Comparing brokers counts as the most important precaution to be taken before trading binary options. It will only become apparent which broker is suitable for which trader by making a direct comparison of the different brokers and their offers. Interested parties can fully benefit from the experience of this writer by carrying out a detailed comparison.
But it is not only the comparison that is important: the trader should know which factors have to be taken into account when making a direct comparison in order to effectively provide information about the range and quality offered by the broker.
Regulation by the Financial Supervisory Authority & experience of support
Firstly, professionalism is extremely important. Before gaining personal experiences with binary brokers, it should be ascertained by a prior comparison whether or not the broker is regulated by the Financial Supervisory Authority. A broker is only regulated if he satisfies various requirements and also passes repeated checks and tests.Anyone who believes that every broker is automatically regulated is wrong. There are very strict (depending on the country or Financial Supervisory Authority) guidelines, which the broker must meet both before and during regulation. Regulation provides the trader with assurance that he is dealing with a reputable supplier.In addition to regulation by the relevant Financial Supervisory Authority, the question also arises as to whether support is available in the German language. Many brokers offer only translated platforms; German support is not offered.
The issue of money plays an important role
And the choice of a particular binary options broker is also a question of money:
- What is the minimum outlay per trade?
- What is the minimum deposit required to open an account?
- Furthermore, the trader must also compare the different commodities that are available:
- Is the emphasis on the stocks, or are sufficient raw materials or currency pairs available to trade?
- What are the options? Are 60 second options also available or is an individual creation of options possible?
The trader should enjoy a wide choice and feel comfortable in his field. This is the only way successful trading activities can be possible. Talking of trading activities: is there any insurance if you are off the mark, or alternatively what is the return? Many brokers offer so-called loss insurance. With this, the trader recoups about 15 percent of his input if there is a negative outcome. As a rule the return from a winning trade is between 69 and 87 percent.
Experiences with different deposit and withdrawal options
Besides the fact that regulation and money play a major role in carrying out comparisons and reviews on binary options brokers, deposit and withdrawal options must also be contrasted:
- Does the broker only offer the option of deposits using PayPal or are bank transfers such as credit card payments also available?
Withdrawal options also play a vital role in comparing brokers. There are multiple options for withdrawal and deposit available, which should be checked regarding fees. Not every deposit or withdrawal is automatically free of charge.
Experience with binary option brokers’ bonus offers
Many brokers who provide a binary options service try to attract new traders to their platform with various bonus payments. In these cases, the customer receives a payment upon deposit of a certain sum or he can sometimes even double his deposit.
However, it is not in the broker’s interests if, as soon as the customer receives the bonus payment, he requests withdrawal and unsubscribes. The payment of bonuses is aimed at generating sales; for example the target may be for the trader to turn over five times the sum of the bonus (on a sum of 50 Euros that would mean an amount of 250 Euros) before a withdrawal can be made.
The conclusion on dealing with comparisons and experience reports for binary options brokers
Comparison is extremely important and should be taken seriously. Above all, the trader must know what factors are important when making comparisons and heed the lessons learned by the writer. Only then is it possible for the trader to find a binary options broker with whom he feels 100 percent comfortable and to celebrate financial success.