The Ultimate Guide to Binary Options Signals
In this guide you will learn what are binary options signals, how to use them, how much do they cost and whether you can actually find signals that produce profits.
What is a trading signal?
When it comes to trading stocks, forex, binary options or any other market, some traders like to analyze the market and act upon their predictions, while others prefer to get guidance from more experienced traders or from a trading algorithm.
This guidance comes in a form of a trading signal. It can be a pop up message, sms notification, email or other means.
The signal message typically includes information such as: name of the asset (Gold, oil, etc.), direction of the trade (buy or sell), entry price, and conditions for exiting the trade.
A signal is time-sensitive, which means that it is relevant when it is issued, but can expire or be wrong if you don’t act upon it in a timely manner.
This is how a binary options signals platform looks like (taken from the Lucrosa system)
How much does it cost? Can I get signals for free?
Some of the binary signals services are paid and some are free.
Paid signals are subscription-based, and you would usually pay between $37 to $150 per month.
Surprisingly, we haven’t found much correlation between the price of service and the profitability of signals. In other words, we’ve seen cheap services which were good, while expensive services which were discovered to be mere scams.
Another option is to go for a free signals service. A “free” service means that you do not pay for the signals or the platform.
However, you are required to open a trading account at a binary broker, which you would need to do anyway, and also to deposit some minimal amount in it, usually $250.
To go directly to the list of legit signal services click HERE.
Who sends binary options signals?
Signals are developed and sent by companies or individuals who are called: “signal providers”. There are two types of providers:
1. Companies that develop computer algorithms that analyze financial markets and automatically issue the signals
2. Individual traders or companies that employ teams of traders. These traders execute trades, and each of their trades are being sent to subscribers as soon as they execute it.
For you as the user of signals, this is transparent. Once you choose your signal provider, the signals will arrive and look exactly the same, regardless of whether their source is human or automated, or even a mixture of both.
How does a binary options signal work
The signal provider sends signals to their subscribers on a regular basis. This can be done in a variety of ways:
• A Smartphone app
• Web page
• Email messages
• SMS text messages
Because in binary options there’s no need to exit the trade manually, as the option simply expires at a set time, the signal would not need to include any exit criteria – it is simpler than signals for forex or stocks.
How frequent are the signals?
The frequency in which you’ll receive the signals, is totally dependent upon your signal provider.
Some signal providers send signals throughout the day, even up to 100-150 signals per day. Other may send just a few signals per week.
The choice is yours, which signal service’s frequency is the right kind for you. How would you decide?
First of all, if you’re getting the signals automatically, then this is less of an issue, since you do not have to wait for the signals and execute it yourself.
Therefore, if you’re into having a robot that executes the trades for you, you’re free to choose between the signal providers, as you’re not limited only to those who give a small enough signals for you to be able to keep track and execute them.
How to use binary options signals
The first thing you’ll need to do is sign up for your chosen signal provider.
Depending on the signal provider, you will either be immediately connected to their signal broadcast system, or be manually approved.
Many signals platforms are free to use, but require you to deposit a certain amount with a binary broker. As soon as you make the deposit, you will automatically be granted entry to the platform.
When inside the platform, most signal providers enable you two modes of using the signals:
1. Automated trading – in this mode, the signals are being automatically executed in your brokerage account, without the need for your intervention.
This is the easiest method to use, and also the least time-consuming. You would usually be asked to do a one-time setup, when you can decide what’s the amount to invest per trade, how many simultaneous trades the robot is allowed to open, and sometimes also which assets to trade – forex, stocks, commodities, indices or all of them.
2. Manual trading – in this mode, you need to keep the signals platform open, and wait for signals to come. As soon as you get a signal, you need to execute the trade. This involves choosing the investment amount and pressing the correct button for a Call or Put option.
With manual signals, you need to babysit the platform...
Should I use automated or manual signals?
Most people prefer automated trading, simply because it saves so much time and hassle.
It makes sense that if you trust a signal provider enough to make an investment in it, then just let it do its thing.
There’s no point in waiting for signals and manually executing them, when you could easily miss a signal or make a mistake that would cause the signal to lose instead of win.
The reason to use manual signals would be if you’re an advanced trader, and have your own view on the market and what direction it should go.
In that case, you can use the signals as a recommendation, ultimately deciding on your own if the signal is a strong opportunity or not.
How accurate are the signals?
Let’s face it.
Not all signal services are that great. In fact, there are numerous scams out there, that you need to be very careful about.
We have investigated and exposed these scams here.
Having said that, there are a few signal services that are known to be profitable. We don’t come across such services too often, but for the ones we do, we’re giving our full investigation and review on this page.
Scroll down to see the signal providers that we have tested and found to produce good results.
The signal services that are accurate, usually have a win rate of between 60% to 78%. Anything less than that is not recommended.
How much money can I make with binary signals?
This question is tough to answer. It depends on the signal service you choose, as well as the amount you’re willing to invest.
As a general rule of thumb, if you choose a high quality signal service, the ROI (Return On Investment) could range anywhere between 2% to 30% per month.
We’ve seen a few services that were able to make more than that, as well as services that lose the entire investment in under a month – that’s why we take care to investigate as many services as we can, and report the results here.
Can you recommend any signals services?
Since we investigate and test as many signals services and systems that we can find, we have been able to come up with a list of providers which produce good results, at least at the time we tested them.
Scroll below to see all providers that have passed our tests and have shown good profits.