Choosing a broker is an important decision that can improve or decrease your chances for success while trading with binary options. Choosing the right broker will allow you to trade with binary options based on the assets that you know the best, will give you a higher return on options that mature in the money and will make the trading more fun. Choosing the wrong broker can make it harder to make money and harder to find the motivation to continue trading. A good broker should make it easy to trade and easy to make money.
If you do end up choosing a broker that has a trading platform that you dislike, a broker that doesn’t offer the options you want to trade or that otherwise make it hard to make money then you shouldn’t be afraid to leave that broker and choose another broker instead. Do not give up on a broker to early, but do not stay with them too long either unless you enjoy their service. There is nothing wrong with trying several brokers before you decide which one to use long term. Doing so gives you a better idea of what you can expect from a broker and allow you to evaluate the different brokers from a more informed perspective.
What is important to you
The first thing you should consider before you chose a binary options broker is what you are looking for and what you want to get out of your trading experience. If you do not know what you want then it is almost impossible to find it. Start by making a list of everything that you are looking for in a broker. Put things that are important to you near the top of the list and less important things closer to the bottom.
Some things to ask yourself while making the list includes:
- What types of assets are you most interested in trading in?
- What type/s of binary options do you want to trade. Regular, super short, exotic or something else.?
- Do you want to be able to exit the position early?
- Do you want to be able to trade other instruments such as FOREX, CDF:s etc as well.?
- Do you want to be able to trade on your cell phone?
- Do you want to be able to create your own options?
- Do you want to be able to trade in a language other than English?
- Do you have an special preferences when it comes to deposits and withdraws?
- Do you want a bonus?
- How much money do you want to deposit?
- How much money do you want to invest in each trade?
- Do you want the broker to offer a VIP program?
- Is there anything else that is important to you?
What is important in a broker
You now have a list of the things that is important to you. The things that you look for in a broker. These are all the things that make a broker more or less suitable for you needs.
The list is a good start but you can not rely on it completely. There are a number of different things that you should always look for in a broker. Things that are important regardless of whether they are on your list or not. They are universally important for all binary options traders. These are:
- Does the broker have a good reputation for being fair and honest. No broker will have 100% happy traders. Some investors will end up loosing money and blame the broker instead of taking responsibility for their actions. Even the best broker will have a couple of bad reviews in forums and personal blogs. If a broker have more than their share of upset customers then it is best to avoid trading with them. It can often be a good idea to read the bad reviews. You can often read between the lines to see if there is a honest reason for the complaint or if the trader is just venting frustration over his own failure.
- Does the broker pay out money quickly when you request a withdraw. There will always be some people who have problems getting their money out due to having moved or want to transfer them to a credit card in a different name then the one they used when they deposited the money. A few complaints is therefor normal. If you can find a lot of examples of people who does not seem to have done anything wrong but that still have a problem withdrawing their money then it can be better to choose another broker.
- How much do the broker pay you when an option matures in the money. The higher the payout the easier it is to make money while trading. It is important to look not only at the pay-rate but also at the spread IE how far the underlying asset have to move for the option to mature in the money. You should be looking for the highest possible return for the lowest possible spread. Divide the return with the spread to get a comparable number.
Always read review websites
I recommend that you always visit at least one review websites to see what they have to say about the broker you are considering. See what they have to say about it. This gives you a better idea about the broker and reduce the risk that you accidentally chose a scam broker.
Always choose a regulated broker!
You should always choose to trade with a regulated broker. A licensed broker. Unregulated brokers are free to do what they want and there is often a reason why a certain broker is unregulated and unlicensed. A common reason for this is that they do not adhere to the rules that are required to get licensed. The number of scam operators are a lot higher among unregulated brokers than they are among other brokers.