How to Choose a Binary Options Broker
How do you choose a Binary Options Broker?
Binary Options trading has only been around since 2008 and many brokers have only been around for a couple of years or less. Many are new and haven’t yet had sufficient time to establish themselves as reliable and trustworthy.
The Binary Options market is new, innovative and exciting and all brokers are competing hard for traders business. This is a good thing for investors as it makes the current batch of brokers competitive with better contract terms and higher quality service. But there are some factors that make some Binary Options brokers better than others once you know what to look for.
When researching a Binary Options Platform keep the following points in mind.
- Some brokers pay out more than others. Always choose the platform that gives you the biggest payout, this is just common sense. Just like shopping for any other product or service choose the best value for money or in this case the platform that maximises your returns.
- You should choose a trading platform that pays out at least 65-70%. 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.
- Some platforms pay back as much as 15% when you are “out of the money” which is a little compensation for you when you get it wrong and is better than nothing. So, choose a platform that pays even when you lose and looking for “out of the money” returns will help you narrow down the choices.
- Always chose a platform that offers a wide range of common assets. This increases the chances of that asset being analysed, discussed or reported on. Your chances of finding good research on the assets increase as the variety of assets offered increases. The analysis and research you find online will help you make the “put” or “call” decision.
- Watch out for “extra” charges such as fees to deposit or withdraw funds. Some brokers have low or zero charges but many have hidden charges that do add up.
- Good support is key to a trouble free trading experience and any broker worth considering should have a good customer service support facility. You never know when you will need help or support. In addition, many have live chat and local helpdesk numbers.
- Good platform and website security is a must. Look for a platform that has 128 bit SSL encryption.
Contracts and Terms & Conditions will also list any payouts on “out of the money” if offered. This important document will also provide you with the list of assets offered, the range of expiry times offered and any minimum or maximum investment amounts allowed. One final point is to check what terms are associated with any bonuses offered, this is important as most brokers will require you to trade multiple times the bonus offered. The contract will give you a good picture as to whether or not that particular broker/platform suits your needs.
As the Binary Options trading market is relatively new, many of the brokers are new too and new brokers appear regularly. It is your responsibility to check them out by researching them 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.
Check out the reviews of our favourite brokers who all enjoy solid reputations and are probably the best in the business.
In summary, there are many variables and points to consider but you are looking for an honest broker, where your money will be safe and who gives you value. You need to try and maximise your returns, get something back if you lose, you need the widest choice of assets to tradewith minimal extra costs 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.