Copy trades - binary options and profitable social trading
This article is a continuation of a series of articles about social trading, the previous one was an article: Copytrading (social trading) - they trade, you earn!
If you have not yet learned how to trade binary options profitable, then it is most logical to use trading signals. Why not? If there are people who know how to make a profit and are willing to share this knowledge and skills with others in the form of trading signals! Everything is good, if not for one "but", not all brokerage companies are suitable for copying trades of other traders and trading by trading signals! That's why now we are going to consider in detail the question of which broker is the best to choose in order to trading signals for binary options were profitable.
Copy trades binary options and brokers
So, the main problems faced by traders of binary options when copying trading signals are insufficient speed of execution of trading orders, slippage of quotes, incorrect quotes of assets and inadequate trading conditions of brokers for the implementation of social trading. Now let's look at all the factors listed individually and explain how to solve these problems.
PROBLEM #1 - speed of deal execution and slippage of quotes
Poor execution speed and slippage is a problem with most binary options platforms and brokers. At 90% brokers, before your trade position is accounted for on the broker's server, the price will slip another 3-5 pips. If you've traded binary options before, you've probably encountered this. When you hit the trade button at the price level you want and quotes have already slipped a considerable distance and in a wrong direction before the trade is executed. As a result, you lose precious points which will not be enough for the profitable execution of your transaction. In contrast, at Binomo, the speed of execution of a trade does not exceed 1.7 milliseconds (you can consider that time as instant execution), while the trades are executed without slippage. Simply put, in such a short period of time, they physically do not have time to slip! In this case trading signals for binary options you can copy to your platform with minimal delayThis means - to make a deal at the most optimal level, which will greatly increase the chances that your trading position will close in profit!
PROBLEM #2 - incorrect asset quotes
Many people blame their brokers, that the latter purposely distort the quotes in their trading platforms. It is difficult to say whether they do it on purpose or not. But about the fact that the quotes often differ from the real - it is so! The fact that different liquidity providers (liquidity providers of stock exchange quotes), take quotes from different exchanges. For example, one liquidity provider takes quotations from the New York Stock Exchange, and another from the London Stock Exchange. Ideally, the quotes should be different everywhere, but in practice it is not so. For the reason mentioned above, the quotes of different brokers can differ from each other by 5-10 points. Now imagine that your provider of trading signals trades in a company with the terminal with the quotes from the New York Stock Exchange, and you trade with a broker with quotes from the London Stock Exchange. As a result, nothing good will come out of this! How to solve this problem? It's simple - choose for trading a company, whose liquidity provider is Thompson Reuters, such as at the broker Binomo. It is with the use of quotes of this company that trading signals are created!
PROBLEM No. 3 - inconsistency of trading conditions
When choosing a broker to copy trades, pay attention to companies with a minimum trading deposit and a minimum trade size. These are exactly the trading conditions you need for social trading! The fact is that if you trade with a large trade size (and your trading account will, as in most such cases, be small), then in case you receive 2-3 losing trade signals in a row, your losses can cut your trading account in half.
That's why, you need to choose a broker with the smallest transaction size, like a broker Binomowhich is only $1. In this case, a series of losing trade positions will not cause significant damage to your trading account. And the future profit will easily cover the losses and allow you to earn!
Advanced platform - the most effective trading
Finally, note the importance of using professional trading software when copying trades. Real signals for binary options require a real trading platform! Well, imagine if you were to fly into space! What mode of transportation would you choose for that? The ancient stupa of Baba Yaga which would not make it to the stratosphere or the modern shuttle? The answer is obvious! It's the same with binary options trading! The more sophisticated your trading platform is, the more effective your trading will be!
What should the platform be? Approximately like this:
You will find technical indicators, candlestick quotes, maximum speed of trade order execution, high level of payments, insurance of deals and other modern technologies of trading! Exactly in this case trading signals for binary options will bring you maximum results!