Traders Union research: Trading signals influence decisions of 47% of traders
Trading signals have become a common tool for retail traders, but their impact on decision-making remains mixed. New Traders Union research shows that such recommendations can encourage traders to enter new positions while reducing the depth of their independent analysis.
In the study “Do Trading Signals Improve Retail Decisions?”, Traders Union analysts surveyed 1,450 retail traders who trade Forex and CFDs. The researchers examined how often traders use signals, whether they verify recommendations before entering a trade, and how much they trust their sources.
Most traders already use signals
Around 61% of participants said they use trading signals regularly or occasionally. Another 18% had tried them once or twice. Only 10% of respondents said they had never used trading signals.
TradingView was the most popular source, cited by 24% of traders. Telegram accounted for 21%, broker-generated signals for 18%, and dedicated signal providers for 14%. AI-powered tools are still used by only 7% of respondents.
Not everyone verifies recommendations
Most traders perform at least a basic check before opening a position based on a signal. However, only 22% conduct a full technical or fundamental analysis, while 39% limit themselves to a brief review of market conditions.
Another 21% mainly use signals to confirm their own trading ideas. At the same time, 11% usually execute recommendations without any additional analysis. According to Traders Union, signals are more likely to reduce the depth of independent analysis than replace it entirely.
Signals encourage traders to enter new positions
Around 47% of users admitted that trading signals had prompted them to open positions they would not have considered on their own. For 14%, this happened frequently, while another 33% said it occurred occasionally.
At the same time, 33% said signals never influenced their trade selection. Another 20% said this happened rarely. This suggests that external recommendations have a noticeable impact on the decisions of a significant share of traders, but do not replace independent market assessment for everyone.
Trust in signal providers remains limited
Most traders are not willing to trust all signal sources equally. Around 41% rely only on a few trusted providers, while 24% review their historical performance before following recommendations. Only 18% of respondents said they generally trust most of the providers they use.
A series of successful signals can also change behavior. After several profitable recommendations, 27% of traders become more confident in the provider, while 12% spend less time verifying future signals. Another 9% increase their position size, and 5% increase leverage.
Earlier, Traders Union research found that most traders fail the challenges set by prop firms.
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