Binary Trading Signals: How to Spot a Fake?

by Darwin on October 5, 2016

How to spot a real binary trading signal would have been so much easier question to answer, but hardly fitting any kind of trading school, would you not agree? For those who do not know, binary trading signals are used by many successful traders in order to maximize their returns.

So, what is the problem?

The problem is: most of those traders would have been successful even on their own, so even the best possible binary trading signal may not be enough for some people. To make matters worse, the overwhelming majority of trading signals out there – free or paid – are scams and finding one that is even remotely legit is like looking for a needle in a hay of needles. Having said that, they do have their uses, especially the ones from reputable service providers.

Picking the right one: What about the automated trading software?

First and foremost, keep in mind that some of these signals involve some form of automated trading software, and you need to be extra careful when using these. If the feature that is meant to stop the trading at some point is not functioning properly, you may lose a lot more than time and nerves; in fact, it could obliterate your entire trading account before you even realize what is going on.

However, quite a few binary options brokers support this kind of feature or even let traders automatically copy trades from other people in real time – the outcome is the same, when you come to think of it. This should be your number one concern with automated software, so make sure this feature is functioning properly before you commit your attention elsewhere. This is mostly meant to prevent losses from automatically incurring, and keep trading for as long as the outcome is a positive one.

The problem with following a human trader is his very nature; when losing, his first response is to try and recoup the losses in the same way gamblers in Vegas think their luck is bound to change. Automated trading software and binary trading signals are supposed to be immune to this kind of practices, as they are governed by mathematical principles and hard facts. Speaking of which, a successful trading software will keep a record of the profits it has generated for its users as a group, and its provider should have no reason to keep them a secret – provided they are legitimate, of course.

Other features

A legitimate trading signal is supposed to be connected to its provider, especially if you are receiving signals from a professional firm or a trading school. Furthermore, these professionals will surely have a customer support service that can be reached by live chat, or email or phone or something like that. This is how you check if they are dedicated to providing good customer service or not. Besides, if there are any problems, it is best to address them right away.

Most of these signals are free, but some of the paid ones also involve a free trial period, and these are generally the most reliable out there. A legitimate service provider would offer a free trial in order to convince you to subscribe to their services and pay for them. On the other hand, a crook would trick you into installing malware and siphon your money and data, so be careful!

Most importantly, the software you plan on using has to be compatible with the platform of your binary options broker. Some allow trading signals to be used at their clients’ discretion (and are pretty open about it) while others even incorporate this kind of service into their standard features. One thing is for certain: no binary options trading software is useful if your broker does not allow it; you either need a new broker, or new software.

So, how do you spot a fake?

The answer is simple: you look at the signs. Whether their software performs even remotely close to what was promised, and if it has a connection to the service provider or not. A fake will not perform in a satisfactory manner, but there will be other signs as well: support staff will not answer or the response will not be satisfactory. Some part of the programming will not perform correctly, and people will know about it. Your safest bet is to stick to the trading signals supported by your broker. And the answer is only a single inquire away: call the broker and ask them.

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