As binary options trading becomes more popular, many first-time investors give the industry a try. Because the industry defines risks, low capital requirements, and a global marketplace, it’s an easy-in for those who found no success in other areas of trading. One of the first things that many binary options traders do is open an account with a broker. Before signing anything, it’s always a good idea to ask these questions:
Are you Regulated?
Regulation is a relatively new thing in binary options trading. This is because binary options only recently began to be recognized as financial tools, rather than being classed as gambling or gaming. Third-party regulation allows the industry to guard against money laundering, identity theft, and other major financial crimes. While regulation isn’t always a sign that a broker is a great option, it offers clients a method of recourse should anything ever go wrong. The regulatory body has an investigative branch that is approachable for problem-solving.
What are the Processes for Deposits and Withdrawals?
The key thing that any good broker needs to offer its clients is absolute transparency regarding how he/she handles their money. You also consider how many options there are for depositing money. The more ways you fund your account, the easier it is for you to keep trading.
Withdrawals are mixed bags for many binary options traders. New regulations from government agencies made the identity verification step quite lengthy, meaning that your withdrawal is possibly in processing for some time. One of the best ways to judge this is by reading reviews of any potential binary options account broker online. Most clients mention how fast they received their money in their reviews.
What is the Trading Platform?
Trading platforms are the softwares that connect traders to specific markets. Many times, a trading platform doubles as a broker, so in those cases, you have the answer. But know what markets you have access to, and what types of tools the platform offers. A platform with the most information about assets is very desirable. As a result, aim for a broker that offers a transparent platform for the most trading options.
Do You Execute on Demand?
This is a big question to ask any binary options account broker. Some brokers’ options have a delayed execution, meaning that when you see a likely trade, you wait for a timer to expire before you buy the option. This possibly means that you lose some great trading opportunities. An “on demand” binary option happens at the moment the call button clicks, so you snap up trades as fast as you can react. Obviously, any trader avoids a broker that requires a delayed execution.
These are only four questions, but they offer a good overview of the broker’s reliability and services. If the account broker offers you plenty of detail and examples when answering, they have experience and integrity when it comes to binary options trading. Avoid brokers that give vague answers, or that offer only canned answers that clearly came from brochures rather than their real-life experiences. By choosing the best binary options account broker, your trading is more successful, and you maximize your profits very quickly.
