Are Free FOREX Signals Useful?

If you spend any amount of time in the FOREX market, you are bound to come across an offer for free FOREX signals at some point. Using FOREX signals in general can be a profitable strategy for you to use. However, we have learned along the way in life that you get what you pay for. Therefore, you might be a little confused by an offer of free FOREX signals at some point. Here are a few things that you should consider with free FOREX signals.

The Foreign Exchange Market

The foreign exchange market or the FOREX market is the biggest financial market in the world. It has a daily volume of over $2 trillion and trades 24 hours a day. Traders in this market are hoping to profit from the small movements in the exchange rate of currencies. You can use much higher amounts of leverage with this market, therefore increasing your risk. 

Trading Signals

FOREX signals aim to make the experience of FOREX trading a little easier on you. Those that provide FOREX signals are usually very experienced traders that want to profit from their expertise. They have developed a winning trading strategy and they are willing to share it with those that subscribe to their feeds. 

Whenever a potential trading opportunity that meets their criteria comes up, they will alert you. The alert could come via text message or email. The message will tell you the conditions of the trade and when to place it.

It may tell you the stop-loss and take profit level to enter in your trading platform. Therefore, with the help of FOREX signals, you can let someone else do the difficult part and still benefit from the power of the market. 

Why Free Signals?

When you are presented with an offer for free FOREX signals, it could be for a number of different reasons. Just because the offer is free does not necessarily make it bad. Someone could be giving out their signals for free for a number of different circumstances. 

Sometimes you will see an offer for free signals for a limited time. You might be able to get the signals for a few weeks for free, and use them at your discretion. This is usually done to generate interest in their service. From the signal service's perspective, if they have a good product, they might as well give it away for free for a certain period of time. When they get some people using the signals successfully for a while, they will then be hooked. Once they start charging for the signals, many of the subscribers will pay the fee and keep getting the signals.

Other free signal services might be doing it just to capture your information so that they can sell you another FOREX product. When you are presented with an offer for free signals, you will want to test the signals on a demo account first. This way, you can judge whether the signals are actually worth the trouble or not without risking your own money. 

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