Online there has been a huge upsurge in people providing signals to traders and you can now get them to your email or mobile, so you can trade them instantly but there is a problem with FX trading signal providers and we will look at in this article.

You can get FX trading signals direct from the vendors software or you can get them via robots that they sell and generally these signal providers charge very little for the service - normally a few hundred dollars for a robot or under a hundred dollars a month for signals from them.

How to Find the Few Good Signal Providers

While it is tempting to think these signals will make you money, in most instances they don't work. To find out which ones do (and there are very few that do) look for an audited track record which has been verified from an outside ratings firm or accountant. Most FX signal providers don't do this and all you get are:

• Simulations going back across historical data which is very easy when you know the closing prices

• The vendor will sometimes give you, so called live results which are published by him on his website but there is no outside check and they should be treated with caution.

Learn the Logic Upon Which Trading Signals are Generated

The other problem with following signals ( even if they do show a profit) is you will have periods of draw down and you need to have confidence in the logic behind the signals to follow them.

As most signal providers simply make up track records in hindsight, they don't give you the logic behind the signals of how and why they work (because they don't!) but if you want to follow a currency signal service with discipline, you need to have confidence in the logic. If you want to follow signals, make sure the logic is revealed, so you know why it works and you have the confidence to follow the system with discipline.

Final Words

The internet is full of get rich quick systems and trading robots but these cheap systems get turned to dust by the market but the lazy and naïve trader still continues to buy them looking for a free lunch. Always remember, there is no free lunch in currency trading, just as there isn't in life and in a market, where 95% of all traders lose money this is obviously true!

If you trade an automated currency trading system which gives automatic trading signals in your FX trading strategy, always keep in mind that your trading for the long term and you will have short term drawdown.

If you want to use an FX trading signal service, you like learn the logic and have the discipline to stick with it and you can make enjoy long term currency trading success.