Published: 21 September 2020 by Andrew
Why are Forex Signals so popular among traders? Many novice traders think they can solve all their problems and make quick money with forex trading if they use good signals.
Indeed, using a good signal service can literally change a trader’s life. But be careful: using wrong forex signals can also result in losing money.
This guide explains in detail what forex signals are and where you can get reliable signals for FREE. For those who do not want to waste time, we point out that the best signals for forex are those offered for free by the ForexTB broker: you can request free ForexTB signals by clicking here.
What are Forex Signals
Forex signals are extremely precise indications of situations in the forex market that can present investment opportunities for the trader.
A signal is good if those who use it manage to make a winning operation. It is good to remember that not all forex signals are good and reliable, indeed, in some cases you can even lose money using the wrong signal service.
It is important to remember that forex signals have nothing to do with automated trading on the forex market. The signal is an indication that can be received by email, WhatsApp or Telegram: the trader must carefully examine the suggested operation and must take full responsibility for the operation.
For those interested in automatic trading, in the course of the article we will talk about the great possibilities offered by the eToro platform (perhaps the only automatic trading system that really works).
Why does eToro work well? Easy, because with eToro you can automatically copy what the best traders in the world do. But we’ll talk about it later.
Good and Bad Signals
How do you evaluate a forex signal? First, it is advisable to evaluate the service history. It is dangerous to subscribe to a service that systematically makes you lose money. It is therefore essential to analyze the history of signals sent in the past to check how many times they have generated profits and how many times they have lost.
Warning: no forex signal service is able to generate profits 100% of the time. If you find such a remark, it is surely a scam.
Unfortunately, in many cases those who sell forex signals are not trading experts but marketing experts: it therefore happens that the archives of historical operations are falsified.
It is very risky to subscribe to services of this type: not only do you lose the money spent on the subscription but you also risk making wrong transactions on forex (therefore losing money).
In the case of paid forex signal services, it is always advisable to request a free trial. It is always good to initially use the signals received in demo mode in order to demonstrate that the reported operations are good before starting to operate with real money.
Best Free Forex Signals website
For those looking for the best free forex signals we recommend the ForexTB forex signals service.
ForexTB is one of the best forex brokers in Europe and offers an excellent signal service to all subscribers. In this case the past results are not only excellent but are also certified, so you can follow the signals with confidence.
These signals are processed by leading financial analysis institutes and are distributed free to subscribers. In these institutes, analysis is carried out using the best technical indicators (such as moving averages, Ichimoku, trend lines etc.).
ForexTB is a completely free and commission-free forex broker, simple and intuitive to use and therefore perfect even for those who are starting for the first time to deal with forex.You can sign up for free on ForexTB by clicking here
Telegram Forex Signals
Some forex traders (especially aspiring traders) are in love with the idea of receiving forex signals via Telegram. Why?
This is more of a fashion, actually, any instant messaging system is good for receiving signals. The important thing is that they are good signals and therefore suggest operations that make money on forex.
The motivation that drives some signal sellers to use Telegram is quite different: they operate well beyond the regulatory limits (i.e. they do illegal things) and therefore use Telegram which guarantees a higher level of privacy than other systems to send and receive messages online.
If you are looking for a good signal service, you would do well to ask yourself why whoever sells you signals needs so much privacy to use Telegram …
Free and Paid forex signals
Which are the best forex signals, free or paid ones? The question doesn’t make a lot of sense even if it’s asked quite often. It all depends on the result: a free signals service that makes you lose money in the vast majority of trades is a bad deal. Paying for signals that generate profit is instead an excellent idea.
It must be said that at the moment the best service is that of ForexTB, which is free, but nothing prevents the situation from changing in a few years.
Paid forex signals
As for the paid forex signals it is necessary to make an accurate calculation before subscribing to the service: it is very important to verify the convenience of the service.
This calculation does not depend only on the number of positive transactions on the total but also on the capital to be invested. For example, if I want to invest only 10 euros in total (with forex brokers like Iq Option it is possible) I cannot spend even one euro to subscribe to a paid signals service.
If I want to invest only with 100 euros, I will have to be really very careful, because I will hardly be able to make a total profit, even if the signals are excellent. If, on the other hand, you invest a large amount of capital, for example 100,000 euros, it is very likely that paying for the signals is not a bad idea (assuming the signals are good).
Forex signals scam
The signals do not always help you to make money: unfortunately, however, sometimes they hide real scams. The mechanism is more or less similar in all cases of scam.
First, in this case the signals are not processed by forex experts but by marketers. These characters are very good at selling and have no qualms about inventing false data. Anyway, who controls?
The forex signals they spread are very bad and those who follow them lose money. Paradoxically, it is much better to suffer a complete scam, that is, to pay for signals that will never be sent rather than to receive forex signals that make you lose money.
The number of scams recorded in recent years is so high that many traders prefer to rely on services that are known to work well (such as ForexTB's) without venturing to try new ones.
Forex signals strategy
Whatever type of signals you use, there is a strategy to achieve optimal results and avoid all sorts of problems. The first step is to verify, as accurately as possible, the presence of a historian and / or positive opinions and reviews on the internet.
In the case of the ForexTB signals service, both are present and therefore there is greater security on the part of those who use the signals.
The second step is to always test the signals in demo mode, for a long enough time to be sure that the signals are good. All the best forex brokers offer the possibility to trade in demo.
If your broker doesn’t offer demo, change it. Brokers like ForexTB or eToro (considered the best in Europe) offer unlimited and unconstrained forex demos.
If you want to be even more secure, calmly test the signals even with real money, making small trades.
In any case, always remember to do money management: everyone can make mistakes, even the best. So never invest the entire amount available on a single operation but divide the capital into small shares and use each of them in a single operation.
Alternative: automated trading
We have already mentioned the possibility of automatic trading thanks to eToro. We can say that this is the only automated trading system on the forex market that has proven to really work.
How does it work? Technically it is very simple: eToro provides an internal search engine that allows you to find the traders who have earned the highest profits in the past with the lowest risk.
These traders can be copied automatically: the Copytrader system will automatically and in real time replicate all the operations made by the selected traders.
The less experienced thus have the opportunity to obtain excellent results immediately and can also learn by observing what the best do.You can sign up for free on eToro by clicking here
Forex signals can be a great opportunity to profit on forex, even for beginners. However, it is advisable to carefully select the signals to follow to avoid scams or bad situations (resulting in loss of money). The best free and reliable forex signals are the ones offered for free by the ForexTB broker.
There is an alternative for beginners and it is the automatic trading offered by eToro. In this case it is really all automatic, you just have to select the traders to copy.
It is important to test first the signals in Demo mode, so you can be sure they are reliable signals.
What makes the difference is not the price paid but the quality of the service offered. For example, ForexTB signals are free and have an excellent 75% of trades at Target.
If you choose a qualified supplier the suggested operations have a very good chance of going to Target. Obviously, they are not infallible, however they represent an excellent support tool for Trading.
Just follow the instructions in our ForexTB review.
Undoubtedly those developed by Trading Central, a renowned technical analysis center which enjoys a partnership with ForexTB and Trade.com