Binary Option trading have gained a lot of popularity since its introduction to the finance industry. Each passing day has seen many traders who are eager to involve themselves in this profitable method of investment. Traditional Forex trading has become less attractive, primarily due to its complexity and the many bureaucratic procedures that are involved. In case you haven’t heard about Binary Options before, I strongly recommend visiting our articles section for more information. In fact, before even reading this article about Binary Options signals.
Smart traders are now engaging themselves in Binary Options trading due to the many benefits they can derive from it. The huge interest in Binary Option is mainly due to the high return rates that Binary Option trading offers coupled with the fact that it requires only a small level of investment. The increase in trading has, in turn, caused diversification of the market supply and rapid expansion of the Binary Options trading industry. The expansion of Binary Option trading has brought forth many online brokers to assist any trader involved in Binary Options. Although the number of participants in Binary Option trading has increased, it has yet to achieve its maximum potential. As the Binary Options trading industry grows, the competition between brokers for new trading clients will increase and this will ultimately benefit the traders. Here come the binary options signal providers: all you need to know, all in one massive article that talks about the major issues and dangers faced by traders when using signals but also about the increased potential for profit. Everything from what is a binary signal, to Signal Service Providers (SSPs), free versus paid services, tips and tricks… the works. Prepare for quite a read.
What are Binary Options Signals?
In Binary Options, trading signals refer to suggestions made by Binary Options experts or automated robots specializing in Binary Options trading. Therefore, trading signals are trade recommendations made by analysts after their assessment of the market and the identification of certain opportunities. Trading signals are more likely to expire in the money as traders who suggest them have years of experience in the Binary Options trading field. Therefore, with trading signals you can achieve an increase in the overall return on investment. While using trading signals you must take into consideration certain factors in order to make the signal work.
One of these factors is time. A Binary Option trade needs to be placed at the right time; immediately after receiving the signal from your signal provider. After all, a good signal has no value if it is executed later because market conditions can change very rapidly and that might invalidate a signal. This is quite important in the Binary Options trading field as a Binary Option usually expires within a very short period. Therefore, traders have to be very fast in buying the right options.
Trading signals are relatively easy to use in Binary Options compared to Forex trading. This is mainly due to the simplified nature of the Binary Option market. Analysis of the market is easier and Binary Options only have to follow the traders’ signals to maximize their chances of making profits.
Example of a Binary Options Signal
Asset: EUR/USD = 1.300
The trade: Binary Call Option
Expiry time: End of the day
When: on a daily close above 1.300
Complete list of Binary Options Signals Providers
Are Binary Options Trading Signals a Scam?
Overall, good signals could in fact provide great opportunities for new and advanced traders. The problem is; it can be an opportunity, but it is also a risk. There are indeed good signal providers, but many crooks are offering fake trading signals. Very much like the Binary Options brokers in earlier days, the business of signals remains a risk for traders today. I truly hope we’ll see more legitimate signal providers in the near future. Just as the Binary Options brokers are moving forward toward regulation, the signal provider industry will become better and more reliable. If I was a newbie, I wouldn’t pay more than 60 to 80 dollars a month for such signals. Also, I wouldn’t rely solely on these signals. I would first practice strategies, learn my game, use good judgment and turn to forums and professional sources for advice.
Binary Options Trading Signals Providers
Signals and signal service providers fall into two categories; those that suck and those that don’t suck. And just because the type of SSP you choose may fall into the general category of not sucking doesn’t mean that it doesn’t suck. You have to be careful with signals and understand them for what they are. Some are tips, actionable advice that you can follow through if you so desire. These tips are a great way to find possible trading opportunities that you might otherwise miss. Other types of SSPs are automated services aimed at taking the risk out of trading. They claim that by automatically following their trades you can make profits. These types of signals are not so great. You should never blindly follow any tip, signal or service. If you need someone to trade for you then you don’t need to be trading binary or any kind of option.
There are several Binary options trading signals available in the market. Most perform this service online therefore you can access them from the comfort of your home. Some will provide you trading signals in exchange of a monthly subscription fee for this service. After choosing the most suitable Binary Options Broker for you, only then you can start looking for your right signals provider.
Monthly subscription fees often range around 30 to 200 dollars (in accordance with the number and the quality of signals given by the suppliers). This is indeed a small price to pay to increase your returns on your investments. However, the trading signals are not completely foolproof; they don’t always guarantee returns on Binary Option trading. According to analysis by various experts, it came out that the trading signals could increase your level of returns by up to 60%.
To be on the safe side, check on their past trading signals achievements to determine how accurate the providers are at predicting Binary Option market trends. Professional Trading signal providers strive to hand out only accurate signals in order to maintain their customer loyalty. Some Binary Options signal providers have become more prominent and reliable than others and choosing the right one is of paramount importance. The best Binary Options trading signals providers are specialized in offering only the best of free and paid signals. The signals they offer are great at giving amateur traders a chance at profiting immediately from Binary Options trading. Since the field of Binary Options signals is quite fresh, one must be aware of Binary Options signals scams. Binary Options that Suck will continue to monitor and recommend only the trusted Binary Options signal providers available.
Good Binary Options signals providers have an excellent profit rate and this is a demonstration of how accurate their trading signals are. Several binary trading signal services are offered on the market. Few of them are given free of charge and the remaining percentage is delivered to traders who have subscribed to their service. Subscribing to their service is the best way to guarantee that you will receive the best trading signals they have to offer. But as I stated numerous times already, some SSPs are bad for your wallet, either because they are straight up scams or because they are not as experienced as they would want you to believe. That’s why next we will give you 5 tips to help you avoid the “bad apples” of the signal service industry.
