Binary options trading has long and firmly won the attention of brokers and traders around the world. In general, it is a very convenient tool for generating additional profits, and very significant. But there are a lot of scammers in this type of activity who collect money from gullible investors and disappear. How not to be mistaken in choosing a broker?
1. Reputation, licenses
First you need to check whether the applicant for your money has an appropriate license to engage in this type of activity. There are a sufficient number of authorities that control this type of activity: CRFR, KROUFR or CRFIN. Foreign brokers are subject to CySEC, FSA, CFTC, etc. But in addition to licenses, there is also a reputation. She can be judged by Binary Options Reliability Rating, reviews and recommendations. But obsessive-sugar or harshly negative reviews should also be viewed with suspicion. Reviews are often customized.
2. Trading platform
The presence of a trading platform with many complex symbols, blinking icons and jumping charts, on which nothing can be disassembled, does not mean anything. This can only be a diversion for the ignorant investor. The user should have a simple interface, the ability to quickly enter a deal and close it just as quickly if necessary.
3. Minimum bet and deposit
In order not to be mistaken in choosing a broker, you need to pay close attention to the minimum rate that a trader must use in his work. The deposit that participates in the concluded transaction always depends on the minimum rate. If the option rate is $ 10, then the deposit must not be less than $ 200. If a trader makes big bets, then he works only with the expectation of luck, in fact, he does not have a clearly developed strategy.
4. What is the percentage of payments (aka payout)
By this value, it is quite easy to understand in general how much income from transactions a trader will be able to get from this broker. In other words, a higher percentage of payments - the more profitable in the end for investors.
5. Toolbox
It is better to first check and make sure that the broker has all the necessary exchange-traded assets or instruments that he needs to implement the strategy. Each investor, in essence, prefers his own tactics and strategy. But the more tools a broker has, the choice of which often affects the strategy as a whole, the better for the investor.
6. Types of options
Often not making a mistake in choosing a broker does not work right away, because binary options are quite diverse. The classic option is to bet on an increase or decrease in some indicator. There are also more complex types. If an investor considers himself sufficiently experienced, he can bet on, for example, whether the price will leave the corridor determined by the broker or not, it will touch a given level or not.
The main thing to remember is that there is always risk. A broker is also a person, that is, of course, he strives to make a profit, plus he can make mistakes.The levels are calculated by them in general so that the probability of reaching them is not high.
7. Expiry time
Binary options transactions are concluded for a very different time, up to a minute or an hour. But in the absence of sufficient experience, it is better to conclude an order of magnitude longer time intervals. In this case, it is easier to avoid instant fluctuations due to various reasons. In order to predict the behavior of the asset chosen for the transaction in a short period of time, you need to have a lot of experience and knowledge. In general, when choosing expiration, it is better to proceed from the chosen strategy.
8. Deposit and withdrawal of money
The broker should not interfere with either the deposit or withdrawal at any time. The user must have all the possibilities for this. If the system for obtaining a deposit or profit is confused, if you are asked to wait, then it is better to stay away from such a broker. At one not very beautiful moment in time, you may not see money at all.
9. Bonuses
Everyone loves bonuses, especially just like that. But brokers are not in the mood to give gifts for “pretty eyes”. Some condition is necessarily hidden behind this. Investors may be required to complete a certain number of transactions in a certain time. In an effort to get a penny bonus, an investor can lose all the money in the account by opening uncontrolled transactions. Most often, brokers give bonuses to those who have attracted a new client and more than one.
10. Demo account
A convenient option for training. Here you can endlessly open and close deals, develop your own strategy. After that, you can already start trading on a real account. But staying on a demo account is also risky. There is no risk, as in real account situations, of losing money. Many start to open trades with high risk. Then this risk can be transferred to real transactions and burn out instantly.
11. Support
Basically, a good broker who takes care of their traders and investors is bound to have a support team on Skype, chat or phone. And assistance will be provided in the native language of the caller.
12. Supporting analytics
A good broker also provides users with up-to-date statistics, news, information that can affect the markets at a given moment.
Finally: do not try to conquer the whole world in one minute. Start with a small investment, try it out and develop your strategy. If it works, then the amount of the deposit can be increased, but also gradually, and not suddenly and immediately. And, of course, you need to pay attention to the broker's reputation in the market, his behavior, and attitude towards investors. In this case, there is an opportunity to make money on such an unusual business as binary options.