What You Need To Know About Binary Options Signals

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How to Succeed with Binary Options Trading 2020

Welcome to the largest expert guide to binary options and binary trading online. BinaryOptions.net has educated traders globally since 2020 and all our articles are written by professionals who make a living in the finance industry and online trading. We have close to a thousand articles and reviews to guide you to be a more profitable trader in 2020 no matter what your current experience level is. If you wish to discuss trading or brokers with other traders, we also have the world’s largest forum with over 20 000 members and lots of daily activity. Read on to get started trading today!

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What is a Binary Option and How Do You Make Money?

A binary option is a fast and extremely simple financial instrument which allows investors to speculate on whether the price of an asset will go up or down in the future, for example the stock price of Google, the price of Bitcoin, the USD/GBP exchange rate, or the price of gold. The time span can be as little as 60 seconds, making it possible to trade hundreds of times per day across any global market.

Before you place a trade you know exactly how much you stand to gain if your prediction is correct, usually 70-95% – if you invest $100 you will receive a credit of $170 – $195 on a successful trade. This makes risk management and trading decisions much more simple. The outcome is always a Yes or No answer – you either win it all or you lose it all – hence it being a “binary” option. The risk and reward is known in advance and this structured payoff is one of the attractions.

Exchange traded binaries are also now available, meaning traders are not trading against the broker.

To get started trading you first need a regulated broker account (or licensed). Pick one from the recommended brokers list, where only brokers that have shown themselves to be trustworthy are included. The top broker has been selected as the best choice for most traders.

If you are completely new to binary options you can open a demo account with most brokers, to try out their platform and see what it’s like to trade before you deposit real money.

Introduction Video – How to Trade Binary Options

These videos will introduce you to the concept of binary options and how trading works. If you want to know even more details, please read this whole page and follow the links to all the more in-depth articles. Binary trading does not have to be complicated, but as with any topic you can educate yourself to be an expert and perfect your skills.

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Option Types

The most common type of binary option is the simple “Up/Down” trade. There are however, different types of option. The one common factor, is that the outcome will have a “binary” result (Yes or No). Here are some of the types available:

  • Up/Down or High/Low – The basic and most common binary option. Will a price finish higher or lower than the current price a the time of expiry.
  • In/Out, Range or Boundary – This option sets a “high” figure and “low” figure. Traders predict whether the price will finish within, or outside, of these levels (or ‘boundaries’).
  • Touch/No Touch – These have set levels, higher or lower than the current price. The trader has to predict whether the actual price will ‘touch’ those levels at any point between the time of the trade an expiry.
    Note with a touch option, that the trade can close before the expiry time – if the price level is touched before the option expires, then the “Touch” option will payout immediately, regardless of whether the price moves away from the touch level afterwards.
  • Ladder – These options behave like a normal Up/Down trade, but rather than using the current strike price, the ladder will have preset price levels (‘laddered’ progressively up or down).These can often be some way from the current strike price.As these options generally need a significant price move, payouts will often go beyond 100% – but both sides of the trade may not be available.

How to Trade – Step by Step Guide

Below is a step by step guide to placing a binary trade:

  1. Choose a broker – Use our broker reviews and comparison tools to find the best binary trading site for you.
  2. Select the asset or market to trade – Assets lists are huge, and cover Commodities, Stocks, Cryptocurrency, Forex or Indices. The price of oil, or the Apple stock price, for example.
  3. Select the expiry time – Options can expire anywhere between 30 seconds up to a year.
  4. Set the size of the trade – Remember 100% of the investment is at risk so consider the trade amount carefully.
  5. Click Call / Put or Buy / Sell – Will the asset value rise or fall? Some broker label buttons differently.
  6. Check and confirm the trade – Many brokers give traders a chance to ensure the details are correct before confirming the trade.

Choose a Broker

Options fraud has been a significant problem in the past. Fraudulent and unlicensed operators exploited binary options as a new exotic derivative. These firms are thankfully disappearing as regulators have finally begun to act, but traders still need to look for regulated brokers.

Note! Don’t EVER trade with a broker or use a service that’s on our blacklist and scams page, stick with the ones we recommend here on the site. Here are some shortcuts to pages that can help you determine which broker is right for you:

  • Compare all brokers – if you want to compare the features and offers of all recommended brokers.
  • Bonuses and Offers – if you want to make sure you get extra money to trade with, or other promotions and offers.
  • Low minimum deposit brokers – if you want to trade for real without having to deposit large sums of money.
  • Demo Accounts – if you want to try a trading platform “for real” without depositing money at all.
  • Halal Brokers – if you are one of the growing number of Muslim traders.

