Choosing the Best Binary Options Broker: What to Look For
Before venturing into binary options trading, the first step should be to find a competent broker. That you know about put and call options doesn’t make you a pro, which is why seeking professional assistance from a brokerage company is necessary. Besides acting as a bridge between you and the market, the company also contributes to you getting the most out of your trades in real time. You benefit from many things including professional tools like indicators, signals, graphs and more so, expert advice.
The popularity of binary options trading has grown over the years, and today, you will get a wide variety of brokers with a simple Google search. In effect, this has made choosing the best broker a challenging task for many people, especially those who are doing it for the first time. The good news is that there are a few things that you can look for to know that you are dealing with the best in the business. Better yet, you won’t have to look for them farther.
Top 5 things to look for when choosing a good binary options broker
The broker’s reputation
The first thing that should come up naturally when conducting your research is the reputation of the broker. How many people have they helped to trade? How many do they manage at the moment? Can their previous clients speak of good things about them? The reputation of the broker that you choose to use will determine how well your investment is managed as well as the possibility of getting what you deserve.
So be sure to check that the broker has a good history with its clients and if you can get in touch with some of its clients; even better.
Professional Trading Tools and Features
The difference between using a broker in your real-time trading and not using one include among other things the tools and features that they offer. These are aimed at making your trading more efficient and productive. They are supposed to help you to make the most when the market goes up and help cut loses when the market goes down. As such, a good broker should have effective tools and features to help you maximize your profits and tame the loses, but if they offer anything less than that, you better look for another one – they are many after all.
Terms and Conditions
The mistake that many people commit when looking for a binary options broker is getting carried away by the good words most of them use and forget to read the fine print. They say the devil is in the details and you want to be sure that you are acquainted with everything before putting the ink on paper. For this reason, take your time and go through the terms and conditions, noting the benefits that you are liable to and how the loses are handled.
A good broker will have its terms and conditions well-laid out in a simplified and straightforward manner to make sure that you understand. Be sure that you seek clarification when you need any.
Whether you are a seasoned trader or a beginner, a demo account comes in handy in understanding how your broker operates. This includes the ease of calling and putting as well as the effectiveness of the professional tools that they offer. This allows you to taste the waters before actually being part of it, and if you think that the platform is way better than those that you have tried before, then you probably will have found your broker.
It is a red flag when the broker doesn’t have a demo account. While it is not easy to find any without a demo account, it is good to ensure that it is offered.
So, you have been trading, and sometime in the night, your platform fails you. You try calling in, but no one picks your cal. Worse yet, they pick, and they offer more problems than solutions. What do you do? Another critical thing to look for in a good broker is the quality of customer support that they provide. To be sure, contact them and have them solve an issue that you have. If you are satisfied with how they not only handle the query but also how they treat you, you may want to consider.
Binary options are an alternative way to play the foreign currency (forex) market for traders. While they are a comparatively exclusive way to trade forex compared with the leveraged spot forex trading offered by a rising number of brokers, the fact that the maximum possible loss is capped and known in advance is a major benefit of binary options.
Binary option is well-liked to all types of traders – from low-skilled and part-time traders to veterans – because of its simple yes-or-no and all-or-nothing basis with high payouts. On the other hand, just like any asset, having high rewards also entails high risks. Hence, it is dangerous for you to be well-informed about this financial instrument and to fully know how it works.
In this article, we’ll march you through the top binary options brokers. Particularly, we’ll evaluate the following features of each broker:
Bonuses, if any
Supported trading platform
Significant where to hedge your funds is the first step to maximizing returns or, at the least, minimizing losses. It may also pay to know some fundamentals of the trade. For example, U.S.-based regulated exchange for binary options, recognized the top four traded forex pairs as:
EUR and USD
USD and JPY
GBP and USD
USD and CHF (Swiss franc)
The list indicates, more or less, where binary options are most well-liked. By the by, FXDailyInfo.com also pinned down the most popular time and day for binary options trading:
A Word of caution :
The challenge is to focal point on lawful brokers. For instance, the Chicago Board Options Exchange (CBOE) lists dependable binary options for US traders and runs the CBOE instability Index Binaries to track options movement. CBOE is SEC-regulated, which adds layers of investor security.
