Whenever people hear of a service being offered free, they always begin to ask questions like, what’s the catch. The binary options market has had its moments of controversy since its emergence in the late 2000s. However, stability boosted by increased regulation has made things a lot orderly in the last couple of years.
Nonetheless, there are still a few cases here and there of people getting scammed, especially by when it comes to third party services and products, like the provision of binary options robots and trading signals. Generally, most of these services are offered free at no charge while others do charge a small premium to those who wish to enjoy more features by subscribing to pro/VIP versions.
Now, as we all know, most people opt for the free binary options robots, rather than the premium service unless they are fully convinced that the service offered is actually profitable to them. Therefore, these leaves the masses with a big question of: What’s the catch? How are these guys making money?
Such questions always raise the suspicion that the providers of such a service could be using other behind the scenes means to defraud users, for instant via identity theft. However, traders shouldn’t actually be worried when they see a service being advertised as free, but they should, nonetheless, ensure thorough screening to avoid falling into a trap.
You see, the thing is that there are genuine free binary options robots out there. It is pretty possible to establish how they make their profits, which means traders shouldn’t worry much when they come across such a provider.
One of the things that traders looking for free binary options robots should note is that none of them are stand-alone brokers. Most of them only offer the auto trading service, while others are products of notable brokers. Either way, they all have some connection with binary options brokers.
This connection creates the avenues for them to make money by referring new clients to those brokers. As you may have already noticed, all binary options brokers have affiliate programs. They offer different plans to different partners including profit sharing, CPA (cost per acquisition) and even at times CPC, for advertising and conversion purposes.
Whenever a new traders signs up for the free binary options robots service, they are required to sign up with one of the provider’s recommended binary options brokers. The free binary options robots service providers then receive a commission or CPA for bringing new clients to the broker.
As such, the end result is that the trader signs up with a broker, which he/she would have done either way, regardless of whether or not he/she got referred by the free binary options robot service provider. But in this case, the trader gets to enjoy trading at no charge using an auto trading system/binary options robot, while the provider of the robot gets rewarded for referring you to the broker.
It definitely sounds like a win-win case scenario for the trader here. However, some of these providers also do have a VIP service in which case, traders are either required to pay a certain fee on a monthly basis, or a one off-fee. In other cases (e.g. binaryoptionrobot.com), traders can continue to enjoy VIP features as long as they keep on referring new traders to sign up for the free service. How does that one sound?
For instance, AlgoBit is a product developed and supplied by OptionBit, a broker regulated by GSEC (Gibraltar Securities and Exchange Commission), there is also AnyOption’s CopyOp and OptionWeb’s BestoCopy, among others.
As for those that have multiple broker relationships, we have Binary-Option-Robot.com, BinaryOptionRobot.com and BinaryHedgeFund.com, among others.
Since the service is widely provided at no charge, many would think that returns realized using free binary options are insignificant.
The truth is that premium binary options robots are likely to provide more success to traders due to the additional features included. However, even with free versions, traders can still realize significant returns if they pick their strategies well.
Most free binary options robots allow traders to make various choices, such as the amount to risk per trade, assets to trade, as well as, duration. So be sure to tweak your strategy for optimal gains. Traders using these free services have claimed to make as much as 81% in win-rates, which is a lucrative sum.