With the advent of the retail binary options market has come the evolution of a spin-off business opportunity for those who know how to day-trade the market and those who want to trade the market but have no time to do all the dirty work. The opportunity comes in the form of binary options trading signals.
Binary options trading signals are trade alerts that are sent from a provider to a trader alerting him or her of the opportunity to make money from a binary options bet. These trading signals are usually sent via email, SMS or may be presented in a members’ area on the provider’s website. The forex market was the arena that witnessed the advent of trading signals and trade alert services, but this has now caught on with other markets. Day traders are usually the subscribers that make the most use of these trading alerts.
Given some of the problems seen with trade alert services in the forex market where charlatans invaded the arena and ripped off unsuspecting subscribers of their hard-earned money, it is important to make a just case for separating the best in the business from the quacks.
How to Choose a Good Binary Options Trading Signals Provider
- Only choose a binary options trading signals provider that offers a free trial or a very cheap trial period. This is the best way to evaluate the product and find out if it is all just make-belief or if things are as the providers say they are. There is no just cause to support a provider not being able to get those paying for the services to test it before use. This was one of the touchy areas in the forex arena as most users were so blinded by the allure of dollars pouring into their account that they never bothered to use this parameter for evaluations.
- Timing is very important when it comes to binary options. One cannot make use of a trading signal that comes in when the expected market move to be profited from has already occurred. This is usually the problem with trade alerts delivered by email. It is usually a case of the trader not being on his computer when the alert comes in, or a delay from the email provider’s end. The best solution would be to opt for an SMS delivery system or if possible, make use of push notifications for a smartphone. Given the fact that many brokers now have smartphone-enabled platforms, this seems to be the perfect solution to the problem.
- The best binary options signals are those that guarantee continuity in profitability. Market conditions are dynamic and whatever algorithm used by the signal provider must be able to adapt with the market and not get left behind it. This is one parameter that must be considered when making a choice.
- It is best to use providers that trade just their own alerts on a live account. Providers must be seen to actually make money from trading a signal they have given out on their own live account, and not just profit from what is charged subscribers for the service. This will instill confidence in the system and benefit both the provider and subscriber.
The essence of listing these points is for binary options traders to avoid some of the pitfalls seen with similar signal services in the forex market, and only use those ones which are worth their salt. The good things in life are not necessarily the most expensive, so cost should not be a determinant of the best providers in this business.
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