Binary option signals are a warning or a message that gives information about a specific trade. The details will depend on the type of signal and the service provided. These services to deliver binary signals are often a cost, either as a one-time purchase of a system, or as an ongoing subscription for regular signals over the long term.
At binaryoptions.co.uk we want to advocate education about signals. Deferring investment decisions to a third party removes the ‘safety’ of risk management and control. However, we are aware that some traders will want to use them regardless. So we’ve highlighted some of the better providers.
We also found a service specifically based on Forex Signals that has delivered long-term performance.
Types of Binary Signal
There are a wide variety of binary signal services on offer, and it’s worth understanding when considering them.
- First, there are free signaling services. Although these services offer a very cheap option, the provider will have to pay into their costs from somewhere. How this is done may not be immediately obvious, but some will require users to sign up with a specific broker. These brokers are usually not the best choice for the trader – this method of signing up users involves a significant financial risk for the trader. Free signals are often offered along with ‘rick quick’ marketing which is very misleading.
- The next level of signals is the paid variety, where the information comes from a single source. It can be an individual advisor or a single system.
- There are then signals that are collected from various sources. This is usually only advised once a certain number of these sources highlight the same trade, or where a human trader confirms a trade signal highlighted by an automated algorithm.
How to find the best signals service for binary options
To compare binary providers signals providers, it must first be established what is being offered. So a good service can provide figures for entry, exit and stop loss. Either exact numbers or guidelines. There must also be supporting information. This can be in the form of technical analysis, charts or other data. A service may also provide some track record. This can demonstrate the effectiveness of the strategy. The way a service is sold is also important – avoid any scheme that promises instant wealth.
The following should be considered to identify the best service for binary signals;
- Success Rate . How often is this signal service correct, expressed as a percentage. Or in other words: how many trades win?
- Number of signals and frequency . These criteria are closely related to cost. How many warnings are given, relative to the fee paid?
- Supporting Evidence . How much detail is provided with each signal. It can also help filter out the trades the user is uncomfortable with. If no details are provided, it is difficult to judge each signal.
- Price . The obvious, how much does the service cost. The range of fees varies widely, from free to very expensive. However, the cost must always be compared with the other factors. Some services will be expensive for good reason.
- Free Trial . A service that offers a free trial obviously believes the information they give. If a provider doesn’t offer a free trial, it could be because the results don’t back up the promises.
- Additional Services . Some providers will offer services beyond the signals themselves – for example education or broker integration.
- No forced login . If a signal provider forces traders to open accounts with a specific broker, this is a clear problem. Stay away.
There are a number of different signals that can be offered; this may include;
- Forex signals
- One touch binary options signals
- End of day signals
This variety can make generalizing about a service difficult. If a trader wants to concentrate on a particular type of trading – such as ‘end of day trading’, a provider that specializes in the form of signal would be best. So a trader should evaluate their own requirements in addition to comparing signal services.
Providers of binary option signals
There are a large variety of binary signals providers. Some specialize only in providing signals, while others offer it along with other related services. For example, some brokers will offer alert services or signals. With some providers it is possible to try a trial service. This can be a good way to see exactly how the service works, and what is delivered.
Top 3 UK Brokers
The best service for binary options signals?
We have identified some of the best signal services we have come across and provide a summary of their services below. We have been approached by many providers and have researched testimonials and comments from existing clients, and these are the services we recommend for traders looking to invest in professional signal providers;
Binary Signal Reviews;
- Signals offered via the Signal Hive service
- 7 day free trial
- Additional services offered include Education and the Binary Dashboard, a custom tool for traders including the ‘tripwire’ price alert feature.
- Combination of algorithms and experienced human traders.
- Transparent service – View the latest performance graphics online
- Access to the merchant community
Blue Sky Binary is currently the best option for traders looking for some form of help in their trading. A free introductory consultation is available, where both parties can determine what they need. The range of services on offer means that most requirements can be met, whether via education, signal alerts via the hive service, or an automated trading system AutoTrader – it is sold with realistic price alerts regarding the possible swing in execution – yet ‘ a tick for the transparency of the operation.
Forex signals
Forex is a rich hunting ground for signals and warning services. With no central market and multiple driving factors, volatility is high. Forex pairs are traded 24 hours a day, for five and a half days a week. The trade in currencies that are traded is huge. All these factors mean the opportunities are huge, and signal services regularly offer trading suggestions.
As a more established trading vehicle, forex signal providers are more established than binary platforms. Many of the best services have been running for ten years. Potential customers can therefore check a large amount of past performance to see how good a service is.
The service providers also rely more on their systems, given their long-term performance. For merchants, this means free trials, or discounted memberships for new customers. The signal services know that traders will only be impressed by results – so they encourage traders to give them a risk-free chance.
Best provider of forex signals?
We have seen many forex signal services and related advertisements. For us, results are the most important. To that end, we suggest that Signal Hive delivers the best forex signals, and this is why:
Check out these monthly performance figures – since 2004:
This service, called Master T-2000 v2, produces about 14 annual profits. Signal Hive is a marketplace for different systems, but these are the most consistent. 14 years of performance cannot be ignored.
Most importantly, you don’t have to take our word for it. The system is available on the free trial run by the firm. So you can receive these signals absolutely free without any risk.
The software can be automated with some of the leading brokers. With MetaTrader 4 integration and real-time indicators, the software is as good as anything we’ve seen. After the free trial, the full pro service costs $50 per month. However, if you are not satisfied after the trial period, simply walk away.
