There are many binary options brokers online. However, this does not make it any easier to choose one. If not careful you might easily and hastily pick the wrong broker. Furthermore, as much as there are some good genuine brokers who do an excellent job, there are also dodgy ones. Your ultimate goal is to invest your money wisely with a broker that is legitimate. If you blindly fall into the trap of shady broker, the chances are that you will not only get frustrated but lose money.
So, before you take the bold step of signing up with any broker and depositing your money, it’s prudent to take your time and do some due diligence. In case you don’t know what exactly to look for in your research, this article seeks to point you in the right direction.
So, how do you Choose your binary options broker?
Check if the broker’s address is valid
Technological advancement has made it possible for brokers to set up virtual offices in a city of their choice. This may make their company seem desirable, and that is exactly how they want you to perceive them. If you do a quick company search, you will figure out if it actually exists or they just have a virtual office. The bottom line is that if a broker cannot be trusted enough to give details of their location, why should you trust them with your money? Steer away from any binary options brokers without a physical office address.
Check if the broker is regulated
It is safer to trade with a broker who is regulated; this means that at least the broker’s business practices are subject to transparency and fairness. Being licensed may not mean that the broker’s legitimacy is guaranteed, but there is a good chance of them being trustworthy. Some of the common licenses that a binary options broker should have include financial regulators such as FCA and CySEC. For a broker to be licensed, they have to meet specific requirements such as the minimum capital deposit that enables them to settle claims from traders promptly.
Check the available tradable assets
Binary options brokers offer a variety of financial assets which are tradable. This may range from currency pairs such as (USD/GBP, GBP/EUR, USD/GBP) or commodities such as (gold, corn, oil, silver). While choosing a broker, check if they have the kind of assets you would like to trade your money in.
This is important because there are some assets you probably view as good investments and that is where you want to put your money. Brokers have an asset index on their site where information on the type of assets they have is listed. If you fail to get this information on the asset index, you can read binary options broker’s reviews on different blogs to find it.
Trading instruments
Trading instruments are similar across the board when it comes to selecting a binary options broker. Nevertheless, some brokers may have a few unique ones. Apart from the usual options which are touch/no touch, call/put and boundary options, it is possible to find other types such as Kiko and pair options. Depending on the option that you find more viable for your trade venture, you can increase your chances of realizing a better profit and minimize the involved risks.
Check the kind of expiry time frames offered by the broker
The common expiry period offered by binary options brokers are 15 min, 30 min, an hour, 24 hours or weekly. Other brokers offer short term options such as 60 seconds or even 30 seconds. With short term expiry time frames, the risk is high; you can easily and quickly lose money. To protect yourself from losing money, especially if you are not accrued a lot of experience in this trade, it’s better to stick with long expiry times starting from at least 30 minutes.
Profits and returns
Finding the right broker can make your binary options endeavors even more profitable. A good broker is one who offers high returns and payouts. Returns may vary, but mostly, they range from 60 to 80%. Nonetheless, settling for a broker with the highest return may not always be the most favorable option. There are other factors that come into play, so just ensure that you choose a binary options broker that suits your needs.
Customer support
Competent and prompt customer support is very important in any online service or business you wish to engage in. You need to make sure that you choose a binary options broker who has good customer support in place. They should be accessible, knowledgeable enough to tackle your issues and be able to offer a quick accurate response. More so, an excellent binary options broker should have a few avenues through which their customers can reach them, including call back, email and a live chat. This allows you to reach out to the customer support through your preferred method of contact.
Deposits and withdrawals
The speed of processing your withdrawals is also an important aspect to consider when it comes to choosing a binary options broker. The last thing you want is being bombarded with endless excuses by your broker while trying to withdraw your money. If other traders are complaining about withdrawal delays and other issues surrounding the process, that’s probably not the right broker to deal with. Also go for a broker who supports the mode of deposit/withdrawals that you are comfortable with, for instance, credit cards, Skrill, PayPal and so on.
Selecting the right binary options broker is paramount because it matters where you put your money and what you want to achieve. Whichever the case, the one thing you do not want is to incur losses especially through a bad broker. Therefore, it is imperative that you visit binary options brokers review blogs and read as much as you can as you embark on the choice of a broker. Experts provide in-depth information on the reviews concerning different binary options brokers. Once you are satisfied, you can comfortably venture in the binary options trade.
Author Bart Bregman, from investingstockonline.com
