The forex market is a vast and lucrative entity, and one that sees an estimated $6.6 trillion traded globally every single day.
However, there are a deceptive number of ways through which you can make money on the foreign exchange, including several underrated methods that you may not be aware of as a market newcomer.
Becoming a forex signal provider offers a relevant case in point, but what exactly does this entail and how can it help to generate a viable profit?
What is a Forex Signal Provider?
Essentially, forex signal providers are traders who share their strategy with others in real-time, while participants may choose to issue suggestions and signals generated by either human analysis or an algorithm.
In practical terms, when you open a trade it gets replicated automatically into the accounts of your subscribed members, while signal providers generally earn their living by receiving monetary compensation when your followers subsequently make money.
Forex signals are usually provided at a specified price and time, in order to provide clarity to followers and ensure optimal profitability for subscribers.
Over time, this can provide an additional stream of passive income, and one that successfully augments the money made directly as a result of your trades.
How to Become a Forex Signal Provider and Make Money
In a relatively well-regulated market such as the UK, you’ll be required to become certified before you can operate as an accredited signal provider.
This is because these people operate in the same way as qualified money managers, who select assets and trade opening (or closing) positions on behalf of others.
However, signal providers don’t have direct access to their follower’s accounts, and as a result of this you’re not responsible for the results of a subscriber’s decision to copy your trading suggestions. This creates the need for a different type of licensing, and one that’s specific to the core activity.
The next step is to join a trading platform, and ideally one that offers access to a wide range of potential subscribers and marketplaces.
This, combined with a proven track record of trading success and a strong social media following, can help to launch your career as a forex signal provider and lay the foundations for a bright and profitable future.
If you’re serious about this as a viable career path and also want to build trust amongst your followers over an extended period of time, we’d also recommend creating your own trading blog and providing informative content to help engage others.
As we’ve already touched on, creating a basic subscription model is one of the most popular methods of generating income as a forex signal provider. This certainly enables you to make money from the outset, although it may be harder to secure without a proven track record.
Another option is to generate income through profit shares, which see you earn a fixed percentage commission on every copied order that generates a return for your followers.