Binary Options Trading Signals
To win at binary options once may be easy, yet to continue winning can be very difficult. Why? Because binary options trading is based on the financial markets and limited by specific rules slightly in favor of the broker. In order to trade binary options successfully, one must have prior trading experience or use professional trading signals.
What are Binary Options Signals?
Trading is complicated and there are many factors at play, such as technical and fundamental analysis, self-control, risk management, adaptation to the changing markets, broker selection, platform configuration, etc.
It can literally take years of learning before one becomes successful at trading.
One shortcut to this is to use trading signals from professional traders.
Binary Options Signals are simply BUY and SELL trade alerts for the currency, commodity, or stock markets, optimized for binary options trading.
Are they helpful? Yes, especially to less experienced traders.
Successful binary options traders have the necessary technical skills, market knowledge and specific character traits that help them succeed in the markets. Trading is not for everyone, but thanks to the Internet and new technologies anyone can now have access to winning binary signals issued by professional traders.
Top signals providers and their reviews
Professional binary options traders use complex technical chart analysis and/or fundamental analysis based on statistics, current news, and economic releases to generate winning buy and sell signals. There are some professional traders who offer live trading sessions. These are designed to help non-professionals improve their trading skills in addition to receiving signals.
1. Binary Options Trading Signals – Live sessions
These are live signals with video/audio feed and a supporting chat window. These trading sessions are run by Franco, an expert trader who has been trading options since the start of the industry. He has optimized his trading system to achieve on average of 85% wins. Franco’s binary signals are especially recommended for novice and intermediate traders who want to improve in trading binary options and Forex alongside a professional trader. It is a good solution for those who want to learn to use a charting software and trade binary options and Forex independently at some stage. Learning from a professional and seeing his screen in real time will also give you a glimpse of what it’s like to trade at a pro level. Franco’s excellent signals coupled with his valuable live commentary make this system one of the best, and the fact that it has been around for so long is a proof that it is a well tested and trusted source. Over 5000 members can’t be wrong. In addition to the winning signals, Franco also shares his knowledge about trading the markets. His signals are now also featured on 15-minute charts and can be used successfully on Forex. This service comes highly recommended.
2. Auto Binary Signals Software – Online Signals
The Auto Binary Signals are based on an online platform / software designed by Roger Pierce, a broker millionaire. What makes this service unique is that is not based on a subscription but a single software license of only $97, which makes his system very cost-effective. It is also very easy to start using the signals. Users simply purchase access to a password protected website where the software is installed and follow the color-coded alerts displayed on the screen. The web application is fed live analytical data directly from a trading system run on professional trading platforms. The ABS trading system is very simple and intuitive and can be accessed 24/7 via any device with a connection to the Internet. The way the system works is that signals are being generated by a complex software that constantly monitors various assets in real time. When certain conditions are met the signals are generated and instantly sent to the website in a form of a percentage, i.e. 75%, 85%, 90% which is also color-coded. The logic behind is that the higher the number the more accurate the signal. In addition to being one of the cheapest providers, Auto Binary Signals Software company offers an unconditional 60 Day Money Back Guarantee on its web-based platform.
3. Binary Options Pro Signals – Email and Mobile Signals
This signal service is quite different than the first or second one because the trade alerts are sent to a mobile or email with complete instructions on what asset to trade, how, and when. This system is perfect if you intend to trade binary options but don’t really have the time to learn about the markets, set up charts and watch the price action like a hawk looking for the next trading opportunity. Here the opportunity is sent to your mobile or email as soon as it is recognized by professional traders reading the charts for you. After receiving the Pro signal you can place a trade with any binary options broker. If you’re using your phone to receive the signals it makes sense to use a broker that will also allow you to place trades on your mobile. There is no learning curve and it’s very easy to follow the provided signals. Binary Pro signals can be accessed and traded anywhere in the world using only your mobile phone. This is a perfect service for people on the move. The Pro signals are usually for 30 min to 4-hour trades, allowing enough time for you to place a trade. The company is owned by a retired hedge fund trader with trading experience which spans more than 20 years.
Compare Binary Options Signals
The above-mentioned signal providers have performed quite well during testing but they may not be suitable and work for everyone. There may be many reasons to consider, i.e. times of trading activity, limited Internet connection, signal delivery, etc. Fortunately, there are more signal services out there that might tailor to your needs and availability. To find the right professional signal service please refer to our binary options signals comparison chart. This page also contains our free ‘How to Guide’ for more information on binary options signals and what to look out for before signing up. Signals based on custom indicators can be a very powerful tool for any trader, beginner or advanced.
How to start trading binary options
One of the reasons why binary options became so immensely popular worldwide is mainly due to the fact that they are so easy to understand and to trade.
