There are a few steps that are required to getting started with binary option trading. Firstly, you need to choose a broker. Generally, a broker is a company which provides you with trading platforms. Through this you can start trading options on assets like commodities, indices, currencies, stocks and so on. But be careful while choosing the companies you want to work with as all of them are not made equal.
Nowadays, it’s very difficult to choose a good and certified binary option broker. There are several factors that a person needs to consider before choosing. The most important ones are given below:
Considering Payout and Return Rates
This is one of the biggest facts that traders should take to consideration before hiring a broker. By definition, an expected financial return from an investment is known as payout. And the return rate is the amount of profit from an investment over a period of time. The amount of payout average for most brokers is usually 70-90% of your invested amount. Return rates aren’t offered by all brokers. But the ones who do generally offer 10-15% refund on losing trades.
Choosing platforms for Trading
Several types of trading platforms are available on market. Usually, most of them are online-based or web-based. Many of them are white labels of other companies’ platforms which means they don’t have their own platform. You have to choose the platform according to market demand and your requirements.
Amount of Minimum Deposit
Policies about deposit and withdrawal issues must be taken into consideration. For example, it will be wise for you to choose a broker with a low minimum deposit. Usually, most of them require a minimum deposit of 200$. But some also offer as low as 100$.
Methods of deposit and withdrawal
This is another important factor that you need to consider. As different brokers offer different methods, so you have to choose a method that is available to your broker’s policy. For example, if you want to use Master Card or PayPal to deposit money then you must ensure if your broker offers that type of payment method. Generally, most of them accept debit/credit cards, wired transactions, Skrill and so on.
This term deals with your safety while undertaking trading on the web. The security issue is very important to take into consideration. It includes all terms of web based transactions. Make sure your platform is encrypted. Generally, a 128 bit SSL encryption key is recommended. If you choose a platform which is not encrypted, hackers might steal all your financial data. So, choosing a secure environment is very essential.
Amount of Bonus
The last thing you need to take into consideration is the trading bonus. Different brokers offer different amounts of bonus. Choose the one that is closest to your expectations.