When it comes to trading Binary Options, profitability is not only determined by the actual trades that you are undertaking but also through your choice of the best Binary Options broker. There have been a number of stories online about Brokers taking their clients for a ride. These include such practices such as rigged trading platforms and not paying out.
Moreover, the effectiveness of the trading platform, the efficiency of the ongoing customer support as well as the security of your deposits are crucial to your trading success. Yet, with so many brokers to choose from, a potential trader may be overwhelmed.
In this short overview, we will give you some important details that you may require in order to make the most informed decision.
Regulation
Regulation is perhaps one of the most important requirements for a Binary Options broker. This is after all your right of recourse should there be any disputes with a broker. There are a number of brokers which operate without any regulatory oversight and should be carefully scrutinized.
In the United States the Commodity, Futures Trading Commission oversees regulation. In Europe, under MIFID regulations, any EU member state’s regulatory body is considered equivalent to the other states. Most of the global binary options brokers are registered with Cysec (Cyprus securities and exchange commission).
Given that Retail Binary Options trading is a relatively new industry, Cysec is in fact one of the first regulatory agencies to have a protocol in place to handle client concerns.
Trading Platform
The broker’s trading platform is crucial to your trading efficiency. The effectiveness of the platform does, in the end determine the profitability of your trading. When choosing between brokers, be sure to ask what technology is behind their platform. Some of the most reputable platforms are Spot Option and Tech Financials.
A well designed user experience can ensure your long term satisfaction with the platform. When making a trade, you should be able to quickly and effortlessly navigate to your tool of choice. Similarly, having a platform that provides an extensive range of assets to trade is by far preferred.
Lastly, mobile trading is becoming an important requirement as investors have become considerably more busy. Given that some markets are nearly always open and that an investor can’t be behind his computer screen 24/7, a mobile trading option goes a long way. Be sure to ask your broker what mobile functionality the trading platform has.
Many Binary Option Brokers provide trial accounts for their trading platforms. This will allow you to get a sense of how well the platform works and how well suited it is to your needs.
Security of Funds
The Binary Options Broker that you contact should have adequate safeguards in place such that your funds are safe. You should ask the broker whether the funds are held in an account segregated from the broker’s own bank account. This can ensure that irrespective of the finances of the broker, your funds are safe.
This also ensures that a broker has adequate liquidity to pay out investors who make winning trades.
Customer Support
Once you have registered with the broker, ongoing customer support is an essential part of your trading experience. There can be nothing more frustrating than having a broker who does not respond to your queries or complaints.
This is where you can test out the broker by attempting to contact them with your particular questions related to the platform etc. If the broker is responsive and knowledgeable, it is more likely that they will be regularly responsive. Of course, one cannot be 100% certain this customer support will continue in the future. That is where Binary option Broker reviews come into the picture.
Read Reviews
Given the extensive amount of Binary Options Brokers on offer, there are a number of websites and forums where these brokers are reviewed. These reviews will allow you to get impartial reviews from others who have used the broker and traded with it.
If a broker has used deceptive methods with a number of previous clients, you can be certain that they will have generated a lot of bad publicity for themselves. There are also a number of sites that aggregate user ratings and combine them into an average rating for the broker.
Conclusion
Like choosing the exact assets to trade and the time when to enter and exit the trade, choosing the right broker is your first big investment decision. Sometimes, with a bit of due diligence and persistence, you can find a broker who ticks all of your boxes and with which you can have a pleasant and mutually beneficial relationship going forward.
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