Are forex signals legit? Forex trading is one of the more beginner-friendly types of trading out there. You are trading currency, meaning there are no stocks or shares involved, and the terminology is closer to what most people would already be familiar with. Despite that, the forex market stands to be very profitable to those who know how to use it, and the likes of George Soros have built their fortune of off it.
To try to capitalize on the number of new traders and investors on the foreign exchange market, many companies or analysts tend to offer a forex signal service. A forex signal is simply a suggestion for making a trade on a currency pair. It is a way for newer members of the market to make trades off of the knowledge of the veteran traders that are often behind these signal services.
There are a lot of variables in that question, making it difficult to answer. Many different signal service providers offer their services at different prices, meaning that the value you’re getting is going to depend on how much you’re paying for your signals provider, and how much you’re investing off the back of those signals.
While you can’t expect huge profits on the forex market, you can net yourself a tidy sum if you trade right, and forex signals can help you do that. There is a common misconception out there that trading signals are a scam. This can be true. There is no shortage of forex signal providers offering a free forex signal service with the promise of massive returns, only to sting you for a fee of some sort down the line. Not only is this going to cost you more money, but often the signals you’re getting here aren’t profitable.
However, there are plenty of legit signal providers out there that don’t offer you life-changing investments, but instead some tips and advice on where to put your trades for maximum effect. Of course, there is no 100% guarantee that your trading is going to result in profits, but often a good forex signal provider is worth the subscription fee, and can help you make a little bit of money on the market.
You can make money from forex trading signals the same way you can make money from any type of trading. Whether you are actually going to make money, we can’t say, even if you’re using a forex signal service to trade.
A good signal provider is never going to guarantee you returns on your money and is going to make sure you’re always conscious of the risks involved with making a trade. That being said, forex signals come from traders that are more experienced and knowledgeable than you are, meaning that you stand a greater chance of making money off of them than your own bets, provided the trading is legit.
The money you do make is going to be proportional to what you invest, but remember to never bet more than you can afford to lose. Forex trading is low margin gambling, so don’t risk losing everything you have for a little bit of profit.
This is a tricky question. While forex signals themselves are not illegal, some forex signal providers technically are. To understand that, we have to break down what makes the ideal forex signal provider.
First, know that forex signals need to be put out every day by a service provider. This means that a one-man operation has no room for vacations, sick days, or anything else. Due to this, the best signal services are operated by companies, not individuals.
After accepting this, we need to know that for a company to be legal, it needs to be registered with a country, open a bank account, and have a transparent hierarchy with a public board of directors owners and shareholders. Under these criteria, many forex signal services aren’t legal, despite the official and professional nature of them.
To play the devil’s advocate, you shouldn’t let this stop you from taking advantage of them. Forex signals themselves are completely legal, and the legal status of the company is nothing to do with you, so you’re in no hot water from using the service.
In order to identify the best signal service providers out there, you should look to see the company’s trading history, and check to see what other users are saying.
As a rule of thumb, companies are better providers than individuals, and there are few, if any at all, free forex signal service providers out that are legit. So stick to the subscription-based companies and you stand a better chance to make money with your trading.
Most providers should have a forum somewhere online, be that on the company’s website, Reddit, or somewhere else. It is here that you can get a feel for the general sentiment towards a company. While no signal provider is perfect, some are better than others, so do your research before you dish out the cash for one.
There are two particular notable signals provider that we can mention:
Forexsignals.com is the king of the castle, which is to be expected given its name. The subscription fee is relatively inexpensive when you compare it to the company’s track record and everything about them is so above board that it may be the most legit signal service out there.
It has a bunch of features on top of the signals it puts out, including live trading rooms in which the company’s veteran master traders trade in real-time all while explaining the various things happening on the screen. This makes it the perfect site for beginner traders. Not only are you getting access to profitable signals, but you’re also getting to watch the masters in action, which can be an invaluable educational tool.
Next to that Fractalerts.com of course, our math and science based newsletter, providing alerts for not only currencies, but also commodities, indices and bonds.
There are, of course, plenty of other signal providers out there, so have a shop around before you commit to any one site.