New traders always ask the following: Are Binary Options Signals a Scam?
Binary options signals are a feature of options trading that a lot of the more experienced traders out there use. There are many different service providers who give signals to the users, but not all of them are legitimate. Some brokers might think that all binary options signals are a scam, but the truth is that if you can find a provider who is legitimate, legal and qualified, you can enjoy some serious benefits.
However, there are definitely scam providers out there. Your task is to try and find a provider that isn’t going to cheat you out of your investment. This can be confusing and more than a little difficult.
Signals are Worth It for Traders
Using signals are definitely worth the money you invest, but you have to be able to find a provider that is reputable. With signals, you no longer have to do any hard work. The best market predictions and trading tips are delivered to you from the software. If you are a serious trader in the binary options game, having a signal software from a good provider is going to be essential to gaining the upper hand.
The #1 Binary Options Signal provider is BinaryOptionRobot. Here is a screenshot of success rates we saw when checking out their service:
Even if you don’t listen to the signals every single time, you still get the luxury of having a robot make some calculations and tell you which options you should be purchasing and which you shouldn’t. This second opinion will help you more than you may think.
Not All Binary Options Signals are Fake
When it comes to the signals that you can get, there are two types of provider software – paid and free. The paid versions typically have a lot more features than the free ones, and are generally a little safer to use as well. However, there are some scammers out there who sell paid versions of badly made software to unsuspecting traders. Don’t trust a provider that makes guarantees. This is usually a sign of a scam.
No legitimate trading software provider will provide their users with promises they might not be able to keep. Always read through the fine print and the software EULA before you proceed with installation or purchase of the software.
How Signaling Works for Binary Options
Signals work by analyzing the trending assets on the market at a given time and then creating predictions for these as they move. This helps traders make better decisions regarding their assets. Some software gives the user information about any trades that will be beneficial to them, and there are others that perform all of the trades without the need for the user to step in.
These are called trading robots, and are basically software applications that judge the trends in different trades, send signals to the user and then make the trade without waiting for approval. A lot of the better brokers out there offer this type of software as a part of their platform.
Choosing the Right Service Provider
There are some factors you should probably look out for when picking out the right signal software so you can avoid scams. For one, look for providers that have been reviewed by trusted sites and been called reputable. Don’t buy the first result you see on Google.
Remember that there are some pretty heavy scammers out there among the good signals providers, and you need to do whatever you can to escape their grasp. A good way to start would be to follow the advice of professionals who have done what is necessary to test the waters. Do not believe the success rate that you see on their website though. Any scammer can make up a fake rate. Check for charts and progress reports for proof.
There are some scam providers out there who send “buy” signals to half their users and “sell” signals to the other half for the same trade, so there is a 50% chance of a customer being satisfied. The result of this is going to be what looks like very bipolar reviews on the review sites.
If you see a mixture of very good and very bad reviews on the same provider, there is a good chance that they are pulling this sort of trick. The only way to ensure that you are safe is to look for the best reviews, the best licensing, and a reputation that precedes the product itself.