One of the key decisions you will make when you are trading binary options is who to trade with. How do you choose a binary options broker?
Binary options are relatively new financial trading instruments- so many of the existing brokers haven't been around that long- certainly not long enough to establish a well known brand. But that's changing, as the industry matures. Many of the more established online forex operators have also moved into the market, so you now have a choice between binary options specialists and more established financial companies. Which one you choose will depend on your circumstances, so we've tried to summarise some of the criteria you should be looking at, in order to help you make the right decision.
The good news is that there is plenty of competition in this market. If you spend a bit of time investigating your options, you should find some competitive deals out there.
Make sure you consider the following criteria:
Payout on winning trades can vary- obviously the biiger the better, but the old adage also holds true: "if it looks too good to be true, it probably is". You should try and choose a broker that offers fair returns- at least 70% on a winning trade. One of the advantages of trading binary options over leveraged financial products, is that you know exactly what your risk and pay off is for each trade. So do your research!
Some binary options sites also pay some money back (up to 15%) when your trade is “out of the money”. Look out for these too. It's always good to get cash back on losing trades.
You'll want to be able to pick and choose what you trade- not all forex pairs will see much action during a trading session- you need to be able to pick a financial asset whose price is moving- hopefully nice and steadily in a trend. Research the assets and make an informed decision on whether to make a “put” or “call” bet.
Always read the small print and be aware that many brokers may charge extra for making deposits or withdrawals through certain methods. Investigate this up front and you won't have any nasty surprises later.
You are always going to need to ask for help at some point, whether that's technical help or banking help. Make sure you are happy with the channles of communiction that the broker offers. Do they have a free phone number (toll free) for instance? Or a chat option. What are the hours? 24/7 or less? Check the support out- give them a ring!
You are going to be depositing and withdrawing from the platform, so make sue it uses the lates security with 128 bit SSL encryption. Is the site on an "https://" address? It's easy to check- just look at the navigation bar in your browser.
Look Under The Bonnet
It is always useful to read the T's and C's of the broker- at the very least skim through them and try and pick out any odd looking clauses. Things to look out for are limits on withdrawing (there shouldn't be any as long as you have the money in your account), pay out rates (check these are constant and there are no unacceptable conditions) and so on.
You can get a good feeling for whether a broker has it's cutomer's interest in mind from their terms and conditions.
Binary Options Bonuses
Bonuses are a popular way for brokers to attract new business- make sure youread the promotional terms and conditions as well. In mant cases you must make trades to the value of a multiple of the bonus before you can withdraw. That's natural, as they don't want you just signing up for the free cash and then withdrawing it strraight away, but check the "trade through" amount and compare it among the different binary options brokers you are considering. These "trade through" requirments can go up to 20 times the value and beyond. It's all very well to take the bonus, but just understand what the knock on is. Are the "trade through" requirements applied to just the bonus, or to the (deposit + bonus)? That's another useful quaestion to ask.
Make sure you test the systems (you can often sign up for a practice account), so that you can see what the statistics and tools are like. Is it easy to reasearch the market? Is it easy and fast to make a trade. What is the charting like? Can you overlay financial indicators such as the MACD, for exampe, on to the charts.
Mobile Binary Options
Lastly, amny people like to trade from their phones and tablets these days. if you are that type of trader, make sure you test their apps out and have a play around with the broker on your iPad or Android tablet.
These are just some of the criteria that we use to compare and contrast different binary options brokers. We hope it helps you make a good decision.