The following command is not working for me:
pip install --no-binary psycopg2

Instead, I had to use this command:
pip install --no-binary psycopg2 psycopg2

The option '--no-binary' requires a mandatory argument, which specifies on which (of potentially several) packages it should act. 'pip install -help' has more explanations on this:
--no-binary <format_control>
Do not use binary packages. Can be supplied multiple times, and each time adds to the existing
value. Accepts either :all: to disable
all binary packages, :none: to empty the set, or one or more package names with commas between
them. Note that some packages are tricky to compile and may fail to install when this option is used on
them.