Binary options broker; friend or foe? All traders must know the answer to this question. Though “foe” is actually a bit extreme, it is possible that your broker could be holding you back from realizing maximum profits. How could this be? There are actually several things to consider. The good news is that traders are always free to partner with any broker they wish. Now, let’s consider whether a change is necessary.
Simply put, anything your binary options broker does which imposes limits on you is not a good thing. Limits could be anything from too few trading instruments, a poor variety of underlying assets, or limited expiry times to choose from. Each broker is going to provide some of these, but are they offering enough? As a novice trader, you may not know the answer to this. Basically, you’ll want to have access to 3-4 instrument types, 3-4 expiry times, and at least 20-25 underlying assets. Most brokers do surpass these minimums, but it is possible that yours doesn’t.
Another key area is going to be finances. You’ll need to consider the payout rates, refund rates (if any), and bonus amounts. As a general rule, more is better. This statement should not be misunderstood, however. Higher rates and bonuses are excellent, but they should not overpower the need for you to partner with a binary options broker which is capable of meeting all of your needs. That said, if you’re trading well, you will want to be teamed up with a reliable broker that is offering excellent payout percentages on in the money trades.
Banking is another area of concern. You could find yourself limited in regard to deposit and withdrawal methods, or available currencies, this could be problematic. Additionally, if strong security is not in place, this is a huge problem. Most binary options brokers include security information within the FAQ section of their website. If not, feel free to contact customer service and ask how your financial information is being protected.
If you haven’t yet selected a binary options broker, take advantage of the opportunity to make the best possible selection from the start. If you discover that your broker is less than satisfactory, don’t fret. You can change brokers as often if you wish, or partner with more than one broker. The goal of options trading is to profit and a bad broker could prevent you from doing this. Closely scrutinize your broker options in order to avoid any problems which could be holding you back from substantial earnings.