The binary options trading industry is booming and there are an estimated 501 active brokerages in operation. SpotOption is the most popular trading platform as it is used by 80 binary options brokers, followed by Tradologic (55), and TechFinancials (47). Binary investing is becoming popular as it is a fun and exciting way to earn a lot of money. With some smart research on the internet, you can maximize your winning chances. If you are still sitting on the fence, read on to learn about the numerous attractions of binary trading and how to select reliable binary options brokers whom you can trust.
Benefits of Binary Options Trading
To start, binary investing is easier to learn and use compared to stock and forex trading. You just need to predict whether the value of a chosen asset will rise or fall in the selected time period. Anyone can make informed predictions with a little research on the chosen asset.
You can become rich in quick time as the asset only needs to rise or fall a little for you to become a winner. For instance, if you predict that Apple’s stock will rise, if its value goes up by just $0.01 within the expiration time you will be declared the winner. On top of that, binary investing is lucrative because best binary options brokers give out high payouts. If a broker pays 90%, then if you invest $100 you get a whopping $190 for winning trades.
You don’t need to be a financial expert to succeed in binary trading. Simply track the latest industry news and trends to make informed predictions. For instance, if you read that a company is planning to launch a new product soon, you can safely predict that its stock value is bound to rise. In contrast, you need deep financial knowledge to make money in stock and forex trading.
Binary investing is flexible and allows you to control your risks, investment amounts, and potential profits or losses. Thus, there are no surprises waiting for you as could be the case sometimes in stock trading.
Best binary options brokers are constantly introducing exciting features and innovations to sustain the interest of traders. For instance, some brokers allow you to close a contract before the expiration time, double your investment money while trade is happening, and more. You can select your investment amount, have full control over your winning and losing amounts, and eagerly monitor the expiration time counter to find out whether you will win the trade. Thus, binary investing is more exciting compared to boring normal stock trading.
You can access online binary trading platforms from anywhere, anytime, using any internet-ready device. This allows traders from any country where binary trading is legal to join in and enjoy the fun.
Due to the growing popularity of binary trading, many governments have decided to legalize and regulate it to ensure trader safety. The US, UK, Cyprus, Japan, Australia, and South Africa have taken the lead in this regard. They are sure to be joined by other nations as binary trading becomes more popular around the world.
Another advantage is you can do social trading and share your experiences, ideas, and strategies with other traders on social networks that are similar to Facebook.
For professional investors, binary trading is a better alternative to gambling which is more risky as it is based on luck. In binary trading, you can improve your chances of winning by doing smart research on market news and trends to make educated predictions.
Binary trading is better than stock trading from the safety point of view too as you can control your losses. For instance, if you wish to invest $10, you will lose only this amount if you lose the trade. In contrast, in stock trading you can end up losing the full value of your stock holding if the share value drops dramatically.
Finally, binary trading offers convenient customization options. In addition to simple rise or fall options, you can also try your luck with one touch and boundary trading. In the one touch option, you will win if the asset reaches a decided price at any point during the life of the trade. In boundary trading, you become a winner if the price finishes within the price range you predict at expiration time.
How to Select a Reliable Broker
You need to ensure your hard-earned money will be safe with your binary options brokers. To help you, we provide useful tips on how to go about shortlisting best binary options brokers whom you can trust.
Go Online and Check Reviews and Reputation
There are more than 500 binary options brokers in operation with many of them unregulated. Even regulated brokers are defined as different financial entities such as gaming businesses, private banks, and the like. So, how you separate the wheat from the chaff? One of the best ways is to do thorough research on the internet by reading customer discussions and reviews on third-party sites and trading forums. Many sites provide a list of blacklisted brokers whom you should avoid. Find and shortlist brokers that have earned positive reviews from customers and have established a reputation for transparency and quality service.
Read the Fine Print
Do not be in a rush to start binary options trading. Take your time and go over the broker’s website in a methodical fashion. Read the terms and conditions, FAQs, and fine print. This will tell you if the broker offers fair terms and conditions and whether they are suitable for your needs.
For instance, check the withdrawal minimum of the broker and make sure it is not high. If you invest $100 and the withdrawal minimum is also the same amount, you will not be able to get your money back if you wish to pull out after losing a small trade. You will have to keep trading till your winnings reach $100 to be able to withdraw that amount. This shows how important it is to do your homework diligently on terms of service.
Select a Broker that Provides a Demo Account
A demo account allows you to test the trading platform and other features, and get used to them without investing any money. This increases your chances of making profitable trades. In addition, a broker that offers a demo account tells you that they wish to have a long-term relationship with you. This shows the broker cares about your success by offering you a level and fair playing field.
In contrast, a broker that does not provide a demo account gives the vibe that they want you to start trading immediately without doing proper testing. This means they are hoping you will lose your trades and your money as well. Therefore, apart from practical considerations, a broker’s intent and goals can also be learnt by finding out if they offer a demo account or not.
Look for Value-Adding Features and Tools
Top brokers offer a lot of resources and trading tools to enrich the trading experience for investors. They provide a range of trade types such as early close, rollover, double up etc. This gives more control to traders. For instance, the Option Builder tool allows you to set your own expiry times and customize the features of your selected trading option.
Many brokers also provide educational resources such as articles on trading strategies, video tutorials, personal training sessions, and learning webinars. Some even send trade alerts to you and train you on effective winning strategies. Typically, you need to subscribe to one of the premium accounts to get personalized attention and service.
Test their Customer Service Quality
Last but not the least, it is essential to select a broker that offers reliable and efficient customer service. The best way to check the quality of customer service is to try out their various channels for communication. Call them and talk to a sales rep. Check if the rep is responsive and provides relevant answers to your queries or simply badgers you to open an account. Are you satisfied and comfortable with the interaction?
In addition, check their live chat tool to find out if they reply promptly. Does the agent appear friendly and knowledgeable? Does he provide quick and informative answers or simply beats around the bush? Also, send a message using their email or web form to check out their turnaround time on replies. In short, you should be satisfied with the promptness, knowledge, and friendliness of the customer support team. If you are not, simply move on to the next broker in your shortlist.
Binary trading offers numerous attractions and can be a fun and entertaining way to earn money. However, you need to beware of the risks involved as there are numerous unregulated brokers and shady operators. Use the tips provided in this article to shortlist reliable brokers whom you can trust with your hard-earned money and do your research thoroughly to become a successful trader.