It’s human nature to explore whether or not we can obtain a product or service without having to pay for it. While in some cases ‘free’ can be just as beneficial as a paid-for product, this certainly isn’t the case with forex signal services.
UK-based forex signal platform Learn 2 Trade explains that this is typically for one of two reasons. In the vast majority of cases, free forex signal services are not actually free. By this, we mean that you will still receive a real-time notification letting you know which trading signals relates to - and potentially the underlying reason why the signal was sent - although rarely will the provider let you know what entry price you should trade at.
This effectively makes the free signal service redundant, as without the relevant market order price, the trader is left in the wilderness. A number of free forex signal services do provide all of the relevant entry and exit points when sending a suggestion, but rarely do such services yield consistent profits.
On the contrary, those behind the free service are typically under-resourced, meaning that the algorithmic technology supporting the suggestions is likely to be sub-par. Ultimately, if you’re serious about trading and thus - strive to make consistent long-term profits in the forex industry, then it’s well worth considering the merits of a cutting-edge signal service that justifies its fees with proven historical results.
What Should a Forex Signal Service Provide?
Regardless of whether you are using a free or paid-for service, forex signals must come with the following information. If they don’t, the signal isn’t worth the paper it’s written on.
- The specific trading pair that the signal relates to.
- What the automated algorithm has identified.
- Whether it’s a buy/sell order.
- The market order entry price.
- The stop-loss exit price.
- The take-profit exit price.
The above information allows the trader to do two things in particular. First and foremost, it provides all of the required information to place a trade as soon as the signal has arrived. This could be crucial, as some signals require immediate action, not least because the forex markets move at an incredible pace. Secondly, for those that like to perform their own independent research prior to placing a trade, the above information provides the necessary data.
As such, this is what a Learn 2 Trade forex signal might look like in practice.
- The 200-day moving average will potentially cross the 50-day average in the next 12-24 hours. This could result in a sell-off of GBP.
- Place a sell order on GBP/USD.
- Entry price: 1.2809.
- Stop-loss price: 1.2870.
- Take-profit price: 1.2740.
As you can see from the above, Learn to Trade provides relevant information on what the trader should do. For those that like to take things to the next level, you can analyze both the 200-day and 50-day moving averages on GBP/USD, and assess whether or not you think the signal is correct.
If it is, you now have the ‘suggested’ entry and exit prices. We say ‘suggested’ because highly experienced traders might opt for a slightly different entry-exit price. After all, you should always view forex signal alerts as suggestions, as opposed to strict guidelines that must be followed to the ‘t’.
While there are heaps of paid-for forex signal services currently active in the market, those that wish to explore what the Learn 2 Trade algorithm has to offer can do so at just $25 for a 1 month subscription. Prices are reduced for subscriptions of 3 and 6 months to $55 and $85, respectively.
In the grand scheme of things, those that are looking to make a success of online forex trading - whether that’s part-time or full-time, must be armed with the required tools. Not only does this include a proven forex signal service, but other tools too - such as advanced chart analysis indicators and ongoing personal development programs.
How do Free Forex Signal Services Compare?
For those unaware, building, developing and most importantly - maintaining an automated technical analysis system is no easy feat. The underlying technology is tasked with outperforming the market by scanning thousands of potential trading scenarios each and every second. When you consider that there are more than 100+ currency pairs actively traded in the forex space, this requires a highly advanced piece of software.
With that being said, you need to consider why a team of developers would spend vast resources building a signal service that it doesn’t charge for. Moreover, with the forex trading space getting more and more competitive, the underlying algorithm needs to be tweaked and adapted on a rolling basis. Once again, why would a provider offer this for free?
The Bottom Line?
If you’re still sitting on the fence as to whether or not a paid-for forex signal service is right for you, why not consider the money back guarantee that the likes of Learn 2 Trade offers? That way, you can trial the service for 1 month - place ultra-low stakes on each of the three daily suggestions that you receive, and then assess the effectiveness of the service once the month concludes.