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How to choose the best binary options broker?
Binary options trading is rapidly becoming one of the most popular online investment tools, we picked up the gauntlet and decided to answer the most frequent question:
How to choose the best binary options broker?
So you obviously looking for a broker that won’t scam you, will refund and allow timely withdraws, have the best free online learning tools and a decent support staff, have a wide range of assets and allow smaller trade sizes for the newer traders?
Here is our short top 10 most important factors, from our experience, when choosing a binary options broker
This factor is relevant to many different decisions in life but when it comes to binary brokers, more years active means more customers (satisfied and not so satisfied) which means more knowledge in funds segregation, hedging and giving better customer support and learning techniques to many different types of traders (novice, expert, large/small volume trader et. al)
Minimum first deposit and minimum trade size
- The lowest amount possible to start trading is called your first deposit and it’s value changes from broker to broker, for new and inexperienced traders a low first deposit means the opportunity of trading binary options while limiting the potential risk (and profits)
- The minimum trade size allows users to place smaller trades and thus risking less money, this is especially important for newer and spread loving traders who can place more trades at smaller stakes.
Upon registering to a any broker, every trader is eligible for a welcome bonus on top of his/hers first deposit, the bonuses are usually a percentage limited up to a certain amount from the user’s initial deposit. Although it gives the trader a nice leverage on a modest deposit it is also recommended to carefully read the terms and conditions for bonuses as they often include strict restrictions on withdrawing and using the bonus money.
Options profitability & refund rates
The profit range determines how much money you will earn on a successful trade. the wider the range – the better. Different brokers are powered by different trading engines and different risk calculations and it’s important to check with the broker’s support staff it’s profitability range and to what assets and trading types it applies (usually higher returns are attributed to riskier trading techniques like 60 seconds or to volatile assets)
Some of the brokers also offer a refund rate for some of the trader’s losing trades, The refund rate can be anywhere from %5 to 15% and more.
Deposit methods & withdraw
This factor is pretty easy, if you have a preferred online payment method – make sure you can deposit and withdraw with it from your chosen broker. It is also wise to check the payment methods tables in each broker to see if there are any hidden fees for money transfers or any discounts using specific methods.
Check what is the withdraw procedure and how long does it usually takes the broker to process a withdraw.
Most readers know that binary trading is the art of choosing one of two possible outcomes, however after a certain time some traders choose to expand and enhance their trading techniques and trade with different methods like one touch (touch / no touch), boundary, 60 seconds options, pairs, option builder and more.
In most times those trading methods increase the profit and loss chances and are designated towards savvy traders. It’s advised to check before depositing what trading methods are offered with the chosen broker.
In order to avoid currency conversion charges and make the trading as easy as can be it’s always good to check what type of currencies are allowed to be deposited and what types of currencies are allowed to be used as trading currency (not always the same)
Not all brokers offer their new registered users a chance to open a free demo account and simulate live trading. If you are interested in opening a demo account or starting with a demo account to better understand how binary options trading works – make sure that your broker offers such account.
Tablet / Mobile trading
If you plan to trade on the go, or just get live updates a good thing will be to check if such possibility exists with the binary broker you are interested in. Is it available and to what type of tablets or mobiles? is it a free app or just the same website – only adapted to smaller screens? If this is an important factor for you, don’t hesitate to register with several brokers and ask to try out their smartphone or tablet trading.
Support, assistance and learning
Does the broker offer free learning tools and/or assistance? (some brokers even offer free live daily video analysis) is it easy to talk to a support member or an options trainer? does the broker offer a free e-book or any type of one on one FREE assistance? if help and guidance are important to you, you MUST check what does the broker gives you before you give them your hard earned money.
To compare binary options broker based on the above factors, please see one of our binary options brokers comparison tables: