Signals and trade alerts provide very specific information about binary options trades. Not only do they tell the trader which trade to select, but also which price direction to predict and which asset time to use. Sometimes signals are offered for free, but in most cases there will be some cost to access this information. With signal subscriptions costing as much as $200 per month, there is much to consider before making the decision to pay for trade alerts.
Signal Generation and Distribution
Signals are derived either solely from analysis software, or from a combination of analysis software and human option. Delivery methods typically include text messages, emails, and sometimes phone calls. There are a few binary options brokers that now have these alerts built directly into their trading platform. Since trade alerts are always time-sensitive, they must be received in a timely manner so as not to miss out on the opportunities they present.
The accuracy percentage is a major consideration. Some providers are willing to provide this information, but it would be wise to verify this success rate via your own testing. A free trial period, which are quite common, would allow you to do just that. Many providers claim accuracy rates of around 70%. Such a rate is possible, but exercise caution when considering any provider that guarantees rates of 80% or more. Even the best signal software cannot always account for volatile market conditions.
Cost Of Trade Alerts
The cost of binary options signals can vary quite a bit. Ultimately, the trader must decide how much he or she is willing to pay for this information. The goal is to have the alerts pay for themselves by generating profit amounts that exceed the cost. This is possible. However, it may take some time before it becomes clear whether or not the profits generated are exceeding the cost of the monthly subscription. If they are not paying for themselves then they provide no value.
Signal Suppliers and Brokers
There are many different companies now selling signal subscriptions. Some offer a specific number alerts each day. Some only offer alerts for specific asset categories, such as stocks. If the signals are built into a platform, you’ll need to trade with the broker that provides that platform. There is nothing wrong with this, so long as you have screened that broker and feel secure in trading with them. A quick web search should tell you all that you need to know about a specific broker.
Signals can be beneficial, but they should never be used as a replacement for analysis. No computer program is going to have the ability to gauge investor sentiment. It simply runs the numbers and determines what the upcoming price action is most likely to be. Only when trade alerts are combined with technical and fundamental analysis will they provide substantial benefits. Yes, they can definitely reduce the time commitment associated with analysis. However, the serious binary options trader will always take the time to verify the information provided in each signal.