Binary options signals software can be a great way for new traders to make money with binary options without having to master trading first. In this way, it can be your shortcut to trading success, and it can help anyone to become financially independent, even if they lack any talent for market analysis. In this article, we explain what binary options signals software is, how you can use it, and what important points you have to consider.
In detail, we will answer these questions:
With the answers to these questions, you will immediately be able to use binary options signals software to make investments, and you will be able to set up a sophisticated, working system.
Binary options signals software serves a simple purpose: it wants to tell you what you have to invest in to make money. This means binary options signals software analyzes the market for you, tells you what you should invest in, and you only have to follow these instructions.
For newcomers, this system is a gift from the heavens. Instead of having to invest years into mastering technical analysis, suffering through initial losses and discouraging rookie mistakes, you can simply outsource the most complicated part of trading binary options and jump straight to the good part. This is the type of system every trader has been dreaming of.
A typical signal created by binary options signals software could read something like this: S&P500, 1 HOUR, LONG.
With this simple signal, you know everything you need to win a binary option. More precisely, there are three messages within this signal:
This is all the information you need to invest in a high option. You choose the S&P 500; you set the expiry to one hour, and you invest. The entire process is so simple; even complete newcomers can execute without any preparation. All you need to know is where to place the right clicks, and you are good to go.
If you want to keep your binary options trading simple, your time investment minimal, but still remain in full control of your account, binary options signals software is the way to go for you, too.
Once you decide that you want to trade with a binary options signals software, the next step is to decide on which type of software you want to use. There are three basic types of binary options signals software. Let’s take a closer look at each one of them, clarifying how they work and which advantages and disadvantages they provide.
The most common and probably the best type of binary options signals software for most traders are online signal providers. These providers are independent companies that create signals and send them to you via text message and/or email. To get their signals, you have to pay a monthly subscription fee of around $100.
This type of signals has three advantages:
This system is ideal for most traders. Having a proven system that other maintain for you is easily worth the low monthly investment signal providers ask you to make.
To find the best signal providers, take a look at our top list of the best signal providers the binary options world has to offer.
Instead of subscribing to a signal provider, you can also create your own signals. Some programs allow you to write programs that analyze the market for you and alert you when they find a profitable trading opportunity.
These programs can send you signals in exactly the same way that a signal provider can. They can send you a text message, an email, or a pop-up alert on your computer, and you can customize the signals you receive in any way you want.
The biggest advantage of this type of signals is that it is free. Many programs that allow you to create your own trading signals are free for download, and you can use them without restriction. The most popular example of these programs is Meta Trader. Meta Trader might be the most popular trading program in the world, and it is the program that many professional traders use to create signals and automate their trading.
In addition to being free, creating your own signals provides you with full control. You can customize your signals according to your preference; you know every detail of your strategy, and you can optimize the little imperfection any strategy has until you are completely satisfied.
The biggest disadvantage of creating your own signals is that you have to understand technical analysis well enough to create your own strategy and have to be able to program this strategy in your program’s own programming language.
Most newcomers are overwhelmed with both tasks. Even if they understand technical analysis well enough to craft out every detail of their strategy, having to learn a programming language seems unattractive to most people who are already leading busy lives.
In sum, creating your own signals is a tool for professionals. Creating a bad program to manage your money can potentially ruin you, which is why it is cheaper for most newcomers to pay the fee for a subscription provider. If you know your technical analysis well and are an experienced coder, however, you can create your own signals to save money and gain control.
There are also some online communities where you can download a signal creator for Meta Trader for free. These programs are often difficult to evaluate since anyone can upload programs to these communities and there is no guarantee that a program actually works. Betting your money on a signal program from an online community is risky but if you are willing to test many programs before you use them, it might be worth your time.
Social trading is the new big thing in the world of binary options. The idea is simple: professional traders tell you what they invest in, and you simply copy their trades. With this trading style, you get a similar result as with a signal provider, but you can get there for free.
Because of the recent hype around social trading, many binary options brokers started to offer their own version of this trading style. These brokers provide a long list of professional traders with their success rates and allow you to follow those you want. You can choose a trader, set the investment per trade, and the time you want to follow the trader. Additionally, you can define a stop-loss that automatically cancels your subscription when the trader hits a losing streak.
With this type of binary options signals software, you could follow a trader that has won 75 percent of their traders in the past. This winning percentage is easily high enough to make you money with binary options.
Once you hit the follow button, your broker will automatically copy every trade this trader makes into your account, using the settings you defined. If the trader invests in a long option for the S&P 500 with an expiry of one hour, you would automatically invest in the exact same option type with the same asset and expiry, but with the investment amount you defined.
This means, if you set your investment per trade to $10, you will invest $10 on every trade, even if the trader you follow invests $1,000. This system allows you to follow professional traders but adjust their trading style to your financial capabilities.
You can also find websites that specialize in social trading, where you can follow other traders for a monthly subscription fee.
Social trading can be a great way to get signals for free. Especially when your broker offers a demo account, allowing you to test the quality of your signals risk-free, there is almost nothing you could lose.
If you want to try social trading for yourself, look for the term iFollow options. This is the name most binary options brokers use for their version of social trading.
With the great advantages that binary options signals software provides, many traders wonder whether there is an app that allows them to take these advantages on the road. The answer is mostly no, but the good news is that you do not need an app. You can get the same advantages app-free. There are three reasons for this statement:
As you can see from this list, there is absolutely no need for an app. Having to monitor multiple assets simultaneously and make complex calculations would quickly drain your data and your battery anyway, which is why it is better to keep your binary options signals software in a fixed place and let it send you the signals on your smartphone.
Some traders make the mistake of thinking that binary options signals software allows them fully to automate their trading. This is not the case. Binary options signals software only sends you signals that tell you what you should do, but you have to execute these signals for yourself.
This system has one main advantage: you stay in control of your money. When you automate your trading to 100%, one small glitch in your software could possibly ruin you. The software might accidently invest all your money in a risky trade, and when you wake up the next morning, you are broke.
If you want to automate your trading anyway completely, there are three options for you:
For further information on each of these three options, please check our website. We have written a significant number of articles on each topic.
Binary options signals software can help you to automate your market analysis. This is a great offer, especially for new traders because it allows you to outsource the most complicated part of binary options trading while still allowing you to reap all the rewards.
There are multiple types of binary options signals software, but most traders will do best with an online signal provider. These signal providers tell you exactly what to invest in and send you their signals via text message or email. All you have to do is follow the instructions you received – the system could not be simpler.
To find a good online signal provider, take a look at our top list of the best signal providers.