Accurate signals for binary options (option to open an option) is an auxiliary tool that is offered by a large half of brokers. On the one hand, he should help the trader to make a decision and secure it for manual trading. On the other hand, this is a quick way to lose a deposit. If someone came across profitable signals, share your experience in the comments. We focus on why signals are a trap. And we hope this material will be especially useful for beginners.
Why you should not use signals in binary options
- broker. A binary options broker does not earn on margin, as in Forex. His profit is the losses of traders. Because the broker is not interested in the fact that the trader earned on options even more. Most likely, options broker signals will not be profitable;
- trader. Social trading platforms (ZuluTrade, etc.) offer to connect to successful traders and copy their positions. First, due to different brokers, platforms, suppliers of quotations, there may be slippage and time delay. Meaning in the signals is lost. Secondly, part of the managers are brokers’ bots whose goal is to attract a trader to themselves;
- service. It is an independent research company with successful traders providing signals on a fee basis. Most services do not have addresses and do not provide real trading results. They are not there, and the purpose of the service is to get a monthly fee.
If the signals were as profitable as the brokers promise, traders would not need knowledge of technical and fundamental analysis. And if you still decided to use the signals, then we will give you some tips on how to minimize the risks:
- Do not contact suppliers of signals that work with the monthly fee. The interested supplier takes as a commission a percentage of the profit received by the trader according to his profit signals;
- Do not believe the promises of signal efficiency 80-90%. It’s good if accurate signals for binary options show 65-70% effectiveness, for a trader this is already a profit;
- choosing a supplier on the social trading platform, carefully study the trading history. Requirements: lack of averaging strategies and Martingale, existence of an account for more than a year with constant opening of positions;
- work on signals on a timeframe of an hour or more, check the accuracy of the signal with technical indicators;
- ask the supplier what the decision was made to open the transaction.
Summary. Accurate signals for binary options – most often an advertising campaign for novice traders. Neither the signals of the broker, nor the manager can not give the promised 85-90% performance. A broker is an intermediary between a trader and the over-the-counter market, his task is to ensure the exercise of options and he is not interested in profitable signals. Therefore, do not believe that someone wants to help you voluntarily. Create your own strategies and earn on your own! And stay with the FxCash blog – a blog of useful information!