Are Binary Trading Signals A Benefit Or A Hazard?

by Guest on September 29, 2016

When trading options, even binary ones, the most important question is whether to engage in a particular trade or not. There are numerous programs and gadgets that are supposed to simplify this decision, and trading signals are only a tiny fraction of it. So let us see what they are and how they relate to binary option trading as a whole.

Binary Trading Signals

Any indicator that tells you when to invest can be declared a trading signal, whether it comes from a binary option robot or it is set to respond to the actions of some of the finest professionals in the field. Most of them are free of charge, but some require a payment, which is rarely worth the investment. Except when you are paying trained professionals to signal you when the moment is right and then you make an informed decision, in which case it might be worth considering. Regardless of how you feel about them, almost every professional binary options trader worth his salt uses some type of trading software that enables them the returns they are getting.

At first, this type of software was meant as a forex tool, before they realized that it can be just as effective – if not more so – on binary options on those same currency pairs as there are fewer factors to consider. In this manner, the prolific inventors of trading software jumped at the opportunity as binaries became more widely accepted. This is why most of the trading signals are made post-2009. This type of software may also be the reason why the bulk of binary options trade involves currency pairs, as their price movement is the focus of the majority of trading signals. This does not mean there isn’t any software on other financial assets, as well.

Types of Binary Trading Signals


In a world where “free lunch does not exist,” any trading signal you can find at a local forum and download for free should be taken with a grain of salt. After all, there is no proof that these things even work – if there were, they would not be free, or available to you in all likelihood. At best, they can score a lucky hit from time to time, but anyone can write a fake review and praise it like it’s the best thing ever.


The thing is, any trader can declare themselves an “expert” and offer services that involve signaling potential trade opportunities. On the other hand, many legitimate and serious investment firms also provide this kind of service to their clients, and these tend to be a lot more reliable, but still fall (much too) short of 100%. Still, they make trading options a lot less risky than it usually is. So these types of services could be a ploy to grad as much money as they can before you get wise, or be a legitimate service that is actually worth what you are paying for it. Most trading signals, however, are not.

Those that are will likely come from well-established providers who have years of experience and thousands of satisfied clients. Any charge that they make will be backed by strong arguments as well as a satisfactory return rate. Since these signals rarely come from the same location, their reliability is better than the ones from small providers, as they read stronger signals and generally get things right more often than not.

Trading Robots

These are based on the kind of software used by investment bankers, albeit of a far inferior quality, regardless of their specs. However, this does not mean there aren’t any robots that can be useful to a binary options trader. Most of these types of software start off as free, but you are ‘encouraged’ to upgrade to a paid version after a while. Either way, these are almost never worth the cost, and are usually a waste of effort. There have been cases of malicious software hitching a ride on these things as well, so if you decide to use one, make sure the source is verified – because the results are definitely not.

Bottom Line

While they can be useful to a binary options trader, binary trading signals are almost never worth the risk. True, they can help you make a trading decision from time to time, but letting them decide for you is the worst decision you can make – sometimes the last one, too. That being said, trade alerts from reputable providers are about as reliable as these things get, so it is at least something to consider.


There are several things that go in favor of trading signals in binary options trading, but automated trading software is a bit far, even for that.

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