Forex signals – suggestions about price and time given to you about entering a particular trade on a certain currency pair – are meant to help you in your trade.
The signals, created after thorough analysis and examination of data by humans and robots, can offer insightful data that you are looking for.
The problem is, since the validity of the signals is limited by time, one needs to be aware of them almost immediately. Sure, you can get them by email, website notifications, SMS, tweets and more, but you need to know that it comes from a reliable source.
Why do Free Forex Signals Not Work?
You will find a variety of tempting free signals across the Internet that you can use without spending a penny of your own. If you have made up your mind about using Forex signals to give yourself that extra edge in trading, then you might want to subscribe to an unpaid signal service.
What makes free trading signals even more attractive is that there is no barrier to entry, which means that anybody can join without extra hassle. In fact, you could start trading with the help of free signals the very day that you join.
However, using unpaid signals can turn out to be not such a great idea because you simply have no guarantee about their trustworthiness. When you are trading, you are actually betting your entire account and devoting your valuable time. You will be putting both at risk by depending on Forex signals that have no proof of being legitimate.
Why Shouldn’t You Go For Free Forex Signals?
Using free Forex signals is not a good idea, and you should try to avoid them as much as possible even though they won’t cost you any money.
Here’s why.
You get no guarantee whatsoever:
Firstly, when you subscribe to a free Forex signal service, you have no assurance that it won’t cause a heavy loss. You have to take a risk and figure it out for yourself. Meanwhile, it is your money that is hanging in the balance as the service provider will not take any responsibility.
For argument’s sake, let us consider that you have indeed managed to find a free signal service that has yielded good results for you, which encourages you to continue using it. However, you will still not have a guarantee as to how long these signals will actually work. Just because they performed once or twice, does not mean that they will continue to do so in the same manner.
In fact, you might just find that the signal service has completely ceased to exist in a matter of two weeks leaving you at a loss.
On the other hand, paid signals service have developed a stable reputation based on historical data and a study of trends. You can trust them to not abandon you midway in your quest to become a successful trader. If you want to use signals, choose a paid service over a free signalling service simply for security purposes if nothing else.
Anybody can start a free signal service:
When you are using a free Forex signal to trade, you do not know who is working behind the scenes. You are dealing with your own precious money, and for all, you know the person who started the service might turn out to be a scammer.
In this digital age, most of us can start an online service without any hassle. As a result, anybody and everybody can initiate a signalling service for free and try to send out Forex signals to people who subscribe.
The creator may have no idea about the world of Forex trading works and is just doing it for fun. On the other hand, a lot of these service providers are inexperienced traders who do not want to take a risk with their money and are hence fooling you into trying out their new trading strategies. In some cases, the providers actually believe in the validity of their strategies and think that they are helping people by distributing data even though there is no performance data or research to back it up.
On the other hand, you will only get experienced professionals at your service if you subscribe to a paid Forex service. These officials thoroughly research before giving out signals and are knowledgeable in the field.
They make a profit some way or the other:
You might think that you are at an advantage over the service provider because you are not shelling out any money for the Fore signals you are getting. However, that is naiveté in the world of trading.
When you are not paying for a service, you are always putting yourself at some risk or the other. Anonymous Forex signal service providers either flood you with advertisements of different kinds or sell your information to interested parties.
The service is not interested in maintaining good service that will please you. Instead, they just want to attract enough customers to keep the business afloat, and you are the product they want to sell.
A trading signal service gets better with experience and research, but unpaid signal providers do not care about improvement. For them, it is just about finding more buyers and takers. Moreover, having your personal life invaded because of their selling your private data is unpleasant. You might find yourself hounded by telemarketing officials in the middle of the night or have your computer infected with dangerous malware. Always be careful about who you are giving all your information to.
Misuse of funds:
When you use a paid signal service, you are actually giving money to research and expertise in the field. With time, you will get improved service and more accurate signals because they have been developing their system algorithm.
Paid signalling services devote a large chunk of their funds to maintain the software and hire the most talented workers out there. By offering them a decent salary, the service can retain the talent as well. On the other hand, free service cannot do this even if they want to. They are not constantly evolving, and hence do not appeal to professional and talented traders who want expert opinions.
Would you give away your best winning strategy to a complete stranger for zero profit? No, right? So the free signal providers have some sort of an ulterior motive.
When you are looking for a paid Forex signal service provider, also check up on the traders involved.
No Tech Support:
Paid Forex signalling services will make sure that you receive the necessary notifications by sending them via desktop, mobile phones, the Internet and more. This technology is not cheap, and hence free Forex signals providers cannot usually afford it.
They may send you emails or update their website, but they will most likely not have a dedicated app which will make sure that you review your signals before it is too late. This is also because they are not very interested in making you successful since they are not keeping any profit off the trades.
Paid signalling services invest a large portion of their finds into developing these technologies, but free services do not have the capital or resources, to begin with. So if you want instant updates and are unwilling to be left behind under any circumstances, then make sure to subscribe to a paid service.
No Customer Support:
Maybe you are facing problems when using the Forex signals. You might not be getting the notifications, or you are unable to read the signals.
A paid Forex signal service will have a customer support team who will help you solve any issues that you are facing. These services can afford to pay individuals to stay on board, unlike a free service which will not have customer support dedicated to your problems.
You will need to find out glitches on your own and figure out why you are misreading a signal which could honestly lead to heavy losses on your end.
Quick solutions will increase your chances of making a profit, but that is almost impossible if you are using free signals.
Stagnancy:
Just because you are using a Forex signalling service, that does not mean you stay stagnant as a trader. It is necessary that you grow as a trader both in knowledge and expertise with every deal you make.
You will find that a large number of paid Forex signal providers will give you information about trading even if you are just a beginner. To use signals to their maximum potential, you need to know the field you are playing.
Paid Forex providers have a dedicated community or a website section that will educate you about strategies and the reasoning behind their signals and trades. Soon, you will be able to upgrade to an investor and entrepreneur if you so wish.
Free signal providers do not want you to grow as a trader as they might lose business in the process. They will try to limit and restrict you from providing no knowledge.
Simply put – AVOID free signal providers if you want to make the best of your trading career.