Asset Lists

The number and diversity of assets you can trade varies from broker to broker. Most brokers provide options on popular assets such as major forex pairs including the EUR/USD, USD/JPY and GBP/USD, as well as major stock indices such as the FTSE, S&P 500 or Dow Jones Industrial. Commodities including gold, silver, oil are also generally offered.

Individual stocks and equities are also tradable through many binary brokers. Not every stock will be available though, but generally you can choose from about 25 to 100 popular stocks, such as Google and Apple. These lists are growing all the time as demand dictates.

The asset lists are always listed clearly on every trading platform, and most brokers make their full asset lists available on their website. This information is also available within our reviews, including currency pairs.

Expiry Times

The expiry time is the point at which a trade is closed and settled. The only exception is where a ‘Touch’ option has hit a preset level prior to expiry. The expiry for any given trade can range from 30 seconds, up to a year. While binaries initially started with very short expiries, demand has ensured there is now a broad range of expiry times available. Some brokers even give traders the flexibility to set their own specific expiry time.

Expiries are generally grouped into three categories:

  • Short Term / Turbo – These are normally classed as any expiry under 5 minutes
  • Normal – These would range from 5 minutes, up to ‘end of day’ expiries which expire when the local market for that asset closes.
  • Long term – Any expiry beyond the end of the day would be considered long term. The longest expiry might be 12 months.

Regulation

While slow to react to binary options initially, regulators around the world are now starting to regulate the industry and make their presence felt. The major regulators currently include:

  • Financial Conduct Authority (FCA) – UK regulator
  • Cyprus Securities and Exchange Commission (CySec) – Cyprus Regulator, often ‘passported’ throughout the EU, under MiFID
  • Commodity Futures Trading Commission (CFTC) – US regulator
  • Australian Securities and Investments Commission (ASIC)

There are also regulators operating in Malta and the Isle of Man. Many other authorities are now taking a keen a interest in binaries specifically, notably in Europe where domestic regulators are keen to bolster the CySec regulation.

Unregulated brokers still operate, and while some are trustworthy, a lack of regulation is a clear warning sign for potential new customers.

Recently, ESMA (European Securities and Markets Authority) moved to ban the sale and marketing of binary options in the EU. The ban however, only applies to brokers regulated in the EU. This leaves traders two choices to keep trading: Firstly, they can trade with an unregulated firm – this is extremely high risk and not advisable. Some unregulated firms are responsible and honest, but many are not.

The second choice is to use a firm regulated by bodies outside of the EU. ASIC in Australia are a strong regulator – but they will not be implementing a ban. This means ASIC regulated firms can still accept EU traders. See our broker lists for regulated or trusted brokers in your region.

There is also a third option. Traders who register as ‘professional’ are exempt from the new ban. The ban is only designed to protect ‘retail’ investors. A professional trader can continue trading at EU regulated brokers such as IQ Option. To be classed as professional, an account holder must meet two of these three criteria:

  1. Open 10 or more trades per quarter, of €150 or more.
  2. Have assets of €500,000 or more
  3. Have worked for two years in a financial firm and have experience of financial products.

Strategies and Guides

We have a lot of detailed guides and strategy articles for both general education and specialized trading techniques. Below are a few to get you started if you want to learn the basic before you start trading. From Martingale to Rainbow, you can find plenty more on the strategy page.

Signals and Other Services

For further reading on signals and reviews of different services go to the signals page.

Beginners Guides

If you are totally new to the trading scene then watch this great video by Professor Shiller of Yale University who introduces the main ideas of options:

Education for beginners:

Types of Trades

How to Set Up a Trade

The ability to trade the different types of binary options can be achieved by understanding certain concepts such as strike price or price barrier, settlement, and expiration date. All trades have dates at which they expire.

When the trade expires, the behaviour of the price action according to the type selected will determine if it’s in profit (in the money) or in a loss position (out-of-the-money). In addition, the price targets are key levels that the trader sets as benchmarks to determine outcomes. We will see the application of price targets when we explain the different types.

