It is challenging to decide which broker to trade with when there are so many brokers on the internet. It is important to compare the brokers before rushing into signing up for a trading account. Making a rash decision can cause you to lose money as there are many scam brokers around. There are a few things you have to take into account when comparing the binary options brokers.
The first thing you should check is whether the binary options broker is licensed. Many binary options brokers are licensed and regulated by CySEC (Cyprus Securities and Exchange Commission). There are also other regulation organizations such as ASIC (Australia), FSBR (New Zealand), and SEC (USA).
Do Research on the Real Company
You also have to check the company who owns and run the online binary options broker. This is because there are a number of online brokers who are not run by a licensed companies. Usually, a real broker will have headquarters that are based in the UK, and Cyprus.
You can find out the company behind the broker by checking the contact us page or you can look for the information at the bottom of the site. Once you have obtained the broker name, you can do a simple research on the internet by Googling for the customer reviews.
If the broker is well known and recommended, there will be many websites reviewing it. If the broker is very new, there will be very few sites writing review about it. You will be able to find out whether the broker is reliable and legitimate by reading the reviews posted by other traders.
You can also check the social media page of the broker such as Facebook and Twitter to find out whether the broker has any complaint.
Evaluate the Trading Platform
Every broker uses a different trading platform so you should check the platform where traders will execute the traders. The trading platform should be stable, load fast and has every feature you need within your reach. You should avoid brokers that offer platform that is hard to use or have an outdated design.
Find Out What Contact Types The Broker Offers
You must find out what type of options contracts they offer such as standard call/put, sixty seconds, one touch and range. The standard call/put option is the most popular option because it is easy to predict it. If the broker only offer the standard call/put option, traders may easily become bored because of the lack of variety of the contract types. The wider the range of the options types they offer, the more likely you are to come up with a good trading strategy.
Number of Trading Assets
Besides, you should also check the number of assets the binary options broker is offering. You might be good at making prediction on certain type of asset for example gold. In this case, you should look for a broker that offer gold as one of the assets.
The more assets the broker offer, the better it will be because it gives you higher chances of making a more accurate prediction. If the binary options broker only has a small selection of assets, it will also lower your chances of winning in the trades.
Minimum Deposit Requirements
Every broker has a minimum deposit requirement when you want to open a trading account with them. If you have a low budget, you should find a broker with a low minimum deposit. You can compare the minimum deposit requirements between 4 – 5 brokers on the internet. The minimum deposit typically starts from $100.
Trading Bonuses and Competitions
Many brokers also offer bonuses when you make an initial deposit into your account. Bonus is only useful for professional traders who have lots of experiences in trading in the binary options market. If you want the bonus, you can compare the level of bonus between different brokers.
Some brokers offer up to 100% of welcome bonus that match with your initial deposit. Many brokers also regularly hold competitions with attractive prizes so you should check about this if you want to take part in the competition.
In conclusion, it is an important step to compare the features of different binary options brokers prior to signing up for a trading account. Taking this step will help you to find a reliable broker and prevent you from losing your money to a scam broker.