Strategy for Choosing a Binary Options Broker
The success of a trader in running the binary options trading process is certainly inseparable from the role of the broker who facilitates it. The many binary options brokers are now increasingly creating a diversity of services and policies that are different. Traders need to adjust broker features and rules with their trading needs and capabilities in order to get the most suitable broker for their binary options trading activities.
In terms of brokerage policies, the common problems that come with traders spot forex and forex binary options also vary. In ordinary forex trading, traders often mess around with special things such as price calculations, slippage, re-quotes, and much more. Forex spot brokers are also sometimes covered by common problems such as regulations that are not clearly stated. The issue of broker binary options is a little different because traders are not faced with slippage or re-quotes, but with other, more general broker problems.
For this reason, traders need to have a special understanding of binary options brokerage facilities. To get consideration in the process of choosing a broker, binary options traders can pay attention to the following aspects:
Regulation
This aspect is probably one of the most complicated problems when selecting brokers. Many brokers intentionally do not list the regulations clearly, even though regulations guarantee certain brokerage policies to remain at a standard level so that they do not harm traders. The regulation also ensures security on deposit storage and withdrawal systems so that traders can withdraw trading results according to the profits they earn.
Finding promising binary options brokers is a little more difficult than finding a broker spot forex licensed because some countries don't give licenses to binary options brokers. However, there are also licenses from certain countries for binary options brokers, including CySEC from Cyprus, AMF France, CONSOB Italy, German BaFin, etc.
The good or bad of the broker can be immediately recognized simply by reviewing the deposit system. For example, if just investing capital is a hassle, then the trading process of the broker will certainly also experience many obstacles. The same is true for withdrawal systems.
A good broker, of course, has a secure, easy and responsible fund withdrawal system. He also must be able to provide the right termination facilities if the trader wants to stop using the broker platform. Brokers here only have a role to store trader's funds, so traders should be facilitated by easy and convoluted withdrawal procedures. In addition, the limitation of the amount of funds for the withdrawal process should also be an important consideration. Traders should choose a broker that has a small limit or even has no limit at all for the withdrawal process. So, if the trader has difficulty to withdraw profits from trading results, it is almost certain that the broker is not responsible in terms of financial transactions and has the potential to distort trader's funds for personal gain.
The quality of brokers can also be seen from the many options for placing deposits and taking profits. If a broker only provides little or one choice in the method of payment and withdrawal, it is better for the trader to shift his focus to another broker with many choices for the transaction method. The more choices, the greater the chance to use the most economical and safe payment or withdrawal method.
Trading Software
A good trading software is a tool with the capacity to make it easier for users to trade. If the broker actually provides trading software that tends to be troublesome, where it sometimes takes 1 hour just to place a trading position, then leave the broker immediately. Trading with such platforms generally has a greater potential for failure.
In addition, the current development allows us to be able to trade flexibly. Brokers with trading applications for smartphones or other alternative gadgets can be the main choice if you want to feel the trading process is practical, effective, and can be done anywhere.
Payout
In this case, the payout ratio of various brokers can vary greatly. Some of them also distinguish the payout ratio based on trading instruments. Prospective traders can freely choose a broker with any high payout. But remember, the higher the profit, the refund obtained will also be lower
Variations in Trading Types
Basically, trading in binary options is not limited to high / low types, but there are also touch / no touch, in / out, and many more. Therefore, brokers with limited options for this type of trading are also worth watching out for, because they can take advantage of traders' ignorance in order to derail their trading. In addition to seeing variations in types of trading, transparency of rules in trading with certain types also needs to be considered. Traders need to be careful to avoid cheating from brokers if there are abnormal rules in the trading conditions.
Bonuses and Commissions
As a prospective trader who wants to get as much profit as possible, said bonuses and commissions are certainly the main attraction for brokers who own the service. However, traders also need to be careful of brokers with lots of bonuses or fantastic and unrealistic commission amounts. It could be that the broker has a system that makes it difficult for traders later on. Therefore, traders need to make sure if the bonus is still within reasonable limits. Giving a bonus deposit of more than 40% can be considered suspicious because the percentage above that number is considered too large to be used as a trading bonus. Remember that each party must both want a profit. If a trader benefits from successful trading, on the other hand, brokers can benefit more from system manipulation and other features.
Customer service
Integrated and informative customer service / customer service can also be a parameter in selecting binary options brokers. This can reflect the transparency and management system of a broker. Not infrequently there is a broker whose customer service is disappointing because giving information is not comprehensive or has customer service that seems unfriendly and annoying. In fact, a good information-giving system can provide additional solutions for beginner traders. Therefore, prospective traders are better not to override this aspect. Facilities such as live-chat, e-mail, and other interactive communication services can be a plus for a broker.
Privacy Protection
When you register with a broker, traders are required to fill in the registration form by filling in their personal data and personal account number. Before a trader actually joins a binary options broker, it's good if the trader first ensures privacy policy. This step serves to ensure that the broker is truly reliable to ensure the security and confidentiality of his client's personal data.
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