Drill the information about the signal
Other than the head numbers, the system is very consistent. Data can be analyzed by the hour, or by the day of the week, and in the long term, every profitable period. So the software and algorithm simply select fixed trades.
However, Signal Hive offers a range of signals – as the name suggests. In addition to the Master T-2000 v2, there is a system call MELISA (Multi-Entry Logic Investment And Savings Algorithm). This algorithm does well in times of turbulence in more traditional markets. Again, it has shown a profit every year for the past 14 years. If investors are currently looking for safer havens, this system may offer an element of diversity.
All these systems and more are available at Signal Hive, and without a free strings, free trial on offer, you can’t try it.
Do binary signals work?
Binary options trading can be one of the most profitable ventures you will ever come across on the web. With so many assets to work with and markets open virtually 24/7, there’s always an opportunity to make it big and find an investment niche you’re comfortable with – and can profit from.
On the other hand, the characteristics of binary options that make them attractive to investors also create challenges that must be systematically addressed to minimize investment risk. The following questions need to be answered specifically if you are looking at the odds of success with binary options trading:
Which assets do you choose to work with?Would you limit your exposure by only trading assets you are familiar with and completely ignore assets you have no previous experience with? What does the strategy ultimately mean for your investment flexibility and diversification strategy?
How do you identify assets to trade on any given day? Is it effective to read the latest news on a wide variety of markets, from stocks and foreign exchange to commodities, in order to create a personal list of assets to trade? develop?
This is where binary options signals become a very powerful tool for smart investors who want to increase their probability of success with binary options trading. Simply put: you don’t want to leave an investment decision to chance. Every decision you make should be backed by sound data and analysis. It subtly transforms options from gambling to investing.
Technical signals defined
In the world of investing, signals are clues or warnings that serve to guide you on how to invest for any given period. Given the enormous range of different investment instruments and the wide variety of assets in each specific instrument class, it is practically impossible to keep abreast of all the assets involved. You can easily spend hours if not days trying to jump from stocks to options to commodities and foreign exchange and still not find a coherent strategy that will allow you to make informed decisions about your next investment.
Signals were developed to meet this distinct need. If you are a serial option investor, signals are very useful because:
- It gives you targeted and actionable information you can rely on when making investment decisions.
- This takes the guesswork out of your options trading and gives you a solid foundation on which to develop a coherent investment strategy.
- It is developed by experienced organizations using tools developed from years of application in the money market.
- It is fresh and sent out in real time.
- They are constantly evolving with the changing markets; because signals are developed by organizations that spend their time analyzing the markets.
- You have a long list of past transactions that you can use to select the best and most efficient signal providers.
Why signals are essential in options trading
The nature of binary options trading makes signals an extremely useful tool for options investors, and much more so compared to other investment vehicles.
For example, despite the perceived volatility and dynamism of stocks, there are not many situations that cause a stock to jump significantly on any particular day. It almost always takes a unique set of circumstances to have a significant impact on a stock’s position, so yesterday’s or today’s investment in a particular stock asset often does not result in large gains or losses. This is also the reason why stock investors can afford to play the stocks in the longer term, because the daily volatility is almost always turned negative by the prospect of long-term growth.
One cannot say the same for options trading.
To make significant profits with binary options, one must almost always play the short-term game. This means hourly or end-of-day trades. Given the shorter investment time involved in each transaction, it is important to find a way to understand the sources of volatility.
This is where signals become really handy pointers to help you make the right decisions. You need expert advice on the current position of an asset and how it is expected to perform in the short term. This requires a lot of data and analysis that experts can provide quickly and easily.
What is technical trading?
Technical trading methodology has been described as the key to successful online trading in stock market and is widely used by many experienced traders. However, the process can be a bit daunting for beginners; After all, how can you interpret charts and other indicators as a guide to placing your investments?
Think about how all news and emerging information about the operation of a company is reflected in the price of the company’s stock. This happens quite quickly as far as the stock market is concerned, especially due to the number of investors who virtually access this information as it is published online.
Of course, those who actually work for the company are the first to notice sensitive information regarding performance indicators that may affect the company’s stock. FCA regulations put a cap on what insiders can say and do with the information they come up with, but rumors still abound.
As these rumors spread, more and more people will buy or sell their stocks to take advantage of the upcoming trend.
Technical Trading
As a direct result of this activity, the stock chart begins to change, indicating that something significant is happening. Experienced traders learn to spot these indicators or signals, and pay attention to check if a profitable opportunity is about to present itself. Large fund managers with significant financial means are usually among the first to act, and due to the scale of the investment involved, their trading always affects the charts.
The retail investors also jump on the bandwagon that accounts for more than 80% of the total volume of the stock market on a daily basis, trading quickly and testing the support and resistance levels in the hope that something might deliver. They look at the charts in key areas before deciding whether to buy, sell or hold stock.
It is these continuously active players that give the online trading machine its momentum. This constantly causes price movement and the resulting impact on price and volume creates the most important patterns on the charts. These are important hints about where a particular stock is headed and, in some cases, what direction the entire stock market is ultimately headed.
Online trading
Whether you are trading online in the short or long term investment fields, you should consider charting as an important tool in your decision making process. Use the charts to determine pivots, follow the intelligent money and incorporate it into your trading strategy.
Technical trading does take time and effort to master, but it is a skill that will ultimately help take your online trading to the next level.
The service aggregates information feeds, news, live prices and trade updates (sample screen below of just one of the information screens). It contains as much or as little of this information as the trader needs. There is also a free trial period of 14 days.
