Forex trading is an excellent way for individuals to make money with the assurance of both time and financial freedom. Traders who have time and again employed profitable Forex trading strategies later opt to start trading signals businesses in order to make money from their accurate forecasts. The signals business is still relatively new, but Forex traders can benefit greatly from this lucrative business. Below are three tips that you can use to guide you when starting a signals business.
Asking For An Affordable Subscription Fee
Monthly subscription fees usually range from $25 -$200 per customer. If a Pro Forex trader has tested their Forex trading signals and proven that they are consistent in raking in profits. Countries such as the United States of America levy taxes on profits made from Forex trading wherein traders trading with US brokerage firms are charged 60% taxes on the income made. Non-citizens, however, do not pay taxes on the Foreign exchange profit made.
A Pro Forex trader starting a Forex trading signal service must thus put into account the Forex trading taxation laws that do exist in other countries before deciding on the amount to be charged as a subscription fee. It is common for Forex traders from these countries to be left with little or no profits after the trading signal’s subscription fee and taxes that are subtracted from trading profits. You should thus consider the effectiveness of your system in earning profits before finally settling on the amount of money that is to be charges as subscription fee.
Starting Off With A Demo Account
A common misconception held by most Pro Forex traders is that for one to be in the business of providing Forex trading signals, they have to trade on a live account that has to be funded with no less than $4,000. In as much as this is an advantage (through gaining the trust of traders quickly), you can actually start selling Forex signals with a demo account while bettering your skills and trading performance. The most successful Forex trading signal providers have tales of how they too started providing trading signals to other currency traders while trading with demo accounts that did not have real money in them.
It is from the success of a demo account that one gets subscribers to their channel .One of the most crucial points to remember when starting off with a demo account is that gaining the clients trust goes a long way in ensuring that one succeeds in this business. This can be done by providing high quality signals which assure the traders of profitable trades. Forex traders often stick to signal providers whose signals have time and again been proven to be profitable.
Paying Attention To Your Monthly Returns While Managing Trade Draw-downs
Novice often view the Foreign Exchange Market as a frontier for them to gain money in terms of profits while totally disregarding the intrinsic trading risk that they will be faced with. This is why traders are always looking for trading signals that will assure them of the highest possible profits. A large percentage of traders who subscribe to trading signals have little or no trading experience. Such subscribers require the utmost drawdown of the lowest possible percentage, however impractical it may seem. A sizeable drawdown can destroy a business and trading results for a signal provider.
More often than not, Forex traders want to employ the services of signal providers that have a track record of posting profits with the lowest trade draw-downs. With a maximum of about 20-30% draw-downs, traders can comfortably risk to trade with your signal. By keeping your trade plan at a low risk level, you can avoid the possibility of large draw-downs, even though this would mean less monthly gains. Additionally, providing quality trade signals over quantity is one of the best techniques of managing trade draw-downs. Forex traders are more likely to subscribe to a signal provider with 4 trades in a day than one who provides over 16 trades in a day as overtrading is a sign of unprofessionalism.
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