Today, practically anyone with $100 can trade binary options and bet on the markets, a concept completely foreign just 10 years ago. Then, to trade the markets you needed to have considerably more money, you needed thousands.
With new technologies came new opportunities and these advancements changed the industry forever. Refer to our article on History of binary options to learn more about how it all began.
In a binary option contract, you only have two options. (Hence the word binary.) Regardless of the complexity of the trade, you will only have two possible outcomes.
Binary brokers have gone to extreme lengths to simplify this process by adopting intuitive well-designed trading platforms with clear illustrations and buttons of UP/DOWN or CALL/PUT options.
To start trading binary options you must be of legal age and have access to an active Internet connection. In most cases, 3G connection is good enough.
STEP 1. Register an account with a binary broker
As your first step, you will need to select a binary options broker with whom you want to trade. Selecting the right broker is crucial at the start so we strongly recommend using a regulated broker that has been in operation at least a few years. Unfortunately, there aren’t any regulated binary brokers for US citizens and many brokers will also refuse service to Turkey, Russia, and other countries. Here are a few brokers that are quite reliable and have been in operation for a good number of years.
With most brokers, registration is very straightforward and takes about a minute to have immediate access to the broker’s trading platform. This will give you an opportunity to test the trading platform and if you requested a demo account during registration you will be able to place trades on a demo.
To start trading for real money you will need to make your first deposit. The minimum first deposit amount varies from broker to broker, it may be as low as $10, but with regulated brokers, it is about $200. As soon as you make your first deposit your account will be fully activated and you will be able to start trading on your live account.
STEP 2. Choose an asset to trade
Now that you have a running account with a broker and you deposited money into your account it’s time to choose the asset to trade.
One of the best things about binary options is that using a single platform you can trade many different assets. You can trade the following:
- currency pairs (Forex) such as EUR/USD, GBP/USD, USD/JPY, USD/CHF, USD/CAD, NZD/USD, among many others,
- commodities such Oil, Gold, Silver, Copper, Platinum, Coffee, Corn, Sugar, etc.,
- stocks including Amazon, Facebook, Barclays, BMW, Apple, BP, Lufthansa, Heineken, etc.,
- indices such as FTSE100, DAX20, S&P500, IBEX35, DUBAI, etc..
Most traders usually focus on assets they know something about. Since binary options platforms give you access to so many assets you should not have any major difficulties trading something that is of interest you.
STEP 3. Predict asset’s price movement in a specific time period
All binary options have entry and expiry times. What matters is the relation of the price between those times. Your task is simply to predict whether the price of your chosen asset is up or down at the expiry time in relation to your entry time.
So if you trade Gold at 12:45 pm where the price of Gold at the time of entry is 1277.25 and you trade Call option (UP, or HIGH depending on your broker) until 13:45 (expiry time), you’re betting on Gold becoming more expensive at 13:45. If at that time Gold is up at 1277.30 you will automatically win your binary trade as the price of your traded asset is higher at expiry than the price at your entry.
Of course predicting price movements of assets is part of trading and in order to be successful one should really look into technical and fundamental analysis. Refer to our trading articles and free strategies for more information. Alternatively, use professional signals and trade alerts.
Note that if you approach binary options like a gambler, placing trades on a ‘gut feeling‘ without any proper trading tools and/or market knowledge, or professional signals, you will most likely lose your investment.
STEP 4. Decide how much you want to invest
What may seem like a very simple thing to do is actually one of the most misleading and misunderstood concepts in binary options trading. First of all, you should never invest more than you can afford to lose.
Good money management is extremely important in trading. As a binary trader, you should never place more than 5% of your investment capital on any single trade. The main reason is to protect the rest of your capital in case the trade goes bad.
If you deposit $500 in your trading account and you place $400 on an asset in a single trade, in case of loss you will have practically drained your account. Instead, you should place trades for $20 each. This will not only protect your overall investment capital but it will also control your urges to gamble, which may be disastrous in the long run.
How to avoid being scammed
Binary options is a huge business and with so much interest and so much misinformation, it’s really easy to fall prey to sophisticated online scams. Have you been scammed by your broker?
There are literally thousands of people who had a bad trading experience, either with their binary broker or a signaling or copying service. So how can you avoid being scammed in binary options? Here are a few suggestions:
1. Check the history of the service you’re about use
Never sign up with a broker or signaling service if they have been in operation only a few weeks or months. It’s simply too short of a time to tell if the service is legit. It takes much longer to gain a good reputation and you should always look for services that already received good user feedback in review websites and forums.
One way to check a history of a service is to look at the age and location of the hosting web domain. This can be done with a number of tools online. Many binary brokers and signal providers will have a phone number you can call. We recommend getting in touch with our potential supplier and ask a few questions before committing yourself to a particular service.
