Binary options signals are becoming increasingly popular among traders who are looking for a different way to trade binary options. But to understand what binary signals trading is all about, it is important to know what they are. Binary options signals are notifications for traders about available trading opportunities on the market.
They usually contain important information about the trade. Binary signals deliver information about the underlying asset, possible price direction, expiration time etc. This article is created for traders who are not sure how binary trading signals work and how to choose a good signals provider.
It will answer some of the most important questions. With this information, you will know everything there is to know about binary options signals. You will be able to make a decision about whether or not you will use binary signals in your trading. Of course, that decision should not be taken easily. Binary options signals are a tool that can help traders find trading opportunities and make their trading quicker.
Signals will suggest you what to invest in and how to invest. Many traders believe that binary signals are the ultimate solution for all their trading troubles, but make sure to choose a good signal provider. To get binary options signals, you have to subscribe to a binary signals provider.
There are hundreds of signal providers available, each of them varying in the assets for which they provide signals, the number of signals they provide, and other basic characteristics. In the past binary trading signals were usually delivered via SMS or email, but today binary signals providers are connected to binary options brokers, and the trade can be placed directly on the platform. In the other case, the signal tells us that the same currency pair will be traded at 1. All binary signals must contain at least these 3 elements, otherwise, they are useless.
Aside from binary options signals, there are also binary trading software or robots, as they are often called. Binary trading software allows traders, in many cases, binary trading signals still require physical or better say, online and mental presence of the trader. Also, there are signals that are unreliable and can bring you only loses. On the other hand, there are some good binary options robots and excellent binary signals providers.
All traders should keep in mind that they have to research the product first, before they start using it for trading. With so many binary signal providers currently competing for customers, many traders find it difficult to understand the difference between signal providers. To help you make a good decision, here are the most significant distinctions:. Some binary options signals providers still use old-fashioned methods that are based on sending emails or SMS.
However, this type of delivery is slowly becoming a thing of past as more and more traders want technologically advanced signals that are delivered and executed at the same place. Modern binary signals providers are a bridge between the broker and the trader where trading signals are delivered.
The trader simply has to login, see what binary signals are offered and place the desired trade. If there are no trades he likes, he can simply leave the platform, and no notifications will bother him if he is not interested in trading. Some binary signals providers are more accurate than others.
This can, of course, be due to the fact that they create different signals in different ways. Some binary trading signals are generated by people who claim to be market experts that are analyzing market movements in every moment. Such signals are often prone to human mistakes. There are also more modern and advanced signals that are generated based on the computer or mathematical algorithm implemented on the interface.
This type of signals is usually considered to be more reliable as it eliminates human error, but traders must find one with a legit technological background in order to be successful.
When comparing the accuracy of signal providers, you should therefore only compare signal providers that create a similar type of signals. By nature, no binary signal provider can create signals for all assets that can be traded on international markets. There are thousands of stocks, hundreds of currency pairs, and a similar amount of indices and commodities, and creating binary signals for each of them is impossible.
Consequently, every binary signal provider has to select which assets it wants to create signals for and which assets it wants to exclude from its service.
Signal providers vary on which assets they create signals for. Some binary signal providers, however, also create binary trading signals for assets that are a little less common.
These binary signal providers feature less popular stocks, smaller currency pairs, and indices from smaller countries. Depending on whether the selection of assets is important to you, you should take a look what binary signals are generated. Some traders want binary signals for specific assets, which makes this step necessary. Other traders could not care less which assets they are trading as long as they are making money — these traders can ignore this step, but ignorance is never recommended for binary traders.
Some binary signals providers create significantly more signals than others. Some binary signal providers send you around five to seven signals a day, and some signals providers manage to create a significantly higher number.
This is another reason why traders should carefully read reviews about binary options signals providers. A high number of signals does not guarantee high quality. Also, a low number of signals delivered may not be the best solution for traders who are eager to trade and who are used to multiple trades every day, or maybe even every hour. The perfect combination of quality and quantity is something that is hard to achieve and for this reason, binary signals providers who deliver signals only when the trader is online might be the most obvious choice.