There are three types of trades. Each of these has different variations. These are:

Let us take them one after the other.

High/Low

Also called the Up/Down binary trade, the essence is to predict if the market price of the asset will end up higher or lower than the strike price (the selected target price) before the expiration. If the trader expects the price to go up (the “Up” or “High” trade), he purchases a call option. If he expects the price to head downwards (“Low” or “Down”), he purchases a put option. Expiry times can be as low as 5 minutes.

Please note: some brokers classify Up/Down as a different types, where a trader purchases a call option if he expects the price to rise beyond the current price, or purchases a put option if he expects the price to fall below current prices. You may see this as a Rise/Fall type on some trading platforms.

In/Out

The In/Out type, also called the “tunnel trade” or the “boundary trade”, is used to trade price consolidations (“in”) and breakouts (“out”). How does it work? First, the trader sets two price targets to form a price range. He then purchases an option to predict if the price will stay within the price range/tunnel until expiration (In) or if the price will breakout of the price range in either direction (Out).

The best way to use the tunnel binaries is to use the pivot points of the asset. If you are familiar with pivot points in forex, then you should be able to trade this type.

Touch/No Touch

This type is predicated on the price action touching a price barrier or not. A “Touch” option is a type where the trader purchases a contract that will deliver profit if the market price of the asset purchased touches the set target price at least once before expiry. If the price action does not touch the price target (the strike price) before expiry, the trade will end up as a loss.

A “No Touch” is the exact opposite of the Touch. Here you are betting on the price action of the underlying asset not touching the strike price before the expiration.

There are variations of this type where we have the Double Touch and Double No Touch. Here the trader can set two price targets and purchase a contract that bets on the price touching both targets before expiration (Double Touch) or not touching both targets before expiration (Double No Touch). Normally you would only employ the Double Touch trade when there is intense market volatility and prices are expected to take out several price levels.

Some brokers offer all three types, while others offer two, and there are those that offer only one variety. In addition, some brokers also put restrictions on how expiration dates are set. In order to get the best of the different types, traders are advised to shop around for brokers who will give them maximum flexibility in terms of types and expiration times that can be set.

Mobile Apps

Trading via your mobile has been made very easy as all major brokers provide fully developed mobile trading apps. Most trading platforms have been designed with mobile device users in mind. So the mobile version will be very similar, if not the same, as the full web version on the traditional websites.

Brokers will cater for both iOS and Android devices, and produce versions for each. Downloads are quick, and traders can sign up via the mobile site as well. Our reviews contain more detail about each brokers mobile app, but most are fully aware that this is a growing area of trading. Traders want to react immediately to news events and market updates, so brokers provide the tools for clients to trade wherever they are.

Trading FAQ

What Does Binary Options Mean?

“Binary options” means, put very simply, a trade where the outcome is a ‘binary’ Yes/No answer. These options pay a fixed amount if they win (known as “in the money”), but the entire investment is lost, if the binary trade loses. So, in short, they are a form of fixed return financial options.

How Does a Stock Trade Work?

Steps to trade a stock via a binary option;

  1. Select the stock or equity.
  2. Identify the desired expiry time (The time the option will end).
  3. Enter the size of the trade or investment
  4. Decide if the value will rise or fall and place a put or call

The steps above will be the same at every single broker. More layers of complexity can be added, but when trading equities the simple Up/Down trade type remains the most popular.

Put and Call Options

Call and Put are simply the terms given to buying or selling an option. If a trader thinks the underlying price will go up in value, they can open a call. But where they expect the price to go down, they can place a put trade.

Different trading platforms label their trading buttons different, some even switch between Buy/Sell and Call/Put. Others drop the phrases put and call altogether. Almost every trading platform will make it absolutely clear which direction a trader is opening an option in.

Are Binary Options a Scam?

As a financial investment tool they in themselves not a scam, but there are brokers, trading robots and signal providers that are untrustworthy and dishonest.

The point is not to write off the concept of binary options, based solely on a handful of dishonest brokers. The image of these financial instruments has suffered as a result of these operators, but regulators are slowly starting to prosecute and fine the offenders and the industry is being cleaned up. Our forum is a great place to raise awareness of any wrongdoing.

