Are Binary Options signals a scam or not?

Binary options trading is the new way of earning wealth. Of course, the best way is, to begin with, a demo account and start learning the ins and outs right away. Also, the need for a decent trading plan and money management system is inevitable. 

But did you know that the winning streak of your trades depends on your precise timing? Yes! And that is where the trade signals establish their might! But, knowing if the signals you get are a scam or are they functional prior to acting upon them is necessary. 

What are Binary Options trading signals?

The importance of a binary options trade signal is visible from the name itself. These are some signs or triggers that convey to a trader the best time to place a bet. In binary options, it is known that the trade works by predicting of rising or fall of the assets’ future price value. 

Thus it is unpredictable and difficult to identify the best time that tells us when and where to bet. A trade signal just eases that trouble. These signals are a result of technical indicators or automated software using a mathematical algorithm. 

When a human generates these signals, it becomes human-generated trade signals. Where in the foundation for that is through technical analysis using the indicators. Conversely, if the algorithm functions the same task, it’s an auto-generated signal. 

In an autogenerated binary options signal, the source could be third-party signals providers’ software or, in other cases, a trading bot. Either of the cases may provide free signals if their service offers it that way. But, the next question that will come to a new trader’s mind is whether it is worth trusting the signal providers. Also, if such binary options signals are a scam or not?

Our recommendation: Pick the best broker for binary trading!

Are free Binary Options alerts/signals a scam?

These signals serve as Binary Options alerts and tips. That guides the trader to know what is happening in the market and what could happen next in a few moments. A smart trader will become vigilant through these Binary Options alerts/signals and will use them to make profitable bets.

Some of the most useful signals may come in the form of entry and exit signals. These binary signals inform the trader about the right time to enter or exit the market. Now, signals can emerge from various sources. And that is what makes it vulnerable to scams. 

But, saying that all binary signals are scams is not justified. The scams are correlatable with the signals provider. If you are in association with a safe provider, the chances of a signal scam are diminished. However, fraud signal providers also exist in the vast area of binary options.

Often, fraud software takes the opportunity to trap you through canvassing and offering false signals. They may engage in creating malicious software in the form of fake bots or create fake pages, particularly to attract inexperienced traders.

They may claim their signals are useful, but should you use them, surely loss will strike upon you. 

(Risk warning: your capital can be at risk)

How do the signals work? 

The working of any trade signal mainly depends on the market inputs and other parameters. For example, the fundamental, technical, and quantitative analyses form the major component of any trade signals, be it binary options or regular trading.

The signals mainly work through the mechanical method achieved as a result of the inputs’ combination. Various inputs such as technical patterns or breakout, volatility, volume, moving averages, etc., give rise to the overall signals. Also, the technical analysis and the use of technical indicators create the estimation of the most profitable moment. 

The trade signals you receive from providers could work in several ways. For example, many providers giveaway the signals through platforms such as Telegram or WhatsApp. Others may send you a text message indicating the right moment to enter or exit the trade. 

Twitter working signals

The signals originating through different providers may work through Twitter as its main source. However, that depends on the specialization of the provider. The trader needs only to follow the provider’s account to get these signals. 

There the signals will be made public when the relevant scenarios arise. These signals can also work with your smartphone if the push notification is enabled.

(Risk warning: your capital can be at risk)

Telegram working signals

Many providers give away the signals that work on Telegram alone. So, to see those signals in function, there is a need for the trader to connect with the provider through a Telegram account.

Through websites

The working of signals may also be possible through the provider’s website. Such signals work by alerting the traders through website information.

The need for using a trade signal may not be absolute, as you can depend on your own predictions. However, when expert signals providers offer you reliable opportunities, it is not unwise to use them to your benefit. Right? 

Also, many trade signal providers claim to offer accuracy of up to 70%-80% through their platforms. As a result, top brokers like Quotex, IQ Option, etc., may even make partnerships with the providers to give their clients additional trading advantages.

How to avoid a signals scam?

