Choosing a binary broker
If you are looking to make money as a binary trader, the first thing you must do is open an account with a binary broker. It is impossible to trade in binary options without a broker.
Fortunately, there are a lot of binary brokers to choose from. Binary trading is a rapidly growing business sector, and new brokers are launched all the time. This huge array of choice offers a number of benefits. The greater the competition between brokers, the better service, bigger bonuses and more favorable returns they are likely to offer.
But the vast number of brokers also offers up a challenge. With so many to choose from, it can be difficult to make up your mind. And that’s where we come in. Here at binarybroke.com we are intimately familiar with this marketplace. We know which brokers offer the best deals, which broker fits with what kind of trader, and we keep our ear to the ground in order to bring you the hottest updates.
So, why not take a look around our website? You will find all sorts of helpful information about binary options in general, and binary brokers in particular.
What to consider when choosing a binary broker?
What is a binary broker?
Let’s start answering the question of what a binary broker is by first taking a closer look at what a binary option is. In its most basic form, a binary option is a prediction. It pertains to the price movement of a specific asset during a set timeframe. So, a binary option consists of four basic elements:
- An asset – e.g. a stock, a currency, a commodity or an index
- A set timeframe – e.g. 30 seconds, 1 minute, 10 minutes, several hours, and so on
- A predicted price movement – up or down
- An investment sum
So, that’s a binary option. A binary broker is a financial institution that offers this sort of product. If you would like to invest in a binary option you do so through a broker. You simply specify the parameters in the list above, for example as follows:
- 30 seconds
The broker will take this investment, and immediately tell you how much money it will pay you if your prediction is correct. Then, after the option’s running time elapses, you either win or lose. In our example, if the price of gold rose in the 30 seconds specified, you would get your initial investment, plus a return. If the price of gold didn’t rise, the broker would keep your $50.
Most brokers will pay a return of more than 70 % for this sort of option, so there can be a lot of money to be made on binary options.
How do I choose a binary broker?
Binary brokers operate online. There are a lot of them to choose from, and you will probably have seen numerous ads for many different brokers already.
Seeing as you will be doing all your trading with the broker you open an account with, it is important to make a smart choice. We are also talking about a company you will entrust with your money. Clearly, this is a decision that merits considerable care.
Here at binarybroke.com we know this marketplace very well. We know all the established players, and constantly keep a lookout for newcomers. By taking a look around our site you will find informative articles, in-depth reviews and objective recommendations to help you make a wise choice in choosing a binary broker.
When it comes to picking a broker that fits for you, there are a few considerations that most traders should keep in mind:
- Assets – not all brokers offer options that pertain to all sorts of assets. What sort of assets would you like to trade in? Does the broker offer options for those assets?
- Kinds of options – there are a lot of different binary options. In the previous paragraph we used the very most basic one, the high/low option, as our example for simplicity’s sake. But there are many different types, with different levels of risks and returns. Make sure the broker you are considering offers the sort of options you prefer.
- Returns – this is the biggie. Brokers offer a set return for all the different options it offers. For example, many brokers will offer a return of about 80 % for getting a high/low option correct. But some might offer 82 % and others 79 %. Needless to say, it pays to pick the broker with the highest returns.
- Bonuses – many brokers will give you a bonus consisting of investment funds when you transfer money to your brokerage account for the first time. How big this bonus is varies greatly. As do relevant terms and conditions. Make sure your broker offers a bonus that’s right for you.
- Customer service – having an account with a broker you can easily get in touch with, brings peace of mind. It is also reassuring to know that help is at hand, should you need it. Even if you don’t need to contact your broker, it is a sign of substance and reliability if they invest in a good customer relations offering.
- Minimum deposit – some brokers specifically cater for very serious investors with big budgets. These brokers will operate with minimum deposit limits that can be too high for a lot of new traders – up to $2500 or even more. Make sure you find a broker that is appropriate for your budget.
By looking for your next binary broker here at binarybroke.com, you will find pertinent information relating to all these important considerations and more.
How do I open an account with a binary broker?
It is very easy to open an account with a binary broker. All that’s usually required is to complete the following easy steps:
- Choose a broker that is right for you
- Visit the broker’s website
- Fill in a brief registration form
- Deposit money into your new account
- You can now begin to make binary trades
Please note that if your broker offers a bonus, this will be accredited to your account once you have completed step 4.) Deposit money into your new account.
Usually this bonus will consist of a percentage of the deposit you made. Often, the broker will double your deposit up to a certain limit. This limit is usually about $5000 or more. Nowadays a lot of brokers have no such limit.
Please note that bonus funds consist of credits you can use to invest with the broker. It is not cash that you can withdraw from your account. Terms and conditions always apply when you accept a bonus from a binary broker. One such condition usually specifies how many times you have to invest your bonus credits before you can withdraw money from your account.