These simple checks can help anyone avoid the scams:

  • Marketing promising huge returns. This is clear warning sign. Binaries are a high risk / high reward tool – they are not a “make money online” scheme and should not be sold as such. Operators making such claims are very likely to be untrustworthy.
  • Know the broker. Some operators will ‘funnel’ new customer to a broker they partner with, so the person has no idea who their account is with. A trader should know the broker they are going to trade with! These funnels often fall into the “get rich quick” marketing discussed earlier.
  • Cold Calls. Professional brokers will not make cold calls – they do not market themselves in that way. Cold calls will often be from unregulated brokers interested only in getting an initial deposit. Proceed extremely carefully if joining a company that got in contact this way. This would include email contact as well – any form of contact out of the blue.
  • Terms and Conditions. When taking a bonus or offer, read the full terms and conditions. Some will include locking in an initial deposit (in addition to the bonus funds) until a high volume of trades have been made. The first deposit is the trader’s cash – legitimate brokers would not claim it as theirs before any trading. Some brokers also offer the option of cancelling a bonus if it does not fit the needs of the trader.
  • Do not let anyone trade for you. Avoid allowing any “account manager” to trade for you. There is a clear conflict of interest, but these employees of the broker will encourage traders to make large deposits, and take greater risks . Traders should not let anyone trade on their behalf.

Which Are The Best Trading Strategies?

Binary trading strategies are unique to each trade. We have a strategy section, and there are ideas that traders can experiment with. Technical analysis is of use to some traders, combined with charts, indicators and price action research. Money management is essential to ensure risk management is applied to all trading. Different styles will suit different traders and strategies will also evolve and change.

There is no single “best” strategy. Traders need to ask questions of their investing aims and risk appetite and then learn what works for them.

Are Binary Options Gambling?

This will depend entirely on the habits of the trader. With no strategy or research, then any short term investment is going to win or lose based only on luck. Conversely, a trader making a well researched trade will ensure they have done all they can to avoid relying on good fortune.

Binary options can be used to gamble, but they can also be used to make trades based on value and expected profits. So the answer to the question will come down to the trader.

Advantages of Binary Trading

The main benefit of binaries is the clarity of risk and reward and the structure of the trade.

Minimal Financial Risk

If you have traded forex or its more volatile cousins, crude oil or spot metals such as gold or silver, you will have probably learnt one thing: these markets carry a lot of risk and it is very easy to be blown off the market. Things like leverage and margin, news events, slippages and price re-quotes, etc can all affect a trade negatively. The situation is different in binary options trading. There is no leverage to contend with, and phenomena such as slippage and price re-quotes have no effect on binary option trade outcomes. This reduces the risk in binary option trading to the barest minimum.

Flexibility

The binary options market allows traders to trade financial instruments spread across the currency and commodity markets as well as indices and bonds. This flexibility is unparalleled, and gives traders with the knowledge of how to trade these markets, a one-stop shop to trade all these instruments.

Simplicity

A binary trade outcome is based on just one parameter: direction. The trader is essentially betting on whether a financial asset will end up in a particular direction. In addition, the trader is at liberty to determine when the trade ends, by setting an expiry date. This gives a trade that initially started badly the opportunity to end well. This is not the case with other markets. For example, control of losses can only be achieved using a stop loss. Otherwise, a trader has to endure a drawdown if a trade takes an adverse turn in order to give it room to turn profitable. The simple point being made here is that in binary options, the trader has less to worry about than if he were to trade other markets.

Greater Control of Trades

Traders have better control of trades in binaries. For example, if a trader wants to buy a contract, he knows in advance, what he stands to gain and what he will lose if the trade is out-of-the-money. This is not the case with other markets. For example, when a trader sets a pending order in the forex market to trade a high-impact news event, there is no assurance that his trade will be filled at the entry price or that a losing trade will be closed out at the exit stop loss.

Higher Payouts

The payouts per trade are usually higher in binaries than with other forms of trading. Some brokers offer payouts of up to 80% on a trade. This is achievable without jeopardising the account. In other markets, such payouts can only occur if a trader disregards all rules of money management and exposes a large amount of trading capital to the market, hoping for one big payout (which never occurs in most cases).

Accessibility

In order to trade the highly volatile forex or commodities markets, a trader has to have a reasonable amount of money as trading capital. For instance, trading gold, a commodity with an intra-day volatility of up to 10,000 pips in times of high volatility, requires trading capital in tens of thousands of dollars. However, binary options has much lower entry requirements, as some brokers allow people to start trading with as low as $10.