Binary signals providers that monitor more assets will automatically create more signals. A signal provider that monitors many assets and creates more signals will likely create signals with a similar quality as a provider that monitors fewer assets.
A signal provider that monitors more assets but creates an equal number of signals as a signal provider that monitors fewer signals will likely create signals with a higher quality. Simply put, a signal provider that creates five signals per day based on assets must use a more selective strategy than a signal provider that creates signals based on 5 assets.
Getting more signals per asset is neither inherently bad nor good, but you should be aware that more signals per asset necessarily mean that a signal provider has to accept a few signals with a less than perfect quality. If you want to keep things simple and as secure as possible, we recommend you stick with high-quality signals only.
In the past, binary options signals were something that was reserved for a lucky few. The main reason for that was their price. Traders and to select a special type of subscription in order to receive binary trading signals. Luckily, the things have changed and binary options showed, once again, their democratic nature. The price of binary options signals used to vary depending on which type of signals you wanted to buy.
The one thing most binary signal providers had in common is that they offered their signals on a subscription basis, which means that you paid a monthly fee for as long as you use the signals. Nowadays, most binary signals providers offer free service.
The harsh competition in the world of binary options forced them to reduce their prices and improve their services. This way, all traders get an opportunity to use binary options signals, and to invest their trading money as a deposit. In the past, they had to divide that money between binary signals provider and their binary broker. Free binary signals made binary options trading even more accessible to traders all over the world.
There are still some differences among them, and make sure to do your research before making the final decision on your preferred binary options signal provider. Pick the option that suits your trading the best, but avoid making the price the single criteria of your decision. You need the signals that suit your trading style, not the signals that are cheap or provide the satisfaction of having bought the most expensive thing.
Binary options signals can be a great help, but they can also cost money. Many traders are reluctant to spend money on tools because they would prefer to invest all their money into their account balance.
If you want to use signals to keep your trading simple, the math remains almost unchanged. In this case, signals might not help you to win more of your trades, but they can help you to make more trades. Since many traders that use signals to simplify their trading would get the chance to trade only rarely if they were not using signals, signals will be worth the money for all of these traders, too.
Of course, all this should be taken into consideration only if the selected binary options signals provider is really reliable and safe. Binary signals seem like an easy fix. Keep in mind that you have to be cold-headed and realistic every step of the way. Also, binary signals providers that offer automated trading with the broker are riskier than a binary signal provider that requires from trader mindful participation in the trading process.
Accepting every signal manually, or approving it, means that trader has to engage significantly. However, this type of trading can also significantly reduce the risk. When the trading is completely automated, the trader has no control over his money, which is a situation everyone should avoid. There no easy solutions in binary options trading, but there are tools that simplify the trading process. If someone is promising you easy money and becoming a millionaire over night, be sure they are just trying to deceive you.
Capital can be lost. When it comes to binary options, the situation is the same as with every other type of financial trading. It is always better to put some effort into trading than to end up being scammed with all the money lost. Of course, there are traders who will neglect this advice and look for the easiest and most automated solution, but keep in mind that every trader has to make that decision for themselves.
For newcomers, knowing whether they can trust a binary options signals provider is a difficult task. Binary signal providers are unable to tell you how they create binary signals, because, if they outlined their strategy on the internet, everybody would copy their approach for free and nobody would pay for it.
While this approach makes sense, it also makes it nearly impossible for many traders to know whether a binary signal provider follows a valid strategy simply from looking at their website.
Some binary options signals providers also publish a record of their past signals on their website. With these records, you can get a first insight as to whether you like a signal provider.
Keep in mind that binary scams may display false results and fake numbers. Nonetheless, we recommend doing your own testing before you sign up with a binary signals provider. It is always better to be safe than sorry. Since there are fundamentally different types of binary options signals providers, it is impossible to choose a single best provider.More...