In order to trade binary options, you need to engage the services of a binary options broker. In forex trading, there are many issues that confront traders from the broker’s angle. There are issues with pricing, slippages, re-quotes and other similar issues. Some brokers also do not come out very clearly about where they get their regulatory supervision from. This is especially true with brokers who have offices in multiple locations. This makes it pretty difficult to select a good forex broker.
The situation with brokers in the binary options market is a bit different. Traders do not have issues with slippages and re-quotes as these have no place in the binary options market. However, some of the issues concerning brokers in other markets will also confront traders in the binary options market, and traders need to pay careful attention to these parameters in order to get a suitable binary options broker.
What are the issues to consider when choosing a binary options broker? Here are some of them.
Probably the most knotty issue confronting traders is the issue of regulation of brokers. Proper regulation ensures that sharp practices by brokers are reduced to the barest minimum. For the binary options market, regulation will ensure that your funds are safe and that you are paid your trading profits accordingly.
2. Customer service
A good binary options broker should have in place, a responsive customer service department. There are some brokers that are notorious for having obnoxious customer service staff who are snobbish and rarely give traders solutions to their problems. It is essential that you choose a broker who can provide live customer chat services, manned by responsive staff who can attend to your requests promptly.
3. Range of Trade Types
There are three major trade types in binary options. However, many brokers do not offer the full range of trade types. Some of them even place all manner of limitations that will make it extremely difficult to make money in binary options. These limitations are not usually very obvious to trading newbies, but experienced traders can usually see the pits that are dug by brokers to cause traders to fail. You need to be very careful about the broker you select. Select brokers that provide transparent trading conditions.
4. Trading Software
The best kinds of trading software are those that make for ease of trading, easy navigability and user-friendliness. If you have to spend half of your trading time just trying to navigate around the trading platform in an effort to make trades, then you need to change brokers. Difficult platforms contribute to trading failures. In addition, there are innovations available now to allow traders to trade on the go. Gone are the days when traders have to stay glued to their computers all day long, looking to grab a trading opportunity when it comes. Thanks to the efforts of the likes of Steve Jobs, we now have smartphones that can be used as mobile computers. Many brokers who are responsive to the times are now building mobile versions of their trading platforms for traders to use. This is a big plus as traders do not need to stay glued to their PCs, and they can monitor their trades wherever they are.
Payouts are varied in the binary options market. Some brokers even provide what is known as “variable” options, which allow a trader to exit a profitable binary options trade even before the expiration date. Some brokers also provide payouts as much as 80% per trade. The fact is that we are in the business of trading to make money, and if you can find a broker whose conditions make it more favourable for you to do so, then you need to grab the opportunity with both hands.
These parameters mirror what every binary options trader needs to know when searching for an appropriate broker to trade with. If you use these parameters, and add them to what you can pick up from binary options brokers review sites, then you can be sure that you are on the right path to choosing a good binary options broker.