How to choose a binary options broker

Trading binary options is a priori impossible without a brokerage company whose mission is to provide a private trader with all the conditions for making deals. In fact, the success of trading directly depends on the quality and reliability of a brokerage company, which means that the primary task of a novice trader is to find a broker that will allow you to really earn money, and not just play with quotes.

The popularity of binary options trading around the world has led to the emergence of an incredible number of brokerage companies. At the end of 2014, the number of existing binary options brokers reached a record high of 800 companies. Of course, such a glut of the market did not go unnoticed by state regulators, and by the beginning of 2017, only 20% of the most stable brokers from this number remained in this niche. However, this does not mean that even today new companies do not stop appearing and scammers have disappeared from the market, which means that even with an improved assortment of brokers, you can fall for rogues.

Important Criteria for Selecting a Binary Options Broker

So, in order to choose a broker who will not cheat, cheating with quotes, and in other ways not letting you win, you should look for a company according to the following criteria:

  1. Presence of regulation;
  2. Own trading platform;
  3. Loyal trading conditions;
  4. Quality additional services.

Why do these parameters matter? Consider the importance of each separately.

1. Binary options broker regulation

So, your first criterion in the search should be that the broker has a license from the financial regulator that controls its activities. The fact is that only stable companies whose services meet certain standards can go through the licensing procedure, so the presence of a license will confirm that the company operates legally. Often, the presence of a certificate from the regulator is reported on the main page of their website.

That is, the presence of a certificate is a guarantee that the broker is not a scammer, will not disappear the next day with your money, and all your investments are insured in the compensation fund.

2. Own trading platform

An option trading terminal is your main source of income, so its technical equipment and quality will determine how easy and profitable you can trade on binary options. When binary options first appeared as a financial instrument, all brokers offered terminals based on the SpotOption or TradoLogic platforms for trading, but progress has long gone ahead, and these trading software have remained at a primitive level. Therefore, today it is unrealistic to trade profitably on such terminals — they not only cannot withstand the price flow and shamelessly hang, but also do not allow you to correctly predict the market due to the lack of technical tools.

However, there are brokers (for example, Binomo) who have developed their own trading software, on which you can use the full potential of binary options. Such platforms are equipped with widescreen graphics with many options, technical and graphical analysis tools, and also work stably.

Absolutely any trading strategies will work on «self-written» platforms of brokers, without which profitable trading is impossible. Moreover, it is these terminals that are equipped with a real demo account, which allows you to practice using various analysis approaches in real market situations using virtual money.

3. Loyal trading conditions

Even if you are ready to invest a very large amount of money in trading, you need to look for a broker whose trading conditions will be the most minimal. For example, the best option is when the minimum deposit amount requirement is from $10. This means that the company allows you to decide how much you can invest in trading, and does not require you to replenish your trading account with 200-300 dollars right away. In addition, in companies with a minimum deposit, the option amount is also minimal and starts from $1, which will allow you to flexibly manage your capital and calculate risks in the future.

4. High-quality additional services

Additional services include free training. And where without it? If you are a beginner trader, then you first need to understand the essence of binary options and the principles of trading. Only in this case you will be able to really earn in the financial market. At the same time, the word “education” does not mean a few general articles about “binary” trading, but a full-fledged training course that allows you to get all the information base that is necessary for profitable trading. Such will be interactive books, step-by-step instructions, video tutorials and exchange dictionaries.

Thus, by choosing a broker that meets all the specified criteria, you will significantly increase your chances of actually making money on binary options.

Similar articles

We use cookies to give you the best experience on our website. By continuing to use this site, you agree to the use of cookies.
To accept
Cookie policy