Do you want to become a binary options trader? If yes, then the binary options broker that will choose will determine whether you will get the success that you are looking for or not. The popularly of binary options trading has increased tremendously over the past decade.
This is because binary options trading is highly profitable and straightforward. The worst thing that you can do as a trader is choosing a broker based on guesswork and emotions. We cannot dispute the fact that there are many legit brokers out there. We also cannot ignore the fact that there are many shady brokers.
You have probably heard stories of traders who have lost huge amount of money from unscrupulous brokers. To avoid falling into the trap of this crooked brokers, you need to do your research well.
Below are 10 tips on How to Choose Your Binary Option Broker.
1. Check if the broker regulated
Most traders only check if the broker is licensed. Although being licensed is a good move, the fact this remains that it does not prevent brokers from being crooked. There are many scam brokers who are licensed. In addition to checking if the broker is licensed, you need to go a step further and check if the brokerage firm is regulated by a relevant regulatory body.
If a binary options broker is regulated, then it means that they have proven to follow a certain code of ethics. As a result, such brokers are more reliable and trustworthy.
2. Ensure that you read the terms and conditions of the broker
Most traders don’t pay attention to the terms and conditions because of obvious reasons. They are long and boring to read. However, ignoring to read terms and conditions is a huge mistake. Most crooked binary options brokers know that very few traders read terms and conditions.
As a result, they usually take advantage of that to include certain things that are not friendly to traders. You should, therefore, read the terms and conditions section before you make your final decision.
3. Consider the broker’s experience
For how many years has the brokerage firm been in this business? The general rule of thumb is that more experienced brokers are more reliable and trustworthy. If a binary options broker has managed to render their services for a long period of time and has a huge customer base, then it means that most traders are happy and satisfied with their services.
Choosing a broker who is new in the industry is a big gamble. Chances are that you may end up choosing a broker who will disappear with your hard earned money. Experts recommend that traders should choose a broker who has more than 5 years’ experience in this industry.
4. Consider if the broker offers trading tools
Genuine and reputable brokers care about the welfare of their clients. Their main aim is not just to make profits at the expense of the trader. Instead, they provide important trading tools to also help traders make wise decisions when trading. Following your instincts can sometimes lead to you making costly mistakes.
The only sure way to increase your chances of making profits from binary options trading is by using trading tools such as indices, live stocks currency data among many others. This tools will help you analyze the market and make an informed decision when trading. Prioritize brokers who provide trading tools to traders.
5. Consider if the trader offers demo accounts
Demo accounts are very important, especially for novice traders. A demo account gives you a chance to practice and gain the much-needed experience without putting your money on the line. If you are new to binary options trading, then we recommend that you choose a broker who offers a demo account to practice before you get into the actual trading.
6. Check deposit and withdrawal options
Most binary options brokers have set deposit or withdrawal limits. This means that you cannot deposit or withdraw an amount that is below the set limit. Before you make your final decision, check to see if the broker has set deposit and withdrawal limit.
If yes, then check to see if they are manageable. If not, then you should search a brokerage firm that has a limit that you can comfortably manage. The deposit and withdrawal procedure should also be simple and straightforward.
7. Multiple asset investing
Assets offered by binary options brokers varies. There are some who only offer 2 assets while others offer up to 5 assets. We recommend that you choose a broker who offers more assets such as currency pairs, stocks, and commodities to traders. This will increase your profit margin.
8. Consider if the broker offers support
It is prudent to choose a binary options broker who will always be there for you when you need them. You should, therefore, choose a broker that offers customer support to its clients. Customer support not only shows that the brokerage firm cares about its clients but it also demonstrates their professionalism.
Choose a broker that provides multiple contact options including email, Skype, live chat, phone among many others. This will allow you to contact the support team using a means that you are comfortable with. The level of support also differs between brokers. Make sure that you are comfortable with the level of support that the broker offers.
9. Check the broker’s user interface
Before you make your final decision, take your time and analyze the trading platform that the broker has provided. Check if the trading platform is user-friendly and easy to use. Only choose a broker whose trading platform is efficient but easy to use. This will help you save time and effort that you would otherwise have used to learn how the platform works.
10. Check return and pay-outs
All binary options traders want to make more money from their investment. Choosing a broker who offers higher payouts and returns means that you will make even more money. In most cases, returns usually range from 60%-80%. Although there are many other important factors that make a good broker, finding a good broker who also offers higher return is indeed an added advantage.