For any novice trader, the only method to keep their investment safe is to place their trades with legit binary options brokers. It starts by selecting a broker who complies with regulations, offers a trading platform exclusively for binary options traders, and provides the requisite guidance, tools and tutorials for steering you to success.
Identification of Legit Binary Options Brokers
Whereas there are some binary options brokers that receive a specific license from regulatory authorities, many of them are white label firms. That is, they operate by leasing trading platforms that aren’t their own. Therefore, the assurance provided by such companies is always limited. In such cases, the trader’s money is safe only if the trading platform provider is regulated. Many binary options brokers do not keep the customers adequately informed of this and thereby place the client’s money at risk.
The answer to the question as to how binary options brokers make their money is a tricky one. These brokers earn the money that traders lose when they make wrong predictions. They also pay out when the trader makes the right predictions. Statistically, traders make about 50 percent wrong predictions. If the broker offers 85% payout for correct predictions, they receive 100% of the money for wrong predictions made by traders. However, legit binary options brokers often focus on how to keep their customers rather than worrying how much profit can be made when the traders lose. If traders consistently lose money, they would abandon trading soon enough.
In this context, reliable and established binary options brokers provide a number of learning tools to their clients. They offer trading platforms that offer trial runs for novice traders without the risk of losing their money. They provide state of the art graphic tools, online courses, ebooks, videos and tutorials that will help the traders learn how to place successful trades.
Practice Runs for Traders
When choosing legit binary options traders it is helpful for the novice trader if they can opt for one who offers a demo account. Though such simulations are not a must-do to become a professional, it helps to establish a certain rate of consistency in placing and winning trades. Actually, the novice can place trades of low value and practice without losing much money. The advantage of using demo accounts by new traders gives them the chance of seeking advice from serious and well established traders that the brokers have on offer. Some brokers offer risk-free trades that are executed with the real account. However, the trade is closed only if your prediction is correct. The money is then credited to your account. If your prediction is wrong, then the money is not debited from your account. It is usually the more established binary options brokers that offer risk-free trades as part of their trading plans.
Legit Binary Options Brokers
Regulations were established in the binary options trading field in the year 2013. A major risk factor in trading binary options was therefore removed. With regulations in force, there is a serious guarantee that these companies that comply with these assume the responsibility of their clients’ investments. It is important for the novice traders to choose binary options brokers of repute. Choose brokers that have established a name and have thousands of satisfied clients all over the world. The website and trading platform on offer should be well developed. Given below are some important features offered by some binary options brokers of repute:
Some legit brokers offer proprietary trading platforms which incorporate ample learning material, trading signals and a well-equipped educational center.
Some binary options brokers provide one-on-one training sessions with expert brokers and financial advisers. Most of the regulated brokers also a mobile app for traders who are always on the go.
There are binary options that offer free and exciting tools for use by the traders. They also provide binary trading signals for their clients.
Bonuses, Payments and Payouts
One other point to be considered when you choose legit binary options brokers is the profit that you will be able to make when you place trades with them. It is always important to find out the payout percentages that the brokers offer. Also important is the method that you can use to get the profits easily transferred (withdrawals) to your account. Some brokers require a lot of documentation and are likely to keep the payouts pending till they are complete. Legit binary options brokers ensure that payouts reach the clients promptly.
Additionally, many binary options brokers offer bonuses when the first deposit is made. Some brokers offer up to 100% as the initial bonus. Sometimes these promotions have their flip side too. Some brokers that offer bonuses place restrictions on withdrawals. Therefore, it is important to research all options before choosing a legit binary options broker to deposit your funds with.
In summary, it is important to choose only legit binary options brokers. Checking whether the broker is regulations compliant and whether they possess the requisite licenses to operate is of topmost priority. It is also important for the novice trader to be wary of the fact that trading with binary options is risky. However, the good news is that trader would be aware of the money he/she is successful in predicting the direction of price movement and the amount he/she could lose if the prediction goes wrong. If done right and trades are executed with the correct knowledge and patience, binary options trading can multiply your investments to great heights.
It is the simplicity of binary options trading and the uncertainty prevailing in traditional financial markets that attracts trader to the binary market. However, their success depends to a great extent on choosing the right binary options broker to work with. It is, therefore, important that you spend some time to research more about some of the legit binary options brokers that we have recommended in our site. This will ensure that you open an account with a broker that best suits your needs.