This guide will explain the most important characteristics you need to keep in mind when choosing your binary signals provider.
Binary signal providers in addition to trading binary options manually are a simple and convenient way to experience and possibly profit in trading with binary options. Seeing that there are a lot of novice traders out there that still don’t have the experience necessary to know which precautions to take to avoid losing money, we felt it was important to write up a few guidelines.
When it comes to predictions about market movements, binary signal providers utilize their own market analysis so they can send their traders real-time binary signals about the found binary options opportunities. These signals are sent through various mediums, such as text messaging, email or their own platforms. With robots that have the signal provider function, they will be notifying you about a possible great trade via their dashboards so you can execute the trade immediately.
If you are just starting out in binary options trading and don’t know which signal provider to choose or how to even make sense of it all, keep reading further.
Binary Signal Types
There are several types of binary signals that traders have at their disposal. Also, traders need to be well informed on every choice so they can make the best decision for themselves.
One of the types is binary signals that are sent via text messaging, email or even Skype, which then need to be manually inserted into a binary trading system or executed on broker platform in order to make a trade.
Automated signals arrive directly on a platform of a binary robot that the trader is using to trade with. If a trader is trading with a semi-automated binary software, (Binary Options Robot for example) after the signal has been received, the trader needs to approve the trade after reviewing the signal, which keeps the control in traders hands. If a trader is trading classic automated robot, then the signal will be automatically executed on traders behalf.
Before committing to any binary options and binary signals type of trading, traders need to make sure they are adequately prepared for actual trading and possible risks associated with it.
There are also two types of signal services when it comes to software price – free and paid. In recent time there have been more and more binary signals providers that are offering their services for free. However, there are still those that need to be paid in order to receive the signals. On top of that, the important information is also that binary signals have an expiration time. If a trader fails to use the signal in an allocated time frame, it will expire and won’t be usable anymore.
Clear&Straightforward Trading Strategy
If you are opting for a paying variety of binary signals provider, then you owe it to yourself to check out their system and make sure you are getting your money’s worth.
When you finally choose your binary signals provider or a robot, ask their customer support about the methods and strategies their software is using. It’s even better if that information is written somewhere on their website. If they are using just one or two methods you can utilize yourself manually, then it really doesn’t make any sense to pay a lot of money for such a service.
Also, make sure the results you are being offered are measurable, transparent and usable. Otherwise, there is no point in using signals that are utilizing methods that are unproven and false.
Choose The Right Asset
There are hundreds of underlying assets available for trading when trading binary options. However, most of the signal providers offer a restricted number of assets to choose from.
If you are the type of a trader that likes to focus on a certain individual asset or a group of just a few assets, don’t be surprised when you don’t find your favorite asset on the list. Remember to always make sure the assets you are looking for are included in the specific signal provider’s list.
Use the Trial Period and Test the Software
Free trial or at least a very cheap trial period is what you should be looking for prior to paying for a signals provider service. This is very important as it allows the trader to see if the software is exactly what was described on the website. It also helps the trader to get accustomed to the way signal providers operate without risking any major investment.
We cannot highlight enough how important this feature is. There is nothing worse for a trader, especially a new, inexperienced trader, to dive into trading head first, without being able to learn how the software works and what can he/she expect from it.
Take Care about the Timing
Like we mentioned previously, in short, timing is everything in binary options trading, so naturally, the same is also true for binary signal providers too.
There is no point in receiving signals that are not able to potentially make a profit because they’re not active anymore. This is mostly an issue with signals that are sent via email. The problem that usually occurs is that the trader does not have access to its email account all the time, mostly because of internet connectivity, or they are simply not at their computer when the signal arrives. This results in a significant delay in execution since most signals have a very short expiry time frame.
If you think this might be a problem for you, you might want choose a text messaging signal delivery to circumvent this potential issue. In case you specifically want or need an e-mail delivery, make sure you enable push notifications for your smartphone.
As it is pretty evident, there is a lot to think about when it comes to choosing signal providers. Keep in mind, that if you want to maximize your profit potential and minimize your risk factors, you are going to need to invest some time into getting to know the methods and tools. Once you feel you are well educated to get started, use the trial period to practice your trading skills and familiarize yourself with the software you are using, so you are confident in your abilities when you do invest real money.