Many traders believe that free forex signals can be just as trustworthy as expensive signals provided by trading firms. Free signals are designed to provide traders with expert advice regarding when to sell or buy major currency pairs. But are free signals really as reliable as the kind you pay the experts for?
Of course, it’s only natural to want to achieve good results without paying the high cost for signal systems from trading firms. People also use these services in an attempt to prevent making their own mistakes, instead choosing to rely on someone else to make these important decisions.
Typically newbies who are just learning about trading currency will begin searching for free signals once they realize how difficult trading in forex can be. But most beginners are reluctant to pay for premium services because their goal is to make profits without having to dip into their own cash reserves to do it. Like an experienced trader, most beginners have a goal of achieving profitability in the market, and in most cases, they’ll try to make a profit as effortlessly and as cheap as possible.
But typically, the cheapest system isn’t always the most reliable. Also, when you trade with certain signal systems, you need to understand that while you’ll be able to find free signals, they may not really be free because they can cause losses, which will end up costing you a lot of money.
A Closer look at Free Signals
Forex signals are basically short messages that feature info that can help you make a better trading decision. Typically, they’re sent via text or email. It’s also possible to find signals on forex forums. These signals are very short messages that contain a few key terms.
The signal will begin with a direct order such as buy or sell. After this, trading instructions are displayed. It can take the form of the currency symbol or nickname, followed by price quotation. Price quotation is shown in either four or five digits after the dot. Sometimes, free signals feature some type of order. Such as a pending order, market order, or even a limit order. You can also encounter additional orders depending on the platform used or the company that’s sending the signals.
After line one, you’ll see a couple of abbreviations and quotations. These identify the points of stopping your trade due to profit or loss. TS is an abbreviation that you’ll often find at the end of a signal. TS stands for trailing stop. Not every platform or broker supports this type of order.
Now that we’ve gone over forex signals, let’s delve a little deeper regarding who sends these signals and whether or not they can be trusted.
Signal Authors
It’s possible to find many courses for forex signals. There’s plenty of sites dedicated to this type of service. Social media has also made it possible for traders to share free signals. There are a few main groups of people who are responsible for sending these signals out: scammers, affiliates, and traders.
It’s common to find traders who want to share their ideas, with a goal of earning a rep for being a good teacher or to help out newbies. Usually, it’s possible to find a trader that’s sharing free signals on a variety of trading forums. Traders will attempt to send out reliable signals by doing their own analysis and offering the same information that they’re using to make their own trades.
Another group of signal providers is the affiliates. Usually, you’ll be able to get free daily signals from this group once you have signed up with a broker and use their affiliate link. This allows the affiliate to make a commission each time you trade, while the signals remain free. However, keep in mind that not everyone will have the time to support both trading activities and an affiliate business, so always be cautious when using this option for free signals. You may notice over a period of time that the quality of the signals they send has declined, this often happens once they put more energy into their own promotion. You can decide to treat these signals with a level of trust, but once you notice the initial decline in quality, it may be best to move on.
Scammers are out there and you should definitely keep an eye out. These are the people who are only interested in making an affiliate commission off you or they may eventually try to get you to buy their free signals. These providers typically employ pretty obvious methods in an attempt to attract new clients. They’ll offer free signals, then ask you to purchase their premium ones. After you’ve signed up for the free signals, signals will be sent to you, but they’ll also be sent to the other people that have signed up. This allows the scammer to split their audience in half.
Final Thoughts on Signing up for Free FX Signals
While it’s possible to find good free forex signals online, most pros wouldn’t recommend using them. Trading online can be tricky and often takes plenty of research to master. It actually takes hard work, research, and dedication to monitoring the market. Even if you’re using good free signals they are not teaching you how to trade, you’re simply relying on someone else to make important trading decisions for you.
However, if you’re determined to use free signals, check out some forums. Look for a trader that provides a transparent and full trading history that goes back at least a few months. Don’t trust traders that promise impressive results without any proof.
It’s possible to find good signals that don’t come with a price, but you should definitely be cautious when signing up. Even though they may be profitable, we don’t recommend solely relying on them as the main source for trading info. Successful trading will come with plenty of research and hard work on your part and that’s what you must understand before you can move forward and earn real money. Instead of using only free signals, use them as a type of secondary tool for the best trading results.
