99% of Forex Signals are a scam – Check out why

Everywhere on the Internet signals of allegedly professional and successful forex traders are advertised. As independent traders, we recognize this scam right from the first second. On this page, you will learn why you will only lose money when you sign up for a forex signal service. We explain to you exactly how fraud works. In addition, we will give you tips on how to find profitable signals yourself.

Overview – Why Forex Trading Signals are a fraud:

  • The signal service falsifies its results
  • The signal service shows no results
  • The signal service does not earn money by trading only with the sale of signals
  • The signal service distributes dubious subscription models
  • The signal service tries to get you to sign up as a broker and earns only commissions
  • No professional trader takes the time and gives trading signals
  • Strong conflict of interest between signal provider and the service

Warning of Forex Trading Signals:

Forex trading signals are often offered free of charge by telegram or other Whatsapp groups. The provider lures with pictures or videos of luxurious items. We receive messages from beginners who have lost a lot of money with forex signals. On this page, we explain to you about the fraud.

From our experience, you will never make money with forex trading signals. They are only offered by unsuccessful traders who make their money by selling the signals or by enticing you to sign up as a broker. This way the provider earns a commission. It does not matter to the signal service whether you make money or not, it has already earned its money by referring new customers or paying them.

Why should successful traders ever offer signals?

What sense does it make to offer Forex trading signals at all? – Someone who actually makes money in the market would never bother. There is already a strong conflict of interest, which is why fraud is likely to occur. Logically, this business model makes no sense.

1. Forex signal providers present themselves as professional traders

Unfortunately, it is not easy for the beginner to recognize if it is a scam or not. In general, 98% of the coaching scene is teeming with black sheep. In the past, certificates or training were faked by supposedly professional traders just to gain the trust of the customers.

Therefore always be careful and demand an officially verified performance of the trader. From our experience, you will never see the real performance and if you do, it is fake. The forex signal provider only tries to make money by selling signals, because he himself cannot trade successfully.

2. Profits and performance are faked

Nevertheless, you will always see insanely high profits and successful trades. Then tell yourself: I want that too! Come on give me your forex signals! – This is also not advisable. The signal providers manipulate and falsify the results. In the following points we explain to you how this works:

Only profits are shown

The signal service deliberately omits the losses and shows only profit trades.

The profits are manipulated with software

Anyone who has photo editing software can also manipulate the results of a trading account or bank statement.

A cent account is used

It is possible to trade Forex with very small amounts. Some forex brokers offer a cent/micro account. This means that all profits/losses are 3 decimal places smaller in the real world. On paper, it looks like a 5.000€ profit, but it is only 5€.

No performance is shown

Some signal providers are even so brazen that they do not publish results. It should be clear to everyone now: This is a scam and the signal service is not making any profits.

Our tip: Never trade with high fees again on IQ Option

  • Regulated and safe broker
  • Start trading with only $ 10
  • $ 10,000 free practice account
  • High yield up to 100% per trade
  • Spreads from 0.0 pips (no commission)
  • Forex, CFD, Options, Stocks, Crypto, and more
  • Free deposits and withdrawals
  • Rating: 5 out of 5 stars (5 / 5)

(Risk warning: 85% of retail investors lose money when trading CFDs with this provider)

Are Forex Signals worthwhile for small investors?

With forex signals, you can earn money as a private investor even if you have only limited financial leeway. Already with an investment amount of 200 dollars you can open an account with many forex providers. Forex signals experience has shown that you don’t have to risk more than four dollars for a trade to make a profit.

In the past, trading on the stock exchange required a certain financial background. This has now changed fundamentally with the Internet. Today, online brokers make it possible to make money on the stock market even with small amounts. To open an account on a trading platform like eToro you only need 200 dollars. How much of the seed capital you want to risk in the end is up to you.

The lowest amount you can risk for a trade is four dollars. Even at four dollars per trade, your account can grow quickly and steadily with forex signals. However, if you have more forex signal experience later, you will not be satisfied with such small bets and risk more money to earn higher returns.

Find the ideal broker for your needs in our comparison.

Forex Trading with manageable risk

The good thing about trading forex signals is that you can never exceed the amount of money in your account. This means that you always have control over your investments and can never slide into the red. However, there is a golden rule that applies especially to traders who do not have extensive forex signal experience. The rule says that especially as an inexperienced beginner, you should never risk more than one to two percent of your deposited amount.

Trade yourself or better bet on Forex Signals?

Many private investors make the attempt to trade themselves. But all too often they forget that there are many professional traders with extensive Forex signal experience in both Forex and the stock market. It is correspondingly difficult to keep up with the trading and earn money. That’s why experts recommend following these professional traders through Forex signals, which means that you benefit from the years of experience of professional traders by copying their trades.

What does Forex actually mean?

Forex stands for trading with foreign exchange. If you buy or sell foreign exchange on the Forex market, this is called Forex trading. In forex trading, it depends mainly on the price development of the individual foreign exchange (currencies). This means that you invest your money by betting on either a falling or rising exchange rate. If your forecast is correct, you will earn money if the exchange rate develops accordingly.

Otherwise, you will suffer a loss which, if you invest one to two percent of the investment sum, is usually not very high and should therefore not be a great financial burden. By the way, the international currency market (Forex) is the world’s largest financial market with a daily turnover of around five trillion euros.

Earn money with social trading in Forex

Market professionals usually have years of forex signals experience. In so-called social trading, anyone who is registered with the respective trading platform can follow the forex signals of the professionals. Knowledge regarding trading with foreign exchange or forex signals experience is not required. You simply need to copy the trades of the professional trader you want to follow into your account and wait and see how the exchange rate develops.

How high is the risk of loss?

In general, you can only lose the amount of money that you have bet per trade when you use social trading. It is not advisable to bet the entire amount in your account on one trade or currency. You should follow the Golden Rule and not bet more than two percent of your investment amount. Even if you are convinced of price development, you should not deviate from the rule.

Even professionals with forex signal experience can predict the developments in the financial market. It is better if you bet your money on several forex signals, as this way the risk of loss is spread. In addition, you can better compensate for a loss if your investments are spread out.

Conclusion: With Forex Trading Signals you will only lose money

If you decide to trade forex, you must take advantage of every available benefit. In the eyes of most people, the biggest advantage anyone can get in this market is in the form of forex signal trading. The reason for this is quite clear – especially if you have kept up with the above information – because it is the missing link between mastering the market conditions and falling behind the most active traders.

Unfortunately, with the forex signal providers, you will still only burn money and drive your account into the wall. The scammers who present themselves as professional traders do not earn a single cent from forex trading. They only make money by selling you the signals. Why should a successful trader who earns $5,000 every day offer forex trading signals? – It makes no sense at all.

Therefore, be careful and stay away from Forex trading signals. Even if the supposedly good advertising lures with wealth. You will not have money in your account after that.

Our tip: Never trade with high forex fees on IQ Option

  • Regulated and safe broker
  • Start trading with only $ 10
  • $ 10,000 free practice account
  • High yield up to 100% per trade
  • Spreads from 0.0 pips
  • Leverage up to 1:1000
  • Forex, CFD, Options, Stocks, Crypto, and more
  • Free deposits and withdrawals
  • Rating: 5 out of 5 stars (5 / 5)

(Risk warning: 85% of retail investors lose money when trading CFDs with this provider)

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