In the meantime, the nonprofit Financial Industry Regulatory Authority (FINRA) is a good resource for fraud alerts. For instance, just last March it released a warning that scammers are using these follow-up schemes targeting binary options customers.
Top 7 Popular Binary Options Brokers of Forex Markets.
1. IQ Option :
IQ Option was well-known in 2012 and it has favorable reviews on the internet. It uses in-house software for trading. Maximum returns are 95%. On the other hand, traders in the USA, Australia, Canada, Russia, Belgium, Japan, Turkey, Israel, Iran, Sudan, and Syria are not accepted. IQOption Europe Ltd. is famous for dependable broker services, as it is regulated by the CySEC. You can also easily sign up for IQ Option here.
UK-based Binary.com is a licensed broker regulated in the British Isles, Malta, Ireland, and the UK. However, US, Canada, Japan, Hong Kong and Costa Rica traders are not accepted. It is one of the more see-through companies in the industry that declares its owning company and market operations. Formerly the BetonMarkets, Binary.com blends gambling and trading but with transparency. It offers CFDs, FX margin and crypto trading via MT5.
Minimum deposit: $5 for e-wallet and $10 for debit and credit cards
Maximum returns: 100-1000% depending on contracts and trades
Bonuses: not specified
Supported trading platform: proprietary web, Android and iPhone
3. HighLow :
HighLow is based in Australia and is a regulated broker. It uses the MarketsPulse trading platform. Maximum profits are up to 90%. However, this broker does not allow US-based traders. Suitable demo account and mobile app are offered.
Minimum deposit: $50
Minimum trade size: $10
Maximum returns: 200%
Bonuses: $50 upon sign-up
Supported trading platform:MarketsPulse web, Android and iPhone.
4. Marketsworld :
Marketsworld is a regulated broker based in Great Britain licensed by The Isle of Mann GSC, a gambling regulatory agency in GB. It’s one of the few foreign regulated brokers where US traders are conventional. It trades in commodities and indices, but focuses more on forex and trading is fixed on a high/low digital basis.
Minimum deposit: $10
Maximum returns: 90%
Bonuses: up to $1,000 start-up bonus; up to 100% on trade
24Option has been online since 2010 and is a stable and reliable broker as it is regulated by the CySEC. It uses the third-party TechFinancials trading platform. Maximum returns are up to 88%. This broker does not accept traders from the US and Australia.
Minimum deposit: $100
Maximum returns: 88%
Bonuses: up to 100%; 25% or $500 (whichever is lowest) for first-time depositors
Supported trading platform: TechFinancials web, Android and iPhone
6. 365Trading :
365Trading is registered with the CySEC and based in Cyprus. It was founded in 2012 and has since traded in EU without issues. It primarily trades in binary options. As of this writing, US traders are not accepted.
Minimum deposit: $100
Maximum returns: 85%
Bonuses: up to 100%
Supported trading platform: proprietary, web, Android and iPhone
7. Ayrex :
Ayrex is based in the UK and has a pending application with CySEC. It trades in 70 assets and is focused on binary options. As of today, US traders are not accepted. Minimum deposit is at $25, one of the lowest, while the bonus is up to 10, 20 and 30% based on the amount of your deposit for Ayrex account holders. The broker uses a proprietary trading featuring instant withdrawals, which is unique in the niche. The interface is neat and lets you quickly jump to different trades. It’s ideal for short-term trading. High/Low options are also available.
Minimum deposit: $25
Minimum trade size – $5
Maximum returns: up to 85-90%
Bonuses: $30 no-deposit new account, up to 30% on the trade
Supported trading platform: proprietary, web, Android and iPhone
However, binary options have a number of advantages that make them especially useful in the volatile world of forex. For starters, the risk is limited (even if the asset prices spikes up), the collateral required is quite low, and they can be used even in flat markets that are not volatile. These advantages make forex binary options worthy of consideration for the experienced currency trader.