Binary option signals are an alert or message that provides information on a particular trade. The specifics will depend on the type of signal and the service being provided. Often these services to provide binary signals will incur a cost, either as a one off purchase of a system for example, or an on-going subscription for regular signals over the long term.
At binaryoptions.co.uk, we would advocate education over signals. Deferring investment decisions to a third party removes some of the ‘safety’ of risk management and control. We are aware however, that some traders will want to use them regardless. So we have highlighted some of the better providers.
We have also found a service, specific to Forex Signals, that has delivered long term performance.
(See the services we recommend below)
Types Of Binary Signal
There is a broad range of binary signal services on offer and it is worth understanding them if considering their use.
- Firstly there are free signal services. While these services provide a very cheap option, the provider will need to meet their costs from somewhere. How they do this may not be immediately obvious, but some will require users to sign up with a particular broker. These brokers are generally not the best choice for the trader – this method of user sign up puts the trader at considerable financial risk. Free signals are often offered alongside “get rick quick” marketing which is grossly misleading.
- The next level of signals will be the paid variety, where the information comes from a single source. That might be an individual advisor or a single system.
- There are then signals that are collated from multiple sources. These are normally only advised once a certain number of these sources highlight the same trade, or where a human trader confirms a trading signal highlighted by an automated algorithm.
How to find the best binary options signal service
To compare binary option signal providers, it first needs to be established what is being offered. So a good service might offer entry, exit and stop loss figures. Either exact figures or guidelines. There should also be some supporting information. This might be in the form of technical analysis, graphs or other data. A service might also provide some performance history. This could demonstrate the effectiveness of the strategy. The way a service is sold is also important – avoid any scheme promising instant riches.
So when looking to identify the best binary signal service, the following needs to be considered;
- Success rate. Normally expressed as a percentage, how often is this signal service correct. Or in other words, how many trades win?
- Number of signals, and frequency. This criteria links closely to cost. How many alerts are given, relative to any fee paid?
- Supporting evidence. How much detail is provided with each signal. This can also help to filter out any trades that the user might be uncomfortable with. If no detail is provided, each signal is difficult to judge.
- Price. The obvious one, how much does the service cost. The range of fees varies wildly, from free to very expensive. The costs however, always need to be compared relative to the other factors. Some services will be expensive for good reason.
- Free Trial. A service offering a free trial obviously has faith in the information they are giving out. If a provider does not offer a free trial, that might be because the results do not backup the promises.
- Additional Services. Some providers will offer services beyond the signals themselves – education or broker integration for example.
- No forced sign up. If a signal provider forces traders to open accounts with a particular brokers, that is a clear concern. Stay away.
There are a whole of different signals that might be offered, these might include;
- Forex signals
- One touch binary options signals
- End of day signals
This variety can make generalising about a service difficult. If a trader wanted to concentrate on a particular trade type – such as ‘end of day’ trades for example, then a provider specialising in that form of signal would be most appropriate. So a trader must assess their own requirements in addition to comparing signal services.
Binary Option Signals Providers
There are a huge range of binary signal providers. Some specialise in just providing signals, while others offer them alongside other related services. For example, some brokers will offer alert services or signals. With some providers, it is possible to try a trial service. This might be a good way to see exactly how the service operates, and what is provided.
Top 3 Brokers in the UK
The best binary options signals service?
We have identified some of the best signals services we have come across and give a summary of their services below. We have been approached by many providers and researched testimonies and comments of existing clients too and these are the services we would recommend to any traders wanting to invest in professional signal providers;
Binary signal Reviews;
- Signals offered via the Signal Hive service
- 7 day Free trial
- Additional services offered include Education and the Binary Dashboard, a bespoke tool for traders, including the ‘tripwire’ price alert feature.
- Combination of algorithms and experienced human traders.
