Binary options provide financial markets speculators with an easy way to trade without taking unlimited risks or subject yourself to order slippage. Whether you go long or short the market, you’ll always enjoy the peace of mind that comes from having limited downside risk.
Of course, you will still want to develop a decent trading plan with the help of a demo account before getting into binary options trading in a live account held with one of the best binary options brokers.
This plan should include a well-tested and profitable trading strategy, a sound approach to money management and enough funding to keep you in business despite a few losing trades.
Quick Look: The Best Binary Options Signal Providers
- Provider 1: Signals 365
- Provider 2: Binary Options Pro Signals
- Provider 3: Up Down Signals
- Provider 4: Binary Today 5
- Provider 5: Auto Binary Signals
There’s time, expertise and other challenges involved with developing your own binary options trading plan, and many traders prefer to use a binary options signal provider. These companies deliver binary signals via various methods to tell their clients precisely when to enter and exit binary options positions.
Overview: Binary Options Signals
In general, binary options signals consist of notifications from companies, professional traders, or even technical indicators and algorithms aimed at helping you trade binary options more profitably. Such signals can help traders save time and operate with a lower level of expertise since they do not have to interpret market trends and behavior themselves.
Binary options signal notifications typically suggest trade entry and exit levels. They usually also specify the type of binary option recommended for a particular trading opportunity. The general objective is not so much to invest in binary options, but to trade them speculatively for profit. Several types of binary options exist for you to use when trading along with the recommendations provided by a signal service.
Although all signal services may not support each type, the most common types of binary options you can use to trade with include:
- Down, low or put and up, high or call binaries: You can use these to take a directional view; their values are determined at expiration.
- No touch/one touch or above/below binaries: Trading these also involves a directional view, but they have trigger levels that can cause an early outcome when touched prior to expiration.
- In/out, range or boundary binaries: These binaries have a range within or outside which the market will end up at expiration to generate an outcome. They can be used for range trading and range breakout strategies.
- Double one touch or double no-touch binaries: These consist of range binaries structured with two barrier levels that can cause an early outcome if either barrier gets triggered. You can also use these to trade ranges or breakouts.
Binary options signal providers typically offer timely trade suggestions involving one or more of these basic types. These services usually signal when to enter a position, as well as when to exit a position based on their proprietary “black box” algorithms.
What to Look for in a Binary Options Signals Provider
Perhaps the most important thing to look for in a provider of binary options signals consists of verifiable evidence of good signal performance by their algorithm or algorithms in a live binary options trading environment. This track record should generally show a respectable and consistently positive return for the risk taken, and a signal win rate of 70% or higher seems fairly common among the best binary options signal providers.
Also, any signal provider should offer you a way to get notified of their signals as quickly as possible. Ideally, these signals will come in time for you to profit significantly from the trading opportunity they identify. They should also have a good reputation in the market with positive reviews and client testimonials.
Most signal providers will send their trade notifications to their clients using email or SMS text messages. A few signal providers use custom-made web interfaces that clients can monitor, while others have downloadable software you pay for and install on your computer.
Some very basic and low-budget signal services even use free communication services like Telegram or Skype to share trade signals that just get typed in manually. Remember that the signals from these notification services usually get generated in real time, but they do not tend to involve automatic trade execution unless they are a trade copying service.
You typically need to watch for signals to occur and then execute your own binary option trades if you think the signaled opportunity seems worth taking a risk on. As a result, this slower trader-directed method of observing signals and then trading on them differs substantially from the algorithm-based and fully automated trading robots you might have run as expert advisors on MetaTrader4 or other platforms.
Some quick facts before we launch into the best providers on the market:
- Some binary signal providers get around the possible trade execution delays this method can cause due to inattention by traders by having proprietary websites that clients monitor to get trade signals in a more timely way.
- Also, certain trading signal sites even have trade execution buttons for you to quickly enter into the suggested binary option position once you have set up a funded account with a supported broker.
- Fast execution often makes the difference between a winning and a losing trade. Such trade execution buttons, therefore, make a very handy feature worth looking for in a binary option signal provider.
- Still, other signal providers might offer a copy trading function that lets clients duplicate any trades the provider makes based on their signals. Customers usually have the option to set several trading parameters according to their risk tolerance and account size.
The Best Binary Options Signal Providers
Based on the criteria above, we’ve generated a list of the best binary options signal providers you can use.
Provider 1: Signals 365
Signals 365 is a well-established binary option signal service which offers an impressive 50-100 signals per day and claims to have a respectable win rate of up to 70%. Check out the video below for more details.
Provider 2: Binary Options Pro Signals
Binary Options Pro Signals delivers binary option trading signals by email or SMS. It offers signals during either the New York or European trading session for 14 highly liquid and tradable assets, including major currency pairs and stocks. This provider averages between six and 12 signals per day and has an extensive historical track record.
Binary Options Pro Signals wins on roughly two out of every three trade signals, or about 67 percent of the time.
Provider 3: Up Down Signals
Up Down Signals has been around since 2012 and offers a wide range of binary option trading signals, with over 200 algorithms reportedly under development using machine learning techniques. Up Down Signals claim to provide as many as five signals per hour, although the company averages about that many during the day. Signals get delivered via email and web, and the provider claims signals remain good for up to 15 minutes.
Up Down Signals says it had a 92 percent win rate based on over 300 signals generated in 2017.
Provider 4: Binary Today 5
Binary Today 5 offers a binary option signal generation software package with some interesting features that differ considerably from what other binary option signal providers bring to the table. First of all, you can use any broker, currency pair or trading session you want, since you call the shots as the trader.
Second, using this service requires a one-time purchase of downloadable software to generate the trading signals locally based on its proprietary algorithm. Historical trading results posted on its website show improved yearly performance between 73% and 82% growth. Trading opportunity alerts get sent to email, phones, and even MetaTrader4.
The software generates a sound on your computer that signals you a trade opportunity exists so you can take prompt action.
Provider 5: Auto Binary Signals
Auto Binary Signals offers a web-based binary option signal generation service without the need for software downloads. Paying a one-time fee gives you access to the online binary option trading signals that the provider claims are over 80% accurate. Currency pairs, stocks, and indices are signaled. Once binary trading signals occur, market direction probabilities are displayed, and the system indicates how long you have until the signals time out.
Binary option signal providers give you the opportunity to let an experienced trader’s algorithm or judgment influence and even dictate your trading decisions. While some providers give you access to fully automated trading or social copy trading functions, most require you to do the trading yourself after you’re notified that a potential opportunity exists.
This means the signal providers and/or their software do virtually all the deep thinking and market analysis that traders usually have to do themselves. This binary option trading alternative can suit those who have a relatively low level of trading experience or product familiarity and so feel the need for outside assistance.
Using signal providers may also offer a workable solution for those binary option traders who have little time to spend making their own trading decisions.