How to Choose a Trading Platform for Binary Options22 Apr 2013, 08:00
The recent economic crisis has determined lots of people to look for ways of making money. They are interested in supplementing their incomes or in covering the losses generated by the crisis. Financial speculations seem to be a good solution for people interested in relatively quick profits. However, there are numerous available markets and some of them are not exactly accessible to anyone.
Choosing a financial market is after all a matter of personal preference. However, there is one market which is considered safer and more accessible than others: the binary options market. The forex market can indeed generate higher profits, but it is also very risky. The stock market on the other hand requires serious capital, so this only leaves the binary options one opened for everybody.
Trading binary options is pretty straightforward and doesn’t leave room for big surprises. Traders know right from the start how much money they could possibly win and also the maximum amount they could lose.
Once you decide that the binary options market is a good place to start, you have to choose a reliable broker who offers a good platform in order for your trading operations to go smoothly and without major impediments. There are certain criteria that you have to consider when choosing your trading platform:
• Is it web-based or not? – Although this aspect is pretty controversial, web-based platforms seem to be a better option than those who require installation on your computer. As long as your trading platform can be accessed from any computer with an internet connection, you will have more flexibility and mobility. A downloadable platform can only be used on a specific computer, forcing you to be at home or at the office at all times at which you want to trade. More than that, some people don’t like additional software on their computers. Cloud Computing is becoming more and more popular and you can use it too when it comes to the trading platform.
• How High Are the Returns? – When trading binary options you basically make a prediction concerning the price of an asset during a fix period of time. If you are correct, you win a certain percentage of the value of your trade. Look for those platforms which offer payouts of at least 65-70%. This means that if you place a trade of $100 and it finishes in the money, you will get back $165-170 making a profit of $65-70. Not all platforms offer the same returns.
• Does It Offer Payback for Out of Money Trades? – if you don’t manage to predict the direction of the price correctly, you end up losing the value of your trade. However, some platforms offer paybacks for such trades which can reach 15%. This means that you don’t lose all your money even though you don’t make a profit.
• Does It Allow You to Trade Multiple Currencies? – you can trade commodities or forex on the binary options market enjoying a reduced risk than on traditional markets for these assets. However, a reliable platform should offer the possibility to trade all major forex pairs. A platform which doesn’t support multiple currencies is likely to be unreliable for your business. This criterion is very important in determining the type of platform you should use.
• Is the Platform Secure? – Just like in the above case, the security of the platform provides important clues on its reliability. Look for 128 bit SSL encryption if you want to make sure that the platform is good and it keeps your business secure.
There are similarities between binary options platforms and other types of platforms, but they also have particularities that you need to consider. Platforms which don’t meet the above mentioned criteria should make you susceptible concerning their reliability. Also pay attention to the customer service they offer.