Early signs were promising… but did The Binary Signals live up to expectations? Here’s Derek Kemp’s review for Insider’s Edge.
Because Binary Options are reasonably easy to produce, there’s no shortage of services available claiming to provide good binary signal alerts – with more and more being released by the week.
Despite this, it’s actually quite difficult to find a service that will actually give you good binary signal alerts that consistently offer a viable win rate. You need a high strike-rate to make money trading and cover any subscription costs.
At first glance the relatively new service ‘The Binary Signals’ seems pretty promising. They sport a highly professional website, and a non-aggressive sales page (which makes a nice change).
The trio behind the service, Eric Sorin, Gary Clark and William Baker, all have a history of trading. However, when I dug a little deeper to find out more about these people, there was nothing available, which is a little disconcerting.
What are Binary Options?
When you trade Binary Options you’re guessing the direction of movement of the price of an asset (stocks, currencies, indices and commodities – currency is the most popular asset).
The ‘Options’ part of ‘Binary Options’ comes from the two options a trader has.
If a trader predicts that the price of an asset will rise during a certain amount of time, they place a ‘call’ option.
If they predict that the price of an asset will fall during a certain timeframe, they place a ‘put’ option.
The main advantage of trading Binary Options is that prior to making a trade, you’re in total control of the risk. You know exactly the maximum amount that you can lose or profit.
Payout amounts can also be enticingly high. You can produce up to 85% of your investment on every winning trade and many brokers (you trade through your preferred broker website) offer a small return on trades that end ‘out-of-the-money’.
How does The Binary Signals service work?
The Binary Signals team provide signal alerts to its member traders via e-mail, SMS or push notification using an app on your smartphone, so you know when to trade and which direction to predict.
Apparently these signals are not computer generated or automated and come from a team who track the various markets 24/7 to find profitable trading opportunities.
On the homepage of The Binary Signals website you can see the results of the last ten signals highlighted.
At the time of writing no signals were sent out for six days, which is strange. There was one yesterday, which lost. The one prior to that – six days before – also lost. Out of the entire ten, five won.
A full history stretching back to February 2013 is also on the website and this transparency is to be applauded. You can see however, that there are inconsistencies with regards to how often a signal is sent out – as seen in the ‘last ten days’ chart.
So there are some months when only two signals have been sent out, and others when 100+ signals have been sent out.
How much does it cost?
The subscription cost for The Binary Signals is $97 a month. The first month is a little under $10, but that’s the best you’re going to get when it comes to anything resembling a free trial (as offered by many other services).
What really troubles me is that you have to sign up with one of the brokers listed on The Binary Signals website (BNRY, TradeXP, United Options, Banc de Swiss, VaultOptions, iOption).
Presumably this is because they have an affiliation with these companies. Now, the problem with this is that the Binary Options market is a bit of a Wild West and you don’t want to muck about when selecting a platform.
It would be fine if they were recommending one of the top, reputable platform but some of these brokers are NOT properly regulated.
In fact, I personally wouldn’t trade Binaries with any of those listed. If you do decide to trade using this service, please, please do your research.
My experience of The Binary Signals…
The signal alerts are clear, well formatted and user-friendly. They tell you the asset name, direction of trade, price and expiry time. All you have to do is place that trade. Even a novice binary options trader would know exactly what to do. A variety of assets are covered, but by far the most regular one is currency.
The signal alerts arrive at different times of the day – there’s absolutely no set pattern. Being able to action the signal alerts is of paramount importance with a service such as this, which is part of the problem with this service.
Because of the scattergun approach to sending signal alerts out, there’s no consistency and unless you’re willing to stop everything and immediately trade on a signal alert, you’re going to miss lots of opportunities to trade.
During my month-long trial, I regularly woke up to find that one or more signal alerts had been sent during the night, which I of course missed. The service is set to GMT but clearly those who are monitoring when to trade and sending out the signals are not.
You begin to feel like a 1980s doctor – a slave to the beeper on your hip. You have to act quickly with these alerts too; a broker that allows a 15-minute expiry time is a must.
Having said that, there were days of no signal alerts being sent out. Looking at the history, this is a regular occurrence. You get days where there’s nothing followed by days where the alerts are regular and constant.
In 4 weeks there were 133 signal alerts, of which 44 won, 33 lost and 56 couldn’t be placed. As a result, the strike-rate was unfair to calculate, and considerably less than the 72% strike-rate they claim.
Pros and cons…
- Professional and user-friendly website.
- Transparency of past results historically and ‘proof’ of the 72 strike-rate claimed.
- For the most part, it’s a high-volume service, so plenty of alerts to action.
- No introductory free trial period offered, which is surprising as this is sold via ClickBank
- You have to use one of their preferred brokers (which I simply cannot recommend). Please do your own research if you decide to try this service.
- There are often long periods when no signal alerts are sent out.
- Alerts are sent at any time of day and night with a short time in which they can be actioned, which means you’ll inevitably miss out on much of the service you’re paying for.
First impressions were good for The Binary Signals, but the poor choice of brokers and the fact that (unless you’re an insomniac) you simply cannot action each and every signal alert that you receive means that you’re not getting value for money, and you’re not matching their claimed 72% strike-rate.
This being so, I cannot currently recommend it. If you’ve used this service please leave a comment below.