13 Facts Before Picking The Right Binary Options Broker
There is a need for a lot of comparisons before picking the right binary options broker. Whether you are a novice or an experienced trader, getting the right broker for any trading activity is very crucial.
Out of the huge list of scammed brokers, finding a reliable and trustworthy one is not an easy task.
Your initial few days should be spent to investigate, compare, and choose the best binary options trading broker. There are even some excellent brokers who instruct you with suggested trades, and right moves.
Before that let’s have a short introduction on binary options broker.
What Is Binary Option Broker
The broker is a platform where you can buy and sell trading assets to earn maximum profits. It is necessary to mention that for entering into the trading world, you have to choose a broker platform.
A broker can be a company or a separate soul. Similar to the other trading classes brokers, binary options brokers are also there for you to help.
Binary options brokers allow you to connect with them via the trading platform.
Moreover, through the platform, you can choose assets from underlying trading asset’s list along with important trading news, indicators, charts, and others.
Either you can download the platform in your trading device, or can execute a trade from a web browser.
Apart from the basics, the binary options broker follows some rolls. These are:
- Help traders to choose the right trading assets by giving trading world’s update
- Via broker, traders can deposit money and can execute a trade
- Can practice trade by using a practice account
Why Picking A Right Binary Options Broker Is Needed
Picking the right binary option broker is necessary for all traders to make a safe and secure trading environment. On the other hand, the right broker will help you with your trade by providing the required trading information.
It is also vital to check the regulation before picking up a proper and good broker’s platform. Moreover, a good broker will increase the chance of earning more money.
Below, we have mentioned some of the factors that should be compared while choosing the right binary options broker.
The first and foremost work for traders is to check the broker’s regulation. Traders can consider it as an important part while choosing a broker.
The main purposes of regulatory bodies like CySEC, ASIC, FSA, are to supervise brokers and maintain the safety of trader’s capital.
However, binary options itself is not regulated in many countries. So, traders from some countries are not able to trade classic or binary options.
Working with a regulated broker is more secure than a non-regulated broker. Your money will be safe.
At the same time, there is no chance to be scammed with a licensed broker. A regulated broker will offer you a fair market price with quality products.
Another key point is that if you are based on the USA, then you have to trade with the USA regulated brokers.
2. Compare Deposit Bonus:
Though not every broker, most of them offer a deposit bonus or welcome bonus.
Compare this amount with different brokers to check which offers the maximum amount.
Again, some brokers offer very low initial deposit whereas they don’t offer any bonus.
Especially, if you are new in binary options, it is good to use low initial deposit until you are comfortable with the trading activities.
Keep in mind that following some terms and conditions is mandatory to enjoy deposit bonus. So, before applying for a bonus, read the terms and condition carefully.
3. Payout Of Maximum Percentage:
Payout percentage means an expected return that a trader will receive after completing successful trading. It will depend on the trading assets.
Based on the asset price, expiry time, and options type, the broker will set the percentage of winning rate. Surprisingly, the maximum payout percentage can be more than 90%.
Find out which broker is offering the highest payout while selecting a broker.
4. Minimum Deposit:
A minimum deposit amount is required to open a real account with a broker. However, the amount varies from brokers to brokers.
Try to start with a broker who offers a low initial deposit amount. It is alright to be a little flexible if the features and benefits are exceptionally great.
But just for marginal difference, don’t take chance with your money.
Low deposit amount is good for those traders who don’t want to take a huge risk.
5. Deposit And Withdrawal Options:
Traders have to verify their trading account before withdrawing profits. So, try to read terms and conditions before opening an account with any broker.
Furthermore, deposit and withdrawal procedures are not the same for all countries. Find out the best way to deposit money and withdrawal profits according to your country rules.
On the other hand, some brokers charge fees on deposit money and withdraw money. Fees will depend on the country of the client’s residence.
Plenty of deposit and withdrawal methods are available including e-wallet, debit/credit card, wire transfer, etc. As we mentioned above, you can choose methods depends on your country.
6. Multiple Assets Investing:
After opening an account with a broker. you will get a list of underlying trading assets. The assets class offered by different brokers.
Make use of the platform that offers more assets. A good number of trading assets will help you to trade at different market scenarios.
