How to Choose the Best Binary Options Broker

best binary options broker

How to Choose the Best Binary Options Broker

If money talks, everyone listens. This might be the reason why a few investors have not maximized their earnings in binary options. They have been enticed by the big returns that these companies bring. However, the opposite is true. Either they earn a little or practically none. What’s worst is that they can’t track where their money went because their trading partner is not under any form of regulation. For this reason, their operations must be strictly scrutinized. But before making a criterion on what makes a reliable and regulated broker, it is best to define what it is all about.

Whats is binary option ?

In finance, an option is a financial product between two parties and it contains a reference price and an expiring date. The buyer has the right to engage in this transaction while the seller has the option to complete the deal. The option price is based on the difference between the price of an underlying asset such as a stock or a bond and the strike price.

In a binary options contract, there are two options: payment through cash or payment through assets. By the expiration of the deal, cash options are paid in cash while asset payment is based on the underlying asset’s value given that their transaction has earned by the maturity date. While any form of trading is risky, the terms for most binary options are simple. In a matter of hours or days, there could be developments in the investment.

TOP 5 considerations to find the best binary option broker

There are five main considerations when choosing a binary options brokers. First, the company must be under regulation by a valid governing body. There are some options brokers who have questionable regulatory supervision details and these are the ones that can run with your money. This will also guarantee that the operations of the broker are fair and that dividends are paid correctly.

What about regulation or financial market supervisory authority ?

Under the Markets in Financial Instruments Directive or MiFID, any regulated broker that registered with a financial regulatory body under the European Union has the right to operate in all member nations. Because it has the provisions that are easiest to satisfy, forex and binary options brokers choose to register with the Cyprus Securities and Exchange Commission or CySEC.

Aside from the registration under rightful regulators, the best binary options brokers must have a courteous and responsive customer service department. Since money is a very delicate topic, it pays to have a trader that answers all of the customer’s concerns. Their modes of communication should not just be limited in phone transactions. Rather, they should have a live chat service that is manned by a prompt and respectful staff.

Aside from the registration under rightful regulators, the best binary options brokers must have a courteous and responsive customer service department. Since money is a very delicate topic, it pays to have a trader that answers all of the customer’s concerns. Their modes of communication should not just be limited in phone transactions. Rather, they should have a live chat service that is manned by a prompt and respectful staff.

Criterias for a good regulated broker

One important criteria is the scope of a company’s binary options trades. Some traders do not offer all types or place limitations that will just milk a customer’s money. New traders should learn how to spot these limitations by studying the deals or asking the advice of experienced traders. If a potential trader cannot be transparent with their deals, chances are that their operations are bogus.

Likewise, their trading software must be easy to navigate, easy to learn and approved by regulatory bodies like CySec. If it is complicated, the system is prone to more errors and more complaints from customers. It helps if the trader has a mobile version of their software so that you may trade on the go. Finally, the trader’s payouts must be to the customer’s advantage. Payouts can be in the form of variable options that gives an investor the opportunity to get out of the trade even after its expirations. Also, the binary options trader must provide ample instructions on where or how to withdraw the money.

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