Binary option signals are signals that give you recommendations on which options to buy to make more money. Most signals providers provide their signals as a part of a subscription service. This service can be both free or paid. Most services are paid services and the quality of the free signal services are generally lower than the quality of the paid services. This is however not always the case. There are bad paid services and good free services. The price can vary a lot between different signal services. A majority of all signal services are however priced between 200 and 300.
Signal services are designed to help you make money and many services claims to be able to earn money as long as you trade on all their signals. This is however not the case. There might be good signal services on the market but most services are unable to live up to the promises they make. It is important to research the quality of a signal service before you start subscribing to it. Choosing a poor service can be a very expensive. It will not only cost you the price of the signal put also the money you lose when you trade on the signals they provide.
Different types of options
Different provider offer a wide variety of different signals. It is very uncommon that a single provider offer several different types of signals. Every provider usually specialize on a single signal type. It is also very common that each provider specialize on one single asset or a single asset class.
Below you can read mote about different type of signals.
This is the most common type of signal. Simple signals are very easy to use because they tell you exactly which options to buy. You do not have to think about anything at all. All you have to do is to buy the exact option that the signal provider recommends. It is usually best to use the broker that the signal providers recommend but you can use any broker as long as they offer the options that the signal service trades with.
Simple signals can be used together with binary options robots to automate the trade. The robot automatically buys the options that the signals recommend. This can be a hands of way to earn money if the quality of the signals are high enough. But it is always important to keep an eye on your account to make sure that the signals and robot are making you money, not losing it.
There are a number of different signal providers that offer complex signals. The number of providers that provide simple signals is however a lot larger. Complex signals can be more profitable to trade with than regular simple options but require you to be able to pick the right options to make money.
A complex binary options signal does not recommend a certain binary options that it thinks you should buy. A complex signal instead provides you with a prediction for the future. They predicts the future value of a certain asset at a certain time in the future. An example of a complex signal might say:
“USD/GPB at 1.1745 at 12:00 PM”
With this information you can chose which options you want to buy based on the signal. It allows you to make more money by buying several options that would mature in the money based on the signals prediction.
Complex binary signals can be used at any binary options broker. It does not matter if you trade with the broker that the signal provide recommends or not. You can use the signals to find suitable options to buy regardless of where you trade.
Live feed signals
Live feed signals can be both simple and complex signals. What makes live feed signals different from other types of signals is that they provide you with a live feed where you can watch the signal provider working. You get to watch how they created the recommendation that becomes the signal they send out to their subscribers. Live feed signals can be very educational if you have the time to watch them and learn from the live feed. The live feed can teach you how to do the job yourself in the future so that you no longer need to subscribe to signals. You can create your own.
You need to act quickly
Binary options signals are very time sensitive. You need to be able to act quickly when you get them. Every second counts and it is important that you are able to act within a few minutes after getting the signals. Waiting 5 minutes can be enough to turn a profitable trade into a losing trade. It can however also cause a losing trade to become profitable. If the signal provider offer high quality signals then you should always try to act on them quickly.
Most signal providers send their trading signals as SMS messages to your phone. With this in mind it is very good if you have chosen a broker that makes if easy to trade directly in your smart phone. This makes it a lot easier to act quickly when you get your signals.
Warning for scams
Be aware that the signal market is plagued by scam service providers that provide signals that have a very low quality, a very low success-rate. These signals will do nothing but lose you money and they should be avoided at all costs. Please observe that many of these scam providers publish fake histories to be able to show a success-rate that is higher than their actual success-rate. You can see this by following their trades for a few days. Another good way to spot scams is to see what different review websites have to say about their service.
You are never guaranteed to make money even if you chose a god signal provider. Even the world best traders can have cold streaks when they lose money.