Forex signals are everywhere. Sign up for a newsletter, and suddenly you have access to someone’s free forex signaling service. But free forex signals and paid forex signals tend to be extremely different in quality, and you’re not likely to get the desired results with a free signaling service.
Here are a few reasons why you tend to get what you pay for.
Free Forex Signals | Paid Forex Signals : The Good, The Bad, and the Ugly
Nothing in life is ever free. This is especially true in the finance market. Free FX signals are often distributed by individuals who are really selling other products, and that can be considered both a positive and a negative.
Let’s consider a forex signal provider who is selling advanced trading lessons. Though their forex signals may work enough to get you interested in investing in trading lessons, they have no vested interest in the quality of the signals themselves: the signals need to provide you with “just enough” to want to learn more. For this reason, many free signals are really free trials — and you could find yourself needing to pay for them regardless once you hit upon a strategy that works.
Other free forex signal services may have an entirely different product in mind: you. If there is no clear revenue stream regarding a service, then the product is the consumer. It’s likely that they are selling information from those who use their services, such as names, email addresses, and even mailing addresses. You need to be very cautious about who you give your information to.
Anyone can setup a free forex signaling service. There’s no guarantee that they know what they are doing and there’s no way to make sure that they are actually as good as they are saying they are. Moreover, there’s no real reason for a free signaling service to maintain its quality or to maintain its service at all. A free service can disappear entirely even as you start to gain in your account, or may operate intermittently.
That’s not to say that all free signaling services are bad — merely that they need to be adequately questioned. Most people will not give away something free if they can pay for it. The goal of distributing something free is always to either funnel money towards a sales channel or to draw in a large volume of people for another purpose.
Paid Forex Signals: The Trade-off for Profitability
Paid forex signals aren’t usually overly expensive. Most of them are paid for on a subscription basis, so they have a vested interest in providing solid signals. The better they perform for you, the more likely you will be to continue investing in them. They know that you will not continue your subscription if the product isn’t good. You know that if a paid forex signaling service has been operating for a long amount of time, that it must be showing results. A paid service is also more likely to have both reliable reviews and testimonials, which can be used to gauge it’s services.
The money that goes into paid forex signals is invested in analysis, research, and data mining software solutions, which are all able to find new ways to identify patterns and create indicators that will reveal these patterns to you.
Free signals do not have the same benefit: they don’t have the funding to create consistent research. They also don’t have the money to draw in top performers and analysts. Forex trading signals are extraordinary complex and cannot be created without substantial work to develop a winning trading strategy.
When it comes to live forex signals, technology matters. A free service may have a rough, rudimentary web platform. A paid service may also have apps and other supported platforms, which make it far easier for you to follow the related directives. Technology, especially the low latency technology related to FX signals, is expensive and has to be invested in. Web developers need to be paid, in addition to the financial analysts. Even the hosting services and servers need to be paid for: server space can be expensive, as can be computing time. Overall, the entirety of a forex signaling service does require some form of financial investment.
To create a professional foreign exchange signaling service, there needs to be some money in play. But when you pay a fee, you aren’t only paying for the signals themselves nor the IT infrastructure that supports all of those signals. Paying for a fee also gives you access to support. If a free system goes down, you have no one to call. If a paid system is acting erratically or you simply need direction, you have someone that you can contact. Support is absolutely essential for new FX traders.
Many paid services also offer information for beginners so that they can learn about money and risk management. This can be extraordinarily valuable for those who eventually want to start managing their own funds more directly.
You get what you pay for
The bottom line regarding paid forex signals is that you get what you pay for. Any forex signaling system that actually does work will pay for itself, especially as FX signals are charged on a flat fee basis rather than a percentage of an account. The amounts that are paid for a paid forex service is entirely trivial. A paid forex signals provider is nevertheless able to leverage these funds into the capital they need to create a legitimate and long lasting service.
Both paid and free forex signals will undoubtedly be available to you. Though you may want to experiment with them both, it’s very likely that you will find that paid forex signals are much higher in quality and are more consistent.[/vc_column_text][/vc_column][/vc_row]