Binary options are a relatively new and simple way of profiting of fluctuations in financial markets. You don’t need to calculate position sizing or how far you think a market will move to make money, just which direction the market will move. Still, sometimes that is easier said than done.
Luckily, there are binary option signal services that will let you know which direction a market is most likely to move next.
In this quick guide we will discuss what you should look for in a binary options signal service and how you can make money trading these signals with Originoption.
How do binary options signal services work?
Binary options signal services use complex computer algorithms to analyze financial markets and identify potential trading opportunities. Once a trading opportunity has been identified, you receive a notification advising you of the trading opportunity. Due to the simple nature of binary options contracts, these signals are very easy to understand; they will tell you the market to trade, contract term and direction. For example you might receive a notification along the lines of ‘AUDUSD, Higher, 15m’ – this signal is telling you to trade the Australian Dollar on a 15m contract and the higher (or buy) option.
How reliable are binary options signal services?
As with all things, some binary options signal services will be better than others. As such, it is important you do some due diligence on a prospective signal service before handing over any of your hard earned. A good binary options signal service will issue signals that are correct more often than not, in general you should look for a signal service that gets the market right at least 60% of the time.
Track-record / Live results
So how do you know how accurate a signal service actually is? The best signal services have nothing to hide: the results of previous signals will be readily available on the service’s website for you to look over. Do not waste your time with signal services that don’t provide you with trading results – if the signals work, the provider has nothing to lose by showing you historical results.
Customer reviews can be a great indicator of the quality of a signal service. If a signal service is making people money, people will be talking about it. Conversely, if a signal service is no good, there will definitely be people who have taken their complaint to the internet. Try to find third-party reviews as these are generally more reliable than reviews published by the service you’re researching. Having said that, all reviews are subject to fraud and nothing beats actually trying a product for your self…
Free trial / Money back guarantee
Once again, a solid binary options signal service has nothing to hide. If the signal service is as good as they say it is, they will let you trial the service for free, or offer some sort of money back guarantee (usually not both). Free trials are the better option as you don’t actually have to hand over any money until after you have tested the service for yourself (and hopefully made some money!). Free trials work great with Originoptions free demo accounts as you can get started right away with zero capital outlay.
As you have a limited time-window in which to act on your binary options signal, the method the service uses to deliver your signal is extremely important. SMS and emails are usually delivered near-instantly, but not always. Sometimes an SMS or email can be delivered hours after it is sent. As such, the best signal services provide their own software for your computer, mobile or tablet that provides instant signal notifications. Avoid signal services that rely on archaic methods of communication which are liable to delay.
Done your due-diligence and found yourself a reliable signal service? Contact Originoption today and we’ll get you set up with a free demo account. Our demo accounts are the perfect way to start your binary options journey as you don’t have to risk any money at all while you learn the ropes. Once you have confirmed your signal service is solid and familiarized yourself with the Originoption demo platform, it’s time to get trading on a real account!
Article provided by Originoption