Choosing a binary options broker
Choosing a broker always involves careful selection of candidates based on several parameters, but this is especially true for binary options brokers. Since options are an all-or-nothing system, investing large sums in such trading can be risky. The intermediary must be a person with an excellent reputation and hundreds of closed transactions. Entrusting binary options trading with your own funds to a beginner is a dangerous undertaking. This does not mean that an experienced broker always wins, but he is better at calculating the odds of an option winning.
Trade
Available tools
The more types of binary options, the better, naturally. Plus, some brokers offer an options designer - the ability to create one for yourself.
Personally, I prefer the good old tool - regular up/down options. Just one tool that works flawlessly is all I need.
Often brokers provide a lot of tools only because most of them are too complex for beginners and, therefore, beneficial to the broker.
Expiration
The more options, the better, of course. If expirations are “squeezed”, it will be more difficult to work.
Window for selecting expirations
Naturally, everyone gives short-term 60-second expirations, but we have already found out that rushing will make your wallet laugh. A number of brokers even have tick expirations that fly by in a few seconds and that’s it (knock-knock, who’s at home).
Trading volumes
If the broker has a minimum deposit of 100 dollars, and the minimum bet is 25, then there is no money management here; in 4 bets you lose 100% of your capital.
The lower the broker's minimum transaction amount, the better.
Available assets
Naturally, the more, the better. Also remember, assets are often turned off due to risk management, or the interest on them is radically underestimated. Also, trading is often unavailable at midnight and generally in the first hours of the new day.
For a number of companies, assets are almost always available, and interest rates are fixed. They implement risk management differently, say, they give small interest rates on turbos, and maximum interest rates for long expirations.
Types of options
Market participants can use different types (types) of options, each of which has its own purpose and its own pros/cons. The classic and simplest binary option is considered to be High/Low (“Higher/Lower”), which is called the world standard and can, under successful circumstances, bring profits of up to 100%. High/Low variety – “Short-term” type of options, optimal for actively moving markets. Other types include OneTouch, Cash-Or-Nothing, Asset-or-Nothing, No-Touch.
Binary options: strategies
Currently, there are a large number of tactics (strategies) for trading binary options. Strategies are a set of rules and basic settings used by a trader. Common basic tactics include “Trading with the trend”, “Trading on the news”, “Martingale”, “Scalping”, “Risk hedging”, “Risk minimization”. Among the so-called graphic strategies based on graphic templates are “Triangle”, “Head and Shoulders”, “Top and Bottom”, “Pinocchio”. In addition, there are dozens of indicator strategies.
What should an ideal broker be like?
Despite the fact that there are a large number of worthy brokers working in trading, making a choice can be quite difficult - especially for beginners who do not yet have the necessary experience. In response to the question of what an ideal broker should be, several criteria can be given at once. This includes reputation, the ability to freely choose trading assets, provision of the necessary legal information upon request, and prompt support service (mandatory in Russian). The main criterion was and remains experience – in this case, a sufficient number of successfully closed transactions.
Finance
Interest
The more, the better, of course. However, if they offer very sweet percentages - more than 200-300% - you need to wince, and not rejoice. Why?
Such interest is given on instruments for which it is almost impossible to obtain a sustainable profit. That is why they are given. A broker will never give you exorbitant interest rates just like that.
For example, the same Binari gives profitability of up to 900% for some indices. Why? Because these are so-called volatility indices (random) - these are such smart market synthetics, based on a special formula. What’s funny is that Binari’s formula was broken 3 times in my memory alone (hehehe), it was fun. This is due to the fact that pure randomness does not exist in nature and there will definitely be a smart guy who will buy out the corresponding patterns.
I think enough time has already passed and we can tell you how back in 2013, when IQ just appeared, they had the platform in its very first version. And my friends and I found a funny pattern there. On the night from Friday to Saturday, quotes switched from market to synthetic ones and within a few minutes after midnight a small gap formed on the chart, which could be “caught” if you knew where to look. Well, we cleverly “milked” them until the broker came to his senses and covered up this joy.
In general, the desire to “catch” a broker making mistakes is quite understandable. However, now the market has matured, and everyone’s platforms are polished, so brokers simply silently ban you for trading at non-market quotes. Especially if it is done stupidly - and people do stupidly. Having found a “hole” or an error - say, a lag in quotes - they begin to hammer into it, not realizing that the broker, according to statistics, will see everything right away. But it’s probably not worth telling how this could have been done smartly; the brokers will then kill me for bad advice.
In short, we can agree that for most ordinary traders, synthetics with huge percentages are a lost cause and they don’t need to go there at all. Work with market assets, don't play around. The percentages are high where they are harder to get, which is why they are so tasty.
It is best when the average percentage in the system approaches 90-95%.
Options:
- Brokers with fixed interest rates.
- Brokers with floating percentages, where the average percentage is from 90% for real assets and up to 900% for random.
- Brokers with interest rates that vary depending on liquidity, time of day, etc.
100%
Personally, I love the 100% options. Yes, yes, they exist. The funny thing is that earlier criticism of binaries by some kids was reduced to a “mathematical model”. Like, you always lose 100%, but only gain 70%, a disaster. This is funny because all brokers have a partial refund if a trade fails. And what’s even more important is that in a lot of places you can find payment options for... 100%. Oh, what is it, the “mathematical model” is no longer in the way? How nice. The critics, naturally, immediately withered.
