If you are thinking about how to make money on binary options, then there always comes a moment when the amount of new information discourages all desire. To get a stable profit, you need to know technical indicators and oscillators, fundamental news, dynamics of market volumes and more. A small deposit and lack of leverage create additional problems. Therefore, many beginners choose free binary signals to avoid unnecessary costs and reduce the risks of losses.
The topic of paid signals requires a separate article and will not be considered. Here we will tell you where free signals come from, their advantages and disadvantages.
Where do free trading signals come from?
From who will be the author of the signals and what goals he needs directly depends on their quality and final result. All participants in this market are divided into three groups:
1. Binary Options Brokers
Signals are provided as a bonus for opening and replenishing a real trading deposit. Options can be opened either manually or automatically according to specified conditions and trading assets. Everything looks good in the binary trading platform: a separate panel on which new information constantly appears, causing gambling players to immediately enter the market and earn money quickly. The rush in the financial markets always leads only to losses; you need to calmly think about what is the purpose of such broker services? The options are as follows:
- The broker helps traders earn money and thus attracts new customers. An optimistic forecast, but it is not. Read the “User Agreement” – the option payment is always less than the opening amount; the broker makes a profit, even if you close a profitable transaction. Some made the wrong forecast; the payment comes from their losses.
- As quickly as possible to pick up a client deposit due to incorrect signals. This option is more likely. Of course, no one will only make loss-making signals, if we take the statistics for the previous 2-3 weeks, we can see the distribution of profitable/loss signals close to 50/50%. This is how simple binary option bot works without optimization based on historical data.
Such a situation is beneficial to the broker: the percentage of unprofitable transactions is sufficient to receive a stable income at the expense of the Commission. The client also does not always lose and as a result, remains “at the” or earns a little. Some brokers do not allow you to disable the delivery of signals in the expectation that the client in the future will begin to trade on them to their advantage!
Important! All assumptions and conclusions of the article are only the personal opinions of the author, which may not coincide with the opinion of the suppliers of free binary options signals. Always analyze information from several sources and make independent decisions, this will help to avoid many errors learn binary options trading!
2. Paid services and professional binary options trader.
The goal is to get investments in trust management. Signals are sent during the trial period through closed groups of social networks and messengers (Skype, Viber, WhatsApp, SMS). Such promotions can be done by paid providers for advertising purposes.
In the case of the service (if you remove the scammers), the quality of signals is much higher than that of brokers and individual traders. The team consists of experienced traders, analysts and specialists in statistics and machine learning.
In any case, the goal will be long-term cooperation with the client, a quick loss of the deposit is bad for both parties.
3. Binary trading sites and forums
There are sections for beginners, although this can also be found among professionals. Real trading on such signals is not recommended: these are the results of testing new strategies, ideas and automatic advisers. The goal is to discuss why signals for binary options work or not in a specific market situation, improve the process of studying technical and fundamental analysis, etc.
What to do with free signals?
From the previous text, an opinion can be formed about the complete futility of trading signals. This is not the case and free information can be useful too:
- Testing a demo account. On a real account, the trading process is somewhat different than on a demo, but for the initial testing, it is quite enough. Best option binary profit broadcast signals of individual traders. Among them, you can choose to choose the most profitable and then trade with a person, not a bot.
- Check your ideas. Trading in financial markets is a highly individual process, but without comparison with other people’s opinions, it will be unsuccessful. Always see how your ideas compare with others – one free signals provider can make a mistake, but when most forecasts are against you, you need to change your strategy.
- Additional training. On websites and forums in the “Signals” section, you can find a description of the strategies that generate them. Such information can be very useful when creating and improving your own binary options strategy – tutorials give only General information, many technical tools now do not work completely as their authors intended. The combination of “signals + strategy” will allow time to see the moment when the “real” market begins to change.
- Own signals. In addition to knowing the theory and having your own strategy, successful trading requires psychological stability. Not everyone has it and is difficult to train. A trader can have good and stable results on a demo account but lose control completely at the first real losses. Especially if there are several of them in a row, and the deposit is small.
What to do, because there are profitable own methods of binary options? The solution will be your own signals, even if they are free. If the results are positive you can count on regular customers and regular payment without the need for personal trading. And give maximum time to improve the quality of signals.
Let’s summarize. As the great physician and alchemist Paracelsus said, “Everything is poison and everything is medicine.” You can not fully rely on free binary signals, like any other tool, they do not give a 100% guarantee. It is also wrong to ignore them – among them there may be useful information and reliable entry points. Be sure to pre-test and confirm with other technical indicators such as moving averages and overbought/oversold oscillators.