- Transparent service – View the latest performance graphics online
- Access to the Trader Community
Blue Sky Binary currently represent the best option for traders looking for some form of assistance in their trading. A free introductory consultation is available, where both parties can establish what they require. The range of services offered mean that most requirements can be met, whether that is via education, signal alerts via the hive service, or automated trading system AutoTrader – this is sold with realistic price warnings regarding the potential swings in perform – another tick for the transparency of the operation.
Forex Signals
Forex represents rich hunting ground for signals and alert services. With no central market, and multiple driving factors, volatility is high. Forex pairs are traded 24 hours a day, for 5 and a half days of the week. Trading volumes of currency traded are huge. All these factors mean opportunities are large, and signal services provide regular trading suggestions.
As a more established trading vehicle, signal providers for forex are more established than binary platforms. Many of the best services have been going for well over a 10 years. Potential clients can therefore check a large amount of past performance to see how good a service is.
The service providers also have greater confidence in their systems, given their long term performance. For traders, this means free trials, or discounted membership for new customers. The signal services know that traders will only be impressed via results – so they encourage traders to give them a go risk free.
Best Forex Signal Provider?
We have seen a lot of forex signal services, and related ads. For us, results are the important thing. To that end, we suggest Signal Hive deliver the best forex signals, and here is why:
Take a look at these monthly performance figures – since 2004:
This service, named Master T-2000 v2, has delivered annual profit for nearly 14 years. Signal Hive is a market place for different systems, but this one is the most consistent. 14 years worth of performance cannot be ignored.
Crucially, you not have to take our word for it. The system is available on the free trial the firm operate. So you can receive these signals absolutely free, with no risk.
The software can be automated with some of the leading brokers. With MetaTrader 4 integration and real time indicators, the software is as good as anything we have seen. After the free trial, the full pro service costs $50 per month. If you are not satisfied after the trial period however, simply walk away.
Drill Into The Signal Details
Beyond the headline numbers, the system is ultra consistent. Data can be analysed per hour, or per day of the week and over the long term, every single period is profitable. So the software and algorithm simply select solid trades.
Signal Hive provide a range of signals though – as the name suggests. In addition to the Master T-2000 v2, there is a system call MELISA (Multi-Entry Logic Investment And Savings Algorithm). This algorithm performs well during times of turmoil in more traditional markets. Again, it has shown a profit each year for the last 14 years. With investors looking for safer havens at present, this system might provide an element of diversity.
All these systems and more are available at Signal Hive, and with a no strings, free trial on offer, there is no harm in giving them a try.
Do Binary Signals Work?
Trading binary options can be one of the most profitable ventures you’ll ever come across on the web. With so many assets to work with and markets that are virtually open 24/7, there’s always an opportunity for making it big and finding an investment niche that you’re comfortable with – and can profit from.
On the other hand, the very features of binary options that make them attractive to investors also create challenges that need to be systematically addressed to minimise investment risk. Specifically, the following questions need to be answered if you are looking to increase the likelihood of success with binary options trading:
Which assets do you choose to work with? Would you limit your exposure by only trading assets that you are familiar with and completely ignoring assets that you have no prior experience in? What does that strategy ultimately mean for your investment flexibility and diversification strategy?
How do you identify assets to trade on any given day? Is it efficient to try and read up on the latest news covering a wide array of markets from stocks and foreign exchange to commodities in order to develop a personal list of assets to trade?
This is where binary options signals become a very powerful tool for savvy investors who want to increase their likelihood of success with binary options trading. Simply put: you don’t want to leave any investment decision to chance. Every decision you make should be backed by sound data and analysis. This subtly transforms options trading from gambling, to investing.
Technical Signals Defined
In the world of investing, signals are leads or alerts that serve to guide you on how to invest for any given period. Given the immense scope of different investment instruments and the wide range of assets within each specific instrument class, it’s practically impossible to try and keep tabs of all the relevant assets. You can easily spend hours if not days trying to jump from stocks to options to commodities and foreign exchange and still not find a coherent strategy that will allow you to make informed decisions about your next investment.
