The Forex market (Foreign Exchange) is a global financial market for trading various currencies. In this highly volatile market, traders are always looking for ways to make a profit. One of the common methods is using Forex signals. Unfortunately, signal channel owners often exploit Forex signals as a means of fraud. These scammers lure traders by making false promises of huge profits, encouraging them to pay for their signals.
A Forex signal is essentially a suggestion that indicates the optimal time to buy or sell a specific currency pair. Typically, a Forex signal includes information such as:
Signal providers use technical analysis, fundamental analysis, or a combination of both to generate these signals. They may offer signals either for free or on a paid subscription basis.
While Forex signals might help save time and provide access to others’ analysis, they should never be fully relied upon. Here’s why:
Instead of depending solely on signals, invest in your own knowledge and skillset. Learning technical and fundamental analysis, risk management, and trading psychology will help you become an independent and successful trader.
That said, Forex signals can still serve as a supplementary tool—to confirm your own analysis or help identify potential opportunities. Just remember: never risk your entire capital on a single signal.
Another powerful resource is the free and comprehensive course “Forex from Zero to a Thousand” by Mohammad Ahangari Asl. This educational series helps you master all the essential concepts and skills required to enter the Forex market. With consistent study and practice, you’ll be well on your way to achieving your trading goals.
Forex signals can be categorized into two main groups: manual and automated. Manual signals are generated by experienced traders who have spent significant time in the market. However, it is ultimately up to the trader to decide how to use these signals. Automated signals, on the other hand, are generated by computers and specialized software that monitor algorithms and price behavior to issue signals at the appropriate times. While automated signals offer the advantages of speed and the elimination of human emotions, they also come with downsides—such as lack of trader involvement in decision-making and potential errors due to full reliance on machines.
Forex signals may be offered for free or as part of a paid service. Paid signals are often delivered through monthly subscriptions. While some individuals or companies provide high-quality free signals, others charge for more tailored or advanced signal services.
Forex signals can also be classified based on the trade details they provide. Some signal services focus solely on entry points, helping traders identify the right time to open a position. Others only offer exit signals, guiding traders on when to close their trades and exit the market.
Some signal providers offer both entry and exit signals, typically focusing on short-term trades without analyzing long-term trends. Conversely, some channels specialize in long-term trend analysis and may provide only an entry or an exit signal based on broader market movements.
Relying on Forex signals comes with several disadvantages, especially for beginner traders. One major issue is the dependency it creates—traders may become reliant on others’ recommendations rather than developing their own strategies and decision-making skills. This lack of control can lead to poor trading discipline.
Another concern is the mismatch between the signal provider’s risk tolerance and that of the trader. What works for an experienced trader might be unsuitable for someone new to the market.
Additionally, while free signals are available on some channels, many high-quality signals come at a cost, requiring traders to subscribe or make payments. There’s also the risk of missing trading opportunities due to delays in receiving signals via SMS, email, or other delivery methods.
These days, countless channels on social media platforms such as Telegram claim they can make you rich by providing free or paid Forex signals. However, many of these channels arescamsand are only after your money!
In these channels, so-called “experienced traders” use enticing promises to deceive you into paying them. They claim that their “accurate” signals will bring you massive profits. But in reality,most of these signals are fakeand only result infinancial loss.
Why Are These Channels Scams?
One of the most common exaggerated promises made by Forex signal channels or so-called experienced traders is thataccount managementis a guaranteed way to earn big profits.
While account management by a trusted professional can sometimes generate good returns, many scammersexploit this by promising unrealistic profitsand then use your funds for their own benefit.
Offeringguaranteed profitsis a typical scam tactic in the Forex space. Some individuals charge high fees to let others copy their trades, claiming high success rates. However, it is essential for traders toanalyze the provider’s resultsover time before trusting them.
Phrases like “make huge money without learning,” “guaranteed income,” and similar claims arered flags. These scammers prey onfear and greed, especially targeting beginners who are unaware of how the market works. Emotional decisions influenced by such manipulation often lead to significant losses.
Many signal channels push traders tofollow their signals blindlyrather than learning how to trade themselves. The promise of “big profits with no risk” is always a warning sign. Most financial scams start with this type of message and encourage traders to rely on external sources instead of building their own skillset.
One such trend in Forex iscopy trading, where a trader replicates the trades of others. While this can benefit beginners, it can also lead todependency, discouraging them from learning and building their own strategies. If the copied trader makes a wrong decision, the follower also bears the loss.
