Saturday, June 29th, 2013 by Michael Freeman
Binary Options is a high-risk, day trading ‘OTC Instrument’ gaining world-wide popularity. Many traders will find the registration process and setting up an account a very simple and quick process and though getting started might be simple, many newcomers ignore the possible risk involved with day-trading and result to quick decisions and lack of research become entering this online investment instrument. As popularity for Binary Options is showing an exponential growth, demand for training, software and signals are on the rise as traders seek to increase ‘ITM Return’ and enjoy a higher success rate. In this article I cover the different between between independent companies who sale trading signals and allow traders to copy their strategic moves VS the binary options brokers signals offered as an incentive for traders who sign-up with a bigger starting investment for a VIP account.
There is a major downside with Binary Options being so easy to start with as it allows many individuals with no prior high-risk investment experience to gamble their money on really short expiry times like the 60 seconds feature and 15 minutes trading which is a very difficult time frame to work with as predicting a trend working with a quick expiry is nearly impossible. Traders with no experience default to short-term 60 seconds trades without any deep understanding of technical analysis or in other words ‘Price Action Trading’. Professional traders usually trade with the Meta Trader 4 or online charts and work with Indicators or Binary Options Signals in order to ‘UP’ the ROS – rate of success.
One of the easiest and most obvious solutions for new traders is to follow a Live Traders and copy their moves and/or work with professional signals or with the MT4 Indicators. The number one easiest way to get started is with Binary Options Signals as traders are not requires to have any previous professional experience to follow and use the these signals. In fact the Signal, unlike an Indicator, provides the trader with all the necessary details to execute a trade and all that is left is to wait for the asset to expire ‘In The Money’ or ‘Out Of The Money. Indicators on the other hand, only will provide a trader with an insight or a clue to the Moving Averages and Trends that the naked eye is often unable to spot just by regular graph observation. The two routes available for traders are either the Binary Options Brokers Signals or an Independent Signals Provider.
There are a few differences between the two approaches with signals and the main one is the cost of signing-up. If traders are interested to receive the signals directly from their preferred broker they may do so by registering for a Full-Incentive VIP Account which often includes ongoing training, better service and most of all Binary Options Signals. The main downside is that traders must fund their account with anywhere between $1000 and $5000 with the brokers in order to qualify for the Full-Incentive VIP Account. The Independent Signals Providers on the other hand, usually require a monthly payment ranging between $85 to $350/month and some services include a Trial Membership. In terms of the starting cost, the Independent Binary Options Signals Provider and Copy Live Trades Solutions come at much lower cost for new members. There is another reason why traders will find the independent signals a much better choice and it can be explained by simply understanding what a binary options contract stands for. In fact the broker is contracting against the trader which is why the broker doesn’t have a real incentive to help the trader which leads me to believe that the brokers signals are misleading and are most likely not as good as signals generates by a 3rd party with no other goal besides your renewal of their service and in order to retain their members they must maintain a high rate of success, the bottom-line, helping their traders make money with binary options.
To conclude, I cannot recommend the Binary Options Brokers Signals and I believe that the Copy Live Trades solution and the Independent BO Signals are a much better solution. It doesn’t mean all services are good and it’s important to get references and test out the service with a FREE Trial as not all signals services produce a high-return and many are as misleading as the brokers signals. The best way to start is with a low deposit amount and a FREE Trial. I also recommend looking into MT4 FREE Indicators which can boost up your rate of success in addition to the signals and the time spent on research.
To Learn more about Binary Options Signals visit my BO Signals & Indicators Page for a complete comparison of popular Copy Live Trades and Signals Services available on the web. Learn more about Binary Options on my YouTube Channel!