Guide To Choosing A Binary Option Broker
Once an investor makes the decision to participate in the world of binary options trading, the question of which broker to select comes to the fore. There are a great number of these brokers, both foreign and domestic, and choosing from among them can be a daunting task. An overview of the issues relevant to broker selection should therefore be of use to any newer trader.
The proper level of governmental regulation will offer traders assurance that they will not be exposed to unscrupulous practices by brokers. At the same time, foreign-based brokers, because they are not subject to U.S. regulations, are able to offer types of binary options that U.S.-based brokers cannot. Aspiring traders must therefore weigh the pros and cons of each type of broker in making the initial selection between these two categories of brokers.
Trade Types That Are Offered
Binary options are available in a dizzying array of categories, and this is part of their appeal. In examining brokers, you will want to determine what range of trades is being offered. Equally important is the question of what limitations or conditions the broker imposes on trades conducted within that broker’s platform.
The payout rate for different trades is usually transparent, and is therefore easily compared among brokers. Other conditions, however, may be specific to each broker, and a new trader will need to examine these carefully to determine if they will substantially impeded the trader’s ability to make a profit.
Are They Customer-Friendly?
There is one aspect of binary options brokerages that is common to all service-oriented companies, and that is the question of how they treat their customers. Brokers at a minimum should offer live chat services for their clientele. Try contacting them, and see how they treat you. This is relatively easy to do, and the broker’s response will often be a “tell” as to the quality of their operation, not to mention the broker’s attitude toward its customers.
While a small number of brokers utilize their own proprietary software, the large majority use one of four platforms that have been developed to facilitate binary option trading. A new trader should try to become familiar with these platforms. In selecting from among them, the relevant factors will be ease of navigation, ease of trading, as well as additional software features such as a “demo” function to permit practice trading, and a mobile function to liberate traders from their computers.
Show Me The Money
What about the payouts? Obviously, this factor is also critical. The high-low binary option payout percentage, which for most brokers hovers in the 70% range, can be used as something of a benchmark. Other payout-related features, however, are also important. One of these is the question of whether the broker offers a variable option, permitting traders to exit a binary option prior to the expiry date. This allows traders to mitigate expected losses, or lock in lower (but assured) gains, at any time during the options period. This is clearly an advantageous feature, and one to look for in choosing a broker.
Once you have selected the broker who is right for you, a potentially rewarding career of options trading awaits you. Today’s market-driven binary options brokers offer a range of services designed to satisfy their equally diverse trading clientele.