The binary options made an official appearance in 2008 (although it was trading similar products in OTC markets since the 1970s). Ever since the Securities and Exchange Commission of the United States approved this form of online trading in markets, it has revolutionized the way trading is conducted in this country, as well as in other countries, too.
What is a Binary Broker?
Binary option is the type of option in which payoff can either be a fixed monetary amount or nothing at all. The emergence of new markets has seen the emergence of a number of brokers offering new things to traders. In the case of binary options, these brokers increase in number every year. For those who value their money, it is important to show wary of the unknown, especially for those who are newbies in the market and thus can become confused and even overwhelmed by the wide range of brokers that offer binary options. Negotiating with these derivatives can be extremely profitable for both professional traders and newbies; however, it is essential to select a company that offers the best operating conditions, as one has to be confident that one’s money is always safe.
Choosing Your First Binary Broker
To choose the right broker, the trader must answer some basic questions. Sometimes it is difficult to discern what information is reliable and what is not, on the Internet. For example, sometimes a negative review of a broker on a blog or online forum could have been written by a competing company or an angry customer who lost their money quickly, but maybe you should stop and think that perhaps it was due to their own fault. Or conversely, too many positive reviews could have been written by the same broker to attract new customers. You never know. That is why you have to stop and analyze different aspects.
In the Forex market, for many traders, operating in the market with a regulated broker is usually the most important factor to consider when opening a trading account. However, in some countries, like the United States, there is a strict regulation of the NFA (National Futures Association), trading in the markets may be more complicated, cumbersome, and even less lucrative. The leverage offered is lower than in other countries and may have more restrictions for traders and small investors regarding minimum account sizes, operating conditions, and other factors.
Another factor to consider when selecting a broker is the capitalization of the company. It is recommended that the trader finds a broker that is well capitalized, to minimize the risk of losing all funds in bankruptcy. In the case of a firm that is properly regulated, the trader can be sure that it is well capitalized.
There are many types of trading platforms on the market. With binary options, most are based on the web, which require no download or installation. Many of these applications are white labels developed from the platforms of other companies in which brokers have placed their own brand, logos, etc. Two of the most important in the development of platforms for binary options brokers and companies are SpotOption and Tradologic. These applications are used by a lot of firms, including brokers that are regulated. This means that many brokers do not have their own software developed for trading binary options, but use systems designed by third parties that have adapted to their needs.
Some of the best brokers also offer applications through which the trader can open the trading platform from mobile devices like iPhones or smartphones with Android technology, through a downloadable application. With these applications, the trader can open an account, open new positions, have control of certain things, and even fund operations.
Traders who have experience with different types of underlying assets will be comfortable with binary options as these derivatives offer access to a variety of markets. If a trader operates commodities or currency pairs on a regular basis, it is best for this person to stay with these assets when he or she begins to trade in binary options, as this will augment the chances of success in in his or her first operation. This is because they already have general knowledge about these markets and can adequately predict price movements. Also, you will be more comfortable doing analysis of these assets either through technical or fundamental analysis.
How to Deal with a Broker?
Experienced traders are advised to look for legit binary brokers that offer at least the underlying assets that regularly operate. For traders interested in diversifying their transactions, they should look for brokers that allow trading with the most underlying assets. Most regulated binary brokers offer currency pairs, stocks, commodities, and indices as underlying assets. The general rule is that the wider the list of underlying assets of a broker, the more serious the company is.
Undoubtedly customer service that the broker provides is extremely important. First, the trader should check the number of languages offered in the trading platform. Also you should find out the ways to contact the customer service and find out how quickly they respond.
When it comes to having a secure trading environment, you should make sure that the level of security offered by the broker when making transactions in the market through the Internet is 100% safe. You definitely do not want to deal with a broker who does not provide a safe platform to conduct trades on. The issue of security is not specific to binary options, because it affects all forms of web-based trading. To be as safe as possible, the trader must operate with a trading platform that is encrypted with a 128 bits SSL encryption. If transactions are not encrypted, the trader runs the risk of being a victim to a hacker that might end up stealing his or her financial data.
Best Binary Options Brokers 2017 : Top Rated Binary Options Brokers
There are definitely numerous of trusted binary brokers to choose from, but there are five, in particular, that are standing out from the rest due to the first class outcomes that they provide to their members.
IQ Option – Most Recommended
Most innovative and progressive binary options broker. Came to the market in 2012 and has gained a steady amount of investors since then. Accept all countries except USA, Canada, Australia, Japan, Russia, Turkey, Israel, Syria, Sudan and Iran. Users can trade from PC, Mac, Android, iOS, Windows Mobile etc. Bonuses are up to 50%, VIP starts from $3000, minimum deposit is $10 and minimum investment is $1. IQ Option guarantees excellent returns and comes with some interactive learning tools which are very helpful for any newbie trader to start his/her baby steps in binary options market. And the legal side, IQ is regulated by the respected CYSEC agency.
“To 24 Option, regulation is their main priority. They go the extra mile to take measures that you receive the security connection that you need in order to trade in their user-friendly trading platform. They are highly utilized by thousands of individuals on a daily basis. Their platform provides immediate execution that has real-time results, as well as other things. This platform was designed for all levels of traders”rs.
Open a 24 Options account – Join Now
With Finpari, everything works very facile. All you have to do is register . . . and guess what? Just for doing so, you will receive a gift. Once you fund your trading account, you will instantly receive a bonus. You then predict the market direction and begin to earn. It is as simple as that.
Open a Demo account with Finpari – Signup from Here
Other Trusted Binary Brokers
- GT Options
- Morton Finance
As you can conclude, choosing a broker can be a piece of cake if you take the previously mentioned information into consideration when deciding which broker is the best option for your needs and wants. If you are choosing a different broker from my list then you should check my Binary Options Scam page and verify whether they are genuine or fraud!