Picking the right broker is an essential part of your success as a binary options trader. You want a broker that will give you high returns on your trade as well as the customization’s to your trading that will best assist you in making your trading as close to your needs as possible.
Unfortunately, everyone will have different strengths and weaknesses when it comes to their own trading, so each person will need to evaluate which broker is going to be best for them on an individual basis. For example, some people might be better at trading call currency pairs, while others might be better at one touch index trades. Different brokers will offer different rates of returns on their different types of trades, so to find the best broker you will need to search out your own since there is no cookie cutter approach that will best suit everyone. Here are the things you should be considering.
1) Asset choices. The first place to look is at the different assets that each broker offers. If you want to trade the AUD/CHF currency pair, it doesn’t make sense to sign up for a broker that doesn’t offer this. Most brokers offer the basic U.S. stocks, but if you’re looking for a more obscure choice or a foreign stock, you will have to ensure that the broker you choose has these options available before you register. Asset choice is only the beginning, though, as you will see.
2) Best rate of return. This is a bit more difficult to determine. You want to go with the broker that will give you the optimum returns on the asset of your choice. So if one broker offers 75 percent on call options for the Dow Jones Industrial Average and another offer 78 percent, you will be much better off going with the 78 percent. 3 percent might not seem like a big difference, but over the course of a year of trading, this could add up to thousands of dollars. However, some brokers will offer better rates for different expiries. So if you want to trade 5 minute options of the Dow, you might be going with a different broker than if you were to be trading 60 second options.
3) Customization choices. For some people, the basic call/put option is not enough. The higher degree of customization you have over your trading, the closer you can get to a perfect trade, and this will help you to become more profitable. So if you think you will be better off with one touch or boundary trades, make sure that your broker of choice has these options available so you can get yourself one step closer to your ideal option trading strategy.
4) Branch out. This can make you a lot more money if you do it right. If you trade more than one type of asset, you might need to branch out and use more than one broker at any given time. Broker A might have the best rate on Facebook 15 minute options, while Broker Z offers the best rate on USD/JPY. If you want to be as successful as possible, it might be necessary to have two or more different brokers at your disposal.
Picking the best binary options brokers doesn’t have to be tough, but you do need to look at all of the choices that you have available to you. The general rule of thumb to follow is that the better you are able to approach your ideal trading conditions, the more profitable you will be throughout your career as a trader. You will never have a 100 percent correct trade rate, but by making conditions as favorable as possible, you can increase your profits.