Free SignalsAre Free Signals Better Than Paid Signals?
If you want to trade using the signals sent by specialized suppliers, you’ll find yourself faced by questions everyone asks:
Is it worth paying for a signal service, when there are plenty of free signalsonline?
The answer is…yes!
This answer may vary, but it is so in most cases.
Traders who decide to invest their capital into online trading through valuable investment inputs, often end up relying on the first free signal provider they find. This is usually done without careful analysis, based on the influence of adrenaline rush and enthusiasm to start trading right away.
Who Provides Free Signals?
It is common to think that if a trading signal is not paid for, it can’t be profitable. The first two examples we’ll mention below are often excellent quality signals.
There are three types of free signal services:
- Specializedcompanies: These companies want to get acquainted with the trading signals market by offering their service free of charge for a first period of time. Following a free subscription period is a future payment period. Some other companies have a freebie offer which includes a more limited service, and a premium plan which offers a richer and more complete service. In both cases, it’s advisable to try these services.
- Brokers: In an attempt to making the opening of an account more appealing, brokers often offer additional services as signal providers. We recommend avoiding them as they are often of little value. In this case, the main objective of the broker is for the customer to make more transaction to earn from multiple commissions.
- Non-professional companies:These companies offer free and limitless signals in exchange for account opening with a broker. This is for the sole purpose of getting commissions from the same brokers. Not all companies offering this solution are bad. There are professional services that provide free service for an initial period in exchange for a deposit with a broker. These are different from those who offer the service, provided you make a deposit on the broker and without time limits. Obviously these companies are not there for the customer’s interest and therefore must be avoided.
Why choose paid signals?
Choosing a paid service rather than a free one may seem tedious, but it is often the cheapest option, since saving the signal cost in most cases translates into the loss of your capital, while paid signals allow more profitable trading.
We recommend choosing a monthly subscription service, as this can only be done by the vendors who provide winning signals, because they are able to keep their monthly subscriptions active.
Obviously, we can subscribe to trading signals if our capital is not too limited, otherwise it will be difficult to manage a service with a monthly cost lower than our monthly return. If for example: the service cost is 100 euros per month and the signal yields aprofit of 20%, you will need at least 500 euros in capital to cover this cost. A lower capital would lead to certain loss.
The first advice is to give priority to those companies that provide an initial trial period to test the signals for free.
The second advice is to not trust companies that advertise win rates which are too high: concrete and achievable performances never allow you to get rich in a few months. Back test results that areoften published are nothing but the choice of the best of all the configurations of the past, which never coincide with the future ones.
What to avoid
Deducing all those services that do not protect the interestsof their customers: a company that does not make this a priority cannot provide quality service! It’s the case for those who provide services without expiration time or limits. Also, it's better not to rely on online reviews as they are often fake.
The final choice
The choice of the right supplier/signal service provider should only be done with the evaluation of past and present results.
Past results must be proved, with a clear and transparent publication of daily results, with all trade data made available to validate the results.
The present results are the ones to betested live, thanks to an initial free trial.