Technology knows no limit. It has conquered almost every area of human life, including the Forex market.
Decades ago, the Forex market and trading were nothing like today. Things were manual, and there was no concept of online trading and connecting with brokers from different corners of the world. With the advent of the internet, smart programs, sophisticated apps, and a strong online network, the landscape of the Forex market has transformed.
Forex traders of the current era have more chances to bag good profits in Forex trading. Once again, thanks to technology.
Forex traders now have access to advanced Forex expert advisors that can handle the trade. They also have the facility of Forex signals that are available for free. Traders can benefit from Forex signals without spending a dime for it.
Many traders and experts do not favor using free Forex signals. They think that free Forex signals are not reliable. Before we proceed to discuss the reliability of the free Forex signals, let’s quickly overview the term Forex signals and their benefits.
What is a Forex Signal?
Forex signals are short messages that contain important market information based on a thorough technical and fundamental analysis.
These messages help Forex traders to identify profitable opportunities and open timely positions. Moreover, Forex signals alert the trader about negative price movements or unfavorable markets. By using this information, a trader can protect his capital from losses.
A trader must sign up with a Forex trader or company providing Forex signals. Some providers charge the trader a monthly fee. Whereas some companies and traders provide free Forex signals.
The signal provider sends the market information through messaging apps like WhatsApp, email, SMS, etc. Some providers publish the message on their social accounts.
The signals from different providers vary. However, all the Forex signals contain basic information like currency pairs, prices, order type, etc.
Here’s an example of what a Forex signal looks like.
- Pair: USD/JPY
- Order: Sell
- Entry: 1.1259
- Stop-Loss: 1.1322
- Take-Profit: 1.1242
Are Forex Signals Beneficial?
Forex signals are of great help to the trader. It makes them aware of the trading opportunities and saves them time from conducting a mind boggling technical and fundamental analysis.
The Forex market has plenty of traders who are not full-time traders. These traders have full-time jobs, and Forex trading is their side hustle. These part-time traders do not have all day to dive into technicalities, use different indicators, formulae, etc., to understand and forecast the market. Forex signals are the best friend for these traders.
The signals provide them with all the necessary information to ace their trading without spending time on research or analysis.
But are Forex signals really reliable? Can a trader trust it? Let’s discuss the reliability of free Forex signals:
Are Free Forex Signals Reliable?
Advanced and experienced Forex players prefer premium Forex signals over free ones. Premium or paid signals provide more information to the subscribers, especially the time-sensitive information. Whereas free Forex signals provide basic information. Another reason why people find free signals unreliable is because of the incompetent signal providers.
These providers do not have the best interest of the trader in their mind. They tempt the trader with high winning rates and make them sign up. When the trader receives Forex signals, they contain half the information, which is useless to the trader. Hence, people do not trust the free signals completely.
However, if you sharpen your research skills, you will find some best free Forex signals. The signals are reliable and are available for free.
How to Find Reliable Free Forex Signals?
The following guide shows how to find reliable free Forex signals:
1. Research About the Signal Provider
Never sign up for any signal provider without researching it. A friend’s recommendation or a positive review on social media doesn’t mean that the signal provider is reliable and will work for you.
Hence, always find the following information before signing up with the signal provider.
- Check the Risk to Reward Ratio of the signal provider. The ratio should be positive and greater than 1:1.
- The second thing to check about the company is its track record. A reputable signal provider is transparent about its records and trades. Thus, he won’t hesitate to show you the record. Check the number of profitable trades, losses, and win rate of the signal provider.
- Check the Success Rate
Many Forex signal providers claim to have a 100% winning rate. The beginner traders sign up for it and are disappointed when they don’t win.
A Forex signal, whether paid or free, never guarantees success. It only indicates the profitable opportunities in the market. It can surely help the trader succeed, but it’s not guaranteed.
Hence, never fall into the trap of a 100% winning rate. Nobody can provide a 100% success rate. Because even experienced traders face a setback. A reputable Forex signal provider has a win rate above 50%. Never sign up for a Forex signal with a win rate of less than 50%.
The 3rd step in finding the best free Forex signal is:
3. Read Reviews
Always read the reviews about the Forex signal on different websites. Find out about the signal’s accuracy, win rate, and customer service.
Visit different platforms, groups, and forums to gather as much information as possible. Reading the reviews shared by real traders will help you decide better.
Moving on to the 4th step:
4. Sign Up for a Trial Period
Many Forex signals offer a trial period to their subscribers. The trader can sign up for the trial period and experience the Forex signals accuracy first-hand.
Always use a free trial on your demo account to see how things work out for you. Never use Forex signals directly on your live trading account. Doing so will pose a risk of putting your hard-earned money online.
P.S.: Here’s one free Forex signals provider that we recommend:
Conclusion: Are Free Forex Signals Really Reliable?
Traders who do not want to spend much money on premium or paid Forex signals can benefit from free Forex signals. Free Forex signals are not as valuable as premium signals.
This is because the paid signal provider devotes his time, energy, knowledge, and experience, as well as all of the necessary resources, to providing accurate information and opportunities. As a result, they bill subscribers for their services.
Free Forex signals are sometimes attached to the requirement of signing up with a specific broker. Alternatively, they may send erroneous Forex signals to persuade the trader to pay for the premium signal.
Hence, always conduct your research, sign up for the trial period, and use the Forex signal in your demo account. If you are 100% satisfied, integrate the Forex signals into your live trading account.