With the emergence of more popular financial markets trading platforms, it is important always to stay ahead of the curve. Binary options emerged in 2008 and have since hugely gained in popularity. Though approved by the SEC, binary options brokers are oftentimes unregulated, making it difficult to gauge exactly who to trust and who to avoid. Binary options trading can be incredibly rewarding for both newcomers and seasoned pros. By keeping a few things in mind, you’ll be able to find exactly the binary options broker that will lead you to financial success.
1. Ask For Capitalization
The first thing to inquire when you’re choosing a binary options broker is their market capitalization. Making sure they’re well capitalized protects you in the event the broker goes bankrupt or you placed a huge winning trade. If the broker you shortlisted is regulated you can rest easy knowing they have plenty of capitalization.
Usually, even if a binary options broker is not regulated, capitalization is not that big of an issue because they hedge or underwrite their risk with third parties. That way, if a big losing trade happens they can still afford to return your profits.
2. Choose the Right Trading Platform
Everyone knows there are myriad trading platforms. Most trading platforms for binary options exist on the Internet. Almost all companies will offer platforms offering the classic UP/DOWN or PUT/CALL option. This means you’ll be able to choose the market movement for an asset and set an expiry date during which the asset will have gone up or down.
Another type of platform is One-Touch. With this platform, you bet on whether you think the asset is about to touch a specific point within the time frame you set beforehand. This platform is popular since it offers up to 550% of the initial trading amount.
For a quick turnaround, you might consider Range trading. With this platform, you bet whether an asset stays inside our outside a specific range by the expiry date. Since there is a 60-second option for this type of trade turnarounds can be fast.
3. Don’t Forget the Payout
If you correctly determine the course of your asset, you will get a percentage return according to how much money you initially invested. This percentage varies depending on what asset you traded and what expiry date you chose. It also varies from broker to broker. The general rule of thumb is that your return should be at least 65% to 70%. It is also important to look at the amount of payout if your trade is unsuccessful. Some brokers pay out nothing at all, while some others pay as much as 15%.
Binary options trading is an exciting new trend that can reap huge rewards for the savvy investor. Quick turnarounds and high returns make it a desirable and ever increasing form of trading. Make sure to choose your binary options trader wisely and start making profits!