Disadvantages of Binary Trading

Reduced Trading Odds for Sure-Banker Trades

The payouts for binary options trades are drastically reduced when the odds for that trade succeeding are very high. While it is true that some trades offer as much as 85% payouts per trade, such high payouts are possible only when a trade is made with the expiry date set at some distance away from the date of the trade. Of course in such situations, the trades are more unpredictable.

Lack of Good Trading Tools

Some brokers do not offer truly helpful trading tools such as charts and features for technical analysis to their clients. Experienced traders can get around this by sourcing for these tools elsewhere; inexperienced traders who are new to the market are not as fortunate. This is changing for the better though, as operators mature and become aware of the need for these tools to attract traders.

Limitations on Risk Management

Unlike in forex where traders can get accounts that allow them to trade mini- and micro-lots on small account sizes, many binary option brokers set a trading floor; minimum amounts which a trader can trade in the market. This makes it easier to lose too much capital when trading binaries. As an illustration, a forex broker may allow you to open an account with $200 and trade micro-lots, which allows a trader to expose only acceptable amounts of his capital to the market. However, you will be hard put finding many binary brokers that will allow you to trade below $50, even with a $200 account. In this situation, four losing trades will blow the account.

Cost of Losing Trades

Unlike in other markets where the risk/reward ratio can be controlled and set to give an edge to winning trades, the odds of binary options tilt the risk-reward ratio in favour of losing trades.

Trade Corrections

When trading a market like the forex or commodities market, it is possible to close a trade with minimal losses and open another profitable one, if a repeat analysis of the trade reveals the first trade to have been a mistake. Where binaries are traded on an exchange, this is mitigated however.

Spot Forex vs Binary Trading

These are two different alternatives, traded with two different psychologies, but both can make sense as investment tools. One is more TIME centric and the other is more PRICE centric. They both work in time/price but the focus you will find from one to the other is an interesting split. Spot forex traders might overlook time as a factor in their trading which is a very very big mistake. The successful binary trader has a more balanced view of time/price, which simply makes him a more well rounded trader. Binaries by their nature force one to exit a position within a given time frame win or lose which instills a greater focus on discipline and risk management. In forex trading this lack of discipline is the #1 cause for failure to most traders as they will simply hold losing positions for longer periods of time and cut winning positions in shorter periods of time. In binary options that is not possible as time expires your trade ends win or lose. Below are some examples of how this works.

Above is a trade made on the EUR/USD buying in an under 10 minute window of price and time. As a binary trader this focus will naturally make you better than the below example, where a spot forex trader who focuses on price while ignoring the time element ends up in trouble. This psychology of being able to focus on limits and the dual axis will aid you in becoming a better trader overall.

The very advantage of spot trading is its very same failure – the expansion of profits exponentially from 1 point in price. This is to say that if you enter a position that you believe will increase in value and the price does not increase yet accelerates to the downside, the normal tendency for most spot traders is to wait it out or worse add to the losing positions as they figure it will come back. The acceleration in time to the opposite desired direction causes most spot traders to be trapped in unfavourable positions, all because they do not plan time into their reasoning, and this leads to a complete lack of trading discipline.

The nature of binary options force one to have a more complete mindset of trading off both Y = Price Range and X = Time Range as limits are applied. They will simply make you a better overall trader from the start. Conversely on the flip side, they by their nature require a greater win rate as each bet means a 70-90% gain vs a 100% loss. So your win rate needs to be on average 54%-58% to break even. This imbalance causes many traders to overtrade or revenge trade which is just as bad as holding/adding to losing positions as a spot forex trader. To successfully trade you need to practice money management and emotional control.

In conclusion, when starting out as a trader, binaries might offer a better foundation to learn trading. The simple reasoning is that the focus on TIME/PRICE combined is like looking both ways when crossing the street. The average spot forex trader only looks at price, which means he is only looking in one direction before crossing the street. Learning to trade taking both time and price into consideration should aid in making one a much overall trader.

What you need to know when choosing a binary option broker

In the binary market, many potential investors and novice traders face the problem of choosing a trading partner. Often it is difficult to quickly and correctly assess the professional level of the brokerage company and the effectiveness of cooperation with it. In addition, in the market, there are more companies that want to deceive traders and lead them to a loss of finances. Against this background, we offer a list of practical recommendations that will make it possible to make a choice in the direction of the most effective trading platform.

