5 Things to Look for When Looking for a Binary Options Broker
Some say the new financial world is an easier place for both experienced and novice investors. The past few years have brought a huge change in the way people invest their money. In today’s fast paste life style not only is no longer necessary to physically meet your investment company and broker but there is also a whole new paste and rhythm to what is known as online trading or binary options trading.
If you’re new to binary options trading you should first understand what are binary options and how people are making fast money today. Traders who are already familiar with the new form of trading should read the following tips traders should look for when looking for a binary options broker.
Binary options brokers are in fact investment firms which offer their services online and don’t require high capital in order to open an account with them. There are more than 300 binary brokerage firms around the world so choosing one isn’t an easy mission. However, traders who follow the next 5 tips will be able to easily identify a well-established firm.
- Reputation – with more than 300 firms offering more or less the same service it is best to choose one which has a good reputation. Reputation is usually a matter of time, the more information you have on a certain company the more reliable the information is. The problem is that the binary options industry is a rather new field with many new companies which makes it very hard to rely on reputation as a sole factor. Never the less brokers who seem to have issues and bad feedbacks should be refrained. The main issue should be with brokers who have complaints about withdrawal procedures.
- Legal situation – binary options trading began in 2008 as a legal unregulated type of investment. For years the industry operated under no regulation. In 2013 several European and US countries have decided it’s time to put an end to this situation and now binary options are completely approved and watched by several regulator around the world. If you reside out of the US you will easily find a regulated broker to trade with. If you reside in the US then you are less likely to trade with a regulated broker. This means you must pay more attention to the brokers history and financial reputation.
- Bonus amount – look for a broker who offers a nice welcome bonus, it’s always nice to get something extra when opening an account. However pay attention to the small letters, most brokers will add some withdrawal restriction when paying a high bonus. Brokers who offer a Ludacris bonus are most likely to apply these restrictions.
- Training programme – whether you’re new to binary options or an experienced trader, its important to look for a broker who offers wide variety of learning materials. Don’t settle for an e-book and one or two videos. There are broker who offer online webinars, one on one training programs and a free demo account with up to $50,000 you can use before going live.
- Customer service and support – all brokers operate a support centre, however its best to look for a broker who offers its services in your own native language. Try the support team before opening an account, check response time and the different connection channels.