A Forex signal is an alert which tells a trader whether to buy or sell a currency pair. These signals are either automated based upon a computer program or they are analyzed by a real person.

So are forex signals effective?

It all depends on how reliable the source of the forex signal is and how those signals are applied.

The first step in determining the effectiveness of a forex signal is by ensuring that the signal is being supplied by a trustworthy source.

The forex market is the largest and most liquid market with a daily transaction volume of over 5 trillion dollars.

Therefore it is no surprise that this lucrative market is plagued by numerous scams which are perpetrated in different patterns with fake forex signals being one of them.

These fake trade signals are just generated at random with no real reason backing the signal.

These fake signal providers can be identified by some major red flags such as promises unbelievable ROI's ( Return on Investments) and very high win rate. Some of these fake signal providers even go ahead to state that their signals are 100% efficient.

However, even after you get a trade signal from a reputable source, how you apply the signals is also important.

Depending on your account size and practice of risk management, not all signals may be suitable for you.

A signal meant for large account traders could also result in a loss if applied by small account traders.

This is because when these signals are generated and distributed, they are distributed generally without taking into consideration the subtle differences between respective users of the trade signals.

In conclusion, trade signals are of great benefit to a forex trader especially when used as a guide instead of a holy grail but the first step starts with registering with a trustworthy signals provider.

[url]Bluefxsignals.com[/url] is one of the reliable forex signal service providers. Not only is there access to customer care support but also there is a 14 day free trial period to enable trader adequately test the reliability of these trade signals.