How to Choose a Broker
Are you interested in trading Binary Options because you think it to be a money-making machine? Then, the advice would be to try another path of income. Before beginning trading it is mandatory that you know how to choose a broker. Binary Options, when traded using proper strategies may result in asset (profit). But it does not mean that every time you trade you are going to win it. Trading Binary Options involves a fair share of profits and losses. So, forget thinking about Binary Options as the easy way of earning money. If you want to sincerely trade the underlying assets or commodities then, you should start browsing through the various articles on trading Binary Options. It is also necessary to understand the market sentiment.
Brokers play a pivotal role in trading Binary Options. Today, a large number of websites claim that they are the top Binary Options broker and their clients have experienced 100% successful trades. As the network is cluttered by these websites, it becomes difficult to distinguish a good broker from a fraud one. The task is doubly hard for the beginners. This article takes special efforts to distinguish between the registered and the fraudulent.
Salient Features of a Binary Options Broker
Authorisation and Regulation:
The first thing to check when you visit a Binary Options brokerage website is whether it is regulated or not. The broker website must have some certificate from at least one of the regulatory bodies to prove its authenticity. For attaining a regulation number the website has to go through certain steps to meet the standards of the authority bodies. Some of the popular regulatory bodies are:
- CySEC or Cyprus Securities & Exchange Commission
- EU or European Union
- FCA or Financial Conduct Authority
- BaFin or German Federal Financial Supervisory Authority
- CNMV or Comisión Nacional del Mercado de Valores
Demo accounts are essential for not only the neophyte traders but also the veteran traders. The top Binary Options brokers allow both their potential and loyal clients to use the demo account. The traders will be able to do backtesting through the demo account, to understand a market sentiment. It provides live trading like environment such that the traders can improvise their Binary Options trading strategy if required. The demo account is free for everyone.
The top few Binary Options brokers usually provide various tradable assets to their clients, for instance, commodities, currency pairs, Indices and stocks. The commodities include gold, wheat and cotton and currency pairs include EUR/USD, USD/GBP, USD/JPY and so on. You should check whether the underlying asset you want to trade is in the ‘Asset Index’.
You should always opt for a Binary Options broker website that provides a user-friendly platform. Other features include high loading speed and accurate trading charts. The trading platform should be compatible with both the desktop and the smartphone format. You should also see whether the brokerage website has a mobile app or not.
Call and Put binary options and One Touch and Boundary are some of the standard trading instruments that are provided by all the Binary Options brokers. Other than them, there are many trading instruments that are offered by the renowned brokers.
A good Binary Options broker will provide 60 seconds to weekly option expiry times. So, you can choose the 15 minutes, 30 minutes and the hourly expiry options. The beginners should start with the 30 minutes and 1-hour trades.
Profits and Returns:
Trading Binary Options ends up in ‘asset’ or ‘nothing’. Top Binary Options brokers like IQ Option offer a payout percentage within the range of 60% to 85%. The payout percentage depends on various factors including the market condition.
Financial tools is one of the important factors for trading Binary Options successfully. You should not solely depend on your gut feelings or luck. This way you are going to simply lose the trade. Therefore, technical analysis through the patterns and charts is vital. Once you have some knowledge on the present and past scenarios of the market, you will more likely devise a strong trading strategy. The financial tools that will help you to trade the options include commodities, live stocks, indices, currency data and economic calendars.
Deposits and Withdrawals:
Another thing to check before opening a live account on a Binary Options brokerage website is the deposit and withdrawal process. It is essential to ensure the safety of the deposit and withdrawal process. You will most probably find all the Binary Options brokers allowing their clients to deposit and withdraw through bank wires, credit/debit cards. some other methods of payment and withdrawal include E-Wallets like Skrill, Qiwi, Yandex Money and Money Wallets.
The broker you decide upon should have a 24/5 or 24/7 customer service portal. They should immediately respond to your queries and help out. The priority of the Binary Options broker website should be their clients and their profit. Many brokers have in-house Binary Options connoisseurs who advise the beginners and can help them strengthen a trading strategy.
How to avoid Binary Options Scams
- Check the registration number of the Binary Options broker website.
- Check how many years of experience the broker has.
- Go through the reviews posted on the brokerage website. There are many websites that give professional reviews on various brokers. You should consider reading them.
- You can search about the website in any search engine.
- You can also visit their social media pages if there are any.
- Check whether they offer excessively, unreasonably high payout percentages (300% or 500%).
- You can interact with the Binary Options Customer Support group to know more about the brokerage website.
- Search out Binary Options brokers that offer a 100:1 or greater leverage.
- Don’t register with an unregulated broker.
- Do not choose a brokerage website that does not offer free demo accounts.
- Some brokerage websites offer lucrative bonuses to attract the inexperienced traders. Most of these websites turn out to be a scam. So, do not go by the bonuses offered.
- Price manipulation is just one of the tactics implemented by the scam brokers. It is easy for a broker to change the price on your account. You will be able to immediately detect such manipulations. Leave the brokerage website immediately to avoid further loss.
- If you find that your account manager is trading without your consent then, it is most probably a scam brokerage website. Recognise the sign and cut all ties with the scam broker.
As you can see from this article, there are many ways you can recognise a scam broker from a regulated Binary Options broker. IQ Option is a Binary Options broker website that follows the guidelines of the regulatory authorities and offers a large number of underlying assets or commodities to their account holders. Security is a major issue as you will have to provide some details like your account details for a transaction and email id and identity proof. Therefore, the safest way to do Binary Options trading is to register with a regulated broker and you will also be able to withdraw your profits at any time.