There are well over 100 binary options brokers, but only a handful of Binary Options trading platforms. The many brokers operate on these platforms. The features and performance are basically the same across the different brokers that use them. We previously discussed what separates the many brokers and how to choose the ideal broker for your needs. One of the ways that brokers distinguish themselves is the payout % that they offer for certain assets. You must understand that if a broker advertises a certain payout it does not mean that they offer that rate for all assets. Depending on the risk associated with different assets they offer a payout rate accordingly.
Some brokers offer a payout return of up to 15% on losing trades as well. This must be taken into account when comparing brokers. A broker that offers a 85% payout may not be as attractive as one that offers an 80% and a 10% rebate on losing trades. For a beginner trader payout % is not the most important factor. Finding a broker you are comfortable with, utilizing a winning strategy and practicing with a demo account are all more critical than payout rate. Once you gain a level of comfort and consistent success you can increase increase your overall profitability by finding a higher rate of return.
How To Choose a Broker Based on Payout Ratio
As I said earlier just because a broker offers a payout higher than another broker doesn’t mean that their payouts are higher across all assets. They will offer assets with payouts at that rate, but if these aren’t assets you are going to trade than it may not be worth your while to use that broker. If you plan to trade many different asset classes than you should focus on other important factors when choosing a broker.
If you know which assets you plan to trade and you are going to trade those specific assets regularly then it pays to do some research. Compile a list of brokers that you would consider using based on all other factors of interest to you. Compare the payout rates for your assets among these brokers. The Broker with the best payout rates for the assets you plan to trade most frequently is the broker you should select. This is an excellent strategy for someone who is only going to focus on a few trading assets. By doing so you will increase your overall profitability.