How to select a binary options broker

How to Select A Binary Options Broker

With so many brokers offering binary option trading how do you select the one which is best for you? Binary option brokers come in many sizes from the big well known brands to the small niche players and they all offer differing styles of trading platforms, pay-outs, funding requirements and bonus structures, so it is vitally important that you select a broker that best suits your requirements. You also have to be aware that although most brokers are trustworthy and reliable, binary options have had their fair share of unscrupulous brokers who were just fronting scams, thankfully that know seems to be in the past as regulation becomes stronger and tougher. Ultimately the binary options broker that you select may come down to what is legally available for you, but in an ideal world you will be able to pick the broker who offers the best blend of reputation, payouts, software and reliability.

Below is summary of what most traders will consider when they are choosing which binary options broker to go with.

This is without doubt the most important factor to take into account, any broker which is offering a service in this arena should be licensed in a reputable jurisdiction. A regulated broker will always display they are regulated on their website along with which regulator and where. You should always check on the regulators site to ensure this is the case and not just accept the fact that just because they broker states they are, that this is actually true. Many binary option brokers are operating in countries where they are not registered, a good example is if you are a US trader based in the United States, there is only one legal brokerage for you to use. This brokerage is NADEX and is the only broker that is registered with the SEC, and can legally accept US traders, there are however other brokers that do permit U.S. clients to trade on their platforms. With binary option trading being a global trading mechanism there are other jurisdictions that regulate binary option brokers such as CYSEC, which is a securities and exchange regulatory body for Cyprus. GSC which is the Gambling Supervision Commission which is based on the Isle of Man. With all regulated brokers they have to adhere to strict rules of business and have to treat clients in a fair and transparent way and if a client believes they are being unfairly treated they can ask the regulator to investigate. Trading with a regulated binary options broker is essential and provides you with protection from unlawful practices.

The payouts which are available on a winning trade are set by each individual broker as there are no set rules, a good payout for most winning short term binary option trades is around 85%, while some brokerage may pay as low as 60%. The payout is everything in terms of profitability. Keep in mind that if you plan on trading binary options successfully, the payout is a major factor in how much money you will ultimately make or lose over time. The payout is second only the accuracy of price quoting of the brokerage.

Price quoting is another extremely important factor to take into consideration. In the past some brokers have been found out to be manipulating prices in the background to lower the winning percentage of their traders, this is another reason to only use reputable and regulated brokers.

Many brokers have become well known for being extremely slow at returning money to clients, or getting profits to clients. You want to avoid any broker which has multiple complaints online against them regarding the speed and the complications of their withdrawals. The last thing any trader wants is to have profits sitting with a broker which are they are not able to access.

When selecting your broker you need to ensure that they provide trading in the asset class that you are looking to trade along with a diverse offering should you wish to explore different trading methods. Not all brokers offer all the tradable assets available in binary option trading. Another important factor is to ensure that the broker offers the trade type that you are looking for. There are becoming more and more trade variants over and above just the basic put/call type. So if you are looking for a more complex trade type you need to check that the broker offers this.

Another key factor to take into consideration us the trading platform, you want software to be modern, easy to use, easy to understand and to provide all the information regarding the trading. Many brokers now offer a free demo account it is always best to take up this option as it will allow you to explore the brokers offering to ensure that it best fits your requirements. To sum up the most important thing is to do your own research in to a broker, never take what they advertise as a sure thing and above all ensure the broker is regulated. There are plenty of review sites and bulletin boards and traders love to talk and don’t just jump into bed with the first broker you come across.