There are plenty of options. Alpari regularly gives this percentage for certain expirations (you must
). WForex generally has FX options, where there is always 100% minus the spread. A powerful thing, right under your nose. Binari is even more interesting - at the very core of the broker, an exchange model is implemented, where the percentage depends on volatility. Therefore, interest on market assets (not to be confused with synthetics) can easily go beyond 150% or more. Plus, there is such a powerful thing as multipliers - a hybrid of Forex and Bo - where you can even get 500x. A wicked, wicked and beautiful thing at the same time.
Always check the brokers' FAQ and read the contract specifications - this way you will find the most interesting and affordable options.
Bonuses and risk-free trades
The broker should not impose any bonuses or risk-free trades on you. The conditions for providing bonuses (turnover) must be clearly stated.
Managers should not push them for any reason. Bonuses should be voluntary and not intrusive.
I often repeat about these bonuses. Don't take them, for God's sake! They are not given to make you feel good with them.
Minimum deposit
The less the better, of course. It should generally be up to 10 dollars. If someone asks for more, especially from 100-300 dollars at once - what is so valuable that an ordinary office will give you for several hundred?
Never mind. Nothing but your greed and desire to cheat a newcomer for a large sum at once, that’s the whole deal. The only exception is a titled Swiss company, a Western broker with banking roots and other serious, very serious guys, where it will be clear - for what and to whom.
For everyone else, $5-10 will be enough to get started, don’t give more.
Also remember that a minimum deposit of $1 at a similar rate only means that one trade will cost you $1. That is, you immediately risk 100% of your capital - a disaster from the point of view of money management. Yes, I understand, it’s only a dollar, but money management needs to be learned from small amounts.
Withdrawal of funds
The maximum available withdrawal methods, the minimum time for withdrawal - all this must be present. As a rule, good brokers withdraw up to 3 banking days. Automatic withdrawal is becoming more and more common - funds are not withdrawn manually and arrive in a few seconds, if you are lucky and the queue for withdrawal is small (this is how Intrade implements it).
At the same time, the majority have a rule that money is withdrawn in the same way as it was deposited. If you deposited $100 through MasterCard and earned $300, they will give you $100 on your card. The rest is usually done using other methods. Say, to a bank account, to an electronic wallet, etc.
Personal account at WForex
An example of how the withdrawal of funds is correctly organized is shown above.
- Both local (RF/Ukraine) and international outputs to cards are available.
- There are basic emails - Webmoney, Perfect Money, AdvCash, etc.
- There are cryptocurrencies.
- Money is transferred immediately on the day of application or the morning of the next day.
There should be many options and, in principle, good brokers have the same set, plus or minus. There are, however, regulated European brokers where you can only withdraw to a bank account and Skrill/Neteller.
Broker card
Of course, the best option is when the company offers you its Visa/Mastercard bank card, to which you can withdraw funds at any time without restrictions.
An extremely convenient solution that allows you to solve several problems with withdrawal and cashing out of funds right from the start. Unfortunately, only a few Western companies now provide such cards, and not all of them accept CIS countries.
A brokerage card, by the way, often also solves problems with taxes, because it is always offshore. You can use it to withdraw cash through any ATMs (and in Moscow/St. Petersburg you can withdraw $ from some ATMs), pay in any stores, etc.
No, no, don’t ask me who gives these cards, otherwise I will edit this article forever - after all, brokers change the conditions, cards are available, sometimes not, and so on. Just know that if you get this opportunity, it’s good.
Withdrawal fees
It would be better if it didn’t happen and the broker didn’t charge a commission for such operations. But many do, check in advance.
Often, as part of any promotions, these commissions are removed, plus this option is available with many brokers after increasing trading turnover.
How is binary options rating useful?
Regularly updated ratings are compiled based on the voting results of real traders, which makes them as independent and unbiased as possible. How is binary options rating useful for a trader? Such objective rankings are updated regularly and allow you to clearly compare brokers’ offers, study the conditions offered by different companies and choose the best option for each trader. For the convenience of users, most ratings are conveniently sorted by conditions and contain brief overviews of the activities of dealing centers.
Binary brokers and education
Considering the complexity of the trading market, it becomes clear that effective brokerage can only be provided by a specialist who has undergone full specialized training. At the same time, the issue of binary brokers and education (higher specialized) still remains under discussion: in the market you can still find professionals who carry out brilliant transactions, but do not have diplomas from economic universities (although this approach is not encouraged). In any case, the decision remains with the trader, who decides for himself whether a higher economic education is a prerequisite for cooperation with a broker.
Advice from Sravni.ru: be careful when trading binary options. What is important here is a low rate of deposits and careful monitoring of the overall trading performance. Be also careful when choosing a broker, take time to study reviews about him.
Parameters that contain contracts
In most cases, the contract stipulates:
- The main parameters of the transaction carried out under the contract: object, price, details of the parties.
- Conditions of execution: terms, circumstances, various requirements. It is important that all these conditions are documented.
- Financial conditions for granting the option (remuneration or gratuitous provision).
Due to the presence of these parameters, predictability and security of transactions are ensured.