So, in order not to get on a fraudulent resource and start trading on a professional and secure platform with the best technical and financial conditions, it is necessary to pay attention to certain parameters of the broker’s work.

Regulator license

This is the main parameter for the security of your investment vehicles. First, the regulator is the arbitrator for resolving trade disputes between the trader and the broker of binary options. Secondly, the regulator monitors the transparency of the platform and the financial calculations of the broker. The availability of a marketing license at the broker completely excludes deception and allows traders to work in the mode of maximum financial security.

Efficiency of the terminal for trading

To effectively deal with options trading, any trader needs professional service. The problem is that most brokers still use obsolete and technically restricted trading terminals. Yes, at the dawn of the appearance of options, their functionality satisfied investors, but today with such terminals you will not earn much. Therefore, we choose a broker with a professional platform, preferably own development. Such services often have the most cool tools for market analysis and trading operations. For example, most of them offer their partners a terminal, which was developed by their own specialists. On a high-quality trading platform, traders can access these technical services and trading conditions:

– a set of technical indicators;

– graphical analysis services;

– a schedule with the widest and most functional list of settings;

– options in the mode of turbo and classic contracts;

– 80 financial assets of different directions of the financial market;

– non-stop trading mode;

– profitability of trade contracts to 87%;

– a wide range of analytical and ancillary services;

– Demo mode for using the terminal.

Using the services of such platforms, traders can work on any technical strategy and get the maximum possible amounts of profit from trading options.

Trading start conditions on the market

Safe platforms and professional brokers will not require large starting deposits from customers, because they are interested not in the investor’s capital, but in the trader’s turnover from which they receive their income. In addition, a quality broker will offer an optimal balance between the level of the initial capital and the starting value of the option, which will allow to correctly manage risks and capital. For example, most brokers set the level of initial capital at the level of 10 USD, and the starting cost of options is 1 USD. These indicators allow you to effectively and with relatively minimal risks start trading in the options market.

Reputation of the company in the environment of traders

Scammers are often successfully camouflaged for professional platforms, but their activities can not be hidden from a huge army of traders who share their opinions on special forums and sites. When choosing a broker, pay attention to customer testimonials. So you can determine the list of possible problems in the work of the company and be able to create an impression on the basis of the opinions of traders about the future trading partner.

Approaching the choice of the trading platform responsibly, you can become a professional trader in the binary market and achieve good results as quickly as possible!

“General Risk Warning: Binary options trading carry a high level of risk and can result in the loss of all your funds.”

What You Need To Know About Binary Options Signals

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October 22, 2020 at 3:01 pm

Autotrading and Trading Signals has become a huge part of the Binary Options industry. Before you rush in to use these services you first need to understand what they are and how they work. Some Autotraders and Signal Providers are just there to scam you while others can legitimately help you out.

What Are Signal Services And Autotraders?

A Signal Service will alert the trader with a potential trading setup. He or she can then decide whether or not they want to take the signal. These signals are generated by other traders or a trading robot and will usually be communicated through email, live chat, Skype, SMS or a Tweet. Autotraders is a software program that will automatically place trades for you based on the trading signals they generate. Aren’t these two services basically the same? No. Many Autotraders use Signal Services, but not all Signal Services are Autotraders. Make sure you know what you are looking for before you start browsing around.

What Types Of Forex Signals Do You Get?

1.Free trading signals

2.Paid trading signals provided by one provider

3.Paid trading signals provided by multiple systems or signal sources

4.Trading signals supplied by trading software that you have to download onto your computer. This type of software is better known as an EA (Expert Advisor)

Example of a Typical Binary Options Signal

Asset: GBP/USD = 1.5467

The trade: Call Trade

Expiry time: 15 minutes

When: market reaches 1.5400

How To Use An Autotrader

  1. Sign up with an Autotrading service.
  2. You will have to download a program or an extension on your browser. Make sure that the service is compatible with your broker and/or browser.
  3. Log in to your binary options trading account through the program or browser extension.
  4. Choose your amount that you wish to risk per trade. Some programs will ask for an exact amount, and some will ask you for a percentage of your account which you want to risk.
  5. That’s it! Sit back, relax and watch the trades come in.

What Does Autotraders And Signals Cost?