Some copy trading platforms themselves arefraudulent, attracting users with low fees or promised returns, only todisappear after collecting funds, leaving traders unable to withdraw their money.
Some scammers pose as account managers, gainingfull access to your trading account. This opens the door to unauthorized trades, illegal withdrawals, or even the use ofmalware to steal credentials. Trusting these individuals can lead to major financial and data losses.
Similarly, some signal channels distributefake and low-quality signalsunder the label of "free Forex signals." These signals either lead tomissed profitable opportunitiesor cause significant losses due to their poor accuracy.
Many traders are constantly searching for the best Forex signal channel, yet they fall into the trap offalse promises and laughable claims. Due to poor risk management and a lack of analytical skills, these traders often get caught inmarket bubblesand ultimately lose their capital.
Forex scammers frequently exploitinexperienced and uninformed individuals, luring them into price bubbles. These traders often fail to recognize themismatch between prices and fundamental factors. The rumors spread by these fraudsters affect traders' emotions and trap them with enticing offers such as “account management,” “exclusive consultancy,” and more.
Here are a few key points that every trader should consider:Stay Away from Unrealistic and Bizarre Promises
Control your excitement and don’t fall for outrageous claims, overhyped information, or knee-jerk reactions to news events.
Pay Attention to Contradictions in Signal Providers’ Words and Actions
Before trusting any Forex signal channels or self-proclaimed experts,observe their performance over time. Verify their licenses, check for complaints, andnever blindly hand over control of your account, follow copy trading blindly, or rely solely on their signals.
Traders without a solid trading plan or the ability to align trading strategies with a defined time horizon shouldn’t expect long-term profitability. Even if they see short-term profits, such tradersoften struggle in the long rundue to their lack of analytical capability.
Learning properrisk managementhelps traders control their emotions and avoid getting caught up in suspicious, adrenaline-fueled trades. One of the major downsides of neglecting risk management isover-leveraging positionsin pursuit of unrealistic profits. Adhering to trading principles ensures that therisk per trade is clearly defined, and that the trader sticks to a disciplined approach.
The“Zero to Hero Forex Course” by Mohammad Ahangariis one of the most comprehensive and free educational resources available. This course thoroughly covers everything from basic to advanced concepts in Forex trading and helps you stay on track toward achieving your goals in this market.
The vast and dynamic Forex market offers countless opportunities for traders. However, relying solely on Forex signals as an effortless shortcut to profits can result in significant and sometimes irreparable losses.
In this article, instead of focusing on signals, we introduce powerful alternatives that will guide you towards becoming an independent and successful trader.
Technical Analysis:Learn the language of the market by studying charts and price patterns. Use informed predictions for entering and exiting trades.
Fundamental Analysis:Consider economic and fundamental factors such as interest rates, inflation, and political news. With deeper understanding, make more logical and data-driven decisions.
Market Psychology:Control your emotions and instincts. Avoid impulsive decisions driven by fear or excitement.
Risk Management:Create sound strategies to manage the risk of your trades and prevent uncontrolled losses.
Patience and Discipline:Trading is a marathon, not a sprint. Be patient, learn from your mistakes, and remain disciplined in sticking to your strategies.
Technical Analysis Software:Use reputable platforms to analyze charts, indicators, and price patterns.
Educational Resources:Regularly improve your knowledge and skills through books, articles, and reputable training programs.
Trading Communities:Interact with experienced traders, learn from their experiences, and share your ideas.
Trading Bots:Use automated algorithms to execute trading strategies with consistency and without emotional interference.
AI-Based Trading Systems:Leverage cutting-edge AI tools to analyze the market and identify trading opportunities.
Remember:There is no substitute for your own knowledge, skill, and trading intelligence. Signals can only serve as supplementary tools, not your crutch. By focusing on the alternatives listed above, you can become a truly independent and successful trader—the captain of your own trading ship.
Finding a reliable signal provider that doesn’t lead traders into devastating losses has become a major concern. Our recommendation is tolearn how Forex signals work yourself—along with all the necessary details—before relying on others. Of course, while you’re building your expertise, a trusted signal provider can serve as temporary guidance.
Thefree Forex training course by Mohammad Ahangariis one of the best educational resources available for Iranian traders. You can gain access to32 sessions (1,600 minutes) of structured trainingcovering everything from trading strategies and trading psychology to capital management and market analysis.
These online lessons also introduce you to Mohammad Ahangari’s personalizedMAA trading strategy, designed to help you make consistently profitable trades in the Forex market.
