for clients to act on, in addition to maybe employing an automated program.
However, you may be paying for a signal without knowing the reasoning behind it or how the “professional” came up with it.
You have no understanding what the trade is based on; all you know is that the “professional” is telling you it’s a good time to buy or sell.
Finally, you are relying on a third-party analysis that is NOT your own.
A typical forex signal service begins with the programmer developing a set of technical indicators and rules, which are then implemented by the software.
If the price action meets the conditions of the signal service, the user will receive a notification or alert through email or text message to respond.
It is ultimately up to the user to choose whether or not to exchange the signal.
While this may appear to be more advantageous because you have the option of whether or not to enter a trade, the signal service is still designed to a consistent set of rules.
As previously stated, the currency market is constantly changing.
While the forex signal service has historically been profitable, there is no assurance that it will continue to be profitable in the future.
Another point to consider is why the inventor would want to split the profits if the forex signal service is so profitable.
The swindle, like with forex robots, is not the service itself, but how it is sold.
You can notice advertising from crooks promising you a million bucks if you use their signals.
Many traders will see the advertisement and think, “A billion dollars!? I could do whatever I wanted with a billion dollars!”
Stop right now. Consider this. Massage your chin or lip. Think!
If such were the case, why would anyone establish a forex signal service in the first place? Instead, they should concentrate on trading with their signals and amassing a fortune for themselves.