Binary options brokers differ from each other by several factors: the minimum deposit, the percentage of profitability, regulation, trading platform. But a holistic impression of each broker can be formed only after the real cooperation.
In general, each of the above brokers can provide appropriate gain, since the average throughput of all companies’ transactions from 80% and higher. In any case, the final choice is yours, carefully examine all the details, and after make a decision.
How to choose a Binary Options Broker
The main difference is a market entry mode which is called the “minimum deposit”. Some “minimum deposit” can reach $ 200, while others – $ 10. At the same time it will not affect your chances of success while trading with the binary options. Of course, having $ 10 on the account it is rather difficult to apply some sort of trading system, but no one can stop you to make $ 100, $ 200 or $ 500, when use a particular strategy.
Another indicator, which is closely linked with the market entry, is a “minimum position” (or “Minimum Transaction”). Minimum transaction is the minimum amount for which you can buy a call option. Typically, this ranges from $ 1 to $ 20 and is 1/10 of the minimum deposit. Accordingly, the “Maximum position” – is the maximum price at which you can buy a call option. This indicator is important for those trading with a large deposit (about $ 30,000 USD). Brokers have the maximum option price ranges from $ 1,000 to $ 50,000. In this case you can buy 50 option contracts for $ 1,000; it would not be a violation of trading rules.
The next most important indicator is the percentage of profitability. It shows what percentage of the profit you get for 1 dollar investment with the successful prediction. This percentage may vary depending on the asset. Reviews of traders show that the same percentage of profitability on EUR / USD may be 80%: AUD / CAD – 85%, and the “Savings Bank” shares – 60%. These percentages may vary depending on the market situation. If the asset becomes too predictable, the percentage of profit declines. If the market is volatile – the percentage increases.
Another indicator is the percentage of return. It determines how much funds will be back to your account due to incorrect forecast. This figure is exposed in advance and affects the percentage of profitability. For example, if you bought an option for $ 10, putting the rate of return of 20%, and the forecast was wrong, then you will get back to $ 2.
The presence of a free demo account is the most interesting and important aspect for most traders, especially beginners. Some brokers give opportunity to use demo account on binary options only after making a deposit in real money. Others offer their customers the opportunity to trade on the platform and to assess its functionality. It is possible to test trading strategies without fear of losing real money.
Plus for any broker – is the presence of a mobile application that supports or enhances the functionality of the web platform. By installing the mobile app on your tablet or phone, the trader can actually trade at any convenient time and place anywhere in the world.
The regulation of binary options brokers
Last but not least is the affordable ways to display and control. The more ways O supports broker, the better: bank accounts, cards, e-wallets, terminals, – the ability to replenish or withdraw funds at any moment anywhere in the world.
Regulation is a synonym for security. The more reliable structure regulates the activity of the broker – the less you fear for the safety of funds in the account. The surest and only recognized binary options regulator in Europe is CySEC (Cyprus Securities Commission and Exchange Commission). If the broker is licensed by CySEC, it can carry out its activities throughout Europe and the world, except some countries such as the UK, which has its own Securities Commission – FCA.