It’s important that you get a broker that suits your needs as a binary options trader. There are many brokers out there, most of which are reliable and safe. By narrowing down your search to the best ones for you, though, you are going to be taking a big step toward improving your bottom line and this is never a bad thing.
The first thing you want to look at, after deciding that the broker is a legitimate site, is the list of underlying assets that they allow trading on. This should not make or break your decision about a broker, though. You want to trade options that are going to be within your comfort zone, but you don’t want to just go with the first broker that offers your asset. Most brokers offer the biggest U.S. stocks, and indices. They mostly all also offer the major currency pairs and commodities.
This means that you need to look at criteria other than just which assets are being offered. You want to make sure that they have assets you are comfortable with of course, but you need to make sure that they are paying out a competitive rate of return on your favorite assets. Take Apple’s stock for an example. Most major Binary Options Brokers offer this asset for trading, but they don’t all have the same rates of return. Broker ABC might payout 75 percent in returns while Broker XYZ pays out 78 percent. Obviously the site that pays out the higher percentage should be your first choice.
If this was all that you needed to evaluate, your job would be pretty easy. But many sites have different types of options, such as one touch or boundary options, too. If you think that these advanced types of options would benefit you more than the traditional call/put options, then you may want to consider going with these, even if it means a slightly lower payout.
The hard thing here is to measure when enough is enough. If you are sacrificing 2 percent in payouts to improve your correct trade rate by 10 percent, this is going to be a good move. But if you are sacrificing 5 percent in payouts for a 2 percent increase in your correct trade rate, then it’s obviously not worth your time or effort. If you want to be successful in binary options trading, you need to know how to measure these things and how to best use the information that you gain here to your advantage.
Finding a good broker is essential to your success. You just need to remember that the biggest concern you should have is how a broker will affect your profits. If you find you can get a consistent 10 percent return with one site versus an 8 percent on another, you definitely want to go with the broker that will give you the biggest return rate.
This might mean going through more than one broker if you are trying to always find the best rates. Many brokers will fluctuate their rates of return and different assets will have different payouts, too, so make sure that you are thorough in your research.