Types of binary options signals
Binary options offer two kinds of signals. The first type of signals is free which means no money is needed to use it. Whereas the second type of binary options signals will cost you some amount of money that should be paid monthly.
Of course when there are only two options: to pay or not to pay, people tend to choose the second variant yet some of them start thinking that it might be a scam. In other words, why would they want to offer free signals services? And again every medal has its reverse, as from the one side it can really be a scam whereas from the other side it might not be.
Everything always needs to be checked. Therefore by reading this article you will be capable of coming across the detailed information as to how free signals perform and possible ways to distinguish them from a possible scam.
How much does it cost?
The main idea a person thinks of when seeing free signals service is – why would it be free? Why do some signals services charge money and this type of signal no? Professionals spend much time and efforts developing these signal services, so why would they make them free unless they are fake?
There are 2 answers to all these questions: first, if the signals are claimed to be chargeless, then it is really a scam. Secondly,a trader must pay for using the services but later and in a different way, yet still according to legitimate means.
As you have realized these 2 types of signals are presented due to two reasons:
- to scam people
- to monetize but later
Who develops signals?
In its majority, free signal services are created by brokers. Be very attentive as these signals usually state they have no connection with any broker which is a complete lie. To check whether the signal was made by a certain broker, it will ask to sign up with this exact person. And exactly this will be the minute of truth. Obviously, it is not advised to trust any signal service that was created by a broker. The ground for this is very simple – lots of brokers lose money every time a trader makes the right prediction. So why would they wish to give anyone an assistance in a form of a free signal with the help of which a trader will win and they lose? Consequently it is better not to risk and not trust such free signals. Because in the end it might be a scam where you will keep losing. Of course at first they give a chance to win a few times but the rest of the times is always a loss.
Free signal services that are created by brokers is one type of signals services. The second one – marketers created signals. The trick or point here is that if you wish to use it, you will need to register with an exact broker who will later pay some commission to the affiliate marketers for it.
In most situations such signals are of coarse fake yet not all. Very few of them do really work yet some were initially designed not to work and just make people register with a certain broker and as a result get the commission.
Signal that is definitely not a scam is called – Signals365. It requires registration with a certain broker which means that this broker will pay commission to the affiliate marketers who developed it. But in the end you will get a signal that performs greatly, delivers ITM rates etc. Signals365 also introduces a paid version, paying for which makes you free from that certain broker. Concluding, one may say that the majority of free signal services are 100% fake yet there are some that do really work and demonstrate excellent performance.
One more type of free signals, are signals that charge commission from the money you have won. This type of signals is the most preferred by the traders as it charges the commission only in case of the victory, meaning that if you win the money- you pay some commission, but if you lose- you don’t need to pay anything.
This sort of signals is pretty hard to find as there aren’t many. The cause for this is the following- they simply don’t make a lot of money for their owners as they charge around 1%-2% commissions.
A great practice along with experience you are able to get is by using the free trial signal services and Binary options robot. The trial session is given for a certain period of time after which you have to either sign up and pay some fee or not use it all (if you don’t have money or don’t like it).
During the free trial be very careful and attentive in case if it asks you to sign up with a particular broker. In 90% of cases it is fake. Therefore better avoid it.
The best and optimal way would be to get the trial signal services without being asked to register for a certain broker.
Can I trust Free Signals?
Unfortunately, in 90 per cent of cases or even more, these free signals are fake, or their performance is bad, or they ask to sign up for an exact broker who might not be legitimate which means he is not allowed to offer financial services.
Nevertheless there exist signals which are absolutely legitimate/legal and show excellent performance and great job. An example is Signals365 that can be free when signed up for a certain broker or paid version where you may select the broker yourself. Yes, such signal services as Signals365 are in their minority but they do exist.