If you are intending to open an account with a binary broker, we recommend that you take your time. There are a great many options out there, and this is a call you really want to get right.
The binary broker marketplace is getting crowded. There are dozens and dozens of brokers competing for your business.
But far from all of them will be an ideal fit. Some are aimed at particular types of traders. Some specialize in niche assets or niche options. Some demand vast minimum deposits. And some might not even be available in your country.
Clearly some research is called for before you make the plunge and sign up for an account.
In this article, we aim to introduce binary options traders to the most important considerations to keep in mind when considering which broker to choose. Smart consumers always get the best deal, and an informed consumer is usually a smart one. So, read on and arm yourself with knowledge!
There are many brokers to choose from
This is really the crux of the challenge. There are so many brokers out there it’s hard to see the woods for all the trees.
The sheer amount of brokers can make even doing research overwhelming. Who has time to visit 20 different brokers in order to glean all the relevant information you need? For this reason, we recommend the very first thing you do is visit a website that offers binary options broker reviews. On such sites you can get unbiased, reliable and pertinent info fast and easy.
The many brokers competing for your business is not all bad news, though – far from it. The more competitors in a market place, the better the service they are spurred on to supply.
Only the best brokers survive, so you really can pick and choose from among a lot of excellent companies these days.
A broker should fit your budget
OK, this is the big one. All brokers operate with a minimum limit for how much you are required to invest in order to open an account.
It goes without saying that you mustn’t be overly ambitious here. If you find a broker that looks perfect, but the minimum deposit is out of your range, it is not perfect at all. You simply can’t afford it.
If you have decided to invest, let’s say 1000 dollars, you need to stick to this sum. You can no more up it to 5000 in order to join your favorite broker, than you can spend five times more than you planned on a car or a TV or any other major purchase.
Conversely, if you have a substantial amount of money to invest – for example 25,000 dollars or more – it would make no sense to open an account with a minimum limit of 100 bucks. The services on offer simply won’t be appropriate for your needs.
Luckily, many leading brokers now offer a range of account options for traders with different budgets.
Level of experience
Some brokers are geared towards expert traders. They emphasize things like personal account managers, one-on-one tutorials with analysts and other advanced features.
Other brokers instead focus on beginners. They will offer extensive learning centers where you can come to grips with the basics of binary options trading. Learning centers will usually give you access to articles and video tutorials about how to complete a trade, introductions to the basic vocabulary of binary trading, and so on.
Brokers aimed at novices might also offer a free trial, and so on.
It goes without saying, that you have to choose a binary broker that has a service offering that is appropriate to your level of knowledge and experience.
For a beginner, it would be meaningless to talk to account managers and professional analysts: everything they say would simply go over your head! Better to learn the basics, and then take advantage of this sort of feature.
As for experience traders, it would obviously be a complete waste of time to open an account with a broker that will explain to you the basics you learned and mastered a long time ago.
Do you need a bonus?
Many, but not all, binary brokers offer a bonus for new members. A bonus consists of a certain amount of trading capital.
Usually, a bonus will consist of a certain percentage of the amount you transfer to your account when you make your initial deposit as a new customer.
Bonuses can vary in size from a few hundred dollars, up to tens- and even hundreds-of-thousands of dollars.
Clearly, having more money to invest can be a great advantage. It means that you can place more money into each trade, thus earning bigger profits when you win; and it means you can conduct more trades, earning more money if you win frequently.
However, bonuses are not for everyone, and you should rarely make a big bonus your top consideration.
When you receive a bonus, you will have to accept certain terms and conditions. These will vary greatly from broker to broker, but some points are usually included. They include an expiry time and a turnover limit.
The expiry time means that you have to invest the bonus money you receive quickly. Are you ready to trade a lot, with big investments over the course of a short time period?
The turnover limit means that you are required to invest for a certain amount – usually worth many times more than the bonus you receive – before you can withdraw money from your account. Unless you are an experiences trader this could be a challenge you can do well to live without.
Your trading preferences
Other important things to keep in mind is what kind of binary options you prefer, which assets you like to trade in and what sort of expiry times you feel most comfortable with.
A lot of brokers offer up hundreds of different assets to trade in. Others only have a handful on their menus. Obviously, you need to find a broker that has the assets you prefer.
The same is true for binary option types. Every broker on the planet offers the classic, Up-Down option (aka Call-Put), but when it comes to more advanced options like Boundary, Touch, and so on there are huge differences. Make sure to find a broker that has your preferred option type if you like more sophisticated options.
Also when it comes to expiry times there are big differences. Some brokers offer up both 30-second and 60-second options, but many don’t. You will also find brokers who operate with expiry times ranging all the way up to one year. This is highly unusual, so if this sounds tempting to you, you will need to choose carefully.