Binary options signals are a great way for newcomers to make money with binary options without having to learn technical analysis. But do professional traders use signals, too? To answer this question, we will take a look at how professional traders go about their business, which tools they use, and how they make their money.
In detail, we will answer these questions:
With the answer to these questions, you will understand how professional traders use signals and how you can copy their approach to trade signals risk-free.
Many newcomers feel that using signals for their binary options trading is like admitting defeat. They think that good traders must be able to find the best trading opportunities on their own, without any help. If trading is easy, it must be bad, right?
Well, wrong. Even the best professional traders use signals. Signals offer two advantages that make them attractive for any kind of trader – professional, beginner, and everything in between. These advantages are:
It would make little sense for professional traders to ignore signals. Instead, they simple subscribe to multiple providers. They have the time and the skill to use multiple signal providers simultaneously, to thoroughly test them before they subscribe to them, and to keep evaluating their signals to recognize signals that are getting worse.
Now, of course not all professional traders use signals, but most of them do. Generally speaking, professional traders have three types of attitudes towards signals:
Most professional traders fall into one of the first two categories. When you can outsource a part of your trading and know that someone else will execute it just as well, you gain more time to focus on other things, which increases your overall return.
To help you get the same advantages as professional traders, let’s see how you can create a professional trading system based on signals.
To create such a system, you need these three things:
Let’s see how you can find these tools and use them in the best way possible.
The first step on your way to creating a professional trading system based on signals is finding a list of good signal providers. Your goals is to start with one signal provider and test it. If it is good enough to make you money, you include it into your trading routine. If it is not good enough, you ignore it.
Since executing a signal takes less than a minute, one signal provider is hardly going to take up all of your trading time. Consequently, once you have finished testing the first provider, you can test the next one. Once you are finished with that one, you test the next, and so on.
After a while, you will have found a nice collection of signal providers that can make you money. With five or six of them, you should be able to fill your trading day and trade like a professional.
To find a good list of signal providers to test, take a look at our top list of the best signal providers in the market. Pick any provider from this list and start testing them. Once you are finished, test the next one, and so on.
Now, the important thing is that you test these signals in the right way. Testing them with real money might ruin you, if you pick a provider that fails to work for you and your broker. Unfortunately, there is no guarantee that a signal provider will make you money, even if it is a great signal provider. Sometimes, a broker and a signal provider are just incompatible, even though both work great on their own. Therefore, you always have to test your system, even if each component works great on its own.
A demo account is the ideal tool to test signals. Demos work just like regular accounts – you get all the features, all the assets, and all the binary options types – but you can trade them with play money instead of real money.
This system makes testing your binary signals incredibly easy. All you have to do is subscribe to a provider, receive their signals, and execute them in your demo account. After a month, you can take a look at your account balance, and you will see whether it grew bigger or smaller. That’s all you need to know.
This system is so perfect because almost all signal providers offer a 60-day money back guarantee. This means, you have almost two full months to test their signals without risking a single Cent.
This is the ideal setup. You can find signals that make you money completely risk-free.
The final thing you need to execute your signal strategy is a broker that maximizes your returns. Of course, we can’t recommend one broker for everyone. Traders are too different and they follow too different strategies as that one broker could be the perfect fit for all of them.
To find the perfect broker for you, we recommend taking a look at our top list of the best brokers in the market. All brokers on this list are good brokers, and each of them is a good fit for a different type of trader.
Once you have found the right broker for you, you have all the tools you need to create your own signals trading system. To help you create this system risk-free, let’s take a closer look at the most important component in your system for that purpose: the demo account.
To test your signals well, you need a good demo account. Luckily, this is an easy decision. Depending on where you are from, there is clear recommendation for the demo account you should use. Let’s look at the two demos we recommend:
The best demo account for newcomers and traders that want to keep it simple: IQ Option
If you are like the 99 percent of the traders that just want to make some money with binary options, IQ Option is the ideal broker for you. IQ Option offers a number of features that help you maximize your profits with a strategy that is focused on simplicity and that everyone can execute. These features are:
These advantages make IQ Option the ideal broker for newcomers and traders that want to keep it simple. IQ Option is highly profitable, absolutely safe, and very, very easy to use. What more could anybody ask for?
Traders from the U.S. face a special legal situation. Only brokers that are registered with the Commodity Futures Trading Commission (CFTC) and subject themselves to U.S. regulation are allowed to offer binary options to U.S. traders. This rule eliminates all but one brokers.
The only broker that currently is registered with the CFTC is Nadex. Luckily, Nadex is also one of the best broker for trading signals because Nadex shares some of the best features with IQ Option.
Because of these advantages, Nadex is ideal for U.S. trader. If you are from the U.S., get the Nadex demo to test your signals, if you are from anywhere else in the world, get the IQ Option demo.
Now that you know how to create your own system to trade signals, the only question that remains is whether you should use signals or trade for yourself. Based on the points that we made in this article, you might be able to guess that our recommendation is clear and simple: you should always use signals.
There are three main reasons for this statement:
In combination, these three advantages make signals almost a no brainer. You save time, you make more money, and you can reduce your risk. Why would you refuse this offer?
Most professional traders use signals. The advantages of signals are so significant that you should probably use signals, too. You can make more money, save time, and reduce your risk, which is the holy trinity of binary options trading.
To create a money-making trading system based on signals, you need a list of the best signal providers, a good demo account, and a great broker. For the list of the best signal providers, check our top list. For the best demo, we recommend IQ Option or Nadex (follow our links). And for the best brokers, check our top list on the topic.
With this information you are well-prepared to start trading binary options with signals. Have fun and enjoy your success!