What to Look for in Binary Options Brokers30 Apr 2013, 08:00
It is not at all complicated to enter the binary options market. You only need to register with a broker and you will be provided a trading platform. Once registration is done, you can basically start trading. However, your broker can significantly impact the trading process, so it is worth to take some time in finding a reliable one.
Numerous companies offer brokerage services for the binary options market. The competition among them is serious, so they are all offering similar features. However, if you take a closer look, you can come across small differences which can affect the trading process in one way or another.
In order to be successful on the binary options market you definitely have to find a good broker. There are certain points that you need to consider during the selection process. This way you can make sure that your choice is the correct one and trading activity won’t be impaired. You should take the time to analyze the offer of various brokers and decide which one meets your requirements better.
Here are some key aspects that you need to have in mind when evaluating brokers:
Assets Offered for Trading
Brokers usually include lots of assets in their offer. You can have a look at all of them if you go to the Asset Index. On the binary options market you can trade assets from a variety of other markets: currency pairs, stock indices, shares and commodities. You only need one account and you can trade them all. However, not all brokers offer the same assets for trade. Some of them, for instance, don’t provide soft commodities while others might offer limited access to global shares. If you have a particular asset in mind, you need to make sure that the broker you choose offers it.
Expiry Time for Options
There aren’t any significant differences among brokers from this point of view. All of them offer Call and Put options which expire in one hour or at the end of the day. However, there are also options with a shorter duration (15 minutes, 30 minutes and even 1 minute) or a longer one. Several brokers have already introduced shorter options in their offer. However, there are some who still don’t offer them. The same applies for longer options, so if you are interested in a particular duration, you should carefully check available offers.
Given the high competition among brokers, they all offer similar returns. However, some points can make the difference. Some brokers offer rebates which mean that if your trades are out of the money a certain percentage of your investment is returned to you. Other brokers allow you to sell options back to them under certain circumstances. Brokers offering such features usually provide lower returns. However, they are a good choice for people who settle for less profit, but want to minimize their risks.
Some brokers offer pretty attractive bonuses. One of them is the bonus received for the first deposit. The free risk options are also nice. You place a trade and if you win you cash your profits and if not, the value of the trade is given back to you. However, keep in mind that no broker will ever give away money for nothing. You should always read the terms and conditions because such bonuses usually imply the fact that you have to reach a certain volume of trades before being able to withdraw money from your account.