Software trading signals in Forex are a category of services offered by most trading platforms. Their purpose is to alert Forex traders of any changes they should be aware of. Naturally, there is a myriad of things that can and do happen in Forex markets every second of every work day, and no system could possibly account for every single one of them. No software in existence is that complex and advanced. None that we know of, anyway.
What are software trading signals?
Well, everyone who has ever done any Forex trading in person through a platform has received some form of notification or software trading signal. These signals are usually sent either by living people, i.e. brokers, or robots (not actual robots, Forex robots provided by the owner of the platform, acting through computer-generated messages) notifying you of developments and passing on instructions. These things require speed and expediency, due to the hyperactive nature of Forex markets. The ideal medium, therefore, should embody the haste and sense of urgency associated with these matters. However, we must make do with what we have, and what we have are emails, SMS, tweets, RSS, websites and other similar forms of communication. As long as they get the message across, and in a timely manner, their deficiencies matter little. But they still matter.
Types of software trading signals / services
All software trading signals can be roughly distributed into four categories: free signals, paid signals from a single provider, paid signals from multiple sources and signals generated by Forex robots from the user’s own computer or some other device.
You get free signals at no cost (obviously), usually as a part of a broader service package provided by a broker or a website. If paid signals offer you a lot of bang for your buck, these offer you, well, more than you paid for, at least. In terms of reliability, even though there are no guarantees with these matters, these signals do not stand out in any meaningful way.
Signals from a single provider usually involve some form of analysis or advice. These are what you get from a broker if you request some form of guidance. They are passable for beginners looking to learn the trade, but more serious traders need bigger ordinance.
Speaking of which, signals generated by multiple sources are some of the most complex trading signals there are. A true professional will make full use of their versatility and possibilities they offer.
Last but not least, Forex robots are programs you install on your own computer or device. They are meant to “assist” you in your everyday Forex activities, not do them for you (no matter what they claim!). Some are free, others come at cost. While their effectiveness is mediocre at best, the potential for abuse is enormous. Many “free” Forex robots are scams at best. At worst, they are the work of malicious third parties that can and will cause damage to your business, your data, and your bottom line.