Trading binary options is not for everyone and most traders lose their money in this market. Therefore, some traders turn their attention to paid and free trading signals, since in this case there is no need to conduct analysis. The main question is to buy paid signals or get them for free? In this article we will try to answer it.
Content:
- Is It Worth Buying Trading Signals?
- Who Sends Out and Sells Signals?
- How Good Аre the Trading Signals?
- What Does the Subscriber Buy?
- How Legal Is This?
- Which Trading Signals to Choose?
- Results: Is It Worth Buying Paid Signals?
Is It Worth Buying Trading Signals?
A trading signal is a clear indication of when and which option to buy. Most often, signals are provided immediately with the required expiration time , so the trader just needs to make a trade. If you have a great desire to trade binary options, but do not have the ability to conduct technical analysis or do not know how to do it, then signals can help you in trading. But for beginners it is always better to start with free signals in order to understand the principle of such trading.
Experienced traders can start with paid signals, as they know how to test them to see if they will bring profit. Also, experienced traders can always adjust these signals, combining them with their strategy, and if their rules are completely at odds with the paid signals, they will lose only a small part of the deposit. Beginners will most likely open trades on every signal they receive and lose their entire deposit.
Who Sends Out and Sells Signals?
Often, trading signal developers are professional traders who form groups and distribute this information to other market participants on a paid basis. For example, traders may share binary options signals through Telegram channels. There are also websites that broadcast similar “tips” in the form of a ticker, though this tool is less convenient to use.
Each newsletter or advertisement claims that only successful traders participate in developing trading signals. However, in reality, market professionals typically do not engage in such activities. The reasons are as follows:
Earnings from trading signals are lower than from real trading. Successful traders can earn up to 1% of their deposit daily. For example, a professional with $10,000 in their account could increase it to $22,000 in a year by trading every working day. In contrast, with an average trading signal subscription price of $50, a trader would need at least 440 subscribers to match those earnings. Only traders with a large following, such as on social media, can attract such a significant audience.
Successful traders value their time. They rarely invest it in developing specialized services for sending trading signals. Additionally, promoting these services and building an audience takes time—time they would rather spend on regular market analysis or developing new profitable strategies. Therefore, most successful traders with a small audience are not interested in creating and distributing trading signals. However, the opposite scenario is also possible.
Who Sends Trading Signals?
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Brokers. Brokers are interested in expanding their audience and, as a result, increasing profits. Sending out trading signals helps attract new clients. However, they are also interested in traders incurring losses, so they often send out trading signals that do not produce profit.
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Traders who fail to profit from the market. Sending out trading signals helps these market participants make money without trading. However, "tips" from such traders also often bring losses since those who do not know how to trade will not be able to give quality advice.
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Owners of Internet sites about trading. Such platforms earn money from the number and activity of visitors. Therefore, they are interested in constantly providing relevant and interesting information to a broad audience. Moreover, in this case, the effectiveness of trading signals is usually relatively high, and such sites try to monitor their profitability because the involvement of their audience on the site directly depends on this.
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Fraudsters. A group of people who, under the guise of attractive advertising, strive to increase the audience of users willing to pay for a non-existent (ineffective) product.
How Good Аre the Trading Signals?
Verifying the quality of trading signals is challenging. Some developers of such “tips” are not always confident in their effectiveness. For example, several years ago, a foreign company launched a free distribution of trading signals.
Moreover, they advised some users to open long positions and others to open short ones. After reviewing the results, the company eliminated clients for whom the signals led to losses. It then repeated the same procedure -again dividing customers into two groups and sending them directly opposite signals.
As a result, the company eventually retained a small audience that was making a profit. These clients, convinced of the signals' effectiveness, began purchasing them, even though the actual probability of profit never exceeded 50%.
This example confirms what market professionals emphasize: all such “tips” must be tested before opening a trade. You can verify their reliability using the following methods:
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Check the provider’s data sources. Ask the company or provider what historical data was used to develop the trading signals. It is also advisable to request a transaction history so you can verify the results yourself.
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Look for a free trial period. To accurately assess the effectiveness of trading signals, execute at least 100 trades.
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Review transparency and feedback. According to reviews, most trading signal providers refuse to disclose this information. However, signals from WinOptionCrypto on our website are completely transparent, with publicly available statistics covering an extended period.
Moreover, we always encourage traders to test any signals - no matter how reliable or accurate they seem - on a demo account or with a minimal deposit before transitioning to real-money trading.
What Does the Subscriber Buy?
Trading signals are generated based on market analysis. In other words, any trader has access to the underlying information. Therefore, with sufficient experience and knowledge, anyone can independently develop trading signals, identifying optimal entry points, investment amounts, contract execution periods, and other key factors.
At the same time, as noted earlier, the quality of many trading signals is often very low, while such services tend to be expensive. As a result, it is often cheaper and more beneficial to learn binary options trading and analyze the market independently rather than purchase questionable trading signals.
How Legal Is This?
Providing trading signals is a service offered by providers or traders. Under current Russian law, only individual entrepreneurs or legal entities with the appropriate license from the Central Bank and membership in an SRO can legally offer this service. If these conditions are met, the trading signals sent are more likely to be effective.
Distributing signals via instant messengers or other channels as a private individual is illegal. In other words, selling signals without a Central Bank license may be classified as fraud. However, in practice, private individuals rarely face any consequences for such activities. Meanwhile, buyers of trading signals often lose money.
Which Trading Signals to Choose?
As mentioned above, beginners should start with free binary options signals. Such signals can be found on our website in the section – signals . You can choose both classic free signals online and signals based on candlestick patterns .
Free online signals are based on nine different strategies and have an average profitability of 71%. Such profitability is achieved through the use of the Martingale system . They can be used on major currency pairs (EUR/USD, GBP/USD, USD/JPY and others), also on precious metals and Bitcoin :
In addition to the signals themselves, you can see the statistics panel, which shows all the recommendations for the day and you can check everything yourself using history:
The section with free signals based on graphical analysis can be used in addition to the previous ones, combining or combining them. Such signals are based on more than 50 graphic patterns and use pin bars, engulfings, dojis and other effective patterns. Also in this section you can find the same statistics as in the previous section.
Once you have mastered the free signals, you can move on to a paid subscription and receive more accurate and profitable signals for binary options. You can choose one of the packages and a certain number of days. And also note that you can take a demo period of 14 days to test them.
Results: Is It Worth Buying Paid Signals?
Based on our article, we can conclude that you can buy paid signals for binary options, but several conditions must be met:
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It is imperative to check their profitability in terms of history.
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If possible, take demo access and trade on a non-demo account using paid signals.
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Read reviews in which other traders share their experiences.
Even if you believe the signals you want to buy are profitable and have purchased a paid subscription, do not forget to use money management and risk management rules and trade only for the amount you are not sorry to lose since the Grail does not exist. There is always the opportunity to lose the deposit.
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