What are trading signals?

Trading signals refer to trading service providers analyzing the financial markets fundamentally or using charts. They then provide trading recommendations. These buy and sell recommendations are made through various channels, including:

• e-mail

• SMS

• Blog

• Expert Advisor

• Signal following functions in trading platforms

• Twitter

• Social trading features

There are some free signal services, but many providers charge a monthly subscription fee for their service because the analysis is time-consuming and costly. The most commonly used signal services in German-speaking countries are:

• DAX signals

• EURUSD signals

• individual DAX stock signals

• and other major FOREX signals

The advantages of such signal services are:

• Time savings due to the elimination of independent market analysis

• no specialist knowledge required

The disadvantages of Signal services:

• The customer must trust the provider's expertise, and there is no guarantee that trading via signal services will lead to success.

• If there is too little trading capital, costs will be disproportionately high.

There are various semi-automated Expert Advisors that generate trading signals based on technical chart analysis and forward trading recommendations to the client. See also Trading Tools.