According to a few Forex brokers’ perspective, there are many issues that traders face when it comes to trading. Certain brokers do not come out very specific and direct about where they get their regulatory license from, especially with brokers who have offices in multiple countries or continent. With all these point taken into consideration, it is pretty difficult to select a good and reliable Forex broker. With binary options broker, the situation is a bit different.
It goes without saying that with the emergence of binary options as a new market come handfuls of new brokers offering the trading platform, and some are even being unregulated. If you value your money, then you would be in rights to be cautious of what you are unaware of. If you are new to trading in the financial markets, this can especially lead to confusion. Trading Binary options can be highly rewarding for experienced traders and first time depositors. However, how do you know which broker to invest with and whom can’t you trust with your money? What trading platform should you be using?
Taking Control of your Returns
Today there are a number of brokerage firm that offer various types of tools to traders, to assist them in their trades. Also, the one thing also that people seek are the percentage payouts, as it varies from broker to broker, ranging from 70% up to 85% on each trade. But the percentage entirely depends on the type of options you are placing your trades because the payout for certain types of options can be up to 300-400%. This way, as a binary options trader, you can have control of your money better and quickly calculate how much money you are going to earn, and how much you feel comfortable losing. Remember that binary options trading is an all-or-nothing industry.
The process of trading options is mostly done online, and there are web-based platforms where traders don’t have to make the move and can trade from anywhere. They even offer a responsive site where it has been made easy to trade from mobile devices. So, usually when you visit any options broker site, you are asked to “Open Account” in order to perform a trade. Then, you have to invest the amount you wish to invest. Normally, each broker offers different types of account that suit the traders wish. For you to open an account and invest money, these payments can be made in different ways; credit/debit cards, wire transfer, e-wallet, etc. In order to withdraw your funds afterwards, the same process is used. That is, wire transfers, e-wallet or transfer onto bank account. Generally is takes 2-3 days from the time of the request for the funds to appear in your account. So, make sure you check the fine clause before investing with a broker.
Options cannot be bought on margin, as they are “cash-only” trades. As binary options settle on the same day or within one business day, a sufficient amount of cash must be in your account to cover the amount of the trade.
Differentiating A Binary Options Broker From Others
Each broker has different rates and requirements, whether it be the types of accounts they offer, their payout percentages, the assets and commodities available on their platform to trade or ways of payments, always make sure you do a thorough research about the broker you wish to invest and trade with. Check out reviews, forums and do a comparison of your preferred broker with another of their competitors.
Regarding the assets and commodities available to trade on, not every broker offers all the assets. Some have a period of when you can trade on a particular asset and the minimum or maximum amount to invest. Usually these are mentioned on their site and you can make reference of it for your future trades. Buying calls and puts involves having cash in your account (which is how all binary options settle). You buy a call option or a put option, and you are limited to lose only the amount of your investment and nothing more. That way, your broker can never trick you or rob you. And, you don’t lose all your money on just one trade.
Regulation is one of the most troublesome issues that binary options traders are facing lately. As you are aware, proper regulation ensures safe and professional practices by brokers and also ensure that your funds are safe and that you are paying your trading profits accordingly.
A binary options trading platform should have in place, a responsive and friendly customer service assistance. There are some brokers that are notorious for having an offensive customer service department, who rarely give trader’s solutions or assist them with their issues. It is essential that you choose a broker who can provide live chat services that can assist traders any time.
These are some of the essential points that every binary options trader needs to know when researching for a good and secure broker to trade with. If you abide by these parameters, and add them to what you can gather from binary options review websites, then you can be sure that you are on the right path to choose a reliable binary options broker.