1. looking for a reliable signals provider

The fear of falling into a binary options signal scam can easily find its end if you just find a safe signal provider. Many a time, even the broker you associate with offers free signals. Those can be very useful only if the broker is genuine. 

So, before choosing one, research thoroughly and ensure that the broker is regulated. In other cases, when you look for signals provider from open sources, staying vigilant about the win rates and scrutinizing their whereabouts can help. The best signals providers offer win rates extending more than 70%. 

2. Verifying the algorithm of the provider

While relying upon the signals from your provider, verifying whether it runs on an updated algorithm can help. In many cases, the algorithm’s failure to analyze the market properly results in false signals. The fake signal providers do not even reveal their algorithmic information. So, if your provider claims a reliable algorithm, chances are low for a scam. 

3. Connecting with trading experts 

Identifying a scammer signal provider can be best resolved through the help of experts. Once you connect with them through direct contact or their forums or portals, it is easy to receive their opinions.

4. Using social trading to the advantage

Social trading is a great feature offered by many modern-day brokers. At the same time, other brokers like Quotex.io rely on providing copy trading features. Both of them can be useful in either connecting with other traders or copying their moves. 

So, while doing so, monitoring which signals providers they rely on and avoid as a whole can significantly give you a broad idea. Such a method can potentially reduce your chance of hiring a false signal provider.

(Risk warning: your capital can be at risk)

Do trading bots also provide signals?

When we are under the discussion of binary options signals, trading bots can also hold a place there. Though many of the bots just focus on automated trading, some, like the famed BinBot Pro, also provide signals. Since the BinBot pro robot is secure and has an association with a network of top regulated brokers, the signals from this bot are not scams. 

Moreover, it runs on advanced algorithms and customizable services according to the desirable income limit. A trader can expect a payout of up to 90% through this robot’s use that requires a minimum investment starting at $0.1 only. 

Does Quotex provide trading signals?

Quotex.io is a name among the top brokers. We know that brokers also try to offer free signals through their platforms when it comes to binary options signals. However, that could result from the broker’s indigenous software or third-party providers. 

Quotex is a broker that may offer free trading signals through its platform. However, a trader always has the opportunity to generate the best signals on her own through the combination of reliable inputs and trading indicators. 

This broker started its service in 2019 and came with many other lucrative features. That is inclusive of its vast array of trading tools which go beyond 400 in number, affiliate trades, demo trading, etc. 

(Risk warning: your capital can be at risk)

Is it better to generate your own signals? 

Choosing the signals provider is a matter of the trader’s own decisiveness. The providers we listed above can help you achieve valuable signals that tell the right moment to place the trades. 

However, depending on the provider’s signals alone and not putting in your efforts is not advisable. Moreover, there is a chance of creating false signals with any software system. So, it could help you even better if you choose to generate your own signals. 

The best binary trading signals providers that are not a scam

After knowing all the facts revolving around signal scams, it’s time to know the best signal providers. Associating with the following signals, providers can guarantee reliable and accurate signals. 

Our recommendation: Pick the best broker for binary trading!

Learn 2 Trade

This provider tops the list of independent signal providers. Learn 2 Trade offers a delivery system for the most accurate binary options signals. This provider relies on real-time market news, analysis, recommendations, and other indicators to produce profitable signals. 

This provider can reveal its customer testimonials that confirm its market reputation and reliable service. So, surely it’s not a scam! It also offers an in-depth assessment of multiple assets, including cryptos, currencies, and commodities.

Binary.com

The last name in the list is the free signals provider Binary.com. This provider offers a web-based signals service along with many other options. The trader can begin to gain the signals through its free account. Also, it has 20 years of experience, making it safe and not a scam.

Conclusion

The above discussion tells us everything about the binary options signals and their providers. A trader can either rely on them or choose to generate her own signals depending on her trading goals.

However, these binary options signals cannot be termed scams per se. Though scams are also a narrow possibility when there is the involvement of signal providers, traders can avoid them through the availing of reliable providers.