There is a famous saying: “a smart man makes a mistake, learns from it and never makes that mistake again. BUT, a wise man finds a smart man and learns from him how to avoid the mistake altogether.” Online trading, and especially, trading in binary options requires a wise man. Someone who can tell straight away when things aren’t going right, someone who is techno-savvy, and someone who is wary of the market.

Binary options trading has continued to welcome new waves of trading robots. Hundreds of these software are being developed each day, as existing software are being reprogrammed and revamped to apply rules based on current micro and macro-economic factors. This is to meet the increasing demand of binary options trading. That is why, creators of these auto-trading software can only agree with the economic factors, when the demand is high – increase supply!

Thousands of brokers are now offering trading robots for trading binary options. It is advisable to rigorously research with much scrutiny on your preferred binary option robot by reading reviews and other materials about it, because you do not want to be caught in a major scheme set out to scam unsuspecting traders.

What is a Binary Option Robot?

Binary Option robot is an auto-trading system used for trading binary options.  The robot runs on a special algorithm programmed to apply different market indicators simultaneously sieving through the market and identifying winning trades. Their ability to provide profitable trades is rated in terms of the number of times the system will give you in-the-money trades, also known as ITM rate. Most reputable binary options trading robots average 70-75% ITM rate, however, there are others that guarantee 85% in-the-money rate and even others up to 98%.

ITM rates that range between 70-75% are what we like to call, believable! Whereas, ITM rates of up to 98% should at least make you think twice about the software if not abandoning the whole thing altogether.

How to tell a binary option robot scam when you see one

There are a lot of ways that one can use to identify a possible scam binary option robot, but the most common ways include:

1. Existence! How long has your software provider been around for? A month, a few months or a couple of years? A reliable Binary option robot should have survived the test of time and been around for at least 2 years. However, this should not be used as a basis to discount those brokers that have been around for a couple of months because there are some that are genuine and are just coming up.
2. Genuine Brokers - It is easy to spot a scam when you go through their list of brokers. Most scam robots list out brokers which are not regulated by any financial body. This means that in case of default, they will not be liable to anyone.
3. Registration and regulation bodies – It is a jungle out there, and choosing the right broker could be the margin between making substantial returns or losing your entire savings and retirement funds. Scam binary option robot providers are in most cases not controlled by any financial body making your funds susceptible to loss.
4. ITM Rates matter – Many binary option robot scams give unrealistic ITM rates. For instance, and an ITM rate of 98% is certainly too good to be true. Most reliable ITM rates average between 70-75%.
5. Backtesting! It’s like buying a new car, you give it a test drive first to confirm if everything is as set out in the robot’s features and selling points. And so, it is always recommended to test your binary option robot via a trial period or a free subscription package before going all in to ensure everything is as advertised.

Attributes of good binary options trading robots

Genuine binary option robots and brokers share the following characteristics.

• They all have a diverse asset base. Credible brokers are not limited to a few currency pairs, most reputable brokers offer a diverse asset base with many different options.
• They carry different binary option types. Such as, Options Creator, One-touch Options or even Short-term Options.
• They are financially stable – Genuine brokers are able to maintain a clean business standing
• They offer realistic in-the-money rates. Trade with caution on binary option robots that make unattainable claims. The best robots average returns of 75%. This rate has been tested and proven in the market
• They are tied to legally registered/regulated organizations by bodies such as Financial Conduct Authority, FCA, of the UK; Cyprus Securities Exchange Commission, CySEC, of Cyprus; and Australian Securities and Investments Commission ASIC, of Australia among others. You do not want to pay for a service being hawked by an unregistered company.
• They receive positive reviews from their clients

Conclusion

The upside of trading binary options on binary options robots is that risk-rewards is clearly known. On a good day, robots that guarantee in upward of 90% ITM rate might seem the obvious choice, however, utmost scrutiny should always be applied when deciding on your preferred robot.