How to Compare Binary Option Brokers and Choose the Right One

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

How to Compare Binary Option Brokers and Choose the Right One

When it comes to making money from binary options there are two vital elements that you need. These elements are your trading skills and BOB. Yes, that’s right BOB. What is it? It’s simply a way cooler term for Binary Options Broker. The trading element is very complicated since it comes with tedious practice and training. However, trading is not the focus here. In this article let’s set aside trading and assume that you have already mastered it and put the spotlight on BOB. Just remember two things with BOB – if it’s bad you’ll have lower or lesser success rates; if it’s good then you’ll have that smile on your face.

Just as trading is tricky, selecting a good binary options broker can also be a very difficult task. Comparing one broker to another can be the key towards searching for that ideal trading guide.

Here are some ways that can help you compare brokers:

1. SUPPORT AND ACCESS

Language – accessibility means that you can easily access what you need. Language is of course a vital part of trading. Yes, English may be the most popular spoken language but there are other markets out there that do not trade using the language. Thus, make sure that your BOB speaks the same language as you do.

Customer Support – Binary options has rapidly risen in popularity. More and more people want to taste it quick moves and easy profits. However, hopeful traders do not know where to start so they really need someone to guide them. Novice traders need someone to talk to and someone to teach them about the ins and outs of the trade. This is why many traders compare brokers based on the support that they give and the knowledge that they possess. Traders also compare their brokers based on Live Chat operators and Account managers. The use of customer support is to extend withdrawals and deposits or technical problems that may arise.

Platform – The reality is that you will always need a user friendly platform when it comes to trading. However, some easy to use platforms may not be too good for advanced traders. Depending on the type of trader that you are, you need to know what kind of platform you need. For example, if you require some complicated tools and special orders, you will most likely use a platform that focuses more on such aspects than convenience of use.

2. YOUR MONEY

Refund and returns – Everyone who trades obviously wants higher pay outs. Who wouldn’t need and eighty percent ITM trade rather than a sixty five percent? Refunds presented for Out of the Money trades can provide more money management technique. This way you can also compare brokers.

Promotions and Bonuses – a lot of trades like to hunt for huge bonuses and it is a key aspect that they properly check on their BOB. Nonetheless, a huge bonus isn’t always the good way to do in trading because it has some strings attached and sometimes need you to trade in specific volume before you may withdraw. Some brokers even offer exciting promos but typically on limited time offers.

Minimum Deposit – there are trades out there who just want to a have a taste of the industry. They are not even that convinced about binary options trading and they just make smaller deposits. Nobody actually wants to gamble on a thousand dollars just to test the market. A lot simply cannot afford to hand over huge investments and end up with only a few for trading. It actually depends on the depth of your pocket and your gusto as a trader.

Deposits and Withdrawals – withdrawing cash can often be a horrible procedure. Some brokers even make it more daunting for you. Every trader should deeply consider this aspect. After all, it can be very hurtful to see an increase in your account but you cannot easily withdraw it in the end. In another note, you also look for a more convenient manner to deposit cash and not just withdrawing. PayPal can be very convenient and it is actually a favored wire transfer.

Fees – Typically, BOBs ask for fees when you want to withdraw you cash and these fees differ from one broker to another. As a trader, you naturally want these fees to be low and this is one reason why should opt to compare traders. Nonetheless, brokers may have different kinds of fees not just for withdrawals. This is why it is ideal for you to clearly read the Terms and conditions. Lower fees are always better.

3. TRADING PLAN

Tools and Options – when you select your BOD you have to consider the options and tools that they provide. You may need features such as Up and Down option or boundary in and out options. You may also need No Touch or One Touch and Sixty seconds options. Tools like Roll Over and Close now may be provided by one broker but not in another.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

Expiry times – Some trader do not use 60 second options while others never opt for monthly expiry times. This typically depends on what kind of trader you are and what are the times that give you more comfort. Hence, if you have a strategy that is only made for sixty second options and your broker does not offer this kind of expiry time then you have to look for another broker.

Amount of Trade – a vital part in selecting a broker is the trade amount. This is directly linked to the amount that you really want to invest. If you want to start with smaller trades then look for BOB that offers lesser position sizes.

Assets – different strategies work in different asset categories. Many traders only focus on few assets. As a matter of fact, this can be a deal breaker. Many traders will end right at the beginning when brokers do not provide the right assets they prefer to trade.

4. EDUCATION AND TRAINING

It is called gambling or financial suicide when you trade without educating and training yourself first. This is why when you badly want to trade you have to choose a binary options broker that can teach you the basics of the risky industry. If you are a novice, see to it that the broker offers a free demo account for you to practice on.

