Trading in binary options begins with finding a broker. More profits can be earned and withdrawn if a right broker is found. But how does one identify the best binary options brokers, especially since there are so many brokers out there?
Here is a list of criteria based on which brokers can be classified as the best brokers for binary options. And for those having lack of time and looking for some quick recommendations, they can check out these potential binary options brokers on the binary advisor website.
1. The broker should be licensed and regulated
A licensed broker is traceable. Regulatory authorities stipulate conditions for accounts maintenance and prescribe the format for contracts so that only authentic deals are possible. Effectively investor or trader is protected against any potential losses if the broker winds up the show. While verifying such regulated broker, it is also necessary to confirm whether the claims made by the broker are real and the license is valid for the year in which the trading is being done. Brokers should be regulated by more than one such regulatory authority because different asset classes are governed by various regulatory authorities. It is also advisable to opt for a broker regulated by regulatory authorities from more than one country.
2. Broker should have good track record and reputation
Leave the new brokers for experienced investors who can better recognize a reputable broker amongst all others. Traders should know how reliable or unreliable such a broker is and the extent of risk they should be taking with such brokers. This rule is valid, even if the broker has a license, and is regulated. Check the reputation of the broker on the net, mainly go through the complaints. Opt for brokers who do not have many complaints against them. While this is not always the best way to judge an agent, but it is a safer way.
3. Broker trades in the Binary Options of your choice
You may want to play in options based on stocks, especially stocks traded on NYSE, but the broker may offer only stocks traded on FTSE or binary options on forex. That puts you in unfamiliar territory, right? Obviously, it is you who needs to do your homework by confirming whether the broker will let you trade in the asset class of your choice. Remember, none of the options brokers facilitate trading in all asset classes across all countries, at least for now.
4. Access from different countries
Its traders may not have received a license to promote trading in some asset classes in any country. This too needs to be confirmed. Therefore, investors and traders from that country will not be around to increase the market size. It is better not to presume and be sure about what is needed rather than join and regret later.
5. Ease of Transaction
You should be able to transact quickly, be it removing or depositing money, and placing orders. Actually, the broker should offer fast, reliable, and secure trading platform, apart from facilitating smooth movement of funding. Also, the broker should have a policy about payments that is acceptable to you.
6. Choice in duration
The trader should preferably let you increase or decrease the time duration of the contract on payment of an additional fee, and also offer you contracts that are for an extremely short period such as 60 seconds.
7. Social trading
This has become a norm nowadays. Traders, especially inexperienced traders can copy the portfolio of successful traders on social networks.
8. Tutorials, demos, live streaming, and compatibility with the devices
The broker should offer live streaming of the selected asset price movement, and tutorials as well as demo accounts. In addition to these, there should be analytical tools that give real-time analysis. All such features should be compatible with the devices and systems that the trader intends to use.
The binary options traders should offer only genuine bonuses. Usually, such bonuses are trapped to lure the trader to over commit.
10. Leverage conditions
Leveraging is common in all types of trading because it offers an opportunity to increase profits. However, corresponding losses can also be substantial depending upon the interest rates that the broker charges for extending such finance.
Selecting the right broker for binary options trades is the first step. Merely opting for best binary options brokers does not guarantee profits, but it at least guarantees genuineness in the contract, apart from convenience.