Most people who have tried their hand at financial investing will know that there often comes a point where you could do with the help of a professional. While many individuals will often be able to go through stages of making money, to do so over the long term is not easy. At this point, rather than throwing in the towel, many are tempted to look for a helping hand. Often this is in the form of a new strategy or service which they can use to help them build the profits on their account that they are after.
Due to the simple way in which binary options contracts can be placed there has emerged a large market in ‘signals providers’. These often claim to be able to offer professional grade trading opportunities which can be followed by placing them within your own account. However do these binary options signal providers really provide the professional services that they claim and can they be trusted to make easy profits on your account?
The first thing that it is important to understand is that anyone can set up a signal service and hide behind a website. The Internet is a largely unregulated space and many of the claims made in the financial arena cannot be validated. Therefore you should always approach such services with an element of caution. While there are no guides to help you identify the genuine from the fraudulent providers there are a few things which you can do to help avoid putting your capital at risk.
The hallmark of any service which sells trading signals is the performance record. After all you will need it to make you money if you are to consider using it. Therefore it is important to seek some validation of the results at the outset. If a provider is trustworthy and can demonstrate that they can make you money then they will no doubt be able to share their performance record with you. This should provide detailed information of all of the trades taken so that you can see the results for yourself. Better still you should look to gain access to some live trading statements so that you can properly validate the performance achieved.
Once you are happy that the results are genuine you will then need to assess the viability of using the service. Each professional trader will have their own trading methods. The approach that they use will dictate the time of day and the markets that they trade on. In short you will need this to align with your own personal trading window if you want to maximise your opportunities. You will also have to check that the assets traded are available at your binary options broker. There is little value in receiving signals if you are unable to place them in your account in good time. Often making use of a trial period will help you to assess the viability of the service for your own needs.
Finally you need to look at what you will need to pay out in terms of subscription or membership fees. Providers will naturally require payment for their service and the amount that you are charged can have a great bearing on the overall performance that you achieve. Remember that its costs no more to service one or two traders than it does several hundred. Therefore if the price charged is excessively high, not only will you need to win several times just to cover your outlay, you should also question just how the provider is actually making their money. It may not be from their trading but is more than likely from the binary signals that they are selling you.
This guest post is written by Vernon Lees, an active binary options trader and investor. You can find more information about trading with Binary Options by visiting his website www.thebinaryoptionstrader.com.