As a binary options trader you are probably using technical analysis to predict future market movements. While technical analysis is a powerful tool, technical analysis can only be as good as the price chart it is based on. Getting accurate, up to the minute price charts is therefore an absolute necessity for any technical analyst looking to be successful and make money.
For many traders, especially for new traders, finding a good chart provider is a challenge. In lack of a good chart provider, many traders have given up on investing or chose to invest based on a bad chart and have lost a lot of money.
To avoid the same trap, here is everything you have to know about choosing the right chart provider.
Types of chart providers
To choose a good chart provider, you first have to understand the different types of chart providers. There are:
The ideal solution for any technical analyst is specialized charting software. Good programs, such as the wide-spread Meta Trader, are available for free, and allow you all possibilities of technical analysis.
You can draw indicators such as trend lines, support and resistance lines and any technical indicator right into your chart. If you are missing an indicator or any other tool, you can either program it yourself in the easy-to-use editor or find it for free in one of the many active user bases on the web. With charting software, your possibilities are endless.
You will receive the newest market prices in real-time and without any time delay. You can display the market movements in candlestick or any form you like. You can quickly switch between time frames, and you can adapt display setting entirely to your own preferences.
While the abundance of options makes most charting software look slightly intimidating at first glance, these programs are quick to understand and easy to use once you get the hang of it. As with everything worthwhile in life, facing the challenge and learning how to use the best service available will be well worth the effort and pay huge dividends.
Many chart programs such as Meta Trader are now also available in a mobile version, with allows you to the same mobility as a web-based chart provider.
The only disadvantage to charting software is that you cannot use it with any device. You need to have the program installed on the device you are using. Technically illiterate traders might experience problems as with any other application due to their computer, mobile phone, or operating system.
The type of chart providers most people start with are websites. Websites are easy to find and can provide you with some indication of market movement quickly. They are independent and do not distort the real market price to benefit a broker.
The greatest plus of websites, however, is that they can be accessed from anywhere in the world and with all devices that have a web browser.
There are, however, significant disadvantages, that make using websites for your technical analysis difficult. Most free sites delay the market price by 15 minutes or more, to make you purchase their pro-package. Most sites do not allow you to display the market movements in candlesticks, and almost no sites offer the possibility to draw indicators such as technical indicators, trend lines, or support and resistance levels into your chart. This makes free sites almost unusable for any serious technical analyst.
While paid services can reduces these disadvantages to some extent, no provider can completely erase them.
When you are serious about technical analysis, you should stay away from websites.
When subscribing to a broker, most brokers also offer you access to their own charts. While most of these charts are web-based and therefore suffer from the same limitations as other websites, they are mostly tailor-made for binary options, which makes them a little better to use. Also, they are either free to use or included in the fee you pay your broker anyway.
Unfortunately, some brokers misused the ability to make their own charts to their advantage in the past and offered you a worse price than the real market price. That makes broker-based charts, though a slightly better option than other web-based chart providers, still far from ideal for any technical analyst.