Looking for a good way to earn money with forex and free live forex signals seems like a good idea to you?
It does seems like a good idea, I can tell you that, but unfortunately, after trying out 20 forex signals including paid and free options, I have to tell you that none of them bring any good results. They all suck.
I’m going to write a case study of how I tested out various signal providers live alerts and how it went, but the short overview is that none of them managed to be profitable in a one month test period.
If you know a service that can give out live forex signals that is any good, please leave a comment below with the name of the service. I would be more than happy to try it out myself and add it to the case study.
Why Don’t The Signals Work?
The first question is that why should anyone give out free trading signals in the first place? What is their motivation to spend time on a website, put together a system to give out trading signals that work?
The only reason would be to do good for other traders, but by doing so they would jeopardise the system itself. If everyone would start to follow the signals, they wouldn’t work anymore. All it takes is to put a computer to follow the live calls and it would beat all the other traders to making the trade and ruining it for everyone else.
Ok I understand if the signals were paid for. Then yes, the provider could earn a decent amount of money for giving out the signals. But again, why would he want to do that? If he actually had a profitable system, he could just make money with the system without having to promote his signals, set up a store on his website, deal with customers and deal with this kind of nonsense.
That doesn’t make sense. Especially in the forex market, where there is so much trading going on, that you could make endless trades 24-hours a day, 5 days a week.
However if you do think there are good options out there, I strongly advise you to test them out with a demo account and see how it goes.
A Better Alternative to Forex Signals That Actually Works
If you’re still with me, I’m going to show a better way to make money on the FX markets without knowing how to trade by yourself. The alternative is called social trading. There are websites out there that allow you to copy traders that are successful.
Social trading sites allow you to sort traders based on their performance and put your own money to copy their trades that they’ll make in the future. This way you won’t have to be in front of your computer when the signals arrive, the trading will be done automatically.
You can choose a trader to copy based on their profitability, trading style, risk appetite and many other criteria options. This allows you to tap into a profitable system, without knowing how to trade on your own.
The pro traders that are listed on the site make a small cut out of the trading costs that you are generating. However those costs are rather small and only a little bigger than normal trading platform fees. Overall its a better option to pay a little extra for a profitable system than to shave on the costs without knowing what you are doing.
Recommended Social Trading Sites
So I recommend social trading sites based on their number of users. The more users a site has, the bigger the amount of profitable traders.
As I told you, the pro traders make extra money from the people that follow them. The more people they have, the bigger are their asset management earnings. This means that they are more interested in choosing a site that has the biggest amount of users.
Currently the biggest site out there is Etoro . They have over 6 million users and ca 100 000 traders to copy.
This gives you a decent amount of traders to choose from in order to find someone whose risk/reward is suitable for you.
Below you’ll find a quick (1minute) overview video of the site and how it works.
Link to Etoro if you want to check out their site.
I have also made a thorough review of Etoro on my site. The review includes a full tutorial on how I choose profitable traders to follow with minimal risk.
If you’re from the US, you need to choose another option, as Etoro is not open to you guys. However there is another option and that is Zulutrade . They are currently #2 players in the market with lots of profitable traders to copy. I’ve also made a full review of Zulutrade for you to check out, if interested.
A few tips to keep in mind when using social trading sites:
- Copy at least 10 people to minimise risks.
- Look through the traders’ profiles before you copy them.
- Pay attention to the amount of risk each trader is taking.
- Try to look for traders with a longer track record.
- Pick traders with consistent results.
An Example of a Profitable Trader on Etoro
Here we have an example of a trader on Etoro called Alex. He has made over 100% in the last 12-months with a risk score of only 4 out of 10. If you check his monthly results, it shows that he has been profitable almost every month, except January, where he only lost 0.72%.
He is one of the 10 traders that I follow, but I’m not the only one doing so. As you can see from the picture, he has over 8000 people copying his trades.
We can see from here that he is profitable 75.59% of the time. His average profit is over 10% and his average loss is a little under 6%. You can also see that his maximum drawdown has only been 9%, while he has made 109% in the last 12 months.
Those are some really good numbers. It’s traders like Alex, why I really like Etoro so much. In addition to just copying him, I actually check the trades that he makes to learn his strategy and become a better trader myself.
To Sum Up
I’ve yet to find a forex signal site that gives out actual profitable alerts, but I’ve seen good success so far with both – Etoro and Zulutrade . I recommend you to stop looking for someone to give out alerts and try one of those sites instead.
In addition to profitable trading results, you can learn the strategies of profitable traders, if you want to. You also get to ask them questions and most of them will give you a proper answer.
Good luck with your trading ventures!
PS! I’d be happy to discuss this further if you’d like. Please leave a comment below if you have any questions, comments or if you would like to argue with me 🙂