How should I select a Binary Broker?
Personal_Finance / Investing 2014 Nov 24, 2014 - 05:24 PM GMTBy: Boris_Dzhingarov
When you’re starting out at options trading, you need to consider carefully a range of service providers that will enable you to execute your trades. In this article we will investigate the key characteristics that you should evaluate in order to determine which service provider is best suited to your needs and budget.
Think about what you want to trade
Different offer access to different underlying assets. For this reason it is important to consider which assets you will want to trade – both when you are starting out and further into your trading career – as you want to make sure you select a service provider that offers those underlying assets. Most of the established service providers offer upwards of 50 underlying assets that span asset classes like stocks, commodities and currencies. Some offer more assets than others (it is not unheard of to offer several hundred assets to choose from), so if you value variety make sure your service provider offers that variety. Additionally, service providers vary in the frequency at which they update their underlying assets
(for example, when a new company is listed, some providers quickly add that new company’s stock to their list of underlying assets). Check the frequency of updates to ensure that you are not dealing with a service provider that fails to regularly expand and update the underlying assets.
Think about your payment options
Companies vary in their ability and willingness to support different payment methods. Some companies just support credit/debit cards and wire transfers, while other companies offer a broader spectrum of payment possibilities including Skrill, Netteller and other such alternatives. Additionally, some of the more innovative providers are now accepting payments made in Bitcoin (or in other crypto-currencies). It is worth investigating the precise set of payment methods that are supported by a company in order to make sure that your preferred payment method is accommodated.
Think about your preferred trading tools
Different traders have different preferences with respect to how they like executing trades. For some traders, executing trades via a web-based platform is sufficient, and they have no need for alternative access points such as mobile applications. More and more, however, traders are executing trades via mobile devices, including smartphones and tablets. If you fall into the camp of traders who like executing trades via mobile devices, take the time to ensure that the platform offered by a prospective service provider is fully mobile compatible. Service providers increasingly offer native mobile applications for iOS and Android devices, so it won’t be hard for you to find those capabilities, but it is worth double checking to make sure mobile trading is supported before you go ahead and make a deposit with any particular firm.
Think about your location
The variety of service providers that are available to a trader should vary widely depending on where the trader is located. In some jurisdictions, most notably the United States, traders are strictly forbidden from dealing with binary service providers who operate offshore and are not regulated within the United States financial regulatory system (the Securities and Exchange Commission). Most other locations have considerably looser restrictions on residents’ international investment activities, but it is still worth speaking with a legal adviser in your jurisdiction to ensure that you are not violating any laws by investing in options.
Concluding remarks
In this article we have looked at several of the factors that should be taken into consideration when you are selecting a binary options provider. Providers vary widely in terms of assets, tools and regulatory status, so take the time to scrutinize carefully all prospective providers on these matters before making your initial deposit.
© 2014 Copyright Boris Dzhingarov - All Rights Reserved
Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.
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