Choose the Best Broker

As you know, trading on the financial markets is becoming increasingly popular, and it is completely normal for products, involved in this business, to evolve. Every day new virtual markets are being created and that is why it is hard to keep track on the reliability and sustainability of those products. Such market is the binary options market, which is so huge, that it actually looks a lot like the Forex phenomenon. Believe it or not, binary options have been here for 5 years now (they were publicly introduced in 2008) and they managed to become truly popular for a short period of time.

It goes without saying that when there are so many different assets that can be traded, new brokers should occur on the horizon. Actually, there is no official number of the brokers known on the binary options market and this comes here to prove how huge it is. If you are sure that you want to start with your binary options career, then sooner or later you will face the problem of choosing the most appropriate broker, to meet your needs.

Of course, there are many more basic questions that you will have to confront and answer to but we will try to give you a brief idea about how to make the right choice. This guide will be divided into a few sections pointing out some of the important features you should be looking for, while choosing your broker.

Company capitalization

The market capitalization is an important factor every future trader looking for a broker should take under consideration. You better make sure the broker you are going to choose is well capitalized simply because this will decrease the risk of bankruptcy, which automatically means you will lose all the money you have invested. The easiest way to find out whether a company is well capitalized is to check if it is regulated, or not. If yes, then you can be sure the company has millions of dollars, because this is one of the conditions you must meet if you want to apply for regulation. The requirements are monitored by the NFA (National Futures Association), so you can be sure everything is legal. However, you should know that many binary options firms are having problems meeting all the requirements for regulation, even if they have the necessary amount of money.

It is a good idea to ask the broker you have chosen about their capitalization and whether they hedge themselves. Making sure that the capitalization of the company is good is the first step that will make you closer to your goal – choosing the right broker.

Payouts

The offered payouts are also an important feature you should bear in mind, especially if you are about to invest lots of money into your account. Right from the start you must check for the sufficient returns on the money invested. As you know, the binary options trading is all about predicting whether the asset’s price will go higher or lower in a certain expiry time. If you make the correct determination – you win, if not – you lose. It is that simple. However, the return percentage might vary depending on the broker. Some brokers calculate this return based on the current market situation. If we have to speak in numbers, then we recommend a return of at least 70%. The highest returns you can make can go as high as 85%.

There are payouts offered for “out-of-the-money” situations, which means that you can be compensated, even if you lose. As you know, one of the biggest disadvantages of the binary options is the fact that you lose, even if you are one cent below/above your forecast – you lose. So, apart from looking at returns it is always a good idea to also look at the payout rate, when the trades are not successful. Some brokers might offer you a 15%-payout of the sum originally invested.

Assets

When it comes to binary options, it is important to try everything. This is why, you must make sure that there is a great variety of offered assets when choosing broker. Perhaps you might want to try trading currency pair or commodities, or even indices? In such case, this is one of the most important requirements you should look for.

Customer Service

This is also a key factor. For starters, you need to check the number of languages, which the broker chosen by you offers. Then see what the available ways to contact a customer service representative are and check how quick their response time is!
The customer support level is probably one of the most important key indicators, because if something happens during the trade, you will need to know who to contact. After all, there are money at stake and you need to make sure there is someone, who can help you, on the other side of the line. You can get an overall idea how serious the current broker is, judging from your interaction with the support.

Deposit Bonuses and Conditions

Often, you will probably be tempted to join a certain broker because of the sign-up bonus. There might also be some trading promotions. In order to find out more relevant information to this topic, you might want to contact the support once again. However, don’t rush into hasty decisions and to sign up for a certain broker only because their bonuses and trading promotion are great.

Trading Platform

There are several different types of trading platforms on the market. Most of them are web-based, which is great to some extent, because you don’t have to install any software on your computer. Internet connection and a browser is all you need. Basically the binary options brokers offer different types of tools on their platforms. And since the user interface might vary a lot, it is better to try a couple of them and see whether they meet your needs, or not. If yes, then you can be sure this is a big plus, because you will be using the platform on a daily basis.