For traders, trading with binary options is still a relatively new opportunity to invest in the finance market. Here, you can combine your instinct and expertise in certain companies or markets with completely specific advantages which are only offered by binary options. This includes the fact that here, high returns are possible already within a very short time while the risk is already known when buying the option.
In the Internet, it is simple to find a broker for binary options. Since these instruments have been introduced in 2008 for the first time, many providers have established themselves. But before you choose one of them, you should consider various aspects so that the chosen broker really perfectly meets your personal requirements.
Information and ways of analyzing prices
For complete beginners, it is most important to get to know more about the market for binary options and the particularities of trading before risking your money.
Therefore, the broker should have an offer of information material that is as extensive as possible. This can include e-books or sometimes, clients are offered online seminars or other subjects as well. In addition, a free demo account helps to first get to know the respective trading platform at leisure.
In this manner, you can try with “play money” how high the return is you could have gotten with your own decisions.
However, those who have already traded with similar finance instruments and, for example, invested in the future- or forex-market, will not need much time to understand the basic differences when it comes to binary options trading. For such experienced traders, especially a trading platform that offers as many possibilities for the technical analysis as possible, plays an important role. After all, buying binary options is all about very short term developments of the prices, partially, the expiry time is not more than 60 seconds.
Accordingly, the right analysis tools determine profit or loss.
Return is one of the most important aspects
Both for beginners and experienced traders, the possible return is of course one of the most important aspects when choosing the brokers. Here, the various providers differ from each other by much. With some brokers, pay out rates of more than 80 percent are possible. For lost trades though you do not get any money back. With other brokers, the average returns for options being in the money at expiry time are a bit less- mostly between 60 and 70 percent. But here, for lost trades you get back at least ten or 15 percent of the invested capital.
Last but not least, the offered option variants as well as the amount of the possible underlying assets are important. There are, besides traditional binary options which traders can trade with every broker, still other variants where you rather bank on the development of the price until expiry. But this variant is not offered by every provider.
The choice of possible underlying assets also clearly differs from broker to broker. Some providers especially focus on a certain area such as shares or currency pairs, others have a great offer both in this and other asset classes such as indices or commodities.