How to Choose The Right Binary Options Broker
Binary options trading can be very profitable but one need to choose the right binary option broker. There are a lot of binary option brokers in the market and a lot of them are out there to make a quick buck. Since binary options are so profitable, many investors have lost their hard earned money with brokers who have disappeared without a trace after a few months.
In this blog post, we will discuss how to go about choosing the right binary option broker.
One of the biggest problems with these brokers is that most of them are not regulated and are located offshore. Therefore, one of the first things one needs to check while choosing the right broker is the licensing. Most of the binary option brokers are licensed by the Cyprus Securities and Exchange Commission. Cyprus is a member of European Union and it is not easy to get a license from the CySEC.
Apart from licensing, one needs to check various other factors while choosing the broker. First of all, one needs to take a hard look at the website of the broker. Some of the things to be kept in mind while checking the website are whether the design is professional and whether the site is secure. A secure website uses SSL technology to encrypt the information exchanged between the website and the trader’s computer so that no one can look at the data other than the trader.
Next thing to check is the website load time. Since most of the binary options traders have a small time window, the speed of website can be the difference between a winning trade and a losing one. To check the website load time, one can use various pinging tools available online which test the website load speed from various locations all around the world. Ideally the website loading speed should be less than 5 seconds.
One other area to look at is the trading help provided by the broker. A professional option trading broker will always provide a daily market commentary on various happenings around the world. The commentary would include information on the various assets offered for trading as well as the impact of any major economic events around the world such as job reports or economic outlook data.
A professional broker will also offer a variety of assets to trade such as forex, commodities, major stocks and major indices around the world. Ideally a broker should offer all the major currency pairs and indices for trading.
One of the most important things to check while choosing an options broker is the deposit and withdrawal options offered by the broker. A professional broker will allow the traders to make the deposit using credit cards, bank wire as well other options such as Skrill. The withdrawal options should also be clearly mentioned on the website. Some of the brokers charge a lot of fees for withdrawal. Therefore, it is important to check the withdrawal fees in detail.
The underlying technology platform and the trading interface offered by the binary options brokers also makes a lot of difference to the trading experience. Therefore, one should a broker which uses a platform that provides all the information required for making informed trades in the trading screen.
One cannot go wrong with a binary options broker if one takes into account the above mentioned factors.