If you want to obtain a good comparison and discover the best binary options broker, then you have come to the right place. Finding a good regulated broker or a broker that offers special trade types would be only a couple of requirements that every trader may have. However, you can filter the brokers according to your preferences simply by using our binary options comparison. Sort the columns simply by clicking on the left-hand side options or header titles.
The best way to select a binary options broker:
Using a binary options broker would be the best way for an investor to enter the binary options market. Apart from keeping the money received from the investor, the brokers can also offer the platforms with which trades can place orders, can do research on some specific markets, obtain general information regarding aspects of binary options outside trading.
Considering the fact that any problems with brokers may lead to poor trading performance for traders, we can say that it is critical for them to select the proper broker for their business.
Are there any important considerations that traders must analyze before selecting a particular binary options broker?
There are numerous concerns regarding the regulation in the binary options market, and this is mostly due to the fact that every individual wants to earn money. There are numerous aspects that traders cannot overlook very easily, such as: non-payment of withdrawals to traders or undue manipulation of trading terms.
Cyprus is one of the countries where this problem is really pronounced. This is probably due to the fact that the majority of binary options brokers are based in this country. Setting up a binary options company in this country or in the British Virgin Islands is far easier compared to other countries. For example, it is very hard for a company to secure regulatory status from the relevant agencies in the US territory. As a consequence, there are numerous poor services which have taken advantage of this situation and have ruined the work of good binary options brokerage services from Cyprus. As a result, a new regulatory framework has been created by the Cyprus Securities and Exchange Commission to combat the problem. Therefore, it is becoming harder and harder for scam brokerage operations to be conducted in Cyprus. The traders will soon have the opportunity to put their trust in a genuine business due to these measures. There will be no non-fulfillment of financial obligations of broker traders in the market in the near future.
The second issue consists of the fact that several brokers make it really hard for traders to discover if they are regulated or not. To make it clear for everyone, the majority of binary options function under the four white labels: Tradologic, SpotOption, TechFinancials and TradeSmarter. EZTrader.com and HelloBinary.com are just some of the new white label services. By using specific software, few of these white label platforms can offer indirect CySEC regulation for brokers. However, BancdeBinary applies for direct regulation! Numerous problems can affect the clients due to the lack of clarity in what entity is regulated.
2) Financial Obligations and Withdrawals
Any broker that fulfills its financial obligations can be considered a good binary option broker. The trader should be able to get a withdrawal of $50 if he asks for it.
In case the requests exceed the broker`s capability to pay, several problems may arise. As a consequence, companies that activate in UK in the brokerage business should have a segregated account. These accounts are used to guard the monies that belong to traders. Traders are advised to place their deposits here. To make it easier to understand, a brokerage must possess sufficient reserve funds to handle the settlements. Numerous brokerages face this problem. As a result, traders must analyze the companies that can pay on demand. You now there is a problem if a broker states that he will manage withdrawals in three days in he does not sort them out in one week.
Usually, it will take two or three days for a withdrawal from a broker to be processed. You will need to wait another three or four days to see it in your account.
The strict withdrawal conditions for deposit bonuses are practically the main problem for withdrawals, and not the liquidity of the broker itself. The stringent terms and conditions for withdrawals are attached to any offer that a broker may have for deposit or for a welcome bonus for new clients. As an example, a broker can highlight the fact that traders must trade 10x the bonus amount before they can withdraw it. You may get largely limited to how soon you can withdrawal your winnings in case you make a deposit and accept a fifty or one hundred percent instant bonus credit.
3) Payouts and Platforms Features
Even though there are numerous brokers that have the same platform features for traders, the most important component that can help traders make money would be the payouts for different assets. There are numerous similarities between the payouts for binary options and the commissions in Pips charged by Forex brokers or the spread size in spread betting. This is due to the fact that the rate between the payout provided by the broker and the win-rate you need to break-even is inversely proportional. The trader will need to obtain a 50% winning rate if he has an average 80% payout.
Usually, the majority of binary options companies will provide a payout of 70-80% for touch/no touch and call/put options. However, the top brokers usually provide payouts of up to 90%. This is done in order to attract new traders to their websites; similarly to a marketing strategy.
4) Trade Conditions
A broker that does not possess the right financial buoyancy to match trade volumes will always find ways to block traders from trading on specific assets that can generate some money. You can easily avoid this feature that each broker in the marketplace possesses.