What are binary options signals
Binary options signals are alerts that inform binary traders about potential profitable trades. There are both free and paid signals that you can subscribe to. Paid signals are generally better than free signals.
There are several different types of binary options signals. The two most popular types are signals that:
- Tell you exactly what to buy and when.
- Signals that make a prediction about the future and let you decide which binary options you want to buy.
here are a large number of signal providers out there. Most of them specialize in currency based signals but there are a few companies that work with other asset classes as well.
The quality of the signals vary greatly between different service providers and I recommend that you use a website such as binaryoptionssignals.com if you want to try using signals. They review different signal providers so that you can find one that offer what you need without spending all day researching different providers.
It is very common that traders who are just beginning to trade with binary options are recommended to use a signal provider to get of to a good start. I do not agree with this. I think it is better to initially trade with very small amounts of money until you have learned how to trade successfully. It is almost impossible to make money from paying for a signal provider when you trade with very small amounts. Start trading with small amounts and once you start trading for larger amounts you can try using a signal provider if you want to.
Do they work?
Yes and no. Some binary option signals do work and can help you make a lot of money. How well they work depends on the quality of the signal service you subscribe to and how quickly you act on the signals. The quality between the signals you receive from different signals providers can be very a lot. The signals from some providers can be completely useless. High quality signals form good providers work well.
Binary options signals only work if you are able to act on them very quickly. The quicker you can act the better. This is due to the fact that the signals are designed to benefit from the market situation at the time when the signal is sent out. That market situation is lost if you do not act immediately.
Are binary options signals worth the money?
Yes. High quality binary options signals are more than worth their cost. If they make more money than they cost to buy them then they are worth buying. How much binary option signals are worth depends on how much money you invest in each signal and if you are able to trade on all signal or not.
Please understand that you will need to be able to act very quickly after you receive a signal to make money. You should ideally be able to make the trade within minutes from receiving the signal. If you are unable to act when you receive the signals than they are not worth paying for.
Warning for scams
I do unfortunately have to warn all readers about scam services within this field. There are several good honest signal services with a good record but there are also a number of scams on the market that edit their records to look better than they actually are. They edit the information they provide on their websites to make it seem like they have higher success-rates than they actually do and use pay out ratios that are higher than those actually offer by the brokers. All to make it seem like they earn more money than they really do. There are a number of signal service providers that provide signals that lose their clients money.
It can be hard to spot scams but it is not impossible. The first thing you should look for is signal providers that claim a success-rate that is too high to be true. Some scam providers claim success-rates that are higher than 90%. This is simply not possible. There are no one that can predict the market that perfectly. A lucky trader can reach a 90% success-rate during a day or a week but there is no one that can do it month after month. If the success-rate seem to good to be true than it usually is. The best honest services tend to have a success-rate of about 75%.
Another thing to look for is providers that claims that they never had a losing month. No one wins all the time and even the very best providers have a month where they lose money every now and again.
Another common mistake made by the scam companies is that they present a record that is way to persistent. An honest provider will have different result every month. A provider that shows more or less the same result month after month is usually a scam.
Yet another good way to spot a scam is to monitor their website for a few days and see if they seem to be changing data after the fact to look better then they are. Honest providers do not do this.