only way I've found to sign young players for free (admitedly it won't help you first season) is to send my scout on a few youth scouts during the season save the scout results and put the more promising youngsters he finds on my shortlist.
Come june I then find I now have several promising youngsters (usually 16 -18 years old) who have been freed by there higher division clubs youth teams on my shortlist.
Works for me
I quite like CM4 now although first season is usually a write off as I end up playing with just my original squad

. However from the second season on I have no problem finding Free transfers due to the results from my previous scouting mission's