Binary option trading signals are alerts that will let you know of potential investment opportunities. The signals are typically generated using technical analysis rather than fundamental analysis. Algorithms are utilized to spot trading patterns and identify opportunities.

There are a lot of signal providers available online. You sign-up with a signal provider and select how to receive the signals, e.g. by email, by text message, on a live signal website, or integrated into your trading platform. Some signal providers also offer robots for automated trading. You can give a robot access to your trading account and give it permission to carry out automated trades for you, based on the signals and certain parameters set by you.

Scams and exaggerations

Regrettably, the signal provider field is rife with scammers, spammers and signal providers that greatly exaggerate their own capacity. For the binary trader, it can be difficult to separate the good apples from the bad ones. It is important to be cautious and do your own homework. The more you know, the easier it will be for you to pick a good and reputable signal provider. It is also a good idea to test the signal provider by using the signals to carry out trading in a demo account before you proceed to doing trades in your real-money account.

Completely deferring investment decisions to a third party always comes with certain risks. It doesn’t really matter if you are blindly following the advice of an investment guru, your local bank manager or a signal provider online. There are many situations where accepting trading help can be of great benefit, but one should always remain critical and look at the hard facts and the actual results instead of allowing oneself to be swept away by flowery promises of riches to come.

Free binary option trading signals

Free signal services will provide you with trading signals without charging you. Of course, the signal provider wants to make money somehow and it is a good idea to find out how they are making money before you sign up.

  • For some signal providers, offering free signals is simply a way of marketing themselves. Just like that frozen yoghurt place in your neighbourhood might offer you to sample a few of the new flavours for free, the signal provider will allow you to sign-up for a free signal service where you receive a small sample of their signals. They hope that you will like the service so much that you will go on to eventually sign up for a more comprehensive package that isn’t free. Just like the yoghurt vendor hopes that you will like his new mango-strawberry-kiwi combo so much that you’ll buy a full cup.
  • Some free signal services will require you to sign-up with a specific binary options trading platform. They are receiving a kick-back from the owners of the platform.
  • Some free signal services come bundled with an auto-trading feature, and you pay for the auto-trading service.
  • Some free signal providers are mostly interested in getting your attention (and email address) so they can market various get-rick-quick schemes to you.

Human confirmation

Some signal service providers doesn’t rely on algorithms only. They use algorithms to create the signals, but those signals must then be checked and approved by a human before they are sent out to clients. A human can look at signals coming in from several different sources and see if they support each other or if they are creating a conflicting image of the situation.