Pick an asset, select an expiration, and choose the direction in which you believe the price of the asset will move. That is, in a nutshell, how binary options work. Their simplicity is the reason many veteran traders are migrating from conventional options to binary options. It is also the reason the latter field is attracting beginners in droves. But the lack of complexity doesn’t mean it is easy to make a consistent profit. In fact, doing so is difficult for most people, even the veterans. That’s why a growing number of binary options signals services have emerged.
Popular Signal Services
- Huge List of all binary options tools and a brief introduction about them
- Binary Option Trading Signals Live – (this is the hottest signal service right now. Signals via email)
- Pro Binary Signals – Currently the 2nd most popular signal service. I’m not sold yet but they do list real results
- Up Down Signals – Professional, with a historical track record of quality. I’m not putting it on my shortest list for use, but this one looks right for the right kind of investor. Check it out.
- Auto Trading Robot – Software That Auto-Trades For You
Our goal on this page is to introduce you to binary options signals and the individuals and companies that provide them.
You’ll learn how they are used, and how to choose a service provider that accommodates your trading style. Below, we’ll cover cost considerations, trusting your chosen service, and taking action on their recommendations.
One important note before we get started: you don’t need to receive binary options trading signals to trade. The majority of traders participate without them. Having said that, it is worth being familiar with the tools at your disposal so you can make an informed decision regarding whether to use them.
What Are Binary Options Signals And Who Uses Them?
At its simplest, a trading signal is a recommendation for executing a trade for particular asset. The individual or company providing it includes an asset (e.g. gold), its target price (e.g. $1,585), and current price (e.g. $1,583.50). The recommendation may be drawn from technical indicators, such as a Fibonacci retracement. Or, it might be given after the provider has studied candlestick charts, and thereby identified a bullish or bearish indicator. The trading signal may also result from a news item that surfaced moments before, revealing a fleeting opportunity to make a quick in-the-money trade.
Binary options trading signals are provided for the four main asset groups found at most binary brokers: stocks, indices, commodities, and currencies. Depending on the service, subscribers might receive one recommendation a day, or several per day. They may come via text message, online chat message, or email.
The signals are particularly useful for traders who are busy with other responsibilities or interests. Such market participants often want to avoid spending significant time analyzing assets and their price movements. For example, they may have little interest in learning how to read tick charts or candlestick charts. Instead, their priority is to find a reliable method for trading at a consistent profit. Relying on recommendations from a proven binary options signals service represents an ideal solution.
The challenge, of course, is to find a service provider that offers credible advice. Not all services do so. In fact, as good as many of them are, blindly following the advice of some may bring you one step closer to financial disaster.
6 Savvy Tips For Choosing A Binary Options Signals Service
- First, it’s important to note that several binary options brokers (see the ones we recommend here) provide their members with free trading signals. Be wary. While the offer seems generous, there is usually a reason it is being made. For example, a broker might offer free trading recommendations to encourage activity. The potential for those trades to expire in-the-money may be slim.
- Second, look for a track record. Don’t assume a provider’s claims of stupendous success is accurate. Look for trade details and conduct due diligence.
- Third, decide whether you would like to learn how to forecast price movements on your own. If so, realize that paying a service to do so for you will reduce the opportunity to learn and improve your own skills.
- Fourth, determine the method used by the binary options signals provider to deliver trading recommendations to its subscribers. You want to receive the service’s advice as quickly as possible since much of it is likely to be time-sensitive. If you’re unable to do so because of the delivery method used (e.g. email), the service may be a less-than-ideal fit for you.
- Fifth, realize that the cost of a service is not necessarily indicative of its value or the accuracy of its trading advice. Monthly rates can range between free and up to $500 a month. The latter option may be no better than the former. Keep in mind, track records and peer reviews remain a powerful method for uncovering reliable advice.
- Sixth, before you sign up for a binary options trading signals service, find out how customer support is handled. Can you contact a representative by phone? Can you do so via email? Are issues resolved quickly? Since you’ll be basing your trades on the service’s advice, you’ll want to have an easy way to contact them in the event problems surface.
Acting On The Trading Signals Issued By The Service Provider
As we mentioned previously, a significant portion of the advice you receive from the binary options signals provider will be time-sensitive. You may need to act on a recommendation quickly to take advantage of the target asset’s price movement given its market trend. If you’re unable to execute a trade for twenty-four hours – or even twelve hours – after a trading signal is broadcast, the opportunity may be lost.
This is the reason it is important to find out how recommendations are delivered beforehand, and determine whether you’ll able to make use of them in a timely manner. Otherwise, your subscription to the service, along with the money you pay each month to maintain it, might be wasted.
Although it is possible to make a consistent profit trading binary options, realize you’ll be exposed to a degree of risk. A series of bad trades will result in a financial loss. One solution is to subscribe to a binary options signals service, executing trades based on its recommendations. If you decide to go this route, use the legit brokers to put your chosen service’s advice to the test.