What is a Binary Broker
What is a Binary Broker?
The whole binary options trading industry is one of the newest known ways of profitable online investing, so the market analysts have to answer the question "what is a binary broker" rather often these days. Speaking in general, binary options brokerage companies provide their clients with financial services in order to connect them to the binary options market. This includes the provision of a binary trading software (special platforms), binary trading signals, customer support services, etc. Binary options brokers in contrast to their Forex colleagues don’t charge investors with any fee or commission during the trade.
How do binary brokers earn?
In order to understand what is a binary broker, you should also grasp an idea of how do they earn money. Just an example for your understanding. Let's suppose, you've placed a bid and your prediction turned out to be correct. In this case you'll receive not only your money back, but an extra 85% payout as well. The residual 15% is the profit of your broker. As you can see, a brokerage company's goal is to ensure you're profiting since under these circumstances it makes money itself.
How to Avoid Scam Brokers?
Unfortunately, the existence of scam brokers is a reality of this market too. The favourite trick of these fraudsters is to withhold traders' withdrawals until the similar money amount is reinvested back into their platform. The best way to avoid scam brokers is to search for user reviews and testimonials available in web or to check, whether the broker is regulated.
Terms and Conditions Section and Demo Account
Another important advice we would like to give the beginners. Please, pay attention to terms and conditions section available on the official website of brokerage company you chose to collaborate with. You can also start your trading session with a demo account, which means you won't spend your real money for trades. This is a great training option as well as a nice possibility to check all the features of a broker before investing real funds. Not every binary broker offers a demo account options, but the best ones definitely do.