Since trading binary options has become more accessible to the public, it has quickly increased in popularity as a way of making some extra money. Some traders even manage to make a full-time income from trading various assets online. However, although you may think that it’s easy to choose a binary options broker, searching online and opting for the first one that you come across can be a risky move.
With so many brokers to choose from all offering you the best return on your investment, how can you be sure that you have found the right one? Read on for our top tips.
Tip #1. Which Assets Do You Want to Trade?
The one thing that brokers have in common is that they offer a set of tradable assets. However, the type of asset can vary from broker to broker. For example, you can trade commodities, such as gold or even cotton, currency pairs on the Forex market, or stocks and shares in companies. It’s vital to make sure that when you sign up with a certain broker, they have the assets that you want to trade available. All good brokers will include an ‘asset index’ menu on their site, where you can find out this information.
Tip #2. Consider the Trading Expiry Times
In general, most binary options brokers and trading platforms such as Stern Options will offer regular options of 15 minutes, half an hour, one hour, 24 hour and weekly expiry times. However, not all brokers are the same in this aspect; some have even gotten on board with 60 second trading. The expiry time that will suit you best largely depends on the type of trading experience that you have. Whilst those who are new to trading binary options should stick to the longer expiry times to begin with, more experienced traders might want to give 60-second trading a go.
Tip #3. What Financial Tools Do They Provide?
When searching for a broker, it’s important to look for one who will be able to provide you with a wide range of financial tools for getting the best results from your trades. The right tools will help you to better analyze the financial markets and understand the current economic climate; in turn, this will lead to you making wiser, more informed decisions about your trades. Making sure that you have access to tools that allow for thorough technical analysis of the markets to find recurring patterns or scenarios that may impact your trades is one of the best ways to minimize your risk.
Tip #4. Look for Online Reviews
Once you have found a binary options broker that seems to be a suitable choice for you, it’s advisable to search for what past traders think about the service. Today, online reviews play a huge part in helping us make decisions when shopping or paying for services online, and trading binary options should be no exception. If a trading platform is unregulated or traders have experienced issues there in the past, chances are there will be some information about it online. Taking the time to search for others’ opinions and experiences before signing up can certainly pay off.
Tip #5. Consider the Level of Support
Whether you are new to trading or somewhat of an expert in the field, one of the most important factors to take into consideration when choosing a binary options broker is the amount of customer support that they have to offer. No matter what you do online, it’s vital that you have access to a knowledgeable member of staff who can offer advice and solutions in the event of anything going wrong. This is especially important when trading binary options since there is a high risk that you could lose money. The best brokers know that only the highest standards of customer service will do; they will offer you the option to get in touch with their support team in a variety of different ways and often have 24-hour support lines.
Tip #6. Returns and Profits
Binary options trading is only worth doing if you can see a good return on your investment. With the right broker, however, there’s little to worry about – trading binary options can be a very profitable choice of investment when you are using a broker who offers high returns and pay-outs. In general, returns will usually range from around 60-80%. However, bear in mind that it’s not always a good idea to choose a broker based on the return rate alone; there are many factors that make a good broker. In some cases, it can be worth compromising a little on returns for great customer service and other features.
Tip #7. How Secure is the Site?
When trading binary options online, you will likely be depositing and withdrawing money; this could often be in large amounts, depending on your investment limits and the type of returns that you are getting. Because of this, site security should be one of your top priorities when searching for a binary options broker. Along with requiring the peace of mind that comes with knowing that your financial data is secure, you will also want to choose a broker that allows you to deposit money quickly, so that you can get started straight away. Similarly, it’s a good idea to make sure that speedy withdrawals are also offered, so that you can access your money as quickly as you need it. Whenever possible, opt for a broker that allows you to deposit and withdraw your cash using a secure payment wallet service, such as PayPal.
Tip #8. Trading Instruments
Lastly, you should consider the type of trading instruments available when choosing a binary options broker. In general, most brokers tend to offer the same set of instruments to trade with, however, be aware that there are a few who offer different ones, such as Pair and Kiko options alongside standard call/put binary options. It’s always best to stick to the instruments that you are familiar with.
Did these tips help you find a great binary options broker? We’d love to hear from you in the comments.