Choosing a good binary options broker is not as easy as you think. There are now over 400 brokers out there and unfortunately there are many bad brokers, you should avoid.
Here is what exactly should keep in mind when deciding on which broker to deposit to:
How to Choose a Binary Options Site
Every year, new binary options brokerage firms are being launched. Hundreds of binary options broker will turn up in the search result if you search for this term online. With so many choices, it can be hard for a beginner to make a decision about which broker to join. The following are a few tips on choosing a binary options broker site.
Here are some of the best binary options brokers:
Asset Type List
First, you must make sure that the broker offers the type of asset that you plan to invest. You can find out about this by taking a look at the asset index at the binary options site. If you can’t find the asset index at the site, you can find out about it by reading the binary options broker reviews on the blogs.
Besides the asset type, you should also check what trading instruments the binary options broker offers. The most common type of options offered by binary options brokers are call/put, touch/no touch and boundary options but there are also other types of options such as range, pairs and kiko options. Some brokers will freeze out the assets from time to time so that they won’t be available for trading. This type of broker should be avoided since there won’t be any point in trading if the trader is not able to trade based on the market movement.
Expiry Time Frame
You must also find out the range of expiry time frames available on the trading platform. There are many brokers that offer short term options that last for 30 seconds – 60 seconds. But, short term options is very dangerous and you can lose money very fast because of the short time frame. It is best to stick to an expiry time frame of at least 30 minutes to reduce the risk of losing money.
Regulation by an Established Financial Regulator
A reliable broker holds the appropriate license from financial regulators such as CySEC and FCA. Most binary options brokers are not based in United States but in international countries such as Cyprus. In order for a broker to be regulated, it must maintain a physical office branch and be equipped with qualified staff. The broker must also meet the minimum requirement for the capital so that it can settle the claims of the traders quickly.
You should check how much the payout the brokerage is offering for the standard options. The broker should be offering a payout in between 75% – 85% for in-the-money trades. Some brokers only offer a payout profits of 60% for traders for the winning trades. The payout is a major factor because this accounts for how much money you will make when you make the correct prediction. However, choosing the broker with the highest payout does not guarantee that you will make money.
Deposit and Withdrawal
The speed of withdrawal is also an important factor. Bad brokers will give a lot of excuses and take a long time to process the withdrawals. You should avoid brokers that get many complaints from other traders concerning withdrawal issues. The broker must support a deposit/withdrawal method of your choice. Most brokers let you deposit/withdraw by credit card and bank wire but there are also brokers that offer other options like Paypal.
Alternatively you could take a look at the binary options brokers that offer no deposit bonuses.
Check Out the Trading Platform
The trading platform that the broker offers must be user friendly, load fast and offers accurate price quoting. Platforms that are hard to use is one of the major contributing factors for people losing money in trades. If you use mobile phone a lot, make sure you choose a broker that offers a mobile platform that comes with all the features in the web based trading platform.
Visit the Broker’s Site
Prior to joining, you should visit the broker’s site and navigate around to see if all the links are working properly. The customer service must be responsive and you should be able to get a quick reply after you email them your inquiry. You can read reviews to determine whether other traders are having any problem reaching the customer service of the broker. You should check what security steps they have taken to protect the clients’ funds. If you aren’t sure how their platform work, you can watch the demo videos which will give you a tour on creating a trading account and placing the trade options.
How to find the best broker?
In conclusion, choosing the right broker is an important step because it matters whether you make money or lose money in the end. It is important to first visit binary options reviews blogs to read reviews and learn what experts have to say about the different brokerage firms.