How to Choose the Very Best Among Available Binary Options Brokers

How does one choose the best among the many binary options brokers available today? The answer will depend mainly on one’s preferences with regard to the act of trading these financial instruments. It is possible to invest in financial instruments in general and then earn a reasonable return on them but only if you can constantly keep up with the daily operational tempo. The challenge is even greater when you consider binary options that are so named because they can guarantee you either of only two possible outcomes upon maturity:

a) A fixed amount in the form of cash or any other tradable asset; or
b) Losing all the money you invested

You will therefore need an experienced broker in this trading activity as you would in the buying and selling of financial instruments of a more flexible nature. There is a huge selection of binary options brokers available to provide you with sound advice and other forms of assistance in getting the most out of these financial instruments aptly termed all-or-nothing options, but choosing who among these brokers will best suit your needs can be as risky as the act of trading itself.

Since this specific type of trading is generally performed online, the internet is an ideal starting point for you in finding binary options brokers and selecting the one whom you will entrust with the money you wish to invest. Each online broker uses an interface that will allow clients to monitor their respective portfolios and to interact with the broker, specifically on the trading aspect itself. Brokers generally employ web interfaces with layer upon layer of firewalls and other security measures but the interfaces themselves are still accessible enough that anyone can learn to navigate through the features in a considerably short time. If you come across an interface that doesn’t appear secure enough at first glance or whose most basic features take rather long to master, it is better to simply ignore it. You stand the risk of losing your investment if you deal with an online broker whose web interface will only do you more harm than good.

Your selected broker must always keep you updated on the latest trading developments. Such features include, but are not limited to a real-time monitoring of ongoing trades and alerts via email or mobile phone. The broker must also be easily contacted in case you have to make a timely decision. Financial trading as a whole is full of brief and fleeting windows of opportunity that will guarantee a reasonable return for anyone with the resources and the prudence to exploit them. Above all, your broker must relay these and other important details to you in a manner you can easily understand.

Be mindful of any minimum deposit requirements as these will differ among binary options brokers. If you’re not yet willing to invest any large amounts, go with brokers who allow zero or low minimum deposits. Also scrutinize their rates of commission because you wouldn’t want to pay too high a commission in case a return has been generated from your investment. The ideal payout rate after deducting broker’s fees is generally between 75 and 90 percent.

Tips to Find the Best Binary Options Brokers

With the potential of earning big money, binary options trading has taken off in a large way all around the globe. From a handful of binary options brokers in 2008, we have about hundreds of them available currently. You will be entrusting your money to a broker to carry on the trade. Hence, it is extremely important that you identify the best binary options brokers from the other small and unreliable ones.

The trading of Binary Options first commenced in 2008 at the Chicago Board of Exchange. Like the name suggests, Binary Options, are derivative contracts with only two possible outcomes at the expiry of the contract i.e. you receive cash/ asset if the contract is ‘in the money’ or nothing otherwise. For example, suppose you buy a call option of ABC Ltd.’s share at a strike price of $30 and a binary payoff of $300. If the stock price is above $30, your contract is ‘in the money’. By ‘in the money’ contract, we mean that you are in a profit situation as you can buy the stock for the strike price of $30 and sell it at a higher price (the current price) and make a profit. In such a scenario, in a binary option contract, you receive a fixed binary payoff of $300. In every other scenario, you receive nothing and lose the purchase price of the contract. The underlying asset can be stocks, indices, commodities and currencies. Making consistent profits out of trading in binary options depends on the accuracy with which you can predict asset movements over the term of the contract.

Following are some important tips for narrowing down your search to the best binary options brokers:

• Choose a regulated broker: A regulated broker is the one which has obtained a license and is governed by the concerned regulatory authority. Choosing a regulated binary options broker will benefit you in many ways such as, payment protection in the event of the broker’s insolvency, proper usage of funds and authenticity of the contracts.

