The Internet is a gold mine of free items and services, and among the many offers you can find there are free Forex alert signals. Much has been said about their value to foreign exchange trading and for expert traders you have to have the best kind of Forex trading signal service if you hope to survive in the dog-eat-dog world of currencies trading.
What is a Forex Alert Signal?
Forex alert signals come from a software or program that receives real time data from the trading floor. These bits of information are processed using known foreign exchange formulas with each result recorded in a database. From the database, the software plucks out the most relevant information about your current investment portfolio and feeds it to you via email or SMS. This feature helps you decide on what to do with your shares; whether you sell or buy.
Paid Forex Alert Signal versus Free Signals
Forex signal software work the same way regardless if you pay $100 for your version while another trader may get his free. However there are some key points to consider when getting a program that has such a tremendous impact on the success of your business.
First, the features often vary between free Forex alert signals and paid ones. Full versions are usually available if you pay for a subscription while free signals often sacrifice some features so they can let users have it free.
There also software makers who offer free trading signals as part of their tests to see if the features they installed would work in real time. The main concern really is to find what forex trading signals would fit your style.
Are Free Signals Accurate and Reliable?
Free alert signals are considered good and trustworthy if they have the following:
- The free trading signals must have a good risk-reward ratio. Low risk investments with high potential for rewards should be its priority.
- The advertised success rate of good free alerts or signals should be realistic. Don't get conned by claims of high winning rates as they are usually false. There are software which achieve that status but they are very rare and can be very expensive.
- Reliable free signals tell you how they earn money by letting other people use their program. If they can and will then you're lucky to have found them.
If the free Forex signals you're after display these characteristics then by all means subscribe to their service. Otherwise, you may want to trade Forex futures as it is a more regulated industry with smaller margins. This equates to reduced profits, but much less risk.
You might be unsure about getting free trade signals and you should be, especially if it's your first to time as Forex investor. Also keep in mind that there are times when free really means free with no strings attached.