In order to increase the profits margins of the trades, investing in more than one asset is made available. With the help of this, investors can invest in Forex, commodities, and stock at the same time.
It is also the best factor of investing by having a balanced portfolio, and all risk is not put into a single basket. Read more about the asset class from Wikipedia.
7. Trading Tools:
Trading tools are necessary for traders to analyze the market. While some trading platforms might have different trading tools, indicators, automatic trading signals, and some don’t.
Though almost every broker doesn’t provide auto trading facility directly, many of them partnered directly with different binary options robot for auto trading service.
Choose a platform according to the tools that you prefer for trading binary options.
8. Demo Account:
Gain pre-trading experience with the help of demo classes and use the same for implementing better trading styles in live trading accounts.
With a demo account, you can have the experience of a real trading market. However, there will be no exposure to market risk.
Having said that the practice level and level of service offered will be as same as the live-market.
Some demo accounts are available only for the first few days from the trading day, while some are for a lifetime.
So, always choose for a lifetime demo account, where you can practice your own trading style and strategies.
You are expected to know almost everything about binary options else surviving in the competitive field will be very challenging or almost impossible.
Read these below broker review who are providing a free demo account for a lifetime and minimum deposit to start real trading –
9. Customer Service:
To know the level of customer service offered the best option is to go through the reviews and feedbacks from other customers and users.
Use a Google search to understand the rating of a broker platform, services, and legitimacy.
Customer support team make a bridge between a trader and a broker. You can contact the support team via online live chat or email.
Mainly, the customer support team are available for traders 24/5 days. The dedicated multi-lingual support team is always there to solve your problems regarding trading.
10. Simple User Interface With Multi-lingual Facility:
By being a user-friendly platform, the broker platform will be well accepted and used by traders. It will save time for the traders to navigate through the system and also needs less effort.
Moreover, for novice traders, it is easy to execute a trade if the trading platform is user-friendly.
On the other hand, some brokers give an opportunity to customize the trading interface, according to the users choice.
So, you can place your trading tools as per your need.
Thus make sure to check the platform personally to see if it is easy to navigate through with the help of demo accounts.
Sometimes, traders get trading news and alerts from the platform according to the market movement. So, you don’t have to look for important news and events.
Binary options brokers now offer different languages in their platform to communicate with traders. Choose broker service that is offered in your preferred language.
Else understand, trading, and communication will be very time-consuming, or at times impossible.
From the platform, you can select your native language.
11. Trade Expiration Time:
Some brokers will let you executed trades that can expiry within few hours or days, while some are very strict that the expiry should be at least post 3 days from the time of the execution of the trade.
Consider these factors before deciding the broker. Go through their terms and conditions prior to finalizing.
On the other hand, while some broker offers a choice to brokers to exit from the trades before expiry dates, others are very particular that you should stick to the trade until expiry.
It is good to choose a broker that offers an option to exit, whereas you will see the results at the end is a loss.
So, it is better to exit from it as early as possible with the availed money. This way you can control losing your investment.
12. Trading Tournament:
You will find many brokers are offering different tournament for traders. Traders can test their trading skills in those tournaments.
Moreover, it is the best way to earn a huge real money cash prizes from a minimum entry fee.
Each tournament has its own duration. Anyone can participate in those tournaments without knowing the right trading strategy.
Isn’t it Fun for traders?
13. Trading App:
Mobile trading apps are now famous for all types of traders. You can download your preferable trading app into your device.
Performing trade is now possible from anywhere at any time. Make sure, your broker platform is offering a trading application for your device.
The interface of a trading platform is similar to your desktop device or web browser.
Apart from the advantages, there are some disadvantages is also. Via a mobile app, you can not analyze the trading market by using proper indicators and charts.
Similarly, in most cases, you will find a complete asset list from the mobile trading app.
Expert traders generally use a mobile app to check their trading results, but they execute final trades from a desktop.
Unless you have clear guidance for choosing the right trading broker, it is will difficult to compare and make any decision.
This guide is to help those who are keen on choosing the right broker to set the base or foundation strong, and right.
All being said and done. Even if the features are a bit less and not up to the mark, do not settle with an unreliable, not legit platform.
Choosing bad or illegal brokers will lead to losing the whole amount that is invested in trading.