With so many binary options brokers out there, how do you know which one to choose? You can literally find over a hundred brokers right now, and some are much better than others. Our binary options broker reviews will hopefully make it easier when selecting. Making matters even more complicated, having the right broker on your side can be the difference between losing money and earning thousands of extra dollars. Our goal here is to list the facts that you need to know before you sign up for a broker so you can make an informed decision.
How to Choose the Best Broker
You want the best binary options broker, right? As you’ve probably guessed, there’s no one broker that’s best for everyone. Because we all have different needs, goals, and backgrounds as traders, different brokers will benefit different people in different ways.
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Regulation: Look and see if the broker you intend to use is regulated or not. A regulated broker is far more likely to be safe and legal. Regulated brokers are under the governing authority of some sort of industry watchdog, and you are far more likely to be safe at one of these brokers. The odds of a scam go down significantly.
Rate of Return: How much do successful trades at your broker of choice return? This is a tricky question because rates will vary within a single broker based upon the expiry of the specific trade and even what time of day you trade. However, this is a hurdle that is definitely worth passing. Let’s say you want to focus on the USD/JPY and at the time of day and at the expiry you want to trade it at, two different brokers offer two slightly different rates. One offers a 74 percent return, and one offers a 76 percent return. If all other things are equal, then the higher rate should be your choice.
Trading Platform: There are a handful of different software platforms out there. TechFinancials, SpotOption, Tradologic, and MarketsPulse are all widely used platforms with strong reputations. Some brokers offer in-house platforms, but these don’t tend to have the same reliability and reputation behind them.
Asset List: The assets that a broker has available for trade is an important part of your success. You wouldn’t want to trade at a broker that doesn’t have enough of the assets that you want to focus on to keep you successful. Almost all brokers offer a variety of currency pairs, stocks, indices, and commodities. Make sure that the broker you sign up for has everything that you want available and gives you room to grow as a trader, too.
Demo Trading: A demo trading account is a free money account where you can make real-time trades, but in a mock setting so that there is no risk to you. Most brokers have these available, but not many brokers advertise them. The typical rule to gain access to a demo account is that you must have a real money account set up and funded. If you have questions about this, get in touch with your site’s customer service department and they can walk you through the process.
Features: There are too many special features to list in this small area, but the unique combination of features that a broker offers is one of the things that can help set a particular broker apart for you and help make your decision a lot easier. Some features that you might be interested in include perks for larger deposits, such as trade coaching or a higher rate of return. Or it could be trade insurance or rebates. With these, you will have a small portion of your risked amount returned to you on the trades that you are incorrect with. If these things appeal to you, look around and see which brokers offer them.
Banking: Banking is something that we tend to not think about until it becomes an issue. It’s just one of those things that we expect to always go smoothly. Unfortunately, this isn’t always the case. How your deposits and withdrawals to and from your broker are handled is actually a really important part of your success. You want a broker that will help you and make this process as smooth as possible. The minimum amounts for deposit and withdrawal will vary from broker to broker, as will the methods by which you can fulfill these transactions. Most brokers accept credit cards, wire transfers, and online wallets. Some brokers will charge fees at the time of withdrawal, so you need to ensure that this isn’t impacting you negatively. You also want a broker that follows local regulations so that you know your money is safe and secure and is being used properly.
Customer Support: A site’s customer support team is another one of those things that you never put much thought into until there’s an issue. And when it’s your money involved, you want that issue resolved as quickly as possible. Customer service should be available by phone, as well as by email and live chat. If you have questions about anything to do with your trading or how to set up an account, this is where you should go. Customer service is there to help you be a better trader and to smooth over any roadblocks and answer any questions you might have. They should be accessible, prompt, and helpful.
Bonuses: Most brokers offer bonuses when you make a qualifying deposit. This is a good thing, but it’s not the most important thing you should be looking for. Think about it this way, if you are offered a $1,000 bonus, but never get to keep it, how does that help you? But bonuses really can help you as a trader. If you do get that $1,000 bonus, that can help you pad your trading account size and it could be enough to ensure that when you first start out and lose money that you are not losing all of your money. Brokers will have various regulations when it comes to how you unlock your bonus and when it can be withdrawn. If this isn’t easily found on their site, get in touch with customer support.
The bottom line is that a great broker will help you save a lot of time, and they will help you to become more profitable. You want a credible and legal broker first and foremost in order to avoid having your money stolen, but the rest isn’t quite as easy to figure out. Our checklist above outlines what things can help you to become more profitable. Of course, you will also want to check out the binary options broker reviews that other traders have left in various places around the web.
Various parts of the world have different laws that pertain to the trading of binary options. For example, in the United States, Nadex is currently the only fully regulated binary options broker. In Europe, binary options are much more accessible. As long as a broker is regulated by CySEC or another major regulatory body, they are considered to be safe for European traders to use. In Australia, ASIC is the governing force when it comes to binary brokers.
Some Helpful External Resources
Learn about the origination of Options Trading
101 Videos of How to Trade Options
Financial Instruments, system and exchanges based on realized volatility
Method and system for creating a volatility benchmark index – Catherine T. Shalen 2012
Binary options on an organized exchange – Donato Montanaro 2004
Transitions Between Graphical Images on a Binary Options Interface – Rich Jaycobs 2013
Related Content – Other Pages of Good Reading
However, thanks to the widespread appeal that trading has and the low financial barrier to entry that binary options have, you can find a reputable broker to use regardless of what country you are currently living in. If you have further questions about what brokers are allowed to do business where, you can find this out simply by looking around on most websites. If the site does not have a security certificate and is not regulated, then you know not to use that broker. Sadly, there are a handful of scam sites out there that have given great sites a bad reputation. Check through the list that we’ve provided, and you will be on your way to finding the best binary options broker for you.