Today’s post will guide you in finding and selecting the free Forex signals. We will also talk about where you can find the best free Forex signals and whether they’re reliable or not.
Thousands of people enter the Forex market to try their hands at trading and earn good profits. Newbie traders are enthusiastic about trading and want to capture huge gains quickly, without investing a lot of money.
Their enthusiasm and dream of earning big compel them to turn to Google to find out the best free Forex trading signals. New traders are not really a fan of purchasing premium signals. Hence, they rely on free Forex signals to ace their trading goals.
Before we talk about where you can find free Forex signals, let’s take a minute to discuss the term ‘Free Forex Signals’.
What Are Free Forex Signals?
Free Forex trading signals refer to information that help traders formulate their trading strategy. A trader receives Forex signals in the form of short messages or snippets containing vital information.
There are different types of Forex signals. For instance, Forex news trading signals, Forex Technical analysis signals, etc. Forex news trading signals send information related to the critical economic or political news that can influence the market.
While Forex technical analysis gives the market information according to the technical analysis.
Here’s a quick rundown of best Forex signals in 2022 along with a FREE BONUS trading strategy insight from the author:
How Does A Trader Receive Forex Signals?
Traders receive Forex signals through emails, SMS, or short messages on text messaging apps like WhatsApp, Telegram, etc.
Some traders also find free Forex signals on social networking sites like Twitter and online forums like Reddit.
Expert Forex traders always recommend using the Forex signals on demo accounts first. Trying these signals on your live trading account can pose a severe risk to your capital.
Many people often wonder what a Forex signal looks like. They think it is in a graphical form and needs to be interpreted to devise the trading strategy.
Keep on reading to know what elements and items make up a free Forex signal.
What Makes Up A Free Forex Signal?
As explained earlier, Forex signals are short messages that provide valuable information to a trader based on fundamental or technical analysis.
The following is an example of a typical Forex signal. The information is easy to understand by every trader, irrespective of their trading experience:
- Pair: USD/JPY
- Order: Sell
- Entry: 1.1259
- Stop-Loss: 1.1322
- Take-Profit: 1.1242
The above example shows all the essential items mentioned in the Forex signal.
Where Can You Find Free Forex Signals?
There are tons of places where you can find free Forex signals. Type ‘best Free Forex signals’ on Google.com and see millions of results on your screen. Many websites, forums, and groups on social media provide free signals.
Three groups of people provide free Forex signals (to name a few):
Many Forex traders share their analysis and knowledge with the trading community. Their main motive is to build a rapport and help traders formulate an intelligent trading strategy.
You will find many traders who provide free Forex signals on their websites, social media groups, and online forums.
These traders conduct thorough fundamental, technical, and psychological analysis to provide the community with reliable signals.
The second group that provides signals is:
Other signal providers include affiliates. Traders get free signals when they open a trading account with a broker using an affiliate link. The trader gets free signals, and affiliates enjoy a commission from the trader’s trade.
But, you should not rely 100% on the signals provided by the affiliates. It is tough for them to allocate reasonable time to their trading activities and affiliate business. As a result, the quality of their free signals might not remain the same in the long run.
Thus, never apply these signals directly to your live trading account. Always test them on a demo account to check the results.
Another group that claims to provide the best Forex signals is scammers. You should never rely on this group as they will cost you time and money.
Scammers have one goal: to make money. They are not interested in helping you or providing you the correct information for trading.
One of the signature moves of these scammers is to first attract traders by offering them a few Forex signals for free. And later on, the traders are asked to pay to receive premium signals. The scammers can be traders or affiliates groups. Thus, do not trust everyone on the internet who tries to tempt you with free signals.
With that being said, how can you identify reliable signals amongst the sea of Forex signal authors and providers?
What Free Signals Can You Trust?
Choosing and relying on free Forex signals is not as easy as you think. There are plenty of scammers in the market, and like hungry sharks, they are ready to find their next target.
Hence, you have to be smart about selecting free Forex signals. The following is the checklist for choosing the right and best free Forex signals:
Checklist to Find the Best Free Forex Signals
- Number of Positions
An average of 100 positions is highly recommended for getting a solid understanding of the signal service in various market conditions.
The second thing to check is the risk/reward profile.
- Risk-To-Reward Ratio
Ensuring that the signal provider has a positive risk-to-reward ratio is essential. Generally, a ratio greater than 1:1 is considered a favorable ratio.
The third thing to check is the success rate:
- Success Rate
It is essential to gauge the results of the Forex signals. Ideally, you should select the Forex signals that result in winning trades.
Hence, if the winning rate is more than 50%, you can trust it. Many seasoned Forex traders rely on the signals with a more than 70% success rate.
The fourth item on the checklist is:
- Consecutive Losing Trades
The number of consecutive losing trades refers to the potential loss that might incur due to applying a Forex trading signal.
A trader must check these four items in the Forex signal provider before selecting it. Investing a little time in thorough research can save you from potential losses.
Free Forex signals are helpful for traders who do not want to spend a hefty amount on premium or paid Forex signals. But free Forex signals are not as valuable as the paid ones.
The reason is that the paid signal provider uses its time, energy, knowledge and experience, and all the right resources to supply authentic information and opportunities. Thus, they charge traders for their service.
Free Forex signals providers often impose the condition of signing up with a particular broker. Or they send incomplete Forex signals to entice the trader to pay for the premium signal.