Binary Options Trading has become more and more popular over the years, and there are not hundreds of brokers to choose from, but which are the best binary options brokers for you? There are several factors you should take into consideration, when choosing a good broker site.
What is Binary Options Trading?
Binary Options trading a quite new way to invest your money online. The word binary means ‘two’, that’s that’s exactly how many options you have when trading: two. The goal of binary options trading is to predict the correct price of an asset. One of the advantages of this type of trading is that everybody can get started, without having any financial background, even if you have never traded before. If you are from Australia you can try out the binary options trading site dedicated to Australian investors.
What is an asset? In binary options we usually talk about 4 types of assets: currencies, indices, commodities and stocks. This means that you have to possibility to choose and asset and predict it’s price: for example will the oil prices go back up again? Will the Microsoft drop today? Will the USD be stronger than the EUR this week?
When trading, you have two options to choose from:
- call: If you think the price of an asset will go up, then you choose the call option.
- put: If you think the price of an asset will go down, then you choose the put option.
How to pick the Best Binary Options Brokers?
There are many factors to look at before signing up with a broker. Depending on your country of residence, the amount of money you want to invest and the level of security you are comfortable with there are different brokers that can be considered the best.
- Binary Options Broker Regulations: Some brokers are regulated by gambling commissions and financial institutions in different countries. Brokers that are regulated and licensed by these agencies are usually considered more secure and trustworthy. CYSEC (Cyprus Securities and Exchange Commission) is probably the most popular one, but there are also brokers that are regulated by Mfin, BaFin or CONSOB. IQoption is a trusted and regulated binary broker. Or you can use a binary option robot.
- Broker Comparisons and Ratings: Another good way to find the best broker, is to read our reviews, comparisons and check out the broker ratings. We have done the hard work of going through many brokers, doing research online and testing the brokers ourselves.
- Broker Welcome Bonuses: There are big differences in the amount and type of welcome bonus you can get. Remember that the broker with the best bonus is not always they best, however you could take advantage of multiple bonuses on multiple broker sites. Please do read the terms of these bonuses before accepting them.
- Customer Support: The customer support plays an important role in the binary options business. A good support team will help you with any problems you may have and they are also responsible for giving you exclusive bonuses. We recommend you pick a broker that has live chat support, because this is usually the fastest way to get an answer to your questions.
Broker Payment Methods
Another important factor is the variety payment methods that the brokers accept. Usually the best binary options brokers accept credit cards, debit cards, bank wires and e-wallets like Neteller and Skrill, but if you have Paypal only then you will have to check out one of the paypal binary options brokers like finpari. There are very few brokers that accept this payment method.
Depositing and Withdrawing should be fast and easy. Bank wires usually take longer whereas e-wallets are instant. Don’t forget that if you deposit using Neteller, you will only be able to withdraw to the same account; you cannot deposit with one method and withdraw using another method that you have not used for deposits before. If you use multiple payment methods to deposit then you will be able to deposit to any of them.
What Does Binary Options Trading Entail?
Getting the groundwork cleared about what Binary Options Trading is very vital if you want to plunge into trading binary options. However, it is not sufficient, not by a long shot.
In this section, we discuss the exact process to adopt to transform from a novice who only knew about binary options minutes ago to a successful, profitable binary options trader. Three cardinal points sum up what trading on the best binary options brokers entail.
- Be thoroughly knowledgeable about Binary Options Trading: How it works in detail, the terminologies, the different forms/types, types of strategies, what makes a terrific binary options broker et cetera
- Know what you are doing: Involves choosing which assets to trade, what strategy(-ies) to use, when to trade et cetera
- Stay focused: You cannot always be right. Therefore, adopt a tried and tested risk and money management strategy to make certain those occasional false moves have minimal impact on your capital. In addition, be disciplined by keeping emotions like greed at bay.
Make no mistake; armed with only the basic knowledge as shared in the previous section, you can make a trade. For Australian traders it’s complicated because not all brokers are licensed in Australia.
Technically, there is nothing complicated about trading binary options. All you have to do is:
- Determine which asset you want to trade
- Make a prediction of the change in value—UP or DOWN
- Choose when the change will occur
If you are correct, you will get a payout, no games. However, when you take a plunge without following the cardinal points shared earlier in this section, every attempt to trade binary options will be the same as gambling at an online casino.
You can make a profit or loss, but it is solely down to luck when you ignore the points. When you trade after adopting these points, you eject luck from the front row to the backseat and increase the likelihood of making consistent profits.
Why Is Binary Options Trading Peculiar?
There are various forms of trading financial instruments today, each with its peculiarities. What advantages does Binary Options have over other forms of financial trading?
- SIMPLICTY
FOREX for example relies on technology for simplicity. Binary Options Brokers do not rely on technology, it is inherently simplistic. The choices are direct and few (only two), the parameters are very limited, and the terms of engagement are clear as crystal.
- HUGE STIPULATED PROFITS
Before you even have to make a trade, you know what you are in for. You know the stakes. If you make a correct prediction, you will have one of the highest rate of returns on the open market.
The only time you have to wait is the specified time YOU set for your options to expire. After that, you can get anywhere from 75% to as high as 95% of your traded capital.
- BARRIER OF ENTRY IS RIDICULOUSLY LOW
Hounding paperwork, absurdly complicated charts, cluttered procedures; none of those exist in binary options trading. Finding requisite information is as easy as entering a string of characters in a search engine or flipping through a resource.
There are plenty of brokers falling over themselves to have your business, most of which offer exciting bonuses. Demo accounts are available to develop and test your trade-winning strategy/system. When the time is right, you only need to undertake three easy-peasy steps to make the highest rate of return in the open industry.
- SHORT TERM INVESTMENT
You do not have to wait for days, weeks, months, or years to make back your invested capital and some tangible profits back. In as soon as 60 seconds (although, we would rather you choose higher time limits) you can get your capital and a mouth-watering ROI. The best binary options brokers can offer all these features.
- LOW CAPITAL INVESTMENT
This is an extension of the #3 entry, but it deserves its own spot. You do not have to invest thousands of dollars to make tangible profits.
The best binary options brokers would want you to deposit a minimum of $250 at the start with an average of 100% bonus, others as low as $100. However, you can use as low as $10 from the deposited amount to make a trade.