Binary options trading signals
Binary options signals are notifications that alerts a trader to potentially profitable trades. Different signal providers offer different types of signals that are developed for different types of traders. Binary options signals makes it possible for a complete beginner to trade like a pro. You no longer have to analyze the markets. You can have a team of professional do that for you and you can make money trading on the opportunities they discover. We will help you find the best signal providers that suits your need and your budget.
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Binary options signals are a very useful tool when used correctly. They allow you to become a successful trader from day one without having to spend hours every day analyzing market movements. They allow you to start trading tomorrow with the same opportunities to make money as anyone else. All you need to be able to use these signals is a brokerage account with a binary options broker that offer mobile trading. Mobil trading allow you to act on the signals whenever they are issued.
You success with binary options signal will vary depending on which signal provider you subscribe to, how high pay out rate your broker have (the higher the better) and how fatefully you follow the binary option signals. Always compare signal providers before you subscribe to a service. If you need help finding a good broker then i recommend binaryoptions.co.uk.
Many signal providers have a suggest amount that they recommend that you invest in each trade. You can choose to use another amount but should always stick to the same multiple on each trade. Signals will be less effective if you change the invested amount between trades.
You can read more about why you should use signals here.
Difference between binary options robots signals?
Signals and robots are two tools that are often talked about at the same time. They are similar in nature but differ from each other in one very important regard.
- Binary Options signals provide you the information to trade on. You choose whether to trade on it or not.
- Binary Options Robots trades for you. You do not have to do anything and you do not get to choose whether to make each trade or not. They are done automatically.
Some robots will trade using signals from one or several different signal providers. Others will trade according to proprietary algorithms or information provided by the developer.
Robots make the trade very easy but give you where little control over your trades. Two important drawbacks to consider before you start using a trading robot is that they only work with some brokers and that you need to provide a third party access to your account for them to work. This is a security risk.
Different types of binary options signals
There are a large number of different types of signals. Below I am going to provide some more info about the most common types.
Live trading signals
These signals are provide together with a live stream of the analysts working. You can trade side by side with these devoted traders and you can learn how to become a better trader by looking at them when they work. What they do and how they do it. It is in many ways like a virtual internship with the added benefit that you can trade and earn money at the same time as you are learning to become a better trader.
Manual Trading Signals
These signals alerts you to trades that you can choose to do yourself. You have to choose which signals you want to act on and you have to place the order. These signals can be delivered in a number of ways including through email, social networks, private forums and text messages. This type of signals are manually reviewed and then manually sent out to you. They are not automated signals.
This type of signal are often accompanied by a lot of useful information that can help you learn more about TA and market analysis.
SMS signals are just as the name suggest sent directly to your phone. They can be manually reviewed or automatically generated depending on which signal provider you use. SMS signals are usually sent as regular text messages which limits the amount of information they can provide. They are therefor usually limited to the necessary information. This type of signal might also include notifications about important financial news.
Copy trading signals
Copy trading signals are sent out to you in real time and is based on the trades made by other expert traders. This allows you to benefit from their expertise. There are a large number of different copy trading signal services available and some brokers provide you with the option to copy another traders trades automatically .
This type of signal should perhaps more correctly be referred to as a type of robot because they will not only provide the signal but also place trades based on that signal automatically. This is very convenient but does not guarantee success. Trading software like this might end up loosing all your money. Automated trade is only as good as the quality of the signals they are based on. It can be highly profitable if you choose a signal provider with a good trade record.
Automated signals are signals that are sent to you automatically (without human review) when market analyzing software find certain perceived opportunities in the market. These signal services can a very good way to be alerted about possible good trades but should not be acted on without prior analysis of your own. They tell you where to look but you have to check to see if the software is correct.
Aggregated binary options trading signals are signals where the signal provider aggregate and analyze the signals from a number of different providers. The best signals are then sent to you. Some providers will send you all trades recommended by a certain number of other providers while other will send you the signals they believe is most likely to end in the money.
How much do Binary options signals cost?
The price of binary options signals can vary greatly between different providers. Some of them are very cheap or even free. Other cost several hundred or even thousand a month. Most providers offer a monthly subscription service but there are a few companies that offer a one time fee. Providers that charge a monthly fee are generally better since they need to keep the signal quality high to keep their customers happy. They lose a lot of money if the customers ends their subscriptions.
Below you can get a general idea of the average price of different type of options.
- Simple put/call signals usually cost about USD 100 a month. Most providers price themselves just under the 100 mark to seem more competitively priced. These providers provide simple signals that recommend call/put options with a predicted price at a predicted time.
- Complex signals have a lot larger price span. They can be rather expensive. Some high quality signal providers with a good reputation charge as much as USD 250 or more a month. Complex signals provide you with a prediction containing the market price of an asset at a given time. They allow you to chose which options to trade and allow you to make trades with binary options that have higher pay out ratios. This potentially higher pay out justifies the higher price if the signal quality is good.
- Live signals can vary a lot in price but are usually priced similar to the price of complex signals. These can offer great value if you have time to watch the streams.
Are they worth it?
Many traders see the high prices of Binary options trading signals and prefer to invest that money in binary options rather then signals. This is understandable but completely misses the point. Binary options give a very high return on your investments. How much you invest is not as important as how often the trades you do end up in the money. It does not take many trades to earn the cost of the signal if they help you become a better trader.
Lets look at a simplified example:
You invest USD25 in each binary option you buy and your broker has a pay out rate of 80%. This means that you earn USD20 every time an option mature in the money.
You consider subscribing to a signal service that cost USD99 a month and provide 4-7 signals a day. (on avarage). They have a success rate of 70%
You make 20 trades based on the signals
- 14 of these will end in the money and earn you = 280
- 7 of these will end out of the money and cost you = 175
Profit on 20 trades = 105 (280 – 175)
You have more then recouped your money in the first 20 trades. Considering 4 -7 binary options signals a day this should happen after 3-5 days. You have another 25 days or so left in the month to make more money from the signals. Signals can in other words be very profitable and might spot trades that you do not even if you are a skilled trader yourself.