Your first step in making a binary options trade is finding the right broker. Choosing a right broker is very important to know before start every trading type and the first thing to know about your broker if it is regulated or not.
Everything You Need to Know About Binary Options Brokers
Binary options is very popular and as such, there are plenty of potential brokers to choose. But the availability of too many brokers does not make it easy to select the appropriate broker.
So what should you look out for when choosing the right broker?
The first thing you want to look at is whether the broker is a licensed one i.e. they are licensed. Licensed brokers have essentially gone a step further to abide by strict regulations imposed by supervisory agencies. This simply shows that the broker is upholding transparency.
The advantage of trading on a licensed binary options platform is that it reduces your risks. It is true that all forms of investment entail some sort of risk but you can protect yourself from unnecessary risks such as fraud that could cause you to lose your money.
Think about it: wouldn’t you rather trade with a broker whose activities are regulated by a known authority such as the government or a regulatory agency? Such a broker is likelier to be honest than one who is unknown and unregulated.
The other advantage of a regulated binary options trader is that your payouts are guaranteed, even if the broker goes bankrupt by any chance. Regulations require binary options brokers to separate their operations from the monies deposited by traders.
More importantly, you can actually file a complaint against a regulated broker in the event that they breach their contract.
It is important to note though that some brokers are not yet regulated or do not have a license. This does not mean that they are fraudulent.
The issue of broker licensing is relatively new and most countries have not yet put in place a legal framework for regulating binary options trading.
All in all, you really need to do your research before starting to trade with any particular broker. Look around to see what others are saying about the broker and find out if they are truly licensed as they claim.
Here is a quick breakdown of other important factors to consider when selecting a binary options broker:
· They offer an easy to understand signup process
· They offer a rate of return that matches the industry standard of between 65% and 85%
· They allow you to test the platform before putting any money using a demo account
· They support several devices including desktop or tablet
· The customer support is excellent
A final recommendation is that there is no way to know whether a particular broker is appropriate unless you actually test them out using a demo account. With a demo account, you can make trades without using actual money just to get a feel of the platform.
The level of customer support will also tell you whether a broker is worth your time and money. Be cautious about any trading platform that offers flaky customer service. And remember when the good is too good to be true, it probably is.
|Trade with a Regulated Broker|