Binary options are arguably risky investments, but signals or in simple words expert suggestions from the experts make the option trading a lot less volatile for traders. Unfortunately, over the years with the growing popularity of the binary options, the number of cheats trying to make money off the back of investors has also increased.
This is why it is necessary that you know these points to avoid falling for scams in forex or binary options trading.
Know what exactly are you provided with
Signal Service Providers or SSPs are varied. You can easily some professional and expert SSP sharing wealth of knowledge with investors through newsletters and blogs. These resources are great as well as free, but not all of them are reliable. You need to understand based on your own experience and analysis, what newsletters are worth signing up for. Then there are SSPs that charge you for their newsletters and it is fair enough is an analyst wants some money in return of his time and effort. Still not all services are worth paying for. Then there is entire different breed of signal providers who require you to install some software and guide you accordingly. Whichever service you sign up for make sure you know what you have to do and what you are getting.
Paid Signal Services
Free signal services are great because they are free and also you are in no boundation to share your personal information or anything. However, with paid signal services you have to share your personal information like credit card. This is why it is necessary that you make sure that a service is worth paying for. A trusted source is ok to be paid for. There are some reliable and trusted forex signal services that offer free trails as well. You will be sharing your credit card information with them but you won’t be charged until the free subscription expires. This gives you an opportunity to understand and assess a service.
Never Auto Trade
Auto trading is equally popular among trader and some signal services provide you feature of using robots for trading. The mechanism of robot trading is that you download particular software (robot) and install it on your system which takes control of your binary options trading and places trade based on signals provided by the parent company. This is scary and I do not like the idea of giving a piece of code control over my trading account. Furthermore, there are literally hundreds of trading apps and robots out there and most of these are straight garbage. Only a small percentage can make some decent profit and that too is nothing appreciable.
This is why you need to stay away from automated trading.
In the end you need to learn binary options trading and do not be lazy. Using automated tools is going to take you so far and in the speculative binary options market you need to get your hands dirty to make profits. Use signal services for sure but do not be lazy to depend on a robot.
Forex markets are not as speculative as the Binary Options Trading. This is why you need to extra prepared when trading in binary options.