If you are on a quest to find the best binary options broker for yourself, you must have been frozen many times by now, as many websites have a list of the best, most of which differ from page to page. This may further increase the confusion since you have no idea who to believe or which of the "bests" is actually the best for you.
These listings are not surprising given that the binary options market is rapidly expanding due to the increased public interest and government interventions to ensure broker transparency. It is, therefore, very important not only to take note of the listings but also to know what to look out for in a binary options broker to ensure you don’t end up on any risky online options trading platforms.
Every day, new virtual markets are springing up, with more people in the background drawing up their business plans and making arrangements towards bringing their brokering business to the forefront of the market. Depending on the circumstances present with each brokerage, there will be benefits and risks, some of which may be too risky for you. Hence, it is integral that you know how to find the best binary options broker for you and important criteria to look out for to make a perfect choice.
If this is what you need, you are in for a ride as you make the right decision toward your binary options trading aspiration.
How To Find the Best Binary Options Broker For You
Today more than ever, it is imperative to exercise caution before registering with a binary options broker to protect yourself from becoming a victim of cyber fraud. In protecting yourself, you have to look out for some important criteria that an ideal binary options broker must possess. Here are 7 top factors to look out for:
1. Licensed brokers
There are so many options to choose from today that finding a trustworthy binary options broker may be a hassle. Now that cyber fraud and crimes are becoming more rampant than ever. It becomes pivotal to carry out a comprehensive inquiry into the status of the brokers you come across.
In most jurisdictions, to combat cyber crimes and fraud by unscrupulous brokers, there are stringent licensing rules that intending brokers must abide by to have the power to carry out such business. These sets of brokers that have been licensed under strict regulations are referred to as "regulated binary options brokers." They are individuals with authority to operate a trading platform through a competent and recognized financial body in the state. The regulatory bodies serve as watchdogs, not only to grant licenses to adhering individuals and withdraw such licenses once licensing and operative rules have been breached.
Trading in binary options is carefully regulated in the United States to protect traders' interests. One must abide by rules that provide a fair market for investors, simple access to trading platforms, and speedy money withdrawals to operate as a broker in the United States. Binary brokerages must register with the U.S. Commodities Futures Trading Commission and the U.S. Securities and Exchange Commission (SEC) to operate legally (CFTC). Reputable financial institutions like the Financial Conduct Authority supervise some platforms in various countries, including the U.K. (FCA).
The industry still has many unregulated brokers, ensure that the platform you've picked for your binary trading pursuits is completely safe and secure.
2. Account minimums and fees
If you are new to binary options trading, then you need to pay optimum attention to this criteria as you do not want to burn out or churn out more than you intended to invest in a short time. Therefore, you need to check out the minimum trade size of the trading platform.
Depending on the restrictions of the site, the minimum account limits can range from a few dollars to several thousand. Don't feel forced to invest more money than you can safely afford if you only want to risk a few hundred dollars; instead, pick a binary low-deposit platform like IQCent that requires a minimum deposit of $20.
More than anything else, you should pay close attention to brokers’ fee schedules. You should also ensure you understand the minimum trade amounts imposed by the platforms. Some brokers may allow you to enter a trade for just $1, while others may insist on a higher price.
3. Underlying assets
Binary options are always created based on some underlying asset. These assets are the instruments you have chosen to bet on. To put it simply, what you are doing in binary options trading is choosing a financial instrument and betting on whether its price will rise or fall.
Different brokers have a wide range of underlying assets, sometimes going over a hundred or even less than that. If you want to be able to bet on different assets, you need to look for a broker that has a wide range of viable instrument options. Some examples of underlying assets are forex, cryptocurrencies, stocks, commodities, and indices.
4. Payout rates
While on the lookout for the best binary options broker, you also have to consider the payout rates and expiration times of the asset you’re interested in. The payout percentage varies from broker to broker and can be favorable in some cases while unfavorable in others. The changes differ from broker to broker, sometimes 80% or 90% of your entire profit.
Sometimes, a new broker in the marketplace may offer a higher payout rate as part of their aggressive marketing campaign, with older and more established ones offering a lesser rate but with more security guarantees. You can weigh the options and determine which is the safer option.
In addition to looking out for the best payout percentage, you should also look out for brokers that offer payouts in “out-of-the-money” situations. These are situations where you are still compensated in the event of a loss. Some brokers provide up to 15% backup of the sum initially invested.
5. Hitch-free Deposits and Withdrawals
When we talk about deposits and withdrawals, we refer to the payment methods they support. If you want to pinpoint a trustworthy broker, then they should be transparent about the payment methods that they have available. Asides from this, they must also have payment methods generally supported in many jurisdictions. Therefore, the best binary options broker for you should accept credit and debit cards, cryptocurrencies, e-wallets, and wire transfers to fund your account.
When it is time to withdraw, the idea broker will offer fast and hitch-free withdrawal services. If binary options brokers make money and have negligent withdrawal packages, it is best to stay away from them.
6. Demo Account Availability
You should see an excellent binary options broker in their demo accounts if you want to know an excellent binary options broker. Therefore, being wary of platforms with no demo functionality is alright. The demo function is helpful to people who are just taking baby steps into the binary trading world and for people who want to test the platform's functionality without running the risk of losing funds.
Therefore, not only will you improve your skills and confidence as a beginner, but you will also be able to test various trading platforms and determine which is best for you. You will also become familiar with the trading account user interface, risk management tools, and technical indicators.
7. Trading Platform
This final criterion is non-negotiable and is essential for any broker that wants to be reckoned with—trading apps. A good binary options broker would ensure that their platform is accessible to everyone. To cut to the chase, ensure the broker has browser-based platforms and mobile applications.
Therefore you can easily trade binary options via your desktop and smartphone, whether Android or iOS.
Binary options trading is a volatile market with several risks: internet fraud and unregulated customer treatment. Hence, you must take precautions to protect your data and money while trading binary options. To protect yourself adequately, you need to inquire into the said broker's registration and other essential elements necessary for you to thrive abundantly in the binary options market.
Look no further if you need a broker that fits best and carries all the advantages you need. IQCent is the best binary options trading platform for you. At IQCent, you can rest assured of security, low fees, hitch-free deposits and withdrawals, and a team supporting your success.
Firstly, ensure the broker is licensed and regulated. This guarantees your money's security and provides legal protection in case any disputes arise.
Secondly, your trading platform should have a professional design. This will make it simpler for you to trade and boost your chances of success.
Third, ensure the broker offers a demo account so you can practice without risking your funds. This will give you an in-depth knowledge of the platform and enable you to develop strategies without financial loss.
Traders must consider several criteria when selecting a binary options broker. These include regulation, minimum deposit requirements, trading tools and withdrawal/verification processes.
For a successful broker, it is essential that they provide an efficient termination system which guarantees easy withdrawals and secure account closures. Furthermore, this facility should be user-friendly and straightforward to use.