One of the most important things to do regarding binary options trading is choosing the right binary options broker. Binary options market has seen a sharp expansion in recent years, and this means the number of brokers has also increased. The greater choice of anything is usually perceived as better, but the number of things that could go wrong is increased as well. From inept brokers to crooks in disguise, there is a whole army of people who could cause harm to your financial interests, deliberately or not. And since most of these are unregulated anyway, their exact numbers are unknown, and your rights are limited. So what can be done about this?
a) First and foremost, trade with reputable binary options broker on regulated markets
This is not as easy as it seems, as dozens of new binary options broker emerge every week, and most binary options brokers (as many as 95% of them by some accounts) are actually trading over-the-counter financial instruments with very little outside regulation. This leaves reputation as the main criteria. Relying on other traders’ experiences can be a bit tricky, as no broker, no matter how good, has a perfect record as far as clients are concerned. There are always complaints from disgruntled clients or staged by the competition combining slander and warning to a roughly equal measure. You need to figure out which are reliable and which are not. And even if you choose one of them, trade small and make sure you and no one else has access to your funds, at least not without your knowledge.
b) The bigger the better
One way to ensure your money is safe is to pick a large binary options broker with lots of experience, practice and capital. You need to be sure they won’t go bankrupt and/or run away with your money. Neither is good, as either one means you can kiss your money goodbye. However, a well-known broker or brokerage with ample funds is as safe as it gets in today’s markets: they are unlikely to go under or be unable to cash you out is you win too much.
c) Trading platform is the key
A trading platform can tell you a lot about those behind it. The number of binaries, the conditions, payout, the types of binaries they engage in can all tell you how reliable brokers are. There are many platforms, and most of them feature someone else’s logos on them. This is usually because they do not actually have a platform of their own, so they “rely on” someone else’s – not a good sign, but still doesn’t have to mean anything on its own. Most platforms feature call/put binary options (or high/low), but other types include one touch and range bound options as well. Reliable brokers can track changes on their charts a week back. Low slippage and low down time are a good thing; so is the payout – anything under 65% is not worth your while.