• Access: There are some brokers who prohibit US investors from trading in binary option contracts. If you are a US investor, you will want to check this first before proceeding to evaluate the broker on other parameters.

• Track Record: Choose a broker with at least one year of reputable dealings. Avoid opting for new brokers. The more experienced the broker, the higher will be its credibility as it has been able to survive in this industry.

• Reputation: Before selecting any broker, make sure to check the user reviews/ complaints which will give a fair idea of the reputation of the broker. Pick the broker who has good reviews and fewer complaints.

• User Interface: Since all your transactions will be online, become familiar with the interface of the broker’s website. Easy to use and navigate interface will simplify things and help you take investment decisions easily.

• Number of Options: There are a number of option variants including 60 seconds options in which the option expires after very one minute or One Touch binary option in which you have to predict whether the asset price will at least once cross a pre-determined price during the life of the option. Brokers offering a higher number of option variants are beneficial as it opens up more earning opportunities.

• High Payouts: Higher payout means lower commission to the brokers and obviously higher share of profits to you. Most brokers generally offer 80-85% payout in case the option is ‘in the money’. Some brokers offer 10-15% payout even if the option is out of the money. Choose brokers with favorable payouts.

• Banking options: Since derivative contracts are all about ‘timing’ it is essential that the broker offers you fast and a range of deposit and withdrawal options.

• Customer Service: Fast and prompt customer service is a big advantage for a newbie trader. Test the broker’s customer support with certain pre-account opening queries. Also, a demo account offered by a broker reflects its emphasis on superior customer experience.

• Terms and Conditions: More often than not, unfavorable terms such as higher withdrawal limit are hidden in the fine print of the terms and conditions. Read them in detail before commencing trading with the broker.

It is important that you spend some time in choosing your broker. The above checklist will help you choose among the best binary options brokers in the industry currently.

Tips on Choosing the Best Binary Options Broker

The world of finance and trading is fast paced and can be very confusing to the untrained person. Whilst trading in Binary Options is one of the simplest methods it can still be confusing if you don’t understand what you are doing. One way of getting round this is to choose a good broker who can help you through the process.

Choosing the right broker is a difficult task. There are so many of them and each offers a different level of service. So how do you go about choosing the right broker for your needs? Most, if not all Binary Options trading is carried out over the internet so this is the place to start.

A simple search on the internet will bring up lists of hundreds of different brokers. The first thing to look at is the web interface each broker is using. It should be simple, easy to understand and user-friendly. If you can’t navigate around a particular broker’s site then don’t use them. You could wind up losing money rather than making it.

After you’ve narrowed down your choice of brokers you should start to look at what security and privacy they have in place. They are dealing with your money after all and should have the most secure measures and firewalls in place to protect your money and your personal information from hackers and identity thieves.

The next thing you should look at is what level of support does the broker offer? You should be able to contact your broker easily, via telephone, email and live chat. And you should be able to get up to date information from them regarding on-going trades. If you can’t or they can’t explain to you what is happening in easy to understand language then don’t use them.

Minimum deposit and trade levels and maximum pay-outs are an important factor in choosing a good broker. Some brokers offer no minimum deposits so obviously these would be good brokers to look at, especially if you are not intending to invest large sums. Maximum pay-outs are important. Look for a broker that offers a minimum of 75% to 90% pay-out and also look at those who offer a rebate on trade losses. Some will offer between 5% and 15% rebate if your trade loses.

Take a look at what payment options they offer. A broker is no good to you if they only accept credit card payments and you don’t have one. Look for one that offers a range of methods like PayPal, bank transfer, debit and credit card, etc. In conjunction with this look for one that has a variety of withdrawal methods available. Again, it’s no good if they only a withdrawal method of paying into PayPal if you don’t have an account.

There are many things to look for in a good broker, these are some of the more important options you should consider. A good broker works for you, not against you and is in the business of making money, both for you and for themselves.