When getting started with Binary Options one of the most difficult decisions you will need to make is how to choose a Binary Options Broker. Due to the fact that binary options trading has only been around for a couple of years, most binary options brokers haven’t yet had the opportunity to establish themselves as reliable and trustworthy. Some have recently been regulated or in the process if being regulated which will give prospective traders a level of comfort when depositing funds and trading.
In this new, innovative and exciting market, brokers are competing hard for traders business. To the average investor, this is a very good thing, as it translates to better contract terms and higher quality service. But there are some factors that differentiate binary options brokers from one another.
When researching a Binary Options Platform keep the following points in mind.
- Always choose the platform that gives you the biggest payout, this is just common sense. When you are shopping online for any other product you go with the cheapest assuming all other things are equal, right? You get the best value for your money. “Shopping” for a Binary Options platform should be no different, choose the platform that maximises your returns.
- Pick a trading platform that pays out 70%+. You do know in advance what the payout is going to be or indeed what the loss is going to be before the expiration of the option, this is one of the greatest advantages of trading in Binary Options.
- Choose a platform that pays even when you lose “out of the money”. Some platforms pay back as much as 15% when you are “out of the money” which is better than nothing and looking for “out of the money” returns will help you narrow down the choices.
- Chose a platform that offers a wide range of assets. This increases the chances of that asset being discussed or reported on. Your chances of finding good research on the assets increase as the variety of assets offered increases. The research you find will help you make the “put” or “call” decision.
- Watch for “extra” charges such as fees to deposit or withdraw funds. There are some with low or zero charges.
- The platform should have a good customer service support facility. You never know when you will need help or support. Many have live chat and local helpdesk numbers.
Look for a platform that has good security with 128 bit SSL encryption.
Something many traders over look is the broker’s terms & conditions. It is very important to review closely any contract or terms & conditions when choosing a binary options broker. Look for their rate of pay out, as I said above this should be 70% or more, if a broker is paying less you should consider alternatives.
Likewise any rebate on “out of the money if offered will be in the terms of contract as will the list of assets offered, the range of expiry times offered and any minimum or maximum investment amounts allowed. The terms and conditions will give you a good picture as to whether or not that particular broker/platform suits your needs.
Many brokers offer very attractive bonuses but you should check the terms attached to these bonuses very carefully before accepting. In many cases you must trade a multiple of the bonus offered before you can make a withdrawal, often more than 20 times the value. While it is great to get a sizable bonus, be aware of any conditions attached.
As the Binary Options trading market is relatively new, many of the brokers are new too. It is your responsibility to check them out with research using online resources, forums, recommendations, referrals etc. There are many sources online today which have reviews of platforms and brokers and are worth a visit. If anything at all crops up you should move on as there are plenty to choose from.
In summary, there are many variables and points to consider when you choose a Binary Options broker but overall you are looking for value. You need to try and maximise your returns, get something back if you lose, you need the widest choice of assets to trade and have minimal extra costs to trade and above all you need a secure environment in which to trade. Don’t forget to review any terms & conditions offered and to carry out some research on the brokers’ reputation