If you do a search for Forex Signals, you'll see a bunch of different companies and individuals offering “money making systems”, which can be all yours for a small price of $$$. Some of these providers are outright scams. Others will get you to join a broker, and make a large deposit before you can get access to their signals.
But did you know that you don't need to pay anyone to access to forex signals? And you can get access to signals that are not only profitable, but you're able to see all the past trades to verify this for yourself.
eToro is a social trading platform where traders share all the trades they make publicly. Whats more you can easily filter and search through all the traders on the platform (there are millions) to find the profitable ones. You can see their trading history, what they've invested in and their annual and monthly returns.
Probably the coolest bit is that you can then take these trades and use them yourself, either copying them automatically through etoro aka copytrading or using them as inspiration.
You Don't Need to Spend $$$ to access signals
There are lots of different tools for traders, and I'm sure many of them are legit. And many tools that offer trading strategies and tips, and help you understand charts are great. Unfortunately when it comes to forex signals, many of them are just a waste of money. What I hate about most signals products is they don't show you actual profits. Instead they use “simulated” results. That should be the first red flag. The second is a lack of actual profits. On eToro you can see if people have actually made a profitable return or if they are losing money. Many signal providers often seem to be afraid of showing their past history of real world trading.
Using eToro for inspiration
There are two ways you could profit from the signals on etoro. One is the automated route known as copytrading. On eToro you can allocate funds in your account that are used to mirror the trades of another trader. So when they open a trade, your account does too. When they close that trade so will yours. Trades are opened in proportion. If a trader you copy opens a trade using 10% of their account balance, a similar trade will be opened with 10% of the money you allocated to the copytrade.
The other option is using the trades as inspiration. I follow a lot of different traders on etoro. They all have different trading strategies and like to see what their doing and learning from them. Sometimes I also open similar trades to them without copytrading. You can do the same thing. So even if you don't use eToro as your broker, you can still open trades on other brokers.
Simulating trades for yourself
eToro offers a practice (virtual) trading account. It uses the exact same interface as if you were using real money, and contains the same functionality. This means you can practice copytrading and see what results you would have if you were using real money. You can open a free practice copytrading account here
Do you use a forex signals service? I'd love to know if you've been profitable using it. Let me know in the comments.