Mastering binary options trading is every ambitious trader’s dream. But for that, there lies a need for brokers like Quotex, dedicated time, and above all, patience to learn. All these factors can together result in profitable trades. But, excelling in trades can see a new turn when these qualities come together in one software.
Yes! Those are the binary trading bots who come to the aid by eliminating such needs. They can serve you more wins automatically. However, knowing all the facts about binary bots is needful before you start to use them.
What is a Binary Options bot/robot?
Binary Options shows us the path to earning marvelously. But it appears as a double-edged sword. So, any carelessness will lead to drastic losses. That is mainly because of just one factor: the options require you to place the bet in a yes or no proposition only. Unlike other trading forms, you cannot decide more than the rise and fall of the prices here.
Of course, you will have the choice of numerous trending asset classes, but the binary nature of the bets makes it extremely risky. One false prediction can end up in a complete loss.
Such a risky trading method is exactly where a binary trading robot can show its might. A trading robot of any type is nothing like an actual piece of machinery doing your trades. Instead, it is just software.
The trading robots utilize an algorithm that is adjusted with respect to the market conditions. So, it comes as support whenever you need to decide on the most profitable trading moves.
You may find numerous trading robots available out there. All of them may not suffice your purpose equally and function the same way, but many of them do. Usually, brokers prefer to offer these bots as an additional feature.
Since trading bots are becoming more popular, brokers do not refrain from benefiting from the bots. Brokers may offer their official trading robots through their websites, or in other cases, you will have to find them on your own.
Why are trading robots considered a scam?
Trading robots may appear as the modern way to trade efficiently. But, they come with their darker side as well. Many of the trading bots available in the market are sheer scams. Such software in the name of a trading bot is nothing more than spyware. So, if a trader falls into the trap of such robots, the chances are that she will lose the funds she invested and also the future possibilities.
Most of the time, this software comes with a malicious algorithm. The main task of such bots is to reveal your trading moves to other parties. They may also leak your trading details and banking details to fraudsters. So such robots can not only endanger your funds but also put your name at risk for illegal activity.
Why do brokers promote a trading robot?
For a broker, offering a trading robot simply reduces their burden. The bots will work on providing the trader with a simpler trading process. Some brokers do not even limit the robots’ usage to demo accounts.
However, the main purpose behind the brokers promoting the trading robots is to increase the trade volume. It is evident that more trades can be placed when the binary trading bots reduce the overall time expenditure. As a result, the broker can claim a larger trade volume than its competitors. It helps both the clients and the brokers.
However, as a responsible trader, it is your duty to understand that trading bots do not guarantee a win always. Increasing trading bot scams are just one side of the coin. The dependency on trade bots itself poses financial risks. We shall understand that soon in the subsequent discussion with the relevant reasons.
How do automated binary trading bots work?
We have already formed the idea that these bots serve as automated trading systems. The main source of their functioning is the algorithm that the bots possess. Such an algorithm guides the software bot in deciding the most suitable moves for your trades and assets. As a binary trader, you must also be aware that you’ll need the help of fundamental and technical analysis for profitable decision-making.
Now, when you trade on your own, these two essentials have to be undertaken by yourself. Also, you need to be wary regarding the trade signals which tell you the right time to make an ideal move. But, when there is a functioning trading bot by your side, all such tasks are undertaken automatically. The bots conduct the analyses automatically, providing you with the best possible choice.
A trading robot works as a result of the algorithm enabling trading signals as well as placing the bets. The algorithm runs all the computations and recognizes the most profitable bets. It then automatically places your trades on those bets and funds, increasing the chances of winning.
The algorithm will help make the trading moves based on the signals generated through fundamental and technical analysis. Such automated trading systems can play a crucial role in eliminating the psychological element effectively. Because of the automated functioning, the trader finds it easy to place a bet without having conflicting doubts.
The trading robots combine their trading signals with the automated trading mechanism to attempt a profitable trade faster. That will eventually increase the trading volume to a new level. These bots also come with their own risk management features. However, that varies drastically from one bot to another. You may also customize the bots according to your methods and use the features such as stop losses and daily limits.
But, you should never judge a feature on the basis of its bright side alone. The trading bots come with their own drawbacks that can become risky for those who use overuse or misuse this feature. Also, here we shall subsequently learn that trading yourself may be just the right way to excel in it.
Before that, let us also know the ways to identify the fake ones.
How to identify a fake trading robot?
A smart trader prioritizes being aware of all the facts before choosing a trading bot. Also, many a time, you don’t directly choose the trading bots; instead, you look for the broker’s name. But, depending on the broker’s popularity and fame, you may get tricked by unofficial trading robots.
Some of them can be useful depending on your broker’s account security. However, they are largely just a scam. So, to identify whether you are downloading the right trading bot, incorporating the below-stated methods will surely help.
