Forex trading signals service or trading robot? These are some of the choices we, as traders, have. So how do you decide which is right for you? That's what I'm going to try and help you figure out.
Trading Robot
First off, trading robots can range in price from well under $ 100 to well over $ 1000. So, depending on what you're willing to spend and how much time you have to sit and watch the market, will determine if a robot is the right choice for you. Also, how much support you will receive from the vendor; are the updates free? How quick are questions about the system or problems answered? Is the system all inclusive or are there add-ons that you need to purchase to make it really automatic? These are just a few of the questions you need to ask yourself.
Forex Trading Signals Service
With forex trading signals services, you will most likely have to be able to spend more time at your terminal. Not to mention, depending on where in the world you live, you may have to work the gravity shift, or sacrifice some of the better trading times available. Also, you usually have to subscribe on a monthly, quarterly, or yearly basis with a forex trading signals service, which is usually considered to be a little pricey (anywhere from $ 99 / month to $ 299 + / month), which makes this option a bad choice if you're trading mini lots or worse yet, micro lots. But if you're able to trade standard lots, there are some providers that can help you make a very nice living.
Performance
Next, what type of performance are you looking for? Short term scalping? Medium term swing? Or Long term swing trading? Some robots offer all three types of trading in one system while others focus on only one strategy. The same can be said for forex trading signals services. The main difference I've found is in the exits of some of these systems. Some robots I've tried seem to hang around a scalp trade, what seems to me, a little too long. Forex trading signals services I've used are out at a small profit on a portion of the trade, while letting the reminder continue so long as the conditions remain favorable.
Conclusion
So to summarize; If you're short on time and or money, a robot is the most reasonable choice. If you are a full time trader and have the capital required to trade multiple standard lots, and like to have the human contact that's usually lacking in online trading, then a forex trading signals service is the way to go. Just make sure and test it out on a demo account before committing any real money. This will give you the information needed to determine if it meets your profit goals and draw down tolerance. Most sellers offer either a free trial or a small trial fee to test out their programs. Take advantage of these and use them as if you were using your real hard earned money, otherwise it's not worth the time.
