How to get free trading signals as a beginner?

Not only will free trading signal services save you time, but they also save you from having to do all the research on your own. These platforms will provide you with entry and exit points for various currency pairs and give you an idea of the best time to trade.

When I started my trading journey, it was more challenging than it is now. In my case, I like to mix my strategies with the free signals I find out there. So at the start of my trading journey, finding a reliable and free trading signals service provider was more like looking for a needle in a haystack.

A friend of mine recently started trading forex and asked me for some free trading signals and service providers to follow. He reported back to me on one occasion that he’d made +300 pips in one week! Indeed, as Peter Lynch puts it, “in this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” 

So, if you’re starting your forex trading journey and looking for free trading signals, you can also get as much value from them as you would a paid service. To help you out, here are a few tips on how to find free trading signals that work. But first, let’s touch on what trading signals are and how they can help you.

What Are Trading signals?

In the most basic sense, trading signals are recommendations on what and when to buy or sell in the market. Forex analysts generate these signals after studying the market conditions, trends, and other factors affecting prices.

Trading signals are sent via email, SMS, or other notification platforms like Telegram and WhatsApp. Some venues even have mobile apps that send push notifications whenever a new signal is released. An example of a trading signal is something like this:

EUR/USD – BUY – 1.1150

Stop-Loss: 1.1120

Take-Profit: 1.1180

This signal tells you to buy the EUR/USD currency pair at 1.1150 with a stop-loss of 1.1120 and a take-profit of 1.1180. As you can see, the buy signal acts as the entry position suggested by the analyst, while the stop-loss and take-profit serve as your risk and reward targets, respectively.

Some signals come with a Trailing Stop signal (TS) which is an instruction to move your stop-loss to a certain level once the price hits a particular profit target. This is done to protect your gains while the trade is still active. For example, if you have a TS of 30 pips on EUR/USD and the price reaches your take-profit target of +100 pips, your stop-loss will automatically be adjusted to +70 pips.

This way, you can still lock in your profits even if the market reverses and hits your stop-loss. However, TS is an advanced tool that is only commonly available to some brokers. As you advance in your trading journey, you’ll eventually come across this tool.

How Do Trading Signals Work?

Traders should “do more of what works and less of what doesnt” according to Steve Clark , an avid trader.

When you subscribe to a signal service, the analyst or algorithm generating the signals will send you trade signals recommending buying or selling a currency pair at a specific price and time.

You should use these signals as a template of what works, and test them out to find what doesn’t work. Different trading signals are based on the type of analysis used to generate the signal. Some commonly used methods for generating signals are:

• Technical analysis – This involves using charts and other tools to identify trends and patterns that may indicate future price movements.
• Fundamental analysis – This approach looks at economic factors that could impact the price. This might include things like interest rates, inflation, and political stability.
• Sentiment analysis – This looks at market participants’ feelings and whether they are bullish or bearish on a currency. It can be gauged by analyzing news flow, social media, and other data.

Once the signal is generated, it is sent to you via email, SMS, or another method depending on the service. It is then up to you to decide whether to act on the signal. If you choose to trade, you must place your order with a broker. Most signal providers will have a recommended broker that they work with.

What are the Best Free Trading Signal Providers?

Here are some free trading signal providers ideal for novice traders:

MQL5 Signals

Various market analysts generate MQL5 signals, and the performance of each analyst’s signals can be tracked on the MQL5 site. To use the service, you must create an account with MQL5 and then connect your broker account.

The advantage of MQL5 is that it offers various signals for different instruments and markets. This means whether you are looking for forex, stock, or cryptocurrency signals, you will find them all here.

Fx Leaders

Fx Leaders provides both paid and free signals. Algorithms generate free signals, while paid signals are from professional forex traders. You can access their free signals through their mobile app.

Learn2Trade

Learn2trade offers a couple of trading signals for its free services and premium service with a subscription plan. The platform also provides services such as real-time market news, analysis, and trade recommendations, to mention a few.

