Choosing a binary options broker is not as trivial as it seems. Choosing the right binary options broker that fits your investment influences directly on your performance. In the past there were several binary options brokers that did not comply with regulatory requirements and were marked as scam and fraud. All binary options we list on Binary Options Academy are verified brokers and should be safe to trade with.
So what are the differences between the brokers that make it essential to evaluate which brokers are the right brokers for you?! Binary options brokers differ in investment conditions, deposit promotions, payout, available assets, trading hours, customer support, trade room support, education and courses provided, alerts, VIP level qualifications, user interface, and more. Don’t get too confused, here is our elaborated guide to choosing the right binary options broker for you.
The first recommendation is not to put all your eggs in one basket. Use the guidelines to choose at least two brokers to work with and split your investment between them. If you choose to invest 1000$ for example, you can choose to invest 500$ with each broker or split it unevenly based on the advantages you see in the offer of one of them. Using two brokers can give you the flexibility to use the resources and benefits of the different programs they offer, to get guidance from two separate trade rooms and to have redundancy if one broker experiences technical difficulties of any kind. At the end of this guide, your task should be to choose the two brokers you think fit your portfolio the best.
How to choose a binary options broker steps
Investment conditions – The investment conditions are comprised of the minimum and maximum deposit amount, the minimum and maximum trade amount, and the available binary options deposit methods. You want to choose a binary options broker that accepts your deposit amount and that appreciates it. If you allocate 250$ for your initial investment find a broker with a minimum deposit of 200$ or less to make sure you are not categorized as a user who deposited only the minimum amount. A trader that is classified as a trader who only invested the minimum required will get less support and attention from many brokers who focus on the bigger traders that yield more volume and more revenues to the broker.
The maximum deposit amount is relevant when a broker limits your deposit amount and you know you plan on deposit more than the specified amount in the future. The minimum and maximum trade amounts control your trading behaviour as a binary options trader. You want to choose a binary options broker that gives you the freedom to trade on 10$ or even less as a new trader and to trade on 2000$ per trade when you are more experienced and when you have more than 50,000$ in your account. The deposit method support relevance is obvious. You need to choose a broker that supports your favourable deposit method to ensure secure and smooth transactions.
Deposit promotions – The deposit promotions are significant when you choose your binary options broker as some brokers can even match your deposit with a bonus. In other words you deposit 2500$ and your account balance is 5000$!!! The promotion means you can generate much larger trading volume with your initial deposit hence you get more practice and more potential to generate significant profits from your deposit. Important notice: each promotion has its condition and it is imperative to review these conditions as they often include some restrictions on deposit, or state that the bonus cannot be withdrawn at all (non-redeemable).
Payout – The payout of a binary options broker is the actual profit potential from every trade. Most binary options brokers have different payouts for different assets and different option types. The payout states what is the profit we take if we succeed in our trade in the form of a percentage value (80% for example). There are cases where the payout returns us some of the money in cases we lose a trade (15% for example so our real potential loss is only 85% of the trade). We should always consider the payout value when choosing a binary options broker and make sure we get the best payout condition for the assets we trade on.
Available assets – The nature of trading for most traders include a small limited number of assets they deal with. These are usually assets they know about and make sure to get follow their graphs and to get updated with relevant information. When choosing the right binary options broker you should make sure that every broker you work with has trading options for the assets you want. You can lookup for the broker on Binary Options Academy and find the relevant information and get to the broker’s platform to review the assets list.
Trading hours – The trading hours of binary options are influenced by the market (activity hours) but also by the brokers because trading for a long term option can be executed even when the markets are closed. When evaluating the brokers you need to make sure the trading hours available are adequate for your plans.
User interface – the user interface (overall look and functionality) of the broker’s platform determines how easy it is to trade, how functional their service is, and what are the offered tools to assist you in getting the right trading decisions. In binary options it is very important that the buttons will be big and clear to make sure you can act fast and respond to the market’s movements, and that the graphs are accurate and easy to understand. Other user interface factors can be the amount of visible assets per page and customization options so that you can create your own dashboard and have easy access to all your assets from one window. You should decide which brokers offer the most user friendly environment and take it into consideration.
Customer support – The service the broker provides does not end up in transferring the transactions or manage your account. Brokers need to answer your questions regarding payments, withdrawals, platform functionality and technical problems. The ability to ask questions or get problems solved for you asap can make the difference between a good service experience and a bad one. You want to choose a broker that offers support in your language and at the time you usually trade. Some brokers offer a “call me” button and guarantee an answer in less than 10 minutes at working hours.
Trade room support – While the customer support deals with payments, deposits, and technical issues, the trade room support is dedicated to provide you with the guidance and information you need for your trading. Choosing a binary options broker that gives you the training, the support, and the tips for your assets on a regular basis, is the best choice a trader can make. Usually the trade room of a broker has the perspective on the market and also sees all transactions that are performed on a specific asset so that they can lead you and give you directions for the short term and for the long term to help you and to increase your chances to gain profits. Make sure you use the trade room support and that you open each session with a short conversation with a senior trader from the trade room.
Education and courses provided – Every broker has its policies regarding education material (like e-books), courses, and professional training with a senior trader. For new traders it is crucial to find a broker that has experience with new traders and that has the relevant material in your language. A professional training with a senior trader about technical analysis for binary options, about the different tools, and the available resources can improve your trading success dramatically.
Alerts – Alerts are the short real-time updates on the market or an asset. An alert can direct you to perform a trade you could not think of by yourself or even notify you when you are away from the system and something significant happens. There are many alerting mechanisms used by the brokers. Some brokers have an alerts window available as long as you are logged in to the system, some use your e-mail or even your mobile phone (SMS or notifications), while others can call you as a premium service to notify you when something big happens. Experienced binary options traders make sure they know of relevant developments but use the alerting mechanisms to remind them or to get information about assets they usually do not trade on.
VIP level qualifications – Just like in every bank or financial institution, binary options brokers have a VIP class for their clients. The VIP clients get better service and response times, get more training and tips, and overall more attention from the broker. To qualify for the VIP level traders are required to invest a minimum deposit or to generate a minimum volume. We highly recommend you check with your brokers what the qualifications for the VIP class are and consider this option seriously. VIP class service can get your profits higher and give you better promotions.
Withdrawal process – Binary options brokers are required to inform you what are the terms, the process, and the timing for a withdrawal. If from any reason you decide you want to stop trading binary options or that you want to realize some or all of your profits, you need to be confident that you get the money on time and that the broker supports withdrawal method that satisfies you (bank transfer, credit card, electronic wallet). If the information was not sent to you, make sure you check the FAQ section of the broker or ask the customer support for these details.