November 8, 2014
What broker do you use and what should I look for in one?
I am currently using Boss Capital (see Boss Capital Review). I’ll start by saying that no broker is perfect. Some provide fast withdrawals yet have trading platform issues, such as a distinct lag that often doesn’t get you into trades at the price you preferred. This, for example, explained my experience with Markets World.
I do like Boss Capital in that the pay-out percentages on trades are strong. This is a strong consideration for me, as taking trades at lower and lower pay-out percentages cuts heavily into the profit margin. Moreover, I always get my money relatively quickly (although Boss Capital charges for withdrawals greater than once per month), and it accepts U.S. traders in an era where fewer and fewer brokers do because of the trading laws governing the U.S. Nevertheless, there are times when I’m not able to get into a trade at a price I prefer (i.e., “Option price has changed” error message), but Boss Capital meets what I’m looking for.
Another consideration is whether the broker is regulated. Regulated brokers are held to a level of accountability regarding their business practices that make them more trustworthy than “bucket shops” who set up business on their own. Personally, it’s never a good idea to be one of the initial pioneering guinea pigs to determine their credibility or lack thereof. I always recommend going to brokers that are highly popular with other traders.
Moreover, does the broker have a wide variety of assets along with a high selection of expiry times from which to choose. Brokers usually strive to have a long list of assets among currencies, stocks, and commodities to attract the most business, in addition to a large range of expiry times. There are also consieration of the type of instrument to trade – up/down options, touch/no touch, range (whether the asset will or will not fall within a specified price range at a given expiry time), “option builder” (choosing your expiry time and from a list of pay-out percentages), and high-yield options that offer payouts much larger than the initial investment. I am pretty simple in that I prefer 5- to 20-minute expiry times of a major currency pair that pays out well (preferably 85% or better). That’s really all I specialize in when it comes to binary options trading.
When I tend to have a good experience with a broker I prefer to stay with them because I know what I’m getting and what to expect. Occasionally, I do try out new brokers if I see more and more people flocking to one. Having a bit of a herd-like mentality is good when it comes to considerations of where to invest your money. Companies usually obtain high levels of business by offering strong services, good prices, and attaining high levels of satisfaction. Overall, you simply have to find one that suits your preferences, needs, and trading to the very best. It’s just important to go with one that’s actually trustworthy and one in which you know you’ll get your money in timely fashion.
When it comes to the research process of finding a broker, you can always ask around, read reviews from multiple sources, and try it out for yourself. And again, you will oftentimes observe that a lot of traders tend to congregate at one, two, or a few brokers in particular at any given point. I’ve done this myself, and as a result, I’ve been fortunate to have never had a poor experience when it came to withdrawing funds. There’s definitely nothing wrong with going with an option that other people are finding trustworthy and amenable to their trading preferences. Really all that people ask for is a broker where they can trade what they want to trade with strong pay-outs, a fair platform, and the ability to get their money when they want. If a broker meets this relatively basic criteria, it’ll have plenty of customers willing to trade there.