The Best Binary Options Brokers
Option contracts wherein the payout is either a predetermined sum of money for successful trades or nothing at all for incorrect predictions are referred to as binary options contracts. It is the simplicity of binary trading that has made it immensely popular as a new investment vehicle. The basis of a binary trading is a simple yes or no proposition.
Recommended Binary Options Trading Brokers
However, you need to open an account with providers of online platforms for binary options trading. They are referred to as binary options brokers. They make available options on several different underlying assets from the world markets in four major asset classes Currencies, Indices, Stocks and Commodities. The expiration time of binary options contracts offered by these brokers can range from a few seconds to a week and even a month.
All said and done, the successful execution of binary contracts depends to a large extent on the binary options broker you work with. Therefore, the aim of this post is to provide you with some information about choosing the best binary options broker.
Probably one of the key aspects that you have to contend with when it comes identifying the best broker is regulation. It is always best to work with regulated brokers as they would be reliable and ensure the safety of your by keeping it in a separate account. In the US, binary options are offered only by Amex, Nadex and CBOE. In Europe, Cyprus Securities and Exchange Commission (CySEC) has stated regulating binary options trading platform providers. Malta and Japan have also initiated a regulatory framework for binary options. The binary market is largely unregulated as of now, but some brokers are genuine providers even though they are not operating under the purview of any regulatory authority. Therefore, regulation is important, but is not the only criteria to be considered.
#2: Customer Service
Best binary options brokers always offer very responsive customer service. This is a very important criterion you must look into because you would need to contact the customer service department for various requirements. Moreover, timing binary options trades is crucial for achieving success. If the broker’s customer service department is unresponsive, it can seriously impact your profitability. Therefore, you should check out before signing up.
#3: Trade Types
Different types of binary trades are offered by different brokers. Some brokers are also known to place restrictions, making it difficult for you to earn profits. If you are new to binary options trading, you may not be able to quickly discern such designs of dubious brokers. Experienced brokers often easily understand the devious methods employed by brokers. This is to say that you should exercise a great deal of caution when choosing a binary options broker to work with and realize your financial goals.
In fact, you should look out for binary options platform providers who offer transparent trading terms and conditions. In general, it is a good idea to open a free account with brokers that offer demo platforms, especially if you are new to binary trading. Demo accounts give an idea of the conditions that prevail on the broker’s real trading platform. Additionally, demo accounts enable you to try out certain strategies prior to implementing them on the real platform.
#4: Easy to Use Platform
The platform provided by the binary broker should be simple to use and easy to navigate. This is a very important point that you should check out because they enable you to execute contracts quickly. It is important to time your trades and you cannot afford to waste time searching for the right buttons to be clicked and navigating the platform. Therefore, you need to ensure that the broker you are planning to work with is making use of a platform developed one of the reputed companies in the industry.
If you are a person who is always on the move, it is also important that you ensure that the broker under consideration offers mobile apps. This will enable you to access your account from wherever you in the world.
Payout offered by binary options brokers for in-the-money trades is yet another criterion you must take a deeper look at. Best binary options brokers often promise to pay you profits of 70 to 90 percent on your investment in a contract. Some brokers promise to return a portion of your investment in a trade if your prediction is incorrect or the contract expires out-of-the-money. This often helps you to reduce your losses.
In general, you should look out for online binary brokers who offer a payout in the range of 70 to 80 percent for in-the-money trades and a refund of 10 to 15 percent for out-of-the-money trades. As your goal is to make money through binary options trading, you must choose a broker who offers the best payouts.
The five factors mentioned above are the key factors that you should look into in order to identify the best binary options broker to work with. This is not an exhaustive list and you must also consider the following aspects:
Does the broker offer underlying assets from all of the asset classes such as currencies, commodities, stocks and indices from the world markets?
What kind of contract expiration periods does the binary broker offer?
What about bonuses on deposits?
How much should you deposit initially before you start trading on the platform?
In how many different languages the platform and customer services are offered?
What options are available to you for parking funds into your account?
What is the company’s withdrawal policy?
All said and done, it is important that you invest some effort and time when it comes to choosing the best binary options broker. The uncertainties in the financial markets around the world are also contributing a great deal to boosting the popularity of binary options. Therefore, this is probably the best time for you to take a deeper look at binary options as an investment instrument.