Maybe you are wondering why some forex experts would give out their forex signals for free. What is it for them if they would not be charging their subscribers any monthly fee for the trade signals that they send out?

The answer is pretty simple. They get commissions from the forex brokers themselves.

Instead of charging the subscribers a fixed monthly fee, which is the usual case for forex signal providers, these forex experts get a commission based on the trades that their subscribers make which are triggered by the signals the experts provide in the first place.

Forex Signal Providers and Their Reputation

The commissions that these forex signal providers get are based on the number of lots that are traded by their subscribers. Although it does not matter to them whether their trade signals are correct, since they get paid commission as long as lots are traded, they still have their reputation and trading records to protect. Remember that in the financial investment industry, reputation could mean everything. These forex signal providers also have live accounts of their own that they trade based on the signals that they send out. And if the signals that they send out are all incorrect, then it would definitely reflect on their trading histories which, for all intents and purposes, serve as their viewable portfolio for investors considering to acquire their services.

Forex Brokers Pay

Who pays their commissions? The forex brokers do.

What is it for the forex brokers that they pay the commissions of these forex signal providers? Remember that forex brokers, whether the forex signal providers are present or not, gain profit from forex investors based on the spread for every trade the investors make. They cut a certain percentage from this revenue they get from the spread and give it to the signal providers. Although it may seem that the forex brokers are just sharing their revenues with the signal providers, the advantage that these brokers get from this deal is that the signal providers actually give the brokers more business with the forex signals that they send out. Although the brokers’ revenue per trade becomes smaller, the overall effect of the signal providers bringing in more trades means that the total revenue of the brokers from this kind of a deal actually increases.

Free Forex Signals Means Win-Win

And lastly, you may ask, what is it for the forex investor?

The forex investor gets free forex signals from forex experts who would do everything to make the correct analysis of the market since they are also trading their own accounts according to the signals that they provide. And the forex investor trades with a forex broker who would be contented with the regular stream of revenue he gets with the trading signals that the experts provide.

It is actually a win-win-win situation.

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