Binary option signal services an essential tool for any trader, beginner to advanced. Trading software and signal alerts can help you identify profitable trading opportunities in the market without having to to be an expert or doing hours of market analysis.
Most binary options signals providers have a team of analysts that are constantly evaluating the financial markets looking for opportunities to make a profit. Once a trading opportunity is spotted, a signal service will send out an alert notification to you via email or SMS so you can execute a trade with a high probability of winning.
By taking advantage of binary trading signals, you can greatly increase your chances of trading binary options successfully and reduce your chances. Here are the best binary options signals services for 2020:
Table of Contents
- 1 The Best Binary Option Signal Services of 2020
- 2 Types of Binary Signals
- 3 The Benefits of Using a Binary Signal Provider
- 4 How Do Signal Indicators Work?
- 5 What to Look for in a Binary Signal Service
- 6 Free Trials
The Best Binary Option Signal Services of 2020
|Binary Options Signals of 2020|
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Types of Binary Signals
Basic signals are easy-to-follow notifications communicated to traders directly and in real-time by SMS or email. Basic signals are the most simplistic form of signals and don't necessarily provide the in-depth explanations or charts that other signal types may provide.
Basic signals will advise traders on the direction of trades and suggest whether a trader should “put” or “call” on a trade. Because they’re not as complex as some other signal types, basic signals enable traders to make quick decisions that can often return highly profitable results.
Free signals provide all the same information as a basic signal. The difference? They're free. These services offer useful trading information that makes it easier for you to find profitable deals.
Take any free offer with a grain of salt, though. While the upfront services may be free, signal providers have to compensate for their losses elsewhere. That often means having traders sign up for specific brokers.
These brokers might not have your interests at heart. Perhaps they have high minimum deposit amounts or a limited selection of binary options. While there are reputable free signal providers, you may incur added financial risk if you use one.
Automated Trading Robots
How would you like to make money trading without lifting a finger? Now you can--with automated trading robots. Signal providers offer software programs that make transactions whenever they find financially favorable options.
While hands-free trading may appeal to many traders, putting your funds in robotic hands has its potential downsides. There's no guarantee that the trades will be profitable. Your automated trading robots may ultimately lose you more money than you make.
If you use trading robots, check your account daily. Check that more of your trades are successful than not. Keep an eye out for suspicious activity in case of a security breach, too.
Note that automated trading robots are not the same as automated signals. Robots do all the trading for you. Signals do not. If you sign up for binary options signals, a software system will send notifications directly to your phone or email address.
Not ready to start trading? Sign up for signal education. Service providers send you notifications aimed at increasing your knowledge of binary options signals.
Signal education is ideal for traders who recently started trading or opened a demo account. They give traders tips, advice, and strategies to understand the industry better. While these options signals don't make traders immediately profitable, they can help you turn a profit down the road.
The Benefits of Using a Binary Signal Provider
Even the best traders have doubts. A binary options signal provides clear and straightforward information so that you can make trades with confidence. Automated options signals are especially appealing if you want to take a hands-off approach to investing.
Trading becomes significantly easier if you opt for manual trades. Knowledgeable and experienced professionals create signal services using their industry experience. They understand the ebb and flow of financial markets in a way that would be time-consuming and challenging for average traders.
Trading signals distill a financial professional's expertise into easy-to-understand nuggets. They can improve trading accuracy for seasoned traders and beginners alike. You can even customize trading signals to your desired preferences and needs, so you only get alerts about relevant trades.
How Do Signal Indicators Work?
Most signal services send notifications via text, push notification, and email. The instant communication contains info about whether it's a call or push option, the market rate, and maturation period. Some signal providers include the expected return so that you can estimate profit.
If you complete a call option, it means that you expect the underlying asset to rise by a specific time. The opposite is true of push options. Note that using a binary options signal from one provider may not work for another.
If you decide to use the information, do it fast. Options signals are time-sensitive. Getting the best result means making a snap judgment and processing your trade seconds later.
What to Look for in a Binary Signal Service
Win-Rate on Trades
Binary options only have two outcomes--either you make money or you lose money. If you're going to pay a binary options signal provider, make sure they're right more often than not.
A win-rate is arguably the single most important piece of information about a signal provider. Auto-trading platforms, like BinBotPro, tout success rates over 90%.
Beware of young services with high win-rates. Success with a few trades is not the same as success with many trades. Sign up for a trial period or demo account to ensure that your binary option signal providers deliver reliable intel.
Signing up for binary options signal providers or their software is only half the battle. You need for that information to translate into real-world trades. That means that the binary options signals should be compatible with most, if not all, brokers.
Wide-scale compatibility ensures that you do not have to change brokers for your signals to work. It also lets you trade with peace of mind, knowing you're working with trusted brokers and reliable signal providers.
Every binary option signal is time-sensitive. You might have a minute, five minutes, or an hour to complete the trade. If a signal provider sends you an urgent notification, you need to read it immediately.
The optimal delivery method depends on your preferences. If you're on your phone all-day, SMS and push notifications let you see the options signal immediately. If you have a laissez-faire relationship with technology, you're probably better off getting emails.
Signals Per Day
There's a difference between a lot of information and high-quality information. If a signal provider or software sends trades 100 notifications per day, it will be challenging to determine which transactions are worthwhile. However, if traders get five-to-ten signals each day, it's much easier to parse the signals.
There's no "best" number of binary options signals per day. It's a matter of how frequently you trade and your risk tolerance. What's important is that the binary signals fit your daily routine without feeling cumbersome.
Most companies charge a fee between $95 and $250 a month. While the price matters, it's more important that you receive consistent and reliable information. These providers often charge a recurring monthly fee and have above-average success win-rates.
Let's consider the subscription cost with an example. Let's say one software system sends 160 binary options signals per month and has a success rate of 75%. You invest $100 with every trade, and the provider has an 85% return on options.
Each month, you can expect 120 of your trades (or 75% of them) to mature in the money. The profit is 120 times 85%, which translates to $10,200. The remaining 40 transactions mature outside the money, and so you lose $4,000.
The difference between these two outcomes leaves you with a $6,200 monthly profit. Even if the signal software charges you an exorbitant fee, you'll likely turn a profit. Remember that this example is hypothetical, and results vary between signal providers.
The best traders will turn a profit with binary options, regardless of when they start. Even if you know what you're doing, you're better off easing into the field. Sign up for several free trials to see which companies provide the highest-quality binary signals.
The trial also gives you a chance to gauge some of the other considerations on this list. How offer do you receive signals? Can you receive alerts in multiple different ways? Is the platform compatible with your brokerage service?
Get started with a signal provider today. The signal service can make you a better trader and increase your year-over-year profitability. Check out our comparison table to find the best binary options signal providers for your needs and budget.
Robert Wolfe is the founder and chief editor of Impact Investing Collaborative. Robert is an expert trader with over 10 years of experience trading binary options, Forex, and CFDs. He prides himself in providing accurate and in-depth reviews in order to help others find a trading platform that fits their needs. When Robert isn’t actively trading or managing Impact Investing Collaborative, he enjoys spending time with his 3 kids, playing golf, and spending time outdoors.