2. Trade only with a regulated broker
As mentioned earlier in the how to trade section trading binary options with a regulated broker is a sure way of staying on the safe side. Regulation is imposed by a government body which oversees the entire operation.
In binary options you trade against the broker. You do not invest any money into the actual market. When you trade, you place a bet on a direction of the market but your bet and money stay with your broker.
With an unregulated broker, without any overseeing outside authority, no one can really be sure if the results are not being fixed by tweaking their trading platform in their favor or by other means, such as delayed withdrawals.
In theory, a regulated broker will not risk losing their trading license and reputation as a certified broker by scamming clients. They would also be fined and could go out of business eventually. It would simply be counterproductive to their business model.
3. Test trading signals on a demo account first
Regardless of the promises you are given on websites that claim you will earn a lot of money by following their trading system, be careful and test drive all signals on a demo trading account first. In case the signals are bad, at least you won’t be losing any real money. If the trading signals are good you’ll have more confidence using them on your live account.
Too many beginner traders jump into a live trading environment too quickly only to get burn right at the start. Trading requires careful planning and execution. If you are hot-headed and feel feverish each time you are placing a trade, experiencing a rush, you’re probably not cut out to trade binary options. Your emotions will most likely cloud your judgment.
Trading first on a demo account will teach you to trade the received signals in a timely fashion and with the appropriate skill to succeed. If you haven’t traded binary options in the past try placing at least 100 trades before you proceed to a live account.
Truth about binary options and binary brokers
In binary options the odds are against the trader. In a common scenario of 80% payout to a 100% loss, you will need to win 55.6% of the time to break even. Clearly, the odds are in favor of the binary broker who makes money from losing trades.
The truth is that binary brokers prefer non-traders and beginner traders. Read more on how binary brokers get you.
Brokers are not so keen on professional binary options traders who can achieve over 70%, 75%, 80%, or even as high as 85% of wins. Sure, their trading results are great for marketing and the pull factor to other potential customers but brokers lose money on them. Also, these highly skilled traders often help others to win at binary options which may amount to even bigger losses for the broker.
Compare binary options brokers
Choosing the right binary broker is essential to your success. If you decide to use a signal service you will also need to have an account with a reliable and preferably fully regulated broker. We recommend testing all signals on a demo account first and if you’re just starting out you should choose a broker that offers a demo account and start to trade there before moving on to a live account. Many brokers will offer demo accounts for free but there are some who require an initial deposit to be made first. Fortunately, there are many good binary brokers to choose from depending on your location and personal preference. Most brokers will explain and provide online support for new traders, but not all brokers will accept clients from the USA. Please view our binary broker comparison table and read our ‘How to Guide’ for more information on various brokers and their features.
Free trading strategies for binary options
If you’re looking for information on how to trade binary options using technical or fundamental analysis than visit our Free Strategies section. These binary options trading strategies, written by active traders, will help you become a better trader. Strategies are designed for beginners as well intermediate traders. Feel free to participate and leave your comments.
- Trading Binary Options To Trump's Twitter Feed
- How to Trade Binary Options Using Pin Bars
- Heiken Ashi Binary Options Strategy
Binary Options Education
Educating yourself can be the most effective tool for your success in binary options. If you’re venturing into this type of activity you should learn as much as possible about trading and the binary options industry as a whole. We try to bring some of this knowledge to light with lessons and educational articles. Please visit our Binary options education section to learn more about the industry and what it takes to become a successful binary options trader.
Updated Financial News and Analysis
Access updated financial news with professional technical and fundamental analysis on Forex pairs, cryptocurrency, commodities and futures, indices, etc. The news items are syndicated from the most trusted sources in finance today. News also include traders’ opinions and trading ideas. So sit comfortably in your chair with a cup of coffee or other beverage and enjoy our free market analysis.
Free Binary Options MT4 Indicator with Signals
For those of you who trade binary options using Meta Trader free trading platform, we have a custom MT4 indicator for binary options! This indicator, once placed on the charts, will show you buy and sell arrows of price extremes. The indicator will also generate popup alerts on each trading signal and can also be configured to send email trading alerts straight to your mailbox. Read more and download the free MT4 binary options indicator here.
References and recommended reading
- Binary option (Wikipedia, 2016)
- Forex analysis and money management – PDF (K Maciejczyk, X Hu, adv. H. Hakim – Worcester Polytechnic Institute, 2012)
- Managing options risk for exotic options – PDF (S Allen, K Abbott – New York University, 2001)
- Binary options and fraud – PDF (The Office of Investor Education and Advocacy – SEC Investor Alert, Pub. No. 148 (6/13)
- Correlation products and risk management issues – PDF (JM Mahoney – FRBNY Economic Policy Review, 1995)
- Exotic option valuation – PDF (D Wuertz – The Comprehensive Archive Network UCLA, 2015)