In choosing the right binary options broker, traders must consider several points. Some of them include considering regulations, deposits, and withdrawal.

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Choosing the right broker can be a fateful step that will determine your success in binary options trading. The increasing popularity of binary options among online traders have caused the emergence of many binary options brokers and the addition of binary options trading in some forex brokers' features.

It is a common knowledge that the more choices we have, the more difficult it is to find the best ones, as each of them has its own services with different quality and regulation.

Some specifications differ binary option brokers' quality from forex brokers' characteristics. In choosing forex brokers, traders need to consider hidden fees emerged from things like requotes and slippages, while binary options traders have to think over payouts and option types offered by brokers.

However, problems in deciding the best binary options brokers also arise from general matters, such as regulation,  deposit and withdrawal process, and customer service.

Thus, choosing a binary options broker can be difficult if you do not know what should be considered in each broker's features. Here are some points to consider when picking a binary options broker.

 

Regulation

To guarantee a safe and secure binary options trading, regulation is the first aspect to look for when reading a review of binary options broker. You need to acquire a good understanding in regulations that can provide assurance for your trading prospect.

You cannot just believe in what is stated by the broker. In fact, you need to search for more information concerning with broker regulations, since binary options itself is not yet regulated officially in some countries.

The dilemma with binary options is that it is basically a derivative of financial trading derivative, which makes many call it betting rather than trading. Still, despite of the regulation problem, some countries provide binary options license for brokers. Regulators like Cyprus' CySEC, France's AMF, Italy's CONSOB, Australian ASIC, and Germany's BaFin are some instances that issue bonafide licenses for binary options brokers.

 

Deposit and Withdrawal

A broker's quality can be easily discovered by its deposit system. Simplicity is what matters most in this area. If you have difficulties in depositing your trading capital, there is no guarantee for you to withdraw your money safely.

A good binary options broker should provide an easy, safe, and low cost withdrawal system for its traders. It also needs a trusted termination facility that warrants a safe withdrawal process when traders close their trading accounts. A broker's initial purpose is to keep the traders' money, not to manage it in their own will.

Hence, it should be able to provide a safe and easy withdrawal process when traders want to withdraw their money whenever they would like to. If you meet troubles in withdrawing your money, it is safe to say that your broker is irresponsible in managing it.

Choices in how to deposit and withdrawal can be a good point too in deciding a decent broker. Here, you should be provided with various ways to deposit and withdraw your money as in wire transfer, by credit card, or even e-payment. With many choices of different methods to choose, you will have a bigger chance to deposit and withdraw your money in the most convenient way.

 

Trading Software

With a good trading software, you can analyze market movements and place your option with ease. If you sometimes have troubles in your trading platform that do not come from your gadget's internal problem, you should seek other brokers with better trading software.

Watching the latest price movements, applying indicators, and placing options with certain expiry times are the most crucial parts in binary options trading. Your trading will not end successfully if your broker's software cannot properly support your trading.

Other than software quality, the accessibility of platforms through various gadgets also need to be considered, for technology advancements in this era has allowed traders to trade anywhen and anywhere. A broker with platform available in smartphones and other gadgets will be a better choice than those that only provide a desktop platform.

 

Payouts

Brokers usually offer various different payouts, depending on what the instruments and trading types used by the traders. Most brokers give fixed payouts in each area, but some give choices to traders in determining their desired payouts.

Different instruments have different payouts. The same thing goes with the trading types. For instance, EUR/USD has payout as much as 83% in high/low options, while oil's payout is only 73%.

Those instruments will have different payouts when traded in other trading types. Brokers usually do not offer refunds for out-of-the-money options. Thus, dealing with these types of brokers is a real all-or-nothing kind of trade.

On the other hand, there is also a kind of broker that gives you choices to pick your own payouts. Although ranges also differ for each instrument and trading type, you can choose the amount of profit and refund in your option. Here, the bigger the profit is, the lower the refund you will get.

For example, if you choose a profit of 80%, you will obtain the minimum level of refund, which is 5%. But if you pick a small percentage of profit like 10%, your amount of refund will be as high as 25%. This kind of payout can support your money management by either keeping your loss at a minimum risk, or by taking the highest profit in one option trading.

 

Trading Types

Trading binary options does not mean that you will forever stuck with choosing the right price movement by high/low options. There are also other kind of options like deciding a certain level in touch/no touch options, or determining a price range that is made possible by in/out of boundary options.

In this matter, you should be provided by a wide variety of trading types. Brokers with small numbers of trading types can limit your possibilities to gain profit through various ways. Furthermore, it would be best if you also learned brokers' policy in each trading types. Transparency in providing the rules is also important before picking a certain binary options broker.

 

Bonuses and Commissions

It is no wonder that the terms bonus or commission can attract traders' interest in far more promising ways than other advertising tools. It is normal since traders always look for profits and will not waste a single chance that will probably allow them to earn more. The catch is, brokers sometimes give bonuses which eventually inflict bigger loss than what the traders will lose when trading with no bonus attached.

It is certainly not wrong to make use of brokers' bonuses if they are realistic about it. You need to always remember that brokers always look for benefits. There is no way they give large numbers of bonuses without asserting certain conditions that will end up doing more harm than good to your balance.

Therefore, it is strongly suggested for you to not easily be attracted by unbelievably high bonuses. You can always make benefit of bonuses that offer normal comissions and usual conditions that do not burden you with more risks.

In this case. you can take an example from deposit bonus. As a rule of thumb, the bonus should stay lower than 40% for it to be considered normal. Brokers that offer deposit bonuses higher than that will have rules that will eventually make you suffer more losses.

 

Customer Service

Brokers with proper system should be supported by good customer service. You can check their quality by calling their service center and see how they manage questions and complaints. It makes a difference when you trade in a broker supported by a very informative, amiable, and communicative customer service.

Aside from helping you with the troubles you may find when trading with a broker, a nice customer service also signifies broker's transparency level. A decent broker surely needs to be very transparent as it will keep your money for you to manage by trading. Low transparency can indicate a scam broker.

Though seems trivial if compared with payouts and trading types, customer service is one feature that determines a broker's real quality and reliability. Service support availability in other systems like e-mail and live chat can be a good point to consider when judging a broker's customer service.

A broker with more active customer support is highly unlikely to scam traders. That being said, trader should always be careful when choosing brokers.

 

Privacy Protection

When you open an account in a broker, you must fill out a registration form with your private identity and bank account. You should assure the privacy policy of your broker before trusting it with your most private data that may expose your identity and financial security.

The aforementioned points are meant to be parameters for you to consider before choosing a binary options broker. You can read broker reviews or perform a complete analysis on brokers' specifications before deciding to pick the right one. Browsing through several sources can help you to compare information about certain brokers.

It is also suggested for you to surf comments from your brokers' clients. Information in sites can be fabricated, but real users' opinions will express their real experience with the broker. This way, you will be well-equipped with enough sources and methods to choose the right broker before beginning to trade in binary options.