There are over 100 online Binary Options brokers. We will list the important factors you should look at when choosing a broker. The list is not in order of importance as the factors that guide the decision will vary depending on the type of trader, his risk aversion, experience and funding ability,
Platform and Features
There are a handful of companies that provide the actual technology behind the broker platforms. The platforms often market themselves with different brands or white label (license) their technology to the brokers that use their own brand names. Each trading platform offers an assortment of trading features such as Touch trading, 60 Second Binary Options, Range trading, etc. It is generally up to the broker that brands the software to then offer the different enhancements that we will discuss in this article such as regulating their platform, bonus structure, demo accounts, customer service and minimum deposit/trade requirements.
Regulation and Fund Security
The binary options industry is in the early phases of the regulation and licensing process. Until recently most brokers were not regulated. A regulated broker can give you the confidence that your funds will be protected and that the broker is adhering to fair play. It may also be of concern to you to make sure that the broker you choose has segregated accounts for the traders funds.
Support and Training
Most brokers offer a live chat and/or phone customer support. Some brokers offer support for specific trading hours whereas others offer 24/7 support. Brokers offer varying levels of training as well. Minimally broker support staff can assist with basic trade execution and platform navigation. Other brokers offer extensive training including e-Books, Video Libraries and Webinars. Depending on funding level some brokers will offer a personal account representative to help with training and support.
Minimum Deposit and Trade Amounts
Currently all brokers require you to make a minimum deposit in order to make live trades. Minimum deposit amounts can be as low as $20 and go up to $250. Generally the higher the minimum deposit amount the more training and services the broker will provide.
Minimum trade amounts vary as well from broker to broker and may also depend on type of trade. Since 60 Second Binary Options can be traded so frequently minimum trade amounts range from as low as $1 to $10. Other trades generally can be as low as $1 with a couple of brokers, to a minimum of $25 per order with others.
Demo Accounts and Bonus Offers
A demo or practice account is offered by many brokers. Some require you to make a minimum deposit before you can open a practice account, while some let you open the demo account without making a deposit. Brokers also place funding and time limits on their demo accounts. Please see our review on the best broker demo accounts.
Brokers offer some type of bonus for first time account depositors. A few offer no deposit bonuses, whereas most offer some type of deposit bonus ranging from 10% to over 100% of your initial deposit. Other types of promotions such as free trades, refer a friend and raffles are also common. It is important to check with the broker to find out what their bonus offer is and to make sure you have a full understanding of their terms and conditions.
There are several other factors to consider when choosing a broker. They include the following:
1) Deposit and Withdrawal methods and time frames.
2) Maximum trade amount.
3) Whether broker offers mobile trading.
4) Payout percentage. Not all brokers offer the same payouts for the same assets. Get an idea which asset you prefer to trade and shop for the broker with best payout for that asset. Some brokers also offer a payout for losing trades up to 15%.