Binary options traders need to be very careful when selecting binary options signals service provider for themselves as the success and profitability of their trading depends on the service provided by this third party. Some factors which would help them decide the most reliable and credible service provider are discussed in this article.
First of all, before anything else, a trader should look at the past trend of the service providers. This is also known as historical trend analysis. This means that the trader should study everything related to past figures produced by these providers and how much has the success rate been. In other words, to what extent has the service provider been able to accurately predict and read the market dynamics? If the track record is good, then the trader can consider it. However, there is no guarantee that a service provider which has performed well in the past will also perform well in future. Options trading is a very uncertain market and all the charm of this market lies in the fact that it is so unpredictable. Everything can change in a fraction of a second.
Secondly, trial period should serve as a factor to be considered. It should be noted that not all service providers offer trial period but some do. Some do offer trial period for free while some charge a particular nominal amount for it. Therefore it is better to first assess the service provider in the trial period and then finally decide whether to go for long term subscription with it or not. This also does not guarantee high profits but it sure increases the probability of success.
Binary code background – information concept
Another important factor to consider is the signal delivery method. The trader should himself be very clear on how he wants to receive the signals. If it is via sms/text, then the trader’s phone should be in accurate condition to receive these signals on time. Options trading is all about right decision at the right time and that is only possible if the signal delivery method is in alignment with the trader’s resources and expectations.
Although every provider does not offer money back guarantee but it is wise to hunt for some which do. Also, it is important to note that money back guarantee does not mean that all losses incurred by the trader would be returned or reimbursed. It means that only the initial subscription amount will be given back if the trader is not satisfied with the service provider.
Having said that, one should keep in mind that even if the trader selects the best binary options service provider after thorough consideration of all the factors mentioned above, it is not a guarantee that he will do well in terms of profitability and numbers. It is a highly uncertain market. The trader has to be continuously vigilant and should also be open to other new service providers entering the market so that he is never relying on just one particular provider.
In the world of great financial instability, it is easier than ever to cheat those who are desperate in the need of money. The world has not yet recovered from the Global financial crisis of 2008, and several other crises have occurred since then. Many Internet frauds have appeared in the last couple of years, offering “100% certain ways of earning money”, promising millions of dollars earned in a few months etc. Also, many websites who present themselves as binary options brokers are actually scams, who plot to make their users deposit as much money as possible, in order never to see that money again. Recognizing frauds on the Internet sometimes cannot be easy, but here are a few clues you can follow in order to detect and avoid a cheat.
Binary options brokers – as already mentioned, there are many binary options brokers that are nothing but a scam. These are usually quite well masked, so it is not easy to recognize them immediately, and unfortunately, they usually get busted when it is too late and the trader’s money is lost. In order to identify scam brokers, pay attention to the following: if the payout rate is higher than 90%, it is simply too good to be true. It is not necessarily a scam, but you should approach it carefully. Also, if the payout period is longer than five days altogether, it should also be suspicious. Brokers who have been regulated by CySEC are usually the reliable ones, and it can easily be checked on the CySEC’s website whether the broker is on their list of licensed companies. Once you start trading with a particular broker, they might assign you a financial expert to help you trade. If the “expert” is too pushy in trying to convince you to invest more money, that should be an alarm that this broker is not reliable.
Binary Options Signals
Binary options signals – binary signals are trading alerts based on the analysis of the market, which serve to notify the trader on the possible outcomes of certain assets’ prices. These are not “orders” for a trader what to do, but rather suggestions and advice. Their accuracy is usually around 75%, maximum 85%. Signal providers that offer more than 90% or even 100% accuracy are good for nothing but avoiding. They count on the traders who will be tempted to invest more money relying on the alleged high accuracy of these signals, so that the broker will get much more money this way. “Easy money” schemes – these schemes might seem tempting, but they are actually quite easy to be busted, if you only pay little attention. They promise earning impossible amounts of money in a very short time by doing nothing. This offer itself sounds completely impossible, and it surely is. These websites always have a video that discovers a secret way of earning money, video testimonials of the “satisfied users” and some written testimonials as well. If you go to two-three websites like this, you will see that they all have videos based on the same scenario and sometimes even the video testimonials for different websites are recorded by the same people. These schemes are often connected to binary brokers, because they get a commission after you sign up on the broker’s website and place your first deposit, and this is their way of earning money.
When trading binary options, the trade may end up being “in the money” or “out of money”, depending on whether you have made a correct prediction or not. Payout rate is the amount of money paid to the trader when his trade is successful, and it is usually expressed in percentage. It is a percentage of the amount which the trader initially deposited in a certain trading contract.
When choosing a binary options trader, it is advisable to choose the one with the payout amount as high as possible. There different types of payout rates and their amount depends on the broker, but also on the type of trade, since not all options provide the same percentage of payout.
For example, if you choose to trade digital options, let us say that the payout percentage is 80%. You decide to invest $100, and call an option, that is you predict that its price is going to rise in the following 10 minutes. Upon expiration of the prescribed 10 minutes, your guess is correct, and the price does rise. Your initial $100 will remain on your trading account, and additional profit of $80 will be added on top of it, therefore you will have $180 in total.
Payout rates are calculated and determined by the broker in advance, and the payout percentage should always be stated on the platform in relation to a particular trading. The general rule is quite logical – the easier it is to predict the outcome, the lower the payout percentage will be. Similarly, the more difficult it is to predict the outcome, the higher the payout percentage will be. Forex pairs, for example, are considered to be more difficult to predict, therefore the payout rate for this type of trading is usually higher. On the other hand, the price commodities is considered easier to predict, therefore this type of binary trading usually offers lower payout rate.
The payout percentage can vary as well depending on the type of binary option. If you trade high/low options, payout percentage usually varies from 65% to 91%, and it never exceeds 100%. These options are suitable for beginners, since they are the simplest and easiest to predict. One-touch options are more complicated to predict, therefore trading them usually offers a payout percentage from 100% to 200%. Boundary options are considered to be the most complicated, since they have two strike lines during a predetermined time frame. Therefore, they can bring you a return ranging from 200% to 500%. 60 second options are a type of trade rising in popularity. They are a sub-variant of high/low options, but they give a payout percentage of 100%-150%, since they are not as easy to predict like longer-lasting high/low contracts.
The situation on the market is currently such that the average payout rate is around 85%, and it expected to rise in the future. Some brokers offer payout percentage of 88%-91%, such as CTOption. If the broker offers a payout lower than 80%, it is nowadays considered to be quite low.
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