FOREX.com

Apart from its reputation as one of the best forex brokers in the US, FOREX.com also has a few resources for traders, including a trading signal service. This service offers trade recommendations that are based on the technical analysis performed by their Autochartist tool.

You can set up this tool to scan the market of your choice to generate trading signals. You can also plan your trades using FOREX.com’s Recognia Technical Analysis tool, which displays short-term support and resistance levels. This tool gives you reasons for picking one trade over the other, which is excellent for beginners.

eToro

eToro is another popular social trading platform that offers some free trading signals to its users. The platform does a great job of curating content from various sources, including professional analysts and automatically generated alerts.

In addition, eToro has some great research and analysis tools, including an economic calendar, market news, and analyst insights. These can all be found in the eToro Research & Analysis Center.

How to Find the Best Free Trading Signal Service?

If you are considering getting started with trading signals, there are a few things to keep in mind.

Reputation

First, you must ensure that the service has a good track record. There are a lot of signal providers out there, and only some of them are legitimate. Do your homework and only go with a service with a solid industry reputation and positive reviews from customers.

Type of Trading Signal

Second, you need to ensure that the service provides signals for the type of trading you want. As we mentioned earlier, some services are better suited for day trading, while others are better for longer-term trades and yet others for swing traders. Ensure that the service you choose provides signals that fit your trading style.

Cost

Third, while there are several free signal providers, the reality is that the best signal providers come at a fee. Therefore, you need to consider the cost of the service. This is essential, but it should not be the only factor you consider when choosing a signal provider. If you decide to go for a paid service, make sure it is worth the price tag and provides good value.

Returns

Evaluating other customers’ success with the provider’s signals will give you an idea of how useful the service has been in the past — and therefore, whether or not their signals are likely to be successful in the future.

Customer Service

The quality of the customer service offered by the signal provider is also important. You want to ensure that there will be a representative to answer your questions and help you if you run into any problems.

Free Trial

Finally, many signal providers will offer a free trial so that you can test out their services before committing to them long-term. You can use the signal provider’s signals on a dummy trading account to see if the signal provider is a good fit for you and your trading style.

Where to Find Free Trading Signals?

1. Check out online forums

There are many online forums where traders discuss various topics related to forex trading. You can use these forums to your advantage by searching for threads that discuss free trading signals. You will be able to find a lot of information about various signal providers and how other traders have fared with them.

2. Social media

You can also search for free trading signals on social media platforms like Twitter and Facebook. Many signal providers post their signals on these platforms for their followers to trade on.

3. Websites of signal providers

You can also find free trading signals on the websites of some signal providers. In addition, many signal providers will post their signals on their websites for anyone to follow. However, take precautions when following signals from unverified sources, as there is no guarantee that the signal provider is reputable or accurate.

4. Forex trading courses

Some forex trading courses offer free trading signals as part of their curriculum. If you are enrolled in a forex trading course, you should take advantage of this and use the signals to trade on a demo account. This will give you a good idea of whether or not the signals are accurate and whether or not they are suitable for your trading style.

5. Economic calendars

You can also find free trading signals by using economic calendars. These calendars list all of the major economic events that could impact the forex markets. By tracking these events, you can get an idea of when certain currency pairs are likely to move. This will give you a head start in finding potential trading opportunities.

Advantages and Disadvantages of Free Trading Signals

Here is a breakdown of the pros and cons that come with free trading signals.

Advantages

• You can test out the signals before committing to a paid service
• Some free services offer accurate and reliable signals
• Free signals can help you gain confidence as a trader
• You get to learn about market analysis as you earn
• With free signals, you can remove emotions from your trading process

Disadvantages

• Many free signal providers are not reputable or accurate, so they must be vetted accordingly
• Free signals may not be suitable for your trading style
• You may have to sift through a lot of bad signals to find the good ones
• Free signals can sometimes be delayed.