5. WATCH OUT FOR SCAMS

Even in the Binary Options industry, there are scammers everywhere. The best way for you to protect yourself against these posers is to choose a regulated broker. This may be a brilliant idea but looking for a regulated broker may be quite hard to find. But the good news is it is not impossible to find one. All you need to do is to intently research about your target brokers and then compare and contrast.

FINALE

As you can see, you always have to make your own due diligence and it is the only right thing to do since you also learn about the industry as a whole this way. I would advise that you also check our recommended brokers that you can start with, here.

How to Compare Binary Option Brokers and Choose the Right One

In the next three free-to-attend weekly seminars for traders presented by FXTM (ForexTime) people new to trading and beginner traders in general can learn the ins and outs of market… more

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Compare the best binary option brokers and trading platforms

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Can’t choose or don’t know which binary options broker is best suitable for you? Read our ‘How to choose a binary options broker‘ guide.

How to choose a binary options broker?

How do you actually choose a binary options broker? With over 250 binary option brokers and binary option trading platforms available worldwide one would really wouldn’t know where to start…. more

Choose and compare Brokers

Since early 2006 online investing and speculating on forex markets and stocks became available for the general public. Before, it were only the big banks and people who invested over $10,000 in a Bloomberg API trading desktop who could trade online from the comfort of their homes. Nowadays a lot has changed. Practically any citizen of any country on the world with an active internet connection can trade the financial markets online. Bankers and brokers had seen great potentials of making money with this and thus started to launch online broker after online broker.

With over 500 online brokers available, only about 50 of which I think are good and trustworthy, it’s still quite difficult for the average person to make an informed judgement and select the right broker to trade with, without losing money or getting scammed. I cannot emphasize more that choosing the right broker is of upmost importance. With 11 years of trading experience, ups and downs, I decided to put my experience available for the public on this website, where I will share my insights and keep you updated with the latest broker news, promotions, bonuses, updates and changes.

On this website you will find unbiased broker reviews written by me, but also by visitors and users of these brokers. You will find out where to trade, but also where absolutely not to trade, hence which brokers to avoid. These brokers you will find in the Scam Brokers page on the website.

Binary Options Brokers – How To Choose The Right Broker

Choosing the right broker is vital to your success as a trader.

However, in binary options this task can become very difficult, since you are essentially trading against the broker.

Unfortunately for the binary options market, it has been infected with scams and dishonest brokers that have used their unregulated position to steal money from customers.

There are many things a trader can do to improve, but unfortunately one of the things he can not influence and control, is his broker.

Brokers play a number of roles.

  • They provide operational trading platforms.
  • They store traders’ funds until they are withdrawn.
  • They control the available liquidity pool.
  • They process and sync all trading activity in the market.
  • They provide support to their clients (traders).

The role of brokers in the binary options market is too important to be taken lightly. This is why traders have to be very careful where they choose to deposit their money.

Brokers can also function as market makers, providing liquidity which enables traders with very small amounts of money to still have the chance at participating in the market.

Is the broker regulated?

Regulation in the binary options market is still an issue in many countries. At the moment, the US, UK, Japan, Australia, Cyprus and Malta can claim to have solid regulatory frameworks for the binary options brokers. In many countries, binary options is seen as a gaming activity or put under regulatory oversight of gaming commissions which have no rules on segregation of client funds.

If you want to trade binary options, you may start to look at the issue of regulation of brokers a lot more seriously than before.

You can no longer afford to keep your money in brokerages which are not regulated or which have no obligations as required by laws to segregate your money. Putting your funds in such brokerages is a very risky business.

So when choosing a broker on the basis of regulation, you must get answers to these questions:

  • Does the broker have a license number issued from the country’s regulators. You must confirm this information from the regulators.
  • Does the broker actually segregate the funds of its traders, and do the regulators that oversee their operations enforce this function?
  • Can you be sure that the broker is actually based in the country where it claims to be domiciled?

Some brokers have been blacklisted recently for infractions bordering on these points. Do your due diligence and ensure you have accurate information in this regard.

Trading conditions

When it comes to trading binary options, the trading conditions matter immensely.

This has to do with the structure of the market and how brokers in this market actually make money.

Apart from the US where binary options are exchange-traded, in many other countries this is not the case.

Binary brokers do not make their money from commissions, but from losses of traders on the wrong side of the market.

Most binary options brokers are trade counter parties. Some of them skew their online platforms to increase profits. However, it is a lot harder for them to do this on medium and long term contract expiry times than on the short term trades.

Furthermore, there is talk about brokers having risk management teams that bookmark accounts of traders who make too much money at the broker’s expense. Some are more honest about this than others.