The cost will depend on the service you sign up for. There are different pricing models which these kinds of services use, namely:

  • Monthly fees
  • Annual fees
  • Lifetime fee
  • Cost per trading signal
  • Different costs according to your account and trading size
  • Free

Most services tend to charge on a monthly basis ranging anything from $30 – $200. You could get some discount when you sign up for a year. Lifetime fees can be rather expensive but also worth it in the long run. Services that charge you per trading signal are an awesome way to keep the cost down if you are only looking to take a few trades per month.

Some Autotraders will charge you a monthly fee based on the size of your account and the amount that you risk per trade. For instance, if you have a $1000 account they will charge you $100 per month but if you have a $10 000 account they might charge you $500 per month.

Last, but not least, you can choose to go with a free trading service. You might wonder why anybody would want to give away signals for free. Well, there is actually a legitimate reason for this. These Autotraders or Signal Services will normally be an affiliate with their recommended brokers. In order to get your “free” service, you will need to sign up with one of their affiliated brokers and deposit the minimum amount. They will then get paid by the broker because they referred you as a customer. So in reality, the service is free for you but they still get paid at the end of the day.

What Autotraders and Signal Services CANNOT Do For You

  • It cannot take the risk out of trading
  • Guarantee that you will be profitable
  • Guarantee x-amount of dollars every hour / day / week / year
  • Become a millionaire overnight

What Autotraders and Signal Services CAN Do For You

  • Signals can alert you to possible trading opportunities. You might have missed it, or you were busy doing other stuff.
  • Autotraders takes trades for you when you can’t be at the computer. This is great when you don’t get much time to trade during the day, or maybe some of the best trading opportunities appear when you are sleeping.
  • Autotraders and Signal Services are perfect when you want to free up hours during your day. You might be tired of staring at the charts for hours on end or just want to free up some time to do other things.
  • These services give you the ability to build up your trading capital while you are still learning how to trade.

What to Do BEFORE Signing Up With a Signal Service or Autotrader

  • Thoroughly go through the terms and conditions of the service and make sure you understand them.
  • Try the service for free if you can before you sign up. Most Autotraders and Signal providers will have a free trial period. Make sure that you use this to your advantage. Even if you have tried them before, I guess an extra week or month for free won’t do any harm. During your trial phase, it is a good idea to use a demo account to see if they are any good. Some of the services will not work on a demo account, so you are going to have to trade with the minimum trade size in this case.
  • Always look around for the service past performance. If you can’t find it, then go ahead and ask them directly. This will be a good indication of what you can expect when you sign up with them. However, it is not guaranteed that these results will be the same in the future.
  • Be wary of Autotraders and Signal Providers who claim to have unrealistic trading results. Remember, if it’s too good to be true, it probably is.
  • Find out how the trading signals are generated. Is it a trading robot or an actual trader that is doing the analysis?
  • Avoid services that are affiliated with untrusted brokers. Do your research to find out whether the broker is legit or not.
  • Look at customer testimonials. Look for services with fair and believable customer reviews. When looking at these testimonials, you should not only look at the quality of the signals but also the quality of the customer service.
  • Make sure you understand exactly what the trading signal means. You should fully understand how to use an Auto trader’s software. Know what you can control, how you can change different settings and how to turn the Autotrader on or to switch it off.
  • A crucial thing to know is how you can discontinue your account if you see things aren’t working out for you.
  • DO NOT only rely on Signal Services or Autotraders. You can still trade on your own when you get time, or you can practice and study in the meantime to become a better trader yourself.

Binary Options Signal Services and Autotraders can be of great help for many traders. If you follow the steps, we mentioned you should be able to find a legitimate service. Have a look at our Autotraders Reviews and Signals Reviews section as a start.

Before I end the article, there is something I would like to mention. Recently, Social Trading has become very popular amongst the Binary Options community. Social trading networks have basically replaced the ordinary trading signals and Autotraders. Social trading networks is an incredibly innovative way to copy traders if you think about how Social networks such as Facebook have grown over the last few years. If you have not heard of it before, let me sum it for you. Social trading consists of a network of traders that share their performance on a website. Either you can choose to follow them, or you can choose to copy their trades automatically to your trading account. According to our Reviews section, the most popular one at the moment is Trade4me. Have a look and see what you think.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker!
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  • Binomo
    Binomo

    Good Choice For Experienced Traders!

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