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Published On: Thu, Nov 29th, 2012

How to Select a Binary Options Broker

A crucial decision that you will have to make at the outset of your venture into binary options is to identify a premier broker who can best fulfil your trading objectives and ambitions. Are there any guidelines that you can apply to achieve this objective, you may well ask? Hopefully, the contents provided in this article will define a suitable checklist that will, at least, set you on the right course. Specifically, a list of the key features of brokers is provided which you can use to evaluate and compare the quality of their services.

1. Transparency

Ensure the honesty of candidates by confirming that all their chargeable fees are visibly displayed and that you will not be stung by any nasty surprises. Check the internet reviews of all brokers that interest you to validate that they do not possess a history of springing hidden charges on their clientele.

2. Professional Support

Check out the quality and reliability of the customer support that you can expect to receive if you register with a particular broker. You can achieve this goal by testing out their facilities by asking pertinent questions via email, Live Chat and telephone, etc. You must verify that you will be supported by a quality service that will be available around the clock, every day of the week.

3. Asset Index

You require a broker that supports a wide-ranging list of premier underlying assets within the 4 main trading activities of currencies, commodities, stocks and indices. As a guideline, the leading brokers supply in the region of 100 asset choices.

4. Predefined Returns and Refunds

Your choice must provide you with very competitive payout and rebate percentages so that you will know that your risk exposure will be as low as possible at contract execution. For example, you should ideally seek returns about 85%+ of your wager and refunds of about 15% plus.

5. Premier Leverage Facilities

In order to make your trading worthwhile, you need a broker who can provide you with excellent leverage so that you will be able to initiate large positions using a minimum deposit. Seek a broker that can support at least a 100:1 leverage facility.

 6. Extensive Range of Expiry Times

Premier brokers these days permit you to exploit a comprehensive list of expiry times ranging from 1 minute to multi-month. Ensure that you identify one who can provide you with such a service so that you have as many options at your disposal when you commence trading.

7. Security 

This is a key requirement and cannot be underrated.  Candidate brokers must guarantee, as a top priority, that all your private and personal information will be held secured and fully protected after it has been entered into their trading platforms. Check out which protocols will be used to fulfill this function.

8. Trading History

So that you can analyze and perfect your skills and strategies, you will require easy access to your trading history which should contain the pertinent details of every trade that you have initiated. You also need to inspect the quality and ease-of-use of any tools that are supplied that will enable you to promptly research this information.

9. Premier Trading Platform

Thoroughly inspect the standard of trading platform you will use once you register with a favored broker. You can achieve this objective by opening a demo account and testing all the features available by instigated a series of meaningful trades. Essentially, you need to ensure that this tool will enable you to activate new binary options accurately at any time and any place. Are the features supplied competitive with other leading brokers?

10. Web-based Access

If you prefer not to have to download any software from your broker’s website onto your own PC, then select one whose trading platform is web-based. You will then have the ability to trade from any internet connected computer facility located anywhere in the world.

11. Withdrawals and Deposits

All your financial transactions must be performed efficiently and seamlessly. They must also not attract any hidden commissions or fees.

12. Website

The quality of the websites supported by candidate brokers is very important. Does it support regularly published news and trading information that can assist you in making quality decisions? Is it easy-to-understand and can you navigate the site quickly and efficiently? Are hot tips, an economic calendar and market updates, etc. supplied?

You can utilize the above attributes to create a list that you can help compare and assess the merits of all those brokers that attract your attention.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

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