Binary options signals are provided by a number of companies and organisations who claim to offer winning purchase tips to those wanting to trade binary options profitably. Some of these binary options signals services will charge a fee to receive this information whilst others will provide these for free, perhaps with only a simple registration of your email address or other details in order to access this information. Trading signals generally are treated with some suspicion, but what are the benefits of using these services and do they really lead to profitable (and easy) trading?
Paid binary options signals services
Clearly, for those binary options signals services which charge a fee for their information, any trader who subscribe to this is going to anticipate receiving good trading advice and at least some of which will lead to profitable investment opportunities. For this reason, and against many people’s better judgment, paying for a signals service does have its merits. The first of these is that the company or person can only continue providing binary options signals if they have a least a reasonable degree of success. Things to watch out for when deciding whether a signals provider exists in the short or long term is whether they provide a comprehensive money-back guarantee if their tips fail to generate the success that they advertise or simply if a trader feels that they are not suited to this form of analysis.
Evidence of performance and guarantees are required
An additional factor, when deciding on whether a binary options signals provider may be genuinely successful, is to require that they provide some analysis, or rationale, to their options tips. Many reputable services will provide an analytic assessment of why they consider a particular price to be a signal and those signals services provided each morning should offer a comprehensive assessment of why you should buy or sell options based on the fundamental or technical indicators.
Binary options signals services to avoid
Unfortunately, there are always going to be people trying to make short-term money and not providing the quality of service that traders require. These signals providers will often provide average or poor trading results, with limited rationale and even less profitable outcomes especially to those new to trading. Whilst scams like this exist among the reputable binary options trading signals services, they are fairly easy to spot. Signals providers offering unrealistic profits to their subscribers are to be avoided as are those who do not offer any money-back guarantees or who refuse to publish their previous results or host a comments board/forum on their websites. Ironically, those binary options signals providers who offer a ‘free’ service are also to be avoided as they exist solely to obtain your data. Watch how your inbox fills with spam and trading offers as your information is sold to companies and affiliate websites in order to provide you with complimentary trading goods.
The long-term problem with binary options signals services
If binary options signals generated profits as easily as they suggest everyone would be doing this. They rely largely on the huge turnover of new traders and short-term punters and very rarely have subscribers beyond a few months. Despite this, it is not the quality of the signals which is necessarily the problems for binary options traders but more the lack of independence that these signal services provide. Binary options traders, in order to build their experience, sills and accounts, need to trade independently and execute their own analysis in the markets. Even if a hugely reliable and profitable binary options signals provider does exist what will its followers do once it eventually disappears or shuts down operations?