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One good thing about the forex market is that a successful trader can monetize the market in several different ways. Ever since the forex market was deregulated in 1997, there has been an explosion of various models of making money from the forex market. Some stick to the core aspects of trading, while others explore other methods of making money from the currency markets through providing trading signals to those who are willing to pay for it. Some have found ways to combine all three.

For a trader who has the skills to consistently make money from forex trading, forex signals provide an avenue to monetize forex trading skills in several different ways we shall outline here. There are several models of making money from forex signals. Some of these are as follows:

a)      Selling signals to traders on a subscription basis

This is the conventional way of making money from forex signals. Here, traders subscribe to the forex signals by paying some money to the signal provider on an agreed periodic basis, and in return, they receive entry and exit information on the selected currencies to be traded. Signals are delivered by email, SMS or via other means that will ensure that subscribers get the signals on time. Some providers may not be very specific with entries and exits, preferring instead to discuss market bias and suggested trades to be taken.

b)      Providing free signals, but selling a forex-related product

If a trader has a well visited forex website or blog, he can monetize this traffic by offering free trading signals and selling some other forex-related product to the site visitors. In other cases, the free signals can be provided as a give-away product on a forex website, and the site owner can monetize this traffic by selling advertising space to other advertisers, or participating in Google’s Adsense program.

c)      Using free signals to attract trading commissions

This is a model that has been popularized by some forex brokers. Here, traders with live accounts are provided a news tab on the trading platform so that they can use it to implement trades. The news tab provides the trading signals as they occur, and traders can copy them straight to the trading platform. This way, signals are used as an incentive to get traders to open live accounts, and the broker makes money from the increased trading spreads so generated. Another form of this forex signal service is when a trader who is good at trading, takes up an introducing brokerage relationship with a broker, and makes money from referring traders to the broker. In this case, the free signals are used as an incentive to attract traders to trade with the preferred broker. This model has a lot of potential and can give the signal providers a lot of money if the system is managed well.

Whichever method a trader chooses to monetize forex signals, one thing is for sure: forex signals are a good way to make money from the forex market aside from the act of forex trading itself.