There are a lot of different providers of binary option signals available online. Most of them focus on providing information regarding binary options that are based on stocks, currency or commodities. Binary option signals are also available for certain indices.

Some services are free, while others charge a fee. Binary option signals can be delivered by email, SMS or through a website.

Before you sign up with a binary options signal service, we advice you to learn about the concepts of support and resistance for share prices, commodities, etc. Most binary option signal services are based on this concept, and it is difficult to accurately evaluate a signal service provider if one does not understand the underlying concept of support and resistance. Understanding the idea of support and resistance will also make it easier for you to make full use of any price charts or recommendations sent to you by the provider.

What does it cost to use a binary option signal service?

As mentioned above, some services come free of charge while others require that you pay a fee to gain access to them. This fee can vary widely, but paying $100 – $500 per month to subscribe to a binary option signal service is not unusual.

There are trading platforms that will give you access to binary option signals once you have become a member and made your first deposit. At some platforms, you will be given access to more advanced signals as you progress from the base level account to the various VIP level accounts.

Signal-based auto trading software for binary options

If you install this type of software, you don’t have to carry out the trades yourself. The software will do everything automatically, according to the parameters set by you.

The fees for these trading programs, and how the fees are calculated, vary significantly. Some have a flat monthly fee, while others charge a commission on trades. A combination of both are also possible, and there are also those that only charge a fee for months were you make a profit.

Proceed with caution

As always, it is important to be a savvy consumer, well-informed and critical consumer. There are, as highlighted by BinaryOptionsSignals.com, quite a few providers of binary option signals that really stretch the truth and oversell their product with wild claims of huge guaranteed profits. Before you hand over any of your hard-earned cash, ask yourself what “guaranteed profits” actually entail. What happens if you don’t make a profit? Will the provider actually cover your losses and give you some extra money on top to ensure that you do make a profit? If not, it’s not really a guarantee, it’s just wishy-washy marketing talk.

The concept of support and resistance is only an aid that can be helpful when trading, it is not a guaranteed way of making money. The concept of support and resistance is largely based on trader psychology and is thus inherently capricious to a certain degree.

Last but not least, one must always be careful and look at the whole picture. You don’t want the fees associated with the use of binary option signals and/or automated trading software to cost you more than you profit from it.

Examples of binary option signal providers

• BinaDroid
• Algobit
• Googletrader
• QBITS
• ICE9 Technology
• Neo2 Software
• Copy Buffett Software

Examples of binary option sellers/brokers that also provide binary option signals

• 24Option
• Banc de Binary
• BDSwiss
• CTOption
• Dalton Finance
• FinPari
• HighLow
• OptionFM
• Porter Finance
• StockPair
• TradEqual
• TR Binary Options
• TropicalTrade

Binary Option Signal Scams

Binary options signal services claim to provide traders with real-time alerts or automated trade recommendations that predict whether an asset will rise or fall within a set timeframe. These services are marketed as shortcuts to profitable trading, often accompanied by bold claims of high accuracy, guaranteed returns, or “expert-backed algorithms.” In most cases, they deliver none of this. Instead, binary option signal services have become a common vehicle for financial scams, particularly among inexperienced retail traders looking for quick results.

The nature of binary options — short-term, all-or-nothing trades — makes them highly sensitive to timing and direction. Signal providers claim to solve both problems by sending trade suggestions at just the right moment. The reality is that most of these services operate without any transparency, backtesting, or accountability. Some are tied directly to unregulated brokers, incentivised not by your success, but by your losses.

How Binary Option Signal Scams Operate

Signal scams typically begin with aggressive online marketing. Social media ads, YouTube videos, and promotional emails promise effortless returns, often showing screenshots of fake account balances, luxury lifestyles, and fabricated testimonials. Once a trader signs up, the service either charges a subscription fee or offers the signals for “free” if the trader opens an account with a specific broker using the provider’s referral link.

This structure immediately raises a red flag. The signal provider profits not from providing accurate trades, but from referring clients to brokers — often brokers with a known history of manipulation, withdrawal problems, or offshore registration. In many cases, the provider and the broker are owned by the same parent company.

Signals are usually delivered through email, SMS, WhatsApp, or app notifications. There is no verifiable methodology, no performance history, and no explanation of why a particular signal was issued. When trades go wrong — which they often do — the provider offers no support, explanation, or refund.

More advanced scams offer “automated” trading bots that claim to follow these signals in real time. Once connected to a trading account, these bots often execute losing trades repeatedly, draining the account within days. The user has little to no control and often cannot disconnect the bot once it is active.

The Illusion of Accuracy

Many signal services advertise win rates of 85% or higher. These figures are almost always false. No strategy — manual or algorithmic — can achieve consistent accuracy at that level over hundreds of trades, particularly in binary options, where the payoff structure is fixed and the risk-reward ratio is skewed against the trader.

Some scams will show users a small number of initial wins, giving the impression that the signals work. Once the trader begins increasing position size or depositing more funds, the performance deteriorates. The initial success is sometimes engineered by delaying signal delivery until after a successful move is confirmed, a practice known as “backfitting.”

Others may selectively show trades that would have worked in hindsight while ignoring the full record. Because most users don’t track each signal’s outcome independently, they have no way to verify actual performance over time.

Affiliation with Unregulated Brokers

The most concerning feature of binary signal scams is the close relationship between signal sellers and unregulated brokers. Many binary signal providers funnel users to offshore brokers that operate without proper licensing or investor protection. These brokers often act as the counterparty to the trade, meaning they profit when the trader loses.

The conflict of interest is direct. Signal providers are not incentivised to deliver profitable signals — they are incentivised to encourage frequent trading and larger deposit sizes. In this arrangement, poor signal performance benefits both the broker and the affiliate.

Because these brokers are often based in loosely regulated jurisdictions, there is little recourse when funds are lost, accounts are frozen, or withdrawals are denied. The trader is left with no support, no results, and no way to recover their losses.

Red Flags and Warning Signs

Several warning signs indicate that a binary options signal service may be fraudulent:

• Claims of guaranteed profits or “no-risk” strategies
• Pressure to open accounts with specific brokers via affiliate links
• Lack of historical performance data or audited track records
• No details about the signal methodology, indicators, or analysis
• Use of high-pressure sales tactics, fake testimonials, or unverifiable endorsements
• Automatic trading bots with no manual override or risk controls

Even if a service is not directly fraudulent, the underlying strategy is often random or based on low-quality indicators. Given the fast expiry structure of most binary options contracts, even accurate signals must be perfectly timed — a standard few services can meet.

This article was last updated on: May 26, 2025