What To Consider Before Signing Up For Binary Options

imagesThere is nothing wrong with wanting to increase your profits. The popularity of binary options trading signals show just how important profits are to traders. Everyone wants to make as much money as possible from their time spent trading on global markets. It is for this reason that many people turn to professional signals to help boost their returns. These offer the easiest way in which you can get additional opportunities to take on your account for just a small investment of time and money.

While some traders will use alert services to ‘top up’ the number of trading opportunities that they take in their accounts, others will rely on them almost exclusively. You see there is nothing that needs to be done in terms of market analysis when trading by signals. All you have to do is wait for the professional trader to alert you of an opportunity. You then follow the trading information given to replicate the suggested opportunity in your own account.

If you are planning to use Binary Options signals ‘blindly’ you will however need to make sure that they are able to deliver he level of performance which you expect. Here are five criteria that you should use to judge the performance of a service.

1. Results

This is the most obvious point to consider. Check the results of the service and make sure it has been able to generate a positive return over multiple time periods. After all if you can’t make money from trading it then there is little point in using it! Look for any performance results on the website or alternatively ask for a performance record if you can’t find one.

2. Alerts

You often need to get signals delivered quickly so that you have sufficient time to place them in your own account. Although many modern phones now support real time email alerts, SMS is still the fastest option. It will provide you with a more reliable way to receive your alert than signals that are sent by email. Look for this option if its available.

3. Assets And Contracts

Decide on which assets you want to trade and then look for a service which offers this. If you are already trading one particular asset class, Forex for example, then it could be a good idea to try signals on another. This will help to diversify your binary options trading strategies and can help to reduce the overall level of risk on your account.

4. Risk

Try to work out the level of risk that is involved on the signals. If some money management rules are provided then use them or don’t be afraid to come up with your own.  A good rule is to never use more than 5-10% of your money on any one signal. You should also factor in the number of signals that are placed and the duration they will be open for.

5. Demo

Most services will allow you to trial them for free or at least for a reduced fee. You can use this time to test out the service to see how it performs. During this time you should check analyse the actual versus the expected level of performance. It is important that you can be sure that the service actually works for you. Only once you are happy that the alerts are able to generate you a return over and above your subscription costs should you consider then service. It is then time to start using the binary options trading signals for real on your live account.