Binary trading signals are indicators that signify whether to make an investment or not. If you have read my previous articles, you may remember that I have mentioned signals before. For example, the option robot and the automated binary are using signals produced by the best professionals in order to obtain maximum possible profits. The remarkable thing of these automated trading robots is that the signals they produce are completely free. In addition, there are several paid services provided by professional investors. Furthermore, I will elucidate how these signals can actually help you earn more money, and how professional investors use them in their own investments in order to achieve maximum returns.
What are binary trading signals exactly?
Signals were originally developed only for foreign exchange trading. Since currency trading always takes place in pairs, it was extremely easy to form a clear system whose aim was to interpret the possible changes in the future value of these currency pairs. In 2009, as binary options became widespread, traders realized that they could develop similar signal systems as the ones which were being used in currency trading.
In practice, binary options trading is extremely similar to currency trading. As a matter of fact, trading currencies is the most popular type of binary options trading. But the use of signals in binary options is not merely restricted to currencies; their uses can be expanded to multiple areas – for example, equity trading, commodity trading and indices. Conclusively, we can say that the signals fit much better into binary options than they did in Forex-trading.
Binary trading signal types
Signals can be divided into four basic categories:
- Free signals that investors share as examples on discussion forums. The signals shared by investors on discussion forums must be treated with great caution. Anyone can write and advertise them without any evidence of profitable trading. Sometimes the advice received from such places can hit the right guess, but it does not necessarily mean that they would be good always. It can be attributed to luck as well. If the advice is wrong, the advisor can easily abandon writing under that particular pseudonym and make use of a new screen name and try again until a right guess has been hit.
- Paid signal service providers who share the signals under their own name for money or other remuneration.
The signals thus shared can be based on the providers’ own experiences about trading, or the signal provider can use their own device to interpret the signals. Usually such service providers want to keep the technique by which they have reached the final conclusions as a secret. Some of those services can cost quite a lot. I recommend avoiding the use of any services with a large start-up fee or those who levycharges even before sharing the first set of signals with the customer. There is high probability that the provider wants to make as much money as he can by charging the customers at the beginning due to large chunk of customers terminating the service very quickly for quite a number of reasons. The contributing factors for the reason being that the signals were bad or at least not worth the money.
- Paid signal services from multiple signal providers or from well-known investment firms.
These service providers often have years of experience and cater to hundreds if not thousands of satisfied customers. They may levy exorbitant prices for their services but they usually have an extremely good rationale to justify the prices. However, such services are not designed for novice investors because of the high price or the complexity of signals. They are mainly intended for professional investors whose investment amount to moving in tens of thousands on a daily basis. If you level-up to trading in such large numbers, the use of such services is definitely advisable.
- Signals provided by trading software.
The fourth alternative is a signal software similar to the real robot. It highly resembles stock trading software which are used by investment banks except for the fact that binary trading software is in many ways, a much better option for a novice investor. For example, it is easy to use and it is fully automatic. Additionally, I would not recommend paying any charges for such kind of software especially when the market’s best trading software robots are completely available for free. Developers of binary robots intend to make their software to be well known and garner high usage.
Some signal charts are way too difficult to interpret, even for experienced investors. That is way I recommend using signal software.
Most important features when choosing a signal service
When you make your choice, it is extremely important that the signal service you choose contains a few important features. This is particularly essential if you use the automatic application together with the signals.
To highlight the principle features which an investor must consider when choosing a signal software:
1: Automatic stop-loss.
The investor must be able to set limit the extent of his daily loss. When you buy an automated trading software, you should be able to trust that it really takes care of everything automatically without needing your constant supervision. The option of stop-loss limits exists to grant you peace of mind – you need not have to constantly think about how much you are winning or worry about the losses. As there are no upper limits in profits, in practice, this equates to huge gains and minimal loss. Also, a software does not weigh the losses in the same way human investors sometimes do. Its strength lies in the fact that it functions based on pure mathematical facts.
2: Comprehensive trading history data.
History and data from past results reveal that signals have actually been profitable. If the application can truly generate money for the investors, there is no reason to keep the past results secret.
3: Possibility to interact with the signal provider by email, phone, via live-chat or some other way.
It is essential that you have a platform to discuss and are able to ask questions about the signals from the producers in case of any problematic situations. The easier it is for you to be able to contact the service provider, the higher is the credibility of the service. Interaction between customers and the provider is extremely important as this indicates that the service provider is serious about developing better and a more efficient service. Also, this will help you hone your skills and make you a better investor with time.
4: Free service or at least free trial period at the beginning.
If a particularsignal provider believes that the service they provide is good enough to be ready to provide it for free, it is highly likely that the signal service is at least in some way, useful. Currently with the binary option robots, the situation is extremely similar to what Linux operating system faced at one point when they were entering the market. Like Linux developers, signals robot developers have decided to offer the software for free to customers so that it would be of help to develop it further based on the inputs.
5: Make sure that the software is compatible with trusted broker sites.
It is important that you are able to utilize signals on a trusted and reliable broker site where you can get your winnings easily and effortlessly. Therefore, I recommend investing only with most trusted broker sites such as IQ Option, Banc de Binary, GOptions, andCherryTrade All the brokers presented and reviewed here have years of experience and thousands of satisfied customers, and are therefore 100% reliable.