5 Things You Need to Know in Order to Avoid Signal Service Providers Scams
1. Always Know What You Are Getting
There are a lot of different types of signal service providers. Things like newsletters, blogs and forums are great. These are a basic form of SSP, usually free and offer a wealth of knowledge and experience for traders to take advantage of. I read several different newsletters each week as part of my routine. A step up from newsletters is the dedicated signal providers. These guys, some free some not but all with a cost in the end, provide signals you are intended to follow. Some make it easy with auto-trading, others force you to keep up with them on your own. Still others install software on your computer that tracks the markets and can even make trading decisions for you. Because there are so many types of signal providers out there, you have to know exactly what yours does: if you sign up for a newsletter, don’t expect it to put trades for you (duh!). If you sign to a manual signal service, make sure you are in front of your computer, ready to put on trades when you receive a signal. If it’s an automatic signal service, make sure you monitor it constantly.
2. Paid Versus Free Services
When a service asks you for money, a credit card number or even just your basic personal information you need to take a step back and decide if it is really worth it. Free Signal services are one thing. You can take it or leave it as you want with no worries (… almost no worries, but more on that later). When you pay for a service there is a higher expectation of profits. If you choose to use a paid service be sure to pick a trusted source. There are a lot of chances to get scammed on the internet, especially with binary options. Getting scammed sucks. You need to know what the motives are that drive the website. And you need to be aware of another thing too: some paid signal services offer you a free trial. Being free, it costs 0.00$ but in order to sign up you still need to give them your e-wallet account or credit card details. Don’t worry, they won’t charge you anything… but once the trial period is over you will be charged the full fee of the service if you don’t cancel your subscription and remove your CC from their website. This information is usually given to you in very small letters, somewhere at the bottom of the page (they are required by law to provide it but of course they don’t want it to be easily seen). So the advice is: if you subscribe to a free trial for a signal service, make sure you cancel the subscription once the trial period is over.
3. Robots are Scary
Auto trading is an attractive feature of some Signal Providers and robots Auto trading is an attractive feature of some Signal Providers and robots are an extension of this. The scary thing is that you have to download software onto your computer. The software will take control of you binary options account and enter trades based on signals provided by the parent company. This is completely nuts to me. It’s like downloading a virus onto your computer on purpose! Robots and auto-traders only increase your risk in my opinion. You have all the risk of trading plus you are letting someone else make you trading decisions. The scariest part is that a computer program is in charge and you know what happens when a computer program goes out of control… “Dave, this is HAL…”.
There’s another major issue that we need to talk about: auto-trading robots/apps have been around for quite a while now, they are nothing new, but out that massive horde, is there at least one that performs decently? And by “decently” I mean: does it make at least a small amount of profit every month? Forget about what they promise (thousands and thousands of dollars every day/month), and just point me to a single one that makes profit every month. I bet you can’t… because there isn’t one. At least not one that I know of.
4. Don’t be Lazy or Stupid
Learn to trade for yourself. Binary options are a speculative instrument, if you want to get involved you need to do it yourself. Take the time to learn about trading, the markets and the economy and you will also learn something about yourself. Look, if you want signal providers, we’ve given you lots to choose from in our List of Binary Options Signals, but just because we’ve given you a list, it doesn’t mean we say it’s a good thing to trust signal providers completely. Ultimately you are your best signal provider but to become that, you need to learn first. Don’t be lazy and start reading our Binary Options Trading School.
5. Choose Social Trading
Social trading is a better way to go. CommuniTraders is the top choice for binary options community and social trading. The platform offers traders the chance to practice trading, ask questions, post ideas on the forum and learn from other traders. The best thing is that you can also follow other traders and see what they are doing. If you are not yet familiar with the notion of Social Trading, I strongly recommend you read Why CommuniTraders is the Right Approach for Binary Options Traders and if you still don’t know what CommuniTraders is, check out this article. Through Social Trading you can learn something new and this is NOT a characteristic of Copy Trading where you simply follow others without knowing why or how they’ve decided to buy or sell an asset.
My Last Thoughts On Free Signal Service Providers
My last thoughts on the subject is that free is good but free is not always free. In the end you always get what you pay for. In my opinion it is better to pay a signal provider up front, when you know what the cost is, than risk losses through a free service. Of course, there are free services and then there are free services. Communitraders is one place to find free trading signals and advice. Binary traders of all levels congregate there, placing trades and sharing analysis. There is absolutely no cost to join and no broker requirements. Not only that it is the best demo trading platform on the internet and one great place to learn binary options. And if you want to learn to find your own signals, our article Trading the News: Binary Options Signals for the Masses is a good place to start.
Overall, Binary Options Signal service providers are not all bad. Some are truly in the business of helping traders. In the end though we here at BinaryOptionsthatSuck.com do not put much faith in this kind of trading. You should never let anyone trade binary options for you. It is imperative that you learn to trade for yourself. You have to take responsibility for your own trading or you will never reach the profits that are available.
Trading Signals – Do they Suck or Not? What is the Final Answer?
There are some reasons why Binary Options signals and service providers don’t suck. Mainly because they are a valuable resource for Binary Options traders. We at BOTS.com feel strongly on the subject of trader education and that each and every one of you should learn to trade for yourself. This does not necessarily mean that a signal service provider (SSP) is not a good thing. It really depends on which kind of service you choose. Simply choosing a robot or other form of automated service to place trades for you is not enough. You cannot blindly follow what some algorithm tells you and hope to be profitable in the long term. If, however, you choose an SSP that follows a strategy, provides signals that you have to act on yourself, and teaches you to trade, we are talking about a horse of a different color.