Best Reliable Binary Options Brokers
Trading binary options has become a popular form of trading all over the world, but before you start risking your own money there are a few important steps you should take. The first, and one of the most important, is finding the best binary options broker. Unfortunately, it is not as simple as picking a name out of the hat – there are a very large number of brokers out there. While the number was very small when binary options trading for the average man first began, we now have in excess of 400 firms offering these services.
Regulation of binary options trading activities is still under development
At present, there is no single regulatory body responsible for overseeing and regulating all the Forex and binary options activity taking place across the globe. However, this has not stopped thousands of people taking advantage of of this form of trading instrument. There are a number of individual regulatory bodies that have been formed, though usually operate within certain geographical areas. The aim of these bodies is to monitor the various Forex and binary brokers, in order to promote best practice and protect traders. Given the more complicated nature of pricing and trading binary options, it is no surprise that choosing to trade straight-forward FX is now becoming more popular, especially as traders become ever more familiarised with risk-reward profiles through time and experience.
In the USA, there are very strict regulations that have been imposed on binary brokers who wish to accept US-based traders, and this meant that some of the top binary options brokers have looked beyond the US to find clients.
What is a binary options broker?
AA binary options broker is naturally a company that operates a website offering a market for binary options. Through the website, a trader can trade quickly and effortlessly by using an online interface or platform, either on a desktop or a mobile device. The broker simply fills a trader’s order on their behalf, and pays out if the trader makes a correct prediction, and through a rebate program, may give an ‘out-of-money’ refund when a trader loses. One could think of a broker as kind of a bank (or credit provider in some cases) in this respect, because they can be seen to be borrowing the money of their clients while it is sitting in their trading account. This is less obvious in Forex trading, as traders are likely to be more active, and proactive and are not confined to the time set by the expiry period.
Thinking of your broker as a bank may give you a reference point in what to look for in a top binary options broker. As with an actual bank, you may be content to stand in line, wait in the queue while your bank ignores you, deal with a teller who is impolite, and be charged unreasonable and unexpected fees. We would expect most would not tolerate this kind of service from a bank and therefore, your choice of binary options broker. It really does pay to find yourself the best binary options broker – one who will take you and your investment seriously, as well as treat you fairly, with respect and transparency.
Top five tips on choosing the top binary options broker for you
It is not possible to pick the best binary options broker without undertaking some research, and we are here to help by giving you some pointers on what to look for. Picking the best binary options trading sites blindfold is not a sensible course of action, and you may well regret your decision. Work your way through the following five tips though, and you will be better placed to achieve success:
Reputation is important. There are hundreds of binary options brokers to choose from, and more are joining the fold every month. Simply picking those that are regulated is not enough. Many of the brokers who are regulated are usually regulated as private banks, gaming businesses, or some other financial entity.
The best way to start determining which binary options sites to use is with the help of your search bar. Nowadays, information and reviews on binary options brokers are available and this will be useful information to guide you in your choice. There will be sites similar to this one where you can read third-party reviews; but you should also look for customer reviews and discussions that take place on forums for further information, discussing the various pros and cons of the best binary options trading sites. Naturally, you will be drawn to binary options brokers with a well-established reputation that is on the whole positive.
Read all the small print carefully, and make sure you understand what it all means. These days, it has become common practice for people to gloss over the terms and conditions and simply tick the box without taking the time to read them. We advise against this, as you should always understand exactly what you are getting yourself into. As keen as you may be to start trading, an unscrupulous broker can take advantage of the situation, and there is no one else to blame but yourself if you didn’t take time to read the terms of service. One such condition to be wary of is the withdrawal limit, as this often catches traders out.
Look for an opportunity to practice before trading for real. Choosing a broker that offers a demo account should feature high on your list of things to look out for. Having the opportunity to demo-test will only help to improve your chances of being a successful trader, whether in vanilla forex or binary options. There is another reason to look for binary options sites with a demo account option, however. Trust. When a broker offers a demo account, they are giving you the opportunity to be more successful, and therefore profitable, which serves the broker also as you are more likely to be a longer term customer. A broker who does not offer a demo account is effectively encouraging traders to jump in head first, without trying out strategies in advance.
Take notice of the added features and trading tools of the various binary options trading sites. Every binary options broker is different. Some do just enough, while others go above and beyond to give their clients the best possible service and ‘value for money’. Look for brokers who offer more than just a few types of trade, along with other tools and educational material. Look out for binary options brokers offering Option Builder as an added extra. Using an Option Builder means you do not have to choose from a range of expiry dates and times, but can set your own. It also allows traders to customise a number of other features of the option they want to trade. With regard to educational material, look for top binary options brokers who offer webinars, one-on-one training sessions, and video tutorials on how to use the website, as well as trading advice and articles relating to various trading strategies.
Top-quality customer service is vital. We think this is one of the most important qualities to look for in a binary options broker – or indeed any broker. A broker, whatever field it may operate in, is only as good as the service it offers its customers. Your choice of binary broker may have all the best features and tools, but if they do not deliver on their promises, this is a strong signal of their trustworthiness. The best way to find out about customer service, is to – naturally – test it for yourself. A good way to do this is to call the company, armed with some basic questions, and see how they perform. Here are a few suggestions:
– Take note of the response times, and whether your questions are answered quickly and intelligently.
– Did you feel comfortable talking to the representative, and did you receive the actual answers rather than just a hard sell?
– Test the live chat option, if there is one. Is the live chat option manned by real people or an automated robot?
– Test the email option and see how quickly you get a response.
If you are not completely happy with of your experience with a particular broker, then try another – there are plenty out there. You should be looking for a broker that fills you with confidence, and one you feel comfortable working with. By doing so, you are increasing your chances of becoming a successful trader, whether you choose to stick with binary options or focus more on traditional vanilla products. Indeed, it may be the case that in your research into binary options, you find that the best ‘option’ for you is to go down the route of straight-forward Forex. Researching the benefits will also give you insight into which asset classes suit you best.
Important features to consider when choosing a binary options broker
There are a number of different attributes to consider when determining the top binary options brokers:
- Varied asset base. There will always be better prospects if there are a number of different assets you can choose from.
- Variety of binary option types. The best brokers offer a wide range of binary option types, including short-term options, one-touch options, and Options Creator.
- Choice of deposit options. A broker that offers a number of deposit options will be much easier to start with, while also being accessible to more clients. It also means there will be better cash-out and payment options.
- Financial stability. A well-established broker will be much more reliable than a smaller firm, or one that has just started.
- Profitability. Look for a broker with high payout rates.
- Cashout options. The best binary options brokers are those who are quick and prompt with payments. Payments within two days or less should be considered the best.
We hope you’ve enjoyed this section on choosing the best binary options broker, and will keep our site as one of your favourites – because we’ve got heaps more information to share.