Choosing the Right Binary Options Broker

Finding a broker for trading in binary options is not as easy as it sounds. There are many scammers out there masquerading as brokers looking to make a quick buck from your sweat. Many novice traders have fallen prey to these unscrupulous sites but the good news is that you can avoid the same pitfalls. All you need to do is seek and find information on what your ideal broker should be and do. Luckily we have provided a list of questions that you can use as a yardstick when selecting a broker.

Binary Options Broker – Are they licensed?

As with most any other aspect of business, your risk is significantly lower if you work with a legally recognised binary options broker. As a client of a regulated broker you don’t need to worry if they run into financial trouble and go bankrupt. You will get your money back as it will be in a separate account from that of the broker. Thanks to this regulatory requirement the broker’s creditors won’t be able to touch your or other clients’ money to recoup their debts. In addition, if you’re not happy with the conduct of your broker or if there’s a breach of contract, there is a regulator you can file a complaint with.

Binary Options Broker – Are they up to date?

It would be unfortunate for you to lose your hard-earned savings just because your binary options broker was operating on outdated market information. The sad thing is there are a number of dubious traders are deliberately using prices non-reflective of actual market rates in order to rip off their unsuspecting clients. How can you spot these malicious brokers? You can easily do so by comparing the prices on the reliable Reuters feed to the ones that your broker is claiming. If the two curves differ considerably consistently, something is not right.

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Binary Options Broker – How big are they?

Bigger is better in many things and it is most certainly the case with binary trading. Bigger, more reputable brokers offer safety in numbers as they serve a huge client base acquired over a long time of operation. These many customers mean that they have a bigger pool of funds and will be in a better position to absorb losses. Even in case of any other event that jeopardises the operations of the broker, you will have a greater degree of reassurance as to the safety of your funds. While there are some smaller brokers who have built a name serving a particular market niche, your best bet is always with the bigger companies.

Binary Options Broker – How soon will they pay?

Many traders have complained of brokers taking their sweet time to pay them after they have traded successfully and made a dividend. Many a binary options broker will try and delay processing of payment as much as possible while trying to entice you to trade with your profits instead of withdrawing them. This is why it is important to join forums or find other ways of comparing notes with fellow traders. This way you can get unbiased accounts of experiences with brokers and know which ones to avoid.

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