How to select the right binary options brokers
When choosing the right binary options broker, there are many factors that play a role towards one’s success in binary options trading. These factors range from your knowledge of the financial markets to the type of binary options broker that you choose to trade with. However, one of the basic aspects that determines your success in binary options trading, obviously starts with the binary options broker you choose. In this article, we define a few important points on selecting the right binary options brokers and tips that you can use a checklist to identify the right kind of binary options brokers to trade with.
What to consider when selecting binary options brokers
- Ease of use/Account Opening: One of the important points to bear in mind when selecting binary options brokers is to focus on the ease of use. For example, how easy is it to open an account and make your first deposit. If the binary options broker you choose to trade with requires a lot of documentation to verify your account, or it takes more than a few hours to make a deposit, then obviously, this is not going to work good for you in the long term.
- Security of Funds: Since binary options brokers tend to operate in an eCommerce model, safety and security of not just your funds but your information needs to be taken seriously. When selecting a binary options broker, be sure to check if they have the requisite SSL certificates. It also won’t hurt to read up a bit about the binary options broker to understand their business model. The sad truth is that of the many binary options brokers that are available today, hardly a few go to great lengths to secure your personal and financial information.
- Bonus Terms & Conditions: Everyone loves to get bonuses, but most hardly fail to read the bonus terms and conditions and often end up in a tight spot when they want to withdraw their funds. Checking through the bonus terms to see if there are any conditions specified will enable you to get a better picture and will help you from any misunderstanding and eventually any issues you might face while withdrawing your funds.
- Ease of Withdrawing funds: Different binary options brokers follow different procedures when it comes to processing withdrawals. So make sure you have a good understanding on the terms for withdrawing funds and avoid any bottlenecks or issues when you want to withdraw your funds. In most cases, withdrawals are fast and easy so long as your account is verified. It is a known fact that credit card withdrawals or withdrawals to eWallets are usually quick. Most binary options brokers offer one free wire transfer during a calendar month and any further withdrawals come at an extra fee.
- Customer Support: Customer support makes for an important aspect when choosing a binary options broker. Check if the binary options broker you want to trade with offers support via email/chat or phone. Another factor to bear in mind is how knowledgeable the customer support agents are in areas such as clarifications on your trades and so on.
Tips for choosing a binary options broker
When choosing a binary options broker to trade with, there are a couple of questions you might want to answer first.
- What assets/instruments will I mostly be trading?
- In what currency will I be making my deposits/withdrawals and trading?
- Are the price feeds provided by the binary options broker inline with market prices?
- Does the binary options broker provide support my prefered language?
- Does the broker have a local toll free number that I can contact them?
- Are the support times inline with my trading hours?
Answering the above questions will help you get a better picture and also helps you to narrow down the binary options broker you want to trade with.
When traders have problems with their binary options broker, in most cases it is due to misunderstanding the terms and conditions. Greed usually takes over logic and traders end up opening and funding their account with a binary options broker for all the wrong reasons. For example, you might find yourself trading with a binary options broker only because they offer great bonuses. However the problem is that if you read closely, the bonus terms would make it hard for you to withdraw at any point in time unless you met the trading conditions.
Binary Options Broker scams
Most traders tend to believe that the binary options brokers are out there to get their money which is why some if not most traders are usually wary of opening an account and trading with a binary options broker. Some go to great lengths to check if a particular broker is running a scam. There are times when you might come across one or two articles where traders complain. However, as we mentioned earlier, the so called “binary options scams” usually arise due to misunderstanding where in most cases the trader hasn’t done their homework well.
The above tips gives you a brief outline to bear in mind when choosing a binary options broker. By applying logic and not falling for greed, you will be able to find a binary options broker that best fits your trading needs.