The Must Have Free FX Signals
You may have seen certain ads from ‘trading gurus’ that encourage you to copy their forex signals to make instant money. They claim that their system is the best, and it’ll take your trading to the next level.
But is there any truth to their claims, or is it just a way to lure amateur traders?
In this article, we are going to present you with a complete picture of FX signals to help you determine the genuine signal providers from the bogus ones.
What are FX signals?
First things first, what are FX signals?
An FX signal is a trigger produced by research, either to buy or sell a currency pair. This research can be produced by humans using technical indicators or mathematical algorithms focused on market action, likely by other market variables such as economic indicators.
Forex signals can be produced using a variety of inputs from various subjects. Technical analysis is typically the main component, but fundamental analysis, quantitative analysis, economics, sentiment indicators and signals from other trade signal networks can also be inputs.
The aim is to provide traders with an automated, emotion-free way of buying or selling a currency pair.
Typical features offered by FX signals
In a standard forex signal operation, the programmer develops a series of technical indicators and rules, and the software operates in accordance with those requirements.
If the price action meets the signal service requirements, a notification or reminder will be sent to the individual by email or text message to prompt them to respond. It is eventually up to the user to choose whether or not to trade the signal.
Although this can seem to be more favorable because you have the option of whether or not to enter a trade, the signal service is always configured to a consistent set of rules.
A professional trader can produce trading signals for clients to act on, in addition to likely using an automated system. Depending on the service provider, it can be free or charged.
Different types of FX signals
FX signals can be classified into two groups:
- Fundamental FX signals
Fundamental analysis is concerned with global developments and business news, all of which may affect financial instruments’ price fluctuations. A fundamental signal is essentially a case, such as an interest rate announcement, that an investor may use to make informed trading decisions.
Traders would need to keep an eye on the news and business reports in order to access fundamental signals.
For example, if the President of the European Central Bank (ECB) makes a speech, the forex signal would try to buy the Euro against the US Dollar.
- Technical FX signals
Fundamental analysis examines news and economic phenomena, while technical analysis examines historical market fluctuations and chart trends. Traders will forecast how pairs will behave in the future by looking at how they have behaved in the past.
A technical signal occurs when a chart trend signals that a pair’s price will shift in a certain direction. Using historical data and statistics, you will build your own signals. You may also use FX robots or sign up with signal services to get automatic signals.
Technical forex signals are often provided following multiple risk management techniques to ensure that risks are reduced if the current strategy does not work out as planned. Many online forex signals services fall into this group.
For example, if the USD/CHF breaks above a bullish resistance level as part of a bullish trend, this can be a trading signal to take a long position with the currency pair.
The top 5 free FX signals
Now that you have learned about what FX signals are and their different types, it’s time to learn more about forex signals providers.
In order to receive high-quality FX signals, you don’t necessarily have to spend money. In fact, we’re going to present to you the top five free forex signals providers:
Our inclusion may be a tad bias. However, our signals are some of the best out there. With a very high success rate, our clients will likely achieve better results than what they may achieve with other FX signal providers.
Our signals are perfect for beginner traders looking to improve their success rate and enrich their trading experience. You can receive our signals via our website, Trading Signals Facebook group and Telegram group.
As a broker, we aim to appeal to all levels of traders, from novices to professionals. We have three account options: Standard, Pro, and VIP. Many of our accounts have leverage of 1:400 and a minimum lot size of 0.01.
We are committed to helping you in the field of trading by delivering webinars, live trading sessions, and constant instructional updates on social media!
Next on our list is 8totrade, a leading AI trading signal provider. This company aims to blend AI and machine learning algorithms to provide some of the highest quality signals.
The signal is generated through sophisticated analysis from algorithms that parse vast volumes of historical and real-time data in milliseconds.
Users can trade various financial instruments like FX, cryptos, stocks and futures via their signals, all from the 8totrade app.
Daily Forex is one of the most popular Forex trading websites, with over 500,000 monthly users who can find a wide range of information and price alerts on the site.
Their signals are open to the public and can be directly viewed. Aside from entry and exit points, DailyForex’s seasoned team also offers risk management guidance such as where to move the stop-loss to breakeven or when to close your position.
Forex GDP’s free subscription package includes up to four signals every month with a target of 90 to 150 pips (according to the website).
Free signals are sent out via WhatsApp, along with simple entry and exit points. In addition to the 2-4 free signals, you can receive two trading ideas from which to trade.
If you want more functionality and better benefit expectations, you’ll need to upgrade to one of Forex GDP’s paying plans.
