How much money can you make with Binary Options Signals?

By | November 26, 2013

Before I get into the question of “how much money can be made with signals?”  you should be warned that not all services perform as well as they advertise, so given the choice between a service costing $1000 and a service costing $90, I always recommend going with the lower price. It would be a big disappointment to pay $1000 for an under performing service. For this price you can test out 10 different services and if 3 out of the 10 services end up performing well, you can narrow down your focus and make money with these services. Two questions I get very frequently:

1) How much money can I realistically make with Binary Options Signals?

2) How much money should I invest on each trade in order to reach my financial goal? 

So assuming you found a reliable service and you’re ready to work full-time, following the signals offered by the service. It’s very important to be able to calculate your potential net profit at the end of the month, because without proper planning you might fail to reach your monthly net-income goal!

Let’s take two examples, one of a high performing service and one example for a low performing service and determine how much money can be made or lost using each of the services.

Good Signals Service 

Service A: 250 signals over 30 days, with an accuracy rate of %78, $15 per trade and with assets averaging an ITM of %75.

Step 1: Determining how many winning trades / losing trades.

250 signals x %78 (0.78) = 195 winning trades,  250 signals – 195 winning trades = 55 losing trades

Step 2: How much did we spend on 250 signals? 250 signals x $15 = $3,750

Step 3: Determining Net Income.  [(195x$15×1.75)+(55x$15×0)] – $3,750 = $1,368.75 Net Income

Bad Signals Service

Service B: 250 signals over 30 days, with an accuracy rate of %55, $15 per trade and with assets averaging an ITM of %75.

Step 1: Determining how many winning trades / losing trades.

250 signals x %55(0.55) = 137 wining trades, 250 signals – 137 winning trades = 113 losing trades

Step 2: How much did we spend on 250 signals? 250 signals x $15 = $3,750

Step 3: Determining Net Income/Loss. [(137x$15×1.75)+(113x$15×0)] – $3,750 = -$153 Net Loss 

 

signals

Based on the above examples you can calculate how much money you can potentially make with a high performing signals service based on your trade size, number of signals sent every month and rate of success offered by the service. If you are being offered a success rate of %90+, be cautious because legitimate services will usually provide you with %70-%80 success rate and these services are considered high-performing! Once you find a reliable signals service, you can control your potential net income by increasing your investment on each trade. Using the first example, if you change $15 to $45 per trade, you can triple your net income! Instead of getting a $1,368.75 you will finish the month with $4,106.25!

“don’t put all eggs in one basket” and instead of spending a $1000 on one service, test out a few services with a lower starting cost, and narrow down your search to the best service/s around before you plan ahead and focus on your potential monthly profit. On my blog I listed several recommended signals services. Checkout the list of Trading Signals!

7 thoughts on “How much money can you make with Binary Options Signals?

  1. Ryan

    Hi Michael, many brokers such as OptionFair and 24Option are now offering signals as a part of their investment packages. what do you think ? Should I try it or stick with independent signal providers?

    Reply
    1. Michael Freeman Post author

      Hi Ryan, many brokers are now offering signals in exchange for a much higher deposit. I don’t recommend this type of deals with any broker..Independent signal providers are better.

      Reply
  2. Ayo

    So from what I am reading one has to find a signal service that offers 78% plus success rate, meaning signal service like signal feed is not a good one as I see their offer 72% success rate, that’s if I am reading this right. Any suggestion pls!

    Reply
  3. efpierce

    Obviously there is some money to be made and with very little investment per trade. That’s why I got into binary options in the first place! 🙂

    Reply
    1. Michael Freeman Post author

      Thank you for the comment! Totally :)! I think that putting things in perspective and understanding the potential profit/risk, illustrated in numbers, can benefit us, especially if the ‘hopes’ are way up there, because I see lot’s of advertisements with ’empty promises’ of turning $200 into $5000 over 60 seconds trades and a bunch of unrealistic BS, so I figured that this article can provide with a more realistic way to address the question of “how much money can you make with binary options signals?” By the way, I just noticed your other comment. Thanks for being active on my blog, I really love to see traders engaging and responding to my posts! Thank you for subscribing to my channel on YouTube and for all the comments!

      Reply
  4. James G.

    I have been considering looking into how to make some money with binary options and I have seen many sites offering binary options signals. Of course being a newbie I had very little knowledge of what they were, and hence this article has been of great use to me. Thanks for making such a helpful post and I will be sure to put some of the points you made into action.

    Reply

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