Signals were developed to address this obvious need. If you are a series options investor, signals are tremendously useful because:
- They give you targeted and actionable information that you can lean on when making investment decisions.
- They remove the guesswork in your options transactions and give you a solid footing on which you can develop a coherent investment strategy.
- They are developed by experienced organisations who use tools developed from years of application in the money market.
- They are fresh and sent out in real-time.
- They constantly evolve with the changing markets; because signals are developed by organisations who dedicate their time to analysing the markets.
- You have a long list of prior transactions that you can use to pick out the best and most effective signal providers.
Why Signals are Necessary in Options Trading
The nature of binary options trading makes signals an extremely useful tool for options investors, and much more so compared to other investment vehicles.
For example, despite the perceived volatility and dynamism of stocks, there are not a lot of situations that makes a stock jump significantly on any particular day. It almost always takes a unique set of circumstances to significantly impact a stock’s position so much so that investing yesterday or today on a particular stock asset often does not lead to massive gains or losses. This is also the reason why stock investors can afford to play the stocks for the longer term, because the daily volatility is almost always negated by the prospect of long-term growth.
One cannot say the same for options trading.
To make significant profits with binary options, one almost always has to play the short-term game. This means hourly or end-of-day deals. Given the shorter investment times involved in each transaction, finding a way to understand the sources of volatility become really important.
This is where signals become really handy prompts for helping you make the right decisions. You need expert opinion on an asset’s current position and how it is expected to behave in the short-term. That requires a lot of data and analysis that experts can provide quickly and easily.
What is technical trading?
Technical trading methodology has been described as the key to successful online stock market trading and is widely used by many experience traders. The process can be a little daunting for beginners though; after all, how do you start interpreting charts and other indicators as a guide to placing your investments?
Think about how all news and emerging information about the workings of a company are reflected in the price of that company’s stock. This happens pretty quickly, as far as the stock market is concerned, particularly given the number of investors who are accessing this information virtually, as it is published online.
Of course those who actually work for the company are the first to become privy to sensitive information regarding performance indicators that may affect the company’s stock. FCA regulations do put something of a bridle on what insiders are allowed to say and do with the information they come by, but rumours still get out.
As these rumours spread, more and more people will either buy or sell their stock to take advantage of the forthcoming trend.
Technical trading
As a direct consequence of this activity the stock chart begins to change, signalling that something noteworthy is happening. Experienced traders learn to spot these indicators, or signals, and watch carefully to gauge whether or not a profit-making opportunity is about to present itself. Large fund managers with considerable financial means are usually among the first to take action, and because of the size of the investment involved, their trading always influences the charts.
Also jumping on the bandwagon are the retail investors who make up in excess of 80% of the total stock market trading volume every day, rapid-fire trading and testing support and resistance levels in the hope that something gives. They check the charts in pivotal areas before deciding whether to buy or sell or keep hold of their stock.
It is these continually active players who give the online trading machine its momentum. They continually cause price movement and the resultant impact on price and volume creates the all-important patterns on the charts. These are important pointers as to where a particular stock is heading and in some instances which direction the whole stock market is ultimately taking.
Online trading
So whether you are online trading in the short or long term investment fields, you should take note of charting as an important tool in your decision making process. Use the charts to locate pivotal levels, follow the intelligent money and incorporate this into your trading strategy.
Technical trading does take time and effort to master, but it is a skill that will ultimately help take your online trading to the next level.
For traders looking to trade with information on par with professionals, there is a service which offers the complete market information platform – Money.net
The service collates information streams, news, live prices and commodity updates (Sample screen shot below from just one of the information screens). It presents as much or as little of this information as the trader requires. There is also a 14 day free trial. The service offers outstanding value when compared to similar services and is the only information platform BinaryOptions.co.uk recommends;
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