Trading Binary Options can indeed be an interesting way to make money. It allows you the freedom to trade from home on a number of assets.
However, before you can start trading and making money with any Binary Options strategy, you have to decide on a binary options broker.
This can indeed be a difficult experience. This is because the market is fraught with a number of brokers who are either scammers or are extremely dishonest.
However, in order to avoid falling for a scam binary option broker, there are a number of steps that you can follow.
Is the Broker Regulated
Broker regulation is essential to securing yourself. This is because of a number of factors. Firstly, if the broker is regulated there is more chance that you could possible recover your funds if the broker does indeed try to restrict any withdrawals?
Another reason why a regulated broker is a good option is because it shows that the broker has a large amount of funds available in order to provide you the service. Regulation is not cheap and brokers are required to have a large degree of funds available to meet certain liquidity requirements.
Lastly, a regulated broker shows that they are serious about their reputation and will try to make sure that you have the most pleasurable trading experience. This is because if a client creates a bad name for the broker at the regulator, they could lose their licence. This could be a really bad outcome for any broker who relies on their licence for marketing purposes.
What is Said Online
When choosing the best broker , online resources can be your best friend. If the broker has duped someone online, you can be certain that they will have a negative reputation on a number of online forums and review sites.
This is where some due diligence and research can put you in good stead. Do a Google search on the broker as well as the name of the holding company. Read what other traders are commenting about in the comment sections.
There may also be information about the broker on social media. People may decide to write something or create an online page that is devoted to that broker.
What most traders fail to understand is that they should never take anyone’s word for it. They should use multiple sources in order to make their decision.
Speak to the Broker
Usually, if the broker is honest and trustworthy, they would more than likely want to speak to you about their service and answer all of the questions that you may have.
If a broker is unresponsive on email or starts getting slightly difficult when you talk about some of the topics above, then this should be a red flag.
Ask the broker for any regulation numbers as well as information about their operations. Where are they located? How many employees do they have? Which regions are they allowed to take clients?
Moreover, you can use the conversation that you are having with the broker as a certain test to see whether they are answering deceptively. You can ask them whether making money in binary options is guaranteed. You can ask them whether you will be making money on day one.
If the broker is being deceptive, they will answer yes to these questions in order to get you to deposit. You should take this as a sign that the broker can’t be trusted. Everyone knows that nothing in trading is guaranteed.
Practice on a Demo Account
Before you invest any funds with the broker, you need to make sure that you are certain that the platform is user friendly enough for you to use.
This is where demo accounts come in handy. They allow the trader the opportunity to test the platform in a non-threatening way and see whether the broker is indeed one they would like to use.
Also make certain that the lets you use the demo account for free. This is something that should go without saying but some brokers do indeed try to get the better of the client and requires a payment of sorts.
When trading Binary Options, making the right trading decisions is important. Yet the most important decision is indeed when it comes to choosing a binary options broker.
Choosing the right binary options broker will determine how easy it will be for you to withdraw your funds, place profitable trades and recover any losses.
Yet, with the right amount of due diligence and research, you can most definitely find the ideal broker to meet all of your trading needs.