Customer service

Customer service departments came into existence to enable clients ask questions or get solutions to some issues bothering them about the service of the company.

In binary options, there will be lots of issues to talk to the customer service about.

You will therefore need a responsive customer support service from your broker, which can be reached at all times (at least on trading days) and also via Live Chat.

In addition to a quick response time the customer service should also be able to answer most of your questions about the broker’s conditions as well as the trading platform. Some brokers offer outstanding customer support and it is actually one of their biggest pull factors.

Certain issues need to be dealt with quickly and the best way to do that is by direct communication. Choose a broker with a responsive live chat.

Prompt withdrawal settlement

It is only good that when a trader makes money from the market, he is allowed to enjoy the proceeds of such an investment via prompt fulfilment of withdrawals from the broker. Many brokers for reasons best known to them have come up with all manner of obstacles to prevent this from happening. This is usually a fine line and many scam brokers do this because profits for traders mean losses for them.

How do scam brokers operate in this regard?

  • By putting unreasonable withdrawal caps,
  • by applying hefty charges on withdrawals,
  • by tying withdrawal ability to high trade volumes meant to cover a bonus.

You need to be very careful of brokers that change their withdrawal policies randomly, as this is one of the early signals that a broker is starting to have cash flow problems.

Policy on bonuses

Because online binary options brokers are often in direct competition, they will often offer promotions, perks, and bonuses to get more people interested in their service. Generally speaking, the perks they offer increase with the amount that you deposit, and you can find a number of promotions specifically for first-time traders. These special offers can greatly benefit you, particularly when you’re just starting out.

However, beware of brokers who place very heavy trade volumes as a prerequisite for making withdrawals on accounts which have been awarded bonuses.

Bonuses are a good thing, but they have been widely abused. It is simply not right for a broker to expect to make from a trader more than 100 times what has been awarded as a bonus.

Choose a broker with a responsible bonus policy.

Bonuses are supposed to work in a symbiosis, but where one party starts to profit heavily at the expense of the other, the arrangement loses its core values.

This is partly why Japanese regulators have issued laws regarding how bonuses are to be managed, and also why Australian regulator ASIC is planning to introduce regulation to have them stopped altogether.

Choice of contract types and assets

Use brokers who give a generous offer of the kinds of trade contracts which can be traded on their platform.

Some traders will find they are much better at trading certain options and markets than others. For such traders, choosing a broker with a lot of flexibility in how to trade assets, will be a major benefit.

All binary options brokers will offer different assets within the categories of stocks, commodities, currency pairs, and indices and some will also offer cruptocurrencies.

Expiry times offered

Because there are different trading strategies and risks associated with the various expiry times, it is important that you find a broker that has the right expiry times that will work for you. Even though who offer high speed training have different ideas of what high speed is.

Some have high speed expiry times of 60 seconds while others offer just 15 second expiry times for these trades. Some binary options brokers offer much longer expiry times of a month or more while others consider the end of the day to be a longer expiry time.

If you are new to binary options and don’t yet know which you prefer, it may be best to go with a broker that has a wider variety of expiry time options to choose from so you can find one that fits you best.

Ease of transactions

Many payment options have evolved over the years which give traders plenty of flexibility in how they can deposit and withdraw funds.

So unless your country is under a financial blacklist just as the US recently blacklisted Crimea, you should choose a binary options broker which offers you a variety of transaction methods such as credit/debit cards and various e-wallet options such as Skrill, CashU, Ukash, Sofort, etc.

Conclusion

In the EU today, binary option brokers can only open trading accounts to licensed and professional traders. In many countries binary options are classed as gambling, which is not necessarily a bad thing in itself. In some countries it is illegal to trade or operate binary option platforms.

Today, the best option for new or existing binary option traders is to trade with a regulated CFD and Forex broker.

Although it is important to take your time while choosing your broker, it is also vital to understand that brokers are not the only determining factor when it comes to making money in trading online.

The most important thing is to learn how to trade and manage your risk.

Many readers ask which brokers are the best. It is difficult to point to one specific broker because it’s often a matter of preference.

Due to new regulations many of the biggest and most known binary brokers have closed or modified their operation to fill a different market demand.

To trade safely and with a peace of mind, look for regulated brokers with the best user reviews and various international awards.

EasyMarkets is a good example of a fully regulated, time-tested, reliable broker. Over the years, it has won 37 international awards and gained a lot of loyal customers.

Best Binary Options Brokers 2020:
  • Binarium
    Binarium

    Best Binary Options Broker 2020!
    Free Trading Education!
    Free Demo Account!
    Perfect for Beginners!

  • Binomo
    Binomo

    2 place in the ranking!

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