Online Brokers have your best interests at heart. They teach you what you need to know in order to make logical investments and trades on your own. However, why should you bother doing all this when you can use signal services and trading robots almost completely free of charge or effort?
There is one primary reason why this is: ‘trading robots and signal services DO NOT WORK!’
I’m going to explain the basics of how I know that these ‘easy’ options don’t work nearly as well as trading on your own terms. Read on to find out why!
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Signal Services are Inconsistent
A signal service basically watches the economic calendar and sends you signals when a certain market or trade looks promising. You can then invest in this without needing to do any research for yourself.
Most signal services do not require much in the way of payment. They require a small fee for the service, either a one-off payment or a smaller annual payment.
While this may seem like a good way to save money, it really isn’t. Odds are the resulting investments you make will not always be safe. Behind every signal, service is a person who is just making their own guess. Relying on someone else to make your trading strategies for you is very risky. One wrong move and you could lose a lot of money. It is much better to do your own research and make an informed investment decision.
Trading Robots are Just as Bad
A trading robot will also make a decision based on the economic calendar. It cannot understand the ways of a human and will make a decision purely from the present data. Performing your own research allows you to determine the true risks of an investment by looking into the types of trades other people have done.
Let’s face facts. If a robot was capable of making you money, wouldn’t everyone be rich by now? It simply doesn’t work that way.
In short, you should work with an online broker so that you can learn the necessary skills for yourself and make decisions from your own skills and experience. Don’t trust a random person or a robot to make your decisions for you!
If you are still interested, read more on robo advisors here!
Good luck and happy trading!