As a veteran binary options trader, much more for a beginner, it is crucial to choose a broker that will enable you to achieve the success y...
Getting a good, verified broker is as good as making the right decision on the right trades to opt-in. The reason is the fact that brokers are influential in the binary options trading business. After all, they provide the platform in which the trades are carried out, one may reason. Therefore, based on the complaints received about different types of brokers, I have compiled a list of factors that will act as a guide to help you select a regulated broker of choice. As you carry on with the binary trading options business, these factors will be of immense help to getting the right broker. The following are the points to take note of while choosing the brokers.
1. The first thing you need to find out is if your country is allowed to trade with such a broker. Because if not, no matter how much you like such a broker, you may not be able to trade with the firm. For example, some brokers only allow people in the USA to participate in their trading platform or those in Eurozone to trade with them. So, if you are outside any of the countries allowed to trade, it becomes difficult to make them a broker of choice.
2. The next factor to consider is the safety and security of the broker. You may want to know if your money is safe in the hands of the broker. You are interested to know how long the broker has been in the market. You may want to know whether the broker is well known among the circle of brokers and things like that. There have been cases of underhand dealings with certain types of brokers, so investigating the safety and security of a broker is an essential factor to consider.
3. Another interesting factor to consider is if the broker is well regulated. If the broker is in the USA, for example, are they among those regulated by CFTC. If they are located in the Eurozone, you would like to know if they are also regulated by the body saddled with compliance responsibility. It is crucial to know this important factor because that will give you confidence that your funds are safe with such brokers. The Commodity Features Trading Commission (CFTC) and the US Securities and Exchange Commission (USSec), for example, have some stringent regulations that seem to control the brokers. So, once a broker can meet with these bodies' regulatory requirements, it is expected that such a broker is safe, secure, and reputable.
Cyprus was one of the few countries that allowed brokers into their territory, and therefore developed regulations that guided their activities. The Cyprus Securities and Exchange Commission (CySec) is saddled with regulating brokers in that country. For the Australia brokers, the Australia Security and Finance Commission (ASFC) regulates the activities of brokers within that jurisdiction. So it is with many other geographical locations around the world. Interestingly, most of the well-known brokers are located in the countries listed below.
Malta. So, it is believed that those of them that meet the regulations as set out by the various regulatory bodies are expected to work in the utmost good fate with their clients.
4. Reviews, as a factor, are necessary for choosing an effective and efficient broker who is out to serve their clients' best interests. Therefore, it is essential to look out for reviews on the brokers you have interest in.
Although, these brokers themselves write some of these reviews, it serves as a promotional tool for them. Yet, it is still a factor to consider when deciding for a broker.Equally of note, brokers have been known to write negative reviews about their fellow brokers, aiming to tarnish the competitor's image. For such that engage in such unethical practice, it is viewed as a competitive business to engage in some unethical activities to curry traders' patronage. However, as stated earlier, reviews are one way to know whether a broker is good or not. You could check for broker reviews online.
5. Another factor to consider is the offer from the broker. Amidst the other factors mentioned, the brokers offer vis-à-vis their competitor is a good way to evaluate the broker's effectiveness. You check if the offer is juicy enough to select them rather than the competitor. Some of the things in the offer you need to look out for are:
The kind of payouts the broker offers.
You want to know if the broker offers a demo account for beginners to practice before going live.
It would help if you also were interested in the asset list of the broker. That is, the instruments on offer for trading. Interestingly, the majority of them offer Indices like FTSE 100 Futures, DOW JONES 30, etc. Forex, that is currency trading like USD/CAD, USD/JPY, etc. Stocks such as AAPL, Google, etc. and Commodities such as Gold, Oil, etc.6 Another interesting factor to take into consideration is the types of binary options trade you can do with the broker such as One Touch, Range, Boundary, etc. you have to find out if the broker has enough array of trade types to engage in so you are not limited to just a few.
7. Another factor that needed to be considered is the least amount needed to commence trading. Some of these brokers accept as lower as $10 to engage in trading activities on the platform. In that case, you need to ascertain the minimum amount you want to commence with and grow from there.
8. Trading Platform: This is another crucial factor to consider when or before you settle for a particular broker. As a beginner or experienced trader, you have to decide whether you are comfortable trading on your smartphone or other devices like the laptop, etc. As a result of the decision, the broker you have to deal with is one that offers the type of platform you are comfortable with. However, the best broker's are the ones that offer both the mobile and web platforms.
No doubt, this article has benefitted you one way or another. Kindly drop a comment in the "Comment" box below to enable me to serve you better.