You may have heard about binary options robots, which are a form of auto trading. It often seems that every time you visit a website related to binary options, there is a business advertising their software.
Are Binary Options Robots Legitimate?
Of course, all of these promise excellent results and you don’t have to involve yourself with the trading either. As with anything that appears to be too good to be true, you may be wondering are binary options legitimate? This article tackles this very question, allowing you to determine whether or not this the right avenue for you:
Not All Robots are Scams
The first thing that you need to know that not all of these robots are fraudulent. Yes, there are a large number of fake providers but there are also ones that are legitimate. The difficulty, as you can imagine, is to distinguish the good from the bad. You are required to download the software onto your computer and to allow it to access your trading account. You will then need to adjust the settings according to your preferences.
After this, the software will begin trading for you. You should also remember that just because a robot is authentic, doesn’t mean that the software is very sophisticated. This is something else that you will need to watch out for as well.
The Advantages of Binary Options Robots
Now, the next thing that you may be concerned with is if there are any benefits to using binary options robots. This type of software is typically touted at those just starting out with this type of trading. They don’t have a lot of skill or knowledge at their disposal so they are looking for some simple options. The robots provide them with this avenue, allowing them to simply sit back as the trades are made for them. This is also seen as a good solution for traders who don’t have a lot of time on their hands. Instead of having to constantly monitor the markets or pay attention to charts, the software places trades at appropriate moments.
Is It Worth It?
While there are free robots available, you will need to pay a monthly fee for most of these software. Also, you will only be able to use brokers that are compatible with that particular type of robot as well. Despite what is advertised, it is quite likely that a robot can be just as wrong as you. This is because the robots rely on signals. Once they receive one that is relevant to your trade settings, they will place the trade.
Therefore, there is no guarantee that they will be any more successful at the trade than if you were following the signal. Of course, the downside here is that the robot will just follow the signal. The software will not stop to consider whether or not the signal is a reliable one.
Is It Right for You?
As mentioned, this is often see as a great opportunity for novice traders. However, it is a very passive method of trading. As a result, you don’t really end up learning anything about placing binary options trades.
You just let the software do it for you. On top of that, there is also no guarantee about the profits that you will make. Therefore, you will need to determine what you expect to get out of binary options trading and if the robots help you achieve this goal. While the robots may cut down on how much effort you have to expend, it will not aid you in gaining any skills.
This should answer the question, are binary options legitimate. With the information provided here you should also be able to figure out whether it is something you should invest in.