10 Tips For Choosing a Binary Options Broker
Below are all the aspects we consider when choosing a broker. As all have various pros and cons it is often a case of finding the right balance i.e. less asset types but better payment methods or higher deposit requirement but also higher government regulations. Please note that these are our personal tips and we strongly recommend you consult a licensed financial advisor before making any investments.
- Regulation: We make this point repeatedly throughout this site and highly recommend you only deal with brokers who are regulated by a well known government body (ASIC, FCA, CySec etc.) This way we know the broker is required to follow strict operational and risk management procedures and it provides extra protection to traders.
- Customer Support: Make sure there are multiple types of communication available. At the very least your broker should offer phone and email support during market opening hours, Monday to Friday. Some now offer a live online chat feature 24/7
- Deposit and Withdrawal Methods: Carefully check the payment methods. It is especially important when dealing with a foreign broker. Some will only accept USD and EUR while others who operate internationally may accept a variety of currencies.
- Returns: Mostly brokers offer payouts of between 170%-180% of invested capital for winning trades. Give yourself the best chance and choose the broker with the highest, an extra 5-10% return is significant in the long run.
- Option Types and Assets: There are various types of binary options, most platforms will offer the standard high/low type. If you are a short term trader you want to make sure they offer short term options (30 sec, 60 sec, 5 minute etc.) Also check the assets offered, while most brokers will offer many currency pairs (AUD/USD, USD/JPY etc.), only some will offer trading in stock indices (Nikkei, Hang Seng, Dow Jones etc.) and commodities (Gold, Oil).
- Mobile Trading: Nearly all brokers offer this these days, but check if they support trading on all your mobile devices (iPhone, Android, tablet).
- Trading Resources: Most brokers offer comprehensive platform walk-throughs and demos, fundamental and technical trading education, market analysis, news feeds and trading tools.
- Demo Accounts: Make a few test trades on their demo account to get a feel for the platform. Most brokers will offer a free demo but some will require you to sign-up first.
- Bonuses: Check the conditions carefully! Many brokers are offering large bonuses but with very high trading volume requirements, which makes it almost impossible to receive.
- Minimum Deposit: This is the minimum deposit amount to open a real account. It varies among brokers but is usually around $10-$250.
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