Good results from the past are a great indicator of that the signals are indeed profitable
Are binary trading signals a scam?
Binary trading signals are definitely not a scam. However, that does not mean that you should trust every signal provider. Every place where money is involved, there is a possibility of presence of fraudsters and dishonest operators. Majority of operators are honest and possess good intent, but that does not mean that advise they render is worth paying. As long as you invest in only the sites recommended by us and follow the steps in this article, your money is safe and secure.
Read below our signal reviews, pick one of these trusted providers and start your success stint at trading profitably!
Best Signal Providers Reviewed
The current world requires binary options traders that seek opportunities to streamline their lives. Your trading schedule may be so tight that you cannot find ambient time to analyze the binary options market before placing a trade. This is where binary options signals come in handy. These signals are trade alerts for the commodity, currency, or stock markets. It is your onus to find an incredible signal provider to help facilitate your trading experience without unnecessary complications. We have made the entire process easier for you analyzing the working of top binary options signals providers in the industry. Please read our unbiased reviews to help you find the right provider befitting your criteria.
The key to reaping any significant returns when trading in binary options lies in finding a great broker. However, what many people don’t realize is that finding a good and accurate signal service provider is of equal paramount importance. Most of the times, these signal providers are independent i.e. they are not in any way generated or controlled by any brokers but in some cases the brokers themselves generate their own signals. A good example is Option Robot.
What is a Signal?
Before discussing the nitty-gritties of the signals provided by the Option Robot and their accuracy, it is important to understand what binary options signals are in the first place. A binary options signal is typically an alert sent via email, audio or text advising the trader about the best and most profitable options to trade on. Signals are generated based on meticulous analysis of an asset’s price movement charts and the related trends in order to arrive at a projected movement which is then transmitted to the trader in real time. There are long term signals that stay valid for up to a week and short-term signals which can last for 50 minutes – it all depends on how you prefer them. We shall focus on the latter option of short-term signals.
Predominantly, most brokers and independent providers will offer you trading signals usually for a small monthly fee. When you receive and decide to use them in trading, you will be required to manually execute the trade as specified. However, there are signal providers who generate signals and instead of you receiving and applying them personally, the system can be set up to execute the trade automatically on your behalf. These are what we refer to as automated trading software or robots. Option Robot is the latest entrant and has attracted quite a following – an indication that they must be doing it right. Or are they?
How does Option Robot generate its signals?
Knowing how an auto trading system or any other signal provider arrives attheir signals is crucial to ascertain if the provider is reliable or if they are just another scam. Option Robot have a genius and innovative way of generating signals based on one or several of their indicators as selected by the trader. These indicators are:
Basically, a signal is generated by the indicators analyzing price movement charts and other trends of the asset. Based on the analysis, it then makes either a CALL or PUT trade for you through your broker which you select from their several options – all highly qualified and regulated as per the best financial standards. In case two indicators were selected, a signal can be generated and used to trade only when both produce either a Put or Call option. This simply means that for the robot to execute a Call or Put trade, the two indicators will both have to both produce either Call or Put signals – this ensures that the system only executes the trades it is 100% certain about. Such a working system greatly minimizesthe chances of a losing trade, the last thing you wouldwant.
Due to the complex process involved in generating the signals, they are of very high quality and accuracy. Option Robot signals have a certified win rate of 83% and above – one of the highest in the industry. What’s more, being a robot, it is able to produce signals faster and more efficiently than any human can and we all know binary options is all about speed and efficiency.
Why choose Option Robot
Option Robot is a great trading system with amazing signals. However, that alone does not encompass all there is to it. There other few factors that makes Option Robot a system to watch out for as follows:
- It offers some of the best and most reputable brokers to choose from. The brokers, including GOptions and Banc de Binary are the most popular in the world of Binary options due to their transparency and the fact that they are all regulated. The fact that Option Robot is affiliated with these brokers makes it all the more legit.
- With the settings option, you are able to have control over the robot and the trading process. As such, you can decide which indicators can be used to determine the signals, how much to trade in and the trading system you would like to follow. The Option Robot software then follows these commands when executing trades. It is rare to find other systems which fully control the process for you such as this one where your only contribution is to deposit money through your broker.
- With the robot, you get to choose up to 8 trades at the same time. This helps you scatter the risks and multiply profits which judging by the high winning rates is highly possible.
- The minimum investment you can trade in through Option Robot is as low as $5. If you are a new trader and are not yet sure to trust Option Robot or not, this is a great way to find out. The maximum you can lose is only $5 with high chances of getting double or even triple that. You never know.
- Contrary to other trading software, Option Robot does not promise you heavenly payouts and/or millionaire status which often are false promises with the reality being completely different. Option Robot is mostly likely aware that binary options are a risky investment with little chances of making anyone a millionaire and their promotional materials do not contain any pictures of expensive homes or cars. What they have is a simple promise of bringing in returns in almost all your trades and a track record to back their claims.
For the (short) time Option Robot has been in the market, we have not heard any complaints that would provoke a negative verdict from us. On the contrary, we found them ranked higher on several online rankings with quite a number of traders giving glowing testimonials. With all its innovative solutions and great signals, Option Robot is an auto trading system you definitely want to try. We give our thumbs-up and suggest you just Go Right Ahead.