As binary options trading becomes more popular, many first-time investors are giving the industry a try. Because the industry has defined risks, low capital requirements, and a global marketplace, it’s an easy-in for those who haven’t found success in other areas of trading. One of the first things that many binary options traders do is open an account with a broker. Before signing anything, it’s always a good idea to ask these questions:
Are you regulated?
Regulation is a relatively new thing in binary options trading. This is because binary options have only recently begun to be recognized as financial tools, rather than being classed as gambling or gaming. Third-party regulation allows the industry to guard against money laundering, identity theft, and other major financial crimes. While being regulated isn’t always a sign that a broker is a great option, it does offer clients a method of recourse should anything ever go wrong; the regulatory body should have an investigative branch that can be approached to resolve issues.
What are the processes for deposits and withdrawals?
The key thing that any good broker needs to offer its clients is absolute transparency regarding how their money will be handled. You should also consider how many options there are for depositing money; the more ways you can fund your account, the easier it will be for you to keep trading.
Withdrawals are a mixed bag for many binary options traders. New regulations from government agencies have made the identity verification step quite lengthy, meaning that your withdrawal can be in processing for some time. One of the best ways to judge this is by reading reviews of any potential binary options account broker online. Most clients will mention how fast they received their money in their reviews.
What trading platform do you use?
Trading platforms are the software that connect traders to specific markets. Many times, a trading platform doubles as a broker, so in those cases, this question is already answered. But you’ll still want to know what markets you’ll have access to, and what types of tools the platform offers. A platform with the most information about assets is very desirable; aim for a broker that offers a transparent platform for the most trading options.
Do you execute on demand?
This is a big question to ask any binary options account broker. Some brokers’ options have a delayed execution, meaning that when you see a likely trade, you have to wait for a timer to expire before you can buy the option. This might mean that you lose some great trading opportunities. An “on demand” binary option happens at the moment the call button is clicked, so you can snap up trades as fast as you can react. Obviously, any trader will want to avoid a broker that requires a delayed execution.
These are only four questions, but they offer a good overview of the broker’s reliability and services. If the account broker offers you plenty of detail and examples when answering, you can bet that they have experience and integrity when it comes to binary options trading. Avoid brokers that give vague answers, or that offer only canned answers that clearly came from a brochure rather than their real-life experience. By choosing the best binary options account broker, your trading will be more successful, and you’ll be able to maximize your profits very quickly.
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