Many binary options traders put themselves at a huge and immediate disadvantage because they do not use the right broker for their trading. This is unfortunate, because a lot of these traders have the skills necessary to be successful, but never find themselves on the winning side over the long run because of this one poor decision that they made. Usually, it’s made early on in their trading careers, too, which is even more unfortunate because instead of having lost money slowly over a long period of time, they could have been earning money.
We would like to go over a few of the things that can help you to find the right binary options broker for you and your trading style, and help you to be better informed so that you don’t fall into this trap. No one trades to lose money, so why not know what you need to do to start making it?
The Right Point of View
There are things that you can do to make yourself a more profitable trader, and there are things that you need a broker to do to help you get there. You shouldn’t confuse the two, and instead know where the boundary is so that you are not relying on the wrong source for your success. For example, you need to have a workable trading strategy of your own. That’s not your broker’s job. What is your broker’s job is to supply you with security for the cash that you have deposited. You want to know that you’re going to get the money that is rightfully yours back when you want it. That means that the broker needs to be reputable. But if they’re not, they’re certainly not going to advertise that they are a scam on their homepage. It’s your job to figure this out before you make your deposit. Spend some time on forums, read what clients say about the site, and make a decision from there. There’s not a lot of scam sites out there, but they do exist, and you want to stay as far from them as you can.
Rates of Return
Another responsibility of your broker is the rate of return that they supply you on winning trades. These are advertised before you execute a single trade, so you know far ahead of time what you will be getting if your call option is correct. But not all sites will pay the same. If one site is offering you 75 percent on a correct trade, while another is offering 78, you might not think that the 3 percent difference is a big deal, but it is. If you make 10,000 trades over the course of a year (which is only about 28 or so a day), you are potentially leaving $6,000 or more in earnings on the table if you risk just $20 per trade. That’s a huge number for anyone, and it could all be changed by picking the right broker right off the bat.
The Right Variety
This goes along closely with the previous point. The right binary options broker for you will have the right variety of assets and trade types that you need to be successful. It’s not their responsibility to create these for you, but it is yours to make sure that the right combination is there for you to take advantage of. If you don’t find what you are looking for, move on to the next site.
This doesn’t mean that they need to have everything under the sun. If you only trade call and put options on the euro/U.S. dollar currency pair, the right broker for you could potentially have just this one asset with this one type of trade. Still, you need to do your homework here. If you are interested in trading currency pairs, British stocks, and Asian indices using boundary and one touch options, then you need to make sure that your broker has these before you commit to it. There are a lot of varieties of trades and assets within the world of binary options, and not all brokers carry the same things. Some brokers will have what you need, others won’t. Figure out what’s what before you make your deposit so you never run into an unpleasant surprise along the way. There are a lot of stories out there of people moving from site to site trying to get the best. It makes sense overall.
This is something that many traders never think about, until they need to. Oftentimes, they find themselves in trouble when they shouldn’t, too. Some brokers have great customer service reps that will go out of their way to answer questions and make sure you have a great experience. Others are nonexistent. If you have a problem, you want a good customer service department behind that broker. Otherwise, you’re creating a lot of extra (and needless) work for yourself. Most people don’t figure out this last step of things until it’s too late, so when you’re doing your research, look into this aspect, too.