Although not a signal provider in itself, TradingView is known as one of the best sites for traders to exchange their trade ideas and market perspectives.
With millions of monthly users, you’ll be able to borrow a plethora of trading ideas. The top writers for the day, week, month, and all-time are listed on the website’s left side.
Many traders regularly post their trade configurations, including exact entry and exit points and chart commentary, so you can keep up to date on trading opportunities across all asset groups.
Pros and Cons of free FX signals
So, what are the pros and cons of free FX signals?
- If you choose the right service, you will regularly receive technical analysis to help you produce trade ideas and make smarter decisions.
- With daily news signals, you will keep up with the patterns and shifts in the forex industry.
- Perfect for on-the-go trading. Receive updates via SMS, email, social media, or an app.
- Although there are many reputable signal service providers available, there are also many who are clearly looking to make a quick buck; we recommend avoiding these providers.
- FX signals may not be up to date enough to quickly catch crucial developing developments such as significant economic or political headlines, leading you to make the wrong decision and place your trade when you should not.
Free FX signals vs. Paid FX signals
Most signal providers sell both free and paid services, with the paid plans normally featuring more functionality.
Some free signal providers can restrict the number of free signals available and have only simple entry and exit points, with no detailed market analysis.
Others do not enforce such limitations on their free plans but instead opt to postpone the release of free signals, allowing you to skip the early move and a majority of the profits.
Nonetheless, there are some excellent signal providers where you can trade on signals for free and without any limitations.
An example of FX signals
Let’s show you how FX signals work:
A trader receives a signal from an XYZ provider that when GBP/USD trades through its 200-day moving average, then he/she should enter the trade at 1.3850 with stop-loss placed at 1.3700 and take-profit placed at 1.4000.
To be precise, this is what the format of a forex signals looks like:
BUY GBP/USD @1.3850
SL @ 1.3700 TP @ 1.4000
Receiving the following signals via email or a message, a trader would open the position accordingly. Then the trader would make profits according to the market conditions.
FX Signals FAQ
We know you have other questions in mind, so let’s try to answer them in this section.
- Why are FX signals useful?
Forex signals can be a useful method to help you trade currency pairs. Traders use them to help them determine when and how to sell.
FX trading signals are intended to be one-of-a-kind since they are heavily influenced by the current market environment and circumstances and are dependent on a different interpretation of the current market.
Briefly, forex signals mean, suggest, and advise traders on when to join trades on currency pairs. Signals may also imply a certain time and price for a transaction.
The more details a signal provides, the happier you’ll feel and the more secure you’ll be in your decision.
- Are all FX signals providers reliable?
Forex trading is not a get-rich-quick scheme; it is not an easy thing to do, and you cannot take it lightly if you want to become successful.
FX trading signals are based on a mathematical algorithm, and when those criteria are reached, a trader will be alerted by email or SMS on their phone. It is completely up to the trader whether or not to act on the signal.
A quick internet search will reveal that there are several mixed opinions of free forex trading signals and providers. Some traders have had negative encounters, although others are pleased with the outcome.
You can’t expect amazing results from every provider. That is why, before you subscribe to a free trading service provider or an independent forex signals provider, you must perform your own research.
There are a wealth of resources available online to assist you in making your final decision. Review pages and social media have a very accurate description of what is going on. Moreover, check if the provider is listed on MyFXBook.
- What’s the average win rate with good signal providers?
While there are many providers claiming to have a 100% win rate, the fact is most authentic signal providers have a success rate of 70 to 80%.
Let’s say the signal service provider has an overall monthly win rate of 80%. Throughout the month, the provider sends out 50 signals. In practice, this implies that 40 signals yielded a profit, and ten resulted in a loss.
There are two key points to remember here. Firstly, the win rate does not indicate how much you are expected to earn. This is due to the fact that everything is dependent on the scale of the profit/loss applied to each trade.
Second, it is perfectly fine for the provider to advertise an 80 percent win rate. But how do you know if these things are true? With this in mind, you must implement a method to test the authenticity of these statements. The most trustworthy providers would publish a clear record of their trades, which can be checked by a third-party source such as MyFXBook.
So, to answer the question, are forex signals useful in making profits?
They definitely can be!
As we mentioned in the beginning of the article, these catchy ads can be genuine, but they can also be a way to lure newbies.
Don’t expect signals to do all of the magic and transform you into a good forex trader. However, they can be very useful for beginner traders who need some help in identifying good trading opportunities.