From the time BinaryOption has become approved by the US Securities and Exchange Commission in 2008, many traders have been interested in BinaryOption trading. And because there is an ever-growing list of available brokers nowadays, it’s challenging to find the one that suits your needs. You might have been said that you can earn large sums of money in no time, or that BinaryOption trading is just a form of betting or gambling. But, we say if you don’t have enough knowledge, like in any other field, failure is probable. One of the very important factors you have to pay attention to is the “broker” you want to trade on its platform, and here we will throw light on the items you have to attend in order to choose the best one.
Firstly, in order to trade BinaryOption, you need to find a BinaryOption broker that accepts clients from your country. Brokers accept or decline clients from different parts of the world based on their rules, regulations and their license. The license of the brokers comes from different regulators. However not all unregulated brokers are scams, the safest ones are those regulated. There exists regulation to protect the traders, to ensure that their money is well-kept and to give them a clear path to follow in the case of a problem. The leading regulating bodies are:
CySec – The Cyprus Securities and Exchange Commission (Cyprus and the EU)
-FCA – Financial Conduct Authority (UK)
-CFTC – Commodity Futures Trading Commission (US)
-FSB – Financial Services Board (South Africa)
-ASIC – Australia Securities and Investment Commission
There are more regulating organizations, and sometimes brokers have more than one regulator. In Europe where BinaryOption are getting more scrutiny, having more than one regulator is more common. Reliable brokers have regulation of some sort.
New clients can easily get attracted to sign up bonuses, cash prizes, and gifts. However, if they are not unconditional prizes, their terms and conditions need to be read carefully by the trader before clicking accept. For example, sometimes the trader might over trade to catch the prize, or some bonuses tie in the initial deposit, or some brokers allow the option “opt-out” of taking a bonus.
Having a Demo Account
Not to risk any money, and to try BinaryOptiontrading and specific brokers’ software and platform, traders can use BinaryOption demo accounts. After trying demo accounts on different broker platforms, you can choose the best that suits you to trade with real money.
Minimum Deposit Amount
The lower the minimum deposit amount, the better the platform is for a beginner. The reason is clear: less money, less risk. The low minimum is any amount from 5 to less than 50 dollars. And many platforms try to keep their minimum amount low to attract more traders.
This item is the one many traders attend in choosing the best broker, however, it is not a simple comparison as payouts vary according to the asset being traded, the expiry time is chosen by the trader, and the broker’s decision, so one best broker now may not always be the best forever. Also, exchange-traded and over the counter brokers have different payouts. With the former offering greater value than the later.
All traders, and specifically beginners, will frequently need a support team to help them with the processes and the way to use the services. Then, is the time a skilled, experienced, helpful, and polite broker employee comes in to help.
Here we suggested some of the most important factors a trader should consider before choosing a broker platform. And it is advisable to spend some time and study the reviews of a broker platform to check if the provided items exist and make sure you are having the best choice. The time spent studying these essentials is not wasted, you will be more confident when trading.