How to Choose a Binary Options Broker?
There are scams in every business! And since Binary Options Trading’s popularity has been skyrocketing across the globe, it is an obvious target for hackers and brokers who are either incompetent or are willingly “pulling a fast one” on you. In the financial world, especially if you are just being introduced to it, starting out cautiously is always a good idea. Entering the binary options market could be tricky when it comes to finding a reliable broker that would cater to all of your requests. Binary options trading has been around for no more than five years. Just like every new successful market, it quickly became over-flooded with brokers. The more the supply, the more difficult it became to monitor and control them. According to our research, about 95% of binary brokers offer only over-the-counter services and aren’t regulated by any institution.
Simply put, the majority of binary options brokers are of unsure quality, lacking the backing of a government institution that could assure you your money is in safe hands. Therefore, entering the market slowly and asking these questions on time, can save you a potential money loss.
1. Is The Broker Regulated?
Checking and double-checking the credentials of a list of binary options brokers might seem like a hectic and time-consuming task. However, it pays off
knowing that there is a financial regulatory body, making sure your money is being dealt with precisio
n. In other words, always look for a broker that is under the regulatory framework of an institution. This tells you that there is someone making sure your broker will act in your best interest. Usually binary options brokers are regulated, based on the country they are operating in. In some regions, they are self-regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commissions (SEC). In the UK, in charge of upholding the binary options trading legal standard, is the Financial Conduct Authority (FCA). Other EU countries also have their respective regulatory organs (CySec, BaFin, etc.), which have the jurisdiction to trial your binary options broker, in case you get scammed.
2. What is The Trading Platform?
A good binary options trading platform should have an easy to understand user interface. In trading, the saying “time is money” has an even stronger meaning than usual. No trader should have to struggle with a web platform, because with every second passed he/she may be missing a big financial opportunity (especially if you are trading the 60-seconds option or your option is near its expiration time). Before registering with any broker make sure, the software you will be using is straightforward and easy to navigate. If you are an experienced binary options trader or like to follow the changes on the market constantly, it is probably a good idea to pick a broker who offers a mobile trading app.
3. What Can I Invest In?
A professional Binary Options Broker should offer a variety of ways you can invest. Apart from the most standard PUT/CALL (UP/DOWN) option, make sure your broker also has the 60-Seconds Option, the Touch/No Touch, Option Builder, and Boundary Options. Except for currency pairs, a good binary options broker, should allow you to trade stocks, indices, and commodities. Also, search for brokers whose platform has graphs with good history time frames, which go back further than yesterday. This will enhance your decision-making when trading binary options.
4. What Are My Payment Options?
When choosing a binary options broker your comfort should be your number one priority. Therefore, doing a quick read of the “Terms and Conditions”, regarding the payment and withdrawal methods, could be a good idea. Sign up with a broker that accepts the largest variety of them. You should be able to choose between at least being able to pay by credit/debit card, bank transfer, Western Union or Moneybookers (Skrill).
5. When I Lose Do I Lose Everything?
The upside of binary options trading is that there are no surprises when it comes to the amount you might win or lose i.e. as a trader you will be completely aware of the potential profit or loss percentage before even investing a cent. However, relatively unexperienced traders sometimes are prone to making bad investment choices.
6. Customer Service
Before depositing your money with any binary options broker, make sure your needs as a customer will be met. Clarity and communication are essential. Quickly scan through the website and see if there are enough languages offered? If there are enough foreign trading currencies offered? Do they have a 24 hour emergency hotline? Do they offer multiple ways to contact the customer service representatives? Do they offer bonuses to loyal users and how can you use it? Also, do not forget to browse through the Internet forums and read some of the opinions of other binary options traders. Are they happy with the services offered by the given broker? Do the answer quickly and thoroughly to the traders’ questions? In the end, a good customer service may be what will make you choose your binary options broker!
SCAM FREE BINARY BROKERS:
To save you time, we have selected the top 3 scam free binary options brokers in the list below:
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