Get the Right Broker on Your Side
You may have heard the importance of selecting a good broker to use with your binary options trading. This is true, but a “good” broker isn’t good enough. There are a ton of good brokers, and you can make money trading with them, but why would you settle for a good broker and make some money when you can go with a great broker and make a ton more? Just spending a few hours before you sign up with one can be the difference in thousands of dollars or more over the course of every single year. Investing your time with research now will lead to much better results later on.
What to Look For
Everyone will have different needs out of a broker, and that means you will need to figure out what your needs are before making your final decision. Luckily, a lot of those needs are easy to describe. You are basically looking for three main things.
1.) You want high rates of return on the underlying assets you will trade. If you are trading Forex currency pairs, look for a broker that pays big on these. It really doesn’t matter if they have a 95 percent return on wheat options if you know nothing about the commodity and never plan on trading it. So, focus on what you will be trading and get the best terms possible. They will change from time to time, so always monitor this to make sure it’s helpful.
2.) You want a set of timeframes your are comfortable with. If you want to focus on long term binaries, but the longest that is offered by your broker is 3 hours, you are going to struggle. There are brokers out there that have options that do not expire for another year or more. That might be too long, but the point is you don’t have to settle for something that won’t help you a lot. Some brokers even have 60 second options now.
3.) You want to be able to trade with instruments that help you. Pretty much all brokers offer the standard call and put options. But there are a few other types that can be of help. Most brokers are picking up on this and offering exotic options, but very few offer all varieties. There are one touch, boundary, and pair options, just to name a few. Using these is not for everyone, but if they help you, seek them out.
That’s Not All
Still, it’s not quite that easy. There are many other things to consider, too, besides the main three. Now that you know the basics, you will still have to narrow things down. Things like bonuses and banking choices will also play a role.
Bonuses are a great way to increase your cash without much effort. Many brokers offer 100 percent matching welcome bonuses when you make your first deposit. If you send over $1,000 in this instance, you will have $2,000 to trade with. It’s a huge cushion, but odds are, if you are just starting out, it doesn’t matter a lot. It will keep you from losing your money faster, but you usually need to trade 30 times the bonus amount before you can actually withdraw it. If you are making $10 minimum trades, you would have to make 3,000 trades before you could keep your bonus. It’s definitely possible and many traders like to hop around from site to site to unlock this free cash, but many others just lose all of their money before it’s theirs. This is something to think about, but think about it realistically based upon your skill level before you start chasing these.
Banking options can also be pivotal in your decision making process. Some brokers have different terms for deposits. Most right now have a minimum deposit of $250 to $500 that you must deposit before you can open an account. This is normal, and for financial trading, the range is actually very low. But there are some things to remember. Don’t trade with money you need soon, and don’t pursue a broker that has higher than normal minimum trade amounts if you aren’t depositing a lot. Depositing $250 and then having a minimum trade amount of $25 is not realistic for most. If you’re wrong 10 times, you’ve lost everything and need to start over. Is this likely? Not really, but it is also not unlikely, either.
Trading is tough, and you don’t want your broker to make it tougher than it needs to be. They should be working for you, not blatantly taking money from you. In a good trader/broker relationship, you should be helping each other to get ahead. But your focus always needs to be on what’s best for you. Changing brokers can be inconvenient, but if it’s necessary, it will pay off.