Visit the broker’s official database
The first action by any trader should always be to visit the broker’s official website. There can be only one reliable way to find the official website: it is research!
Once you review the website, you must take note of the trading bot’s availability in their database.
Some brokers clearly state that they do not offer robot trading features on their homepage. You must not miss seeing the authorization documents for the trading bots and the regulation status of the broker also.
In other cases, it is best to contact customer support through an online chat or email and get valid details about the trading bot. If you conclude that the broker does not offer a trading robot, then you can be sure of the available trading bots as a scam.
Verify the trading bot’s maker details
When you come across a trading robot over the browser, often it may resemble the broker in all aspects. That may confuse you. But, once you look for the developer’s details, the decision can become clear. Often fake trading bots have a disclaimer that states their reality. Looking closely will tell you that most of them are a product created by third-party developers.
They develop these bots independently for compatible broker accounts. Also, they claim that they do not associate with the original broker. So, once you get the confirmation, choosing such a trading bot may be unwise.
Consult trading experts for guidance
The next way to identify fake robots is simply through consultation. It is always wise to take the opinion of a trading expert who has a reasonable experience in the industry. Such a consultation may be direct or indirect. Many experts have their own service forums and portals where anyone can visit and avail of the consultation services. It is also visible that such experts often run communities where they will resolve your clarification regarding trading bots.
Use social trading as a safety tool
The option to trade with other’s strategies and moves is the key benefit of social trading. It is a feature that many brokers like Quotex offers without fail. But, in addition to mimicking and getting other traders’ strategies, a trader can also use it to gain knowledge about trading bots.
You can connect with other expert traders and beginners alike through social trading. So, it becomes effortless to know about a particular trading bot’s usage and genuineness.
How does an official trading robot help?
Finding an official trading robot itself may be a daunting task. It depends on your broker largely. But, once you have come out of that stage, you can move forward in benefiting from it.
Advantages of a trading robot
- The main advantage of a trading robot is obviously a smarter trade. Since a robotic algorithm may prove as more intelligent than an average trader’s mind, we can expect a more rational approach to the trades.
- Another significant advantage is the limitation of emotional trading. A trader may often act under emotions such as anger or excitement. Suppose a trader wins consecutively, then there’s a chance that she may get over-excited and start placing without rational thought. A trading robot eliminates such emotionally guided moves by providing algorithmic functions.
- Automated trading software such as the bots helps place the trades at a faster pace. Since they can accomplish the analyses through the algorithms, they quickly get the results and use them without spending time researching.
- The automated software also allows the trader to increase the trading volume along with saving time. That may eventually help the brokers as well.
- Most of the trading bots come without any additional charge. So there is not much investment to get a profitable trade through the bot.
- Trading bots may also help you monitor the market for any other changes that can be useful in modifying your previous strategy.
Other top binary trading robots in the market
The binary options market is a huge market with tremendous possibilities. That is the reason behind innovative features coming more often than ever. Quotex may not offer its own trading robot. However, if you are a general trader keen on using a trading robot, you can think about the following best ones in the market.
- Binbot Pro – with payout up to 92%
- Centobot – With payout up to 89%
- Daxbot – With payout up to 91%
These are the top picks that offer automated trading with maximum payouts. So, if you wish to join a trading bot instead of trading yourself, you may do so by downloading their respective apps and creating an account there.
Should you use a trading robot?
The choice is the total of the trader whether to choose or refrain from automated trading. But, ideally, you should trade yourself.
Moreover, choosing a trading bot that is unofficial is equivalent to falling into a scam.
It may be a hard-to-digest fact for those who believe it can make them better traders. But, becoming a better trader is possible only through persistence and hard work. The main reason for such scams to happen in the first place is that traders fail to realize the importance of learning the basics. They want to simply excel in trading without putting in any hard work. Some brokers take advantage of this mentality and offer trading bots. Others offer fake robots and trap the traders.
Even if you choose a good trading bot, the main drawback of the automated trading software is its automated feature itself. It is an element that can become detrimental at times. The bot trading is devoid of any human involvement, which puts you at a greater risk.
Since the binary trading market is unpredictable, it needs the presence of human instincts. Also, brokers offer it to increase the trade volume, but the new clients may depend on it completely and stop learning. They may not even be able to conduct the analyses on their own. That will act disastrously for the traders as it will hinder their trading growth.
Conclusion: Be careful with Binary Options robots
We can now firmly say that most binary trading bots are scams. Many of them are unofficial and pose significant safety risks. However, no reason is there for us to deny that there are some advantages of a trading robot as it provides automated trading. But, that does not nullify one major fact. It is riskier than profitable.
Hence, from the above discussion, we can conclusively state that it is always best to trade yourself without depending on the software. That will help you grow and learn more about trading and also allow you to win trades more consistently.
