One way of improving our financial situation is to invest in stocks. Trading apps give us access to the stock market, so we can buy and sell assets on our own accord. But which services do these platforms give us, exactly? If we like to trade using a specific asset type or method, like binary options, do these online brokers give us the features we need?
What’s a Binary Options Broker?
When we are talking about brokers, we are describing a collection of apps and other platforms that allow us to remotely trade on the stock market ourselves. The service provides us with an overview of the market, the available assets, and several features and lets us buy or sell stocks to our heart’s content.
Binary Options are one type of asset we can trade on the stock market. Instead of buying a company’s stock, we wager on whether an asset’s value will fall or rise. This way, we can profit from downwards movements in the market just as much as climbing stocks.
Since we are trading a derivate of an asset and not the asset itself, binary options trading has different sets of rules and trading strategies. A binary options broker gives us the specific tools we need for this type of trading.
If we want to trade binary options, the first thing we need to make sure of is that the service offers the ability to make binary trades. These include:
- Up/Down: The basic binary trading option. We will choose a date and predict whether the asset’s value will have risen or fallen by then.
- In/Out of Ranges: We set up a range between a high and low value and will predict if the value will – by the chosen end date – be within or outside of this range.
- Touch/No Touch: We set up a specific price the asset’s value will need to reach. If we set up a ‘touch’, this value will be paid out immediately.
- Ladders: Instead of freely setting up a goal, the value in – or decrease is set in price levels. If the end date value lies within the chosen range of this ladder, the payout is often higher than with other binary options trades, but it typically also requires larger price moves.
Important Factors to Consider While Choosing Binary Options Brokers
If you are unsure about the options a broker gives you, look at review sites where you will find ratings and descriptions about possible providers, like this collection of information about Binarycent. Use these resources and compare them with the following criteria, which are essential for a good binary options trading app.
- Regulation
When we blindly use online brokers, we can become victims of fraud. To avoid this, regulatory bodies offer licenses to tested and trustworthy services, for example, the Commodity Futures Trading Commission in the US. Make sure you know which regulations apply to your country and the trading providers you can use there.
- Markets and Assets
Whether our investment in a binary option trade pays off, is dependent on the price movement of the asset it is based on. These underlying assets can be a variety of stock types, like Forex, cryptocurrencies, indices, and more. However, some brokers only offer a limited range of financial products to bet on. A good binary trading platform can have over 100 assets from different markets available for trading.
- Account Minimums and Fees
Trading apps aren’t free. They can have various fees. Typically, it is a set amount for the portfolio itself and individual costs for separate transactions, like percentages for every bought or sold asset. Often, the brokers expect you to make a minimum investment and keep the account active. How large this minimum is can vary from a few dollars to over four-digit numbers. Other minimums can be set on how much money you have to spend for a single transaction.
- Payouts
A good payout percentage is important, otherwise brokers take large parts of every payout based on their fees. Make sure the option you pick doesn’t have tight caps on how much you can withdraw at once, or high amounts you have to reach till you can withdraw anything at all.
- Demo Account Availability
A good broker will allow you to test the full service with a demo account. It works exactly how the real deal would and uses real-time market information, but you use practice funds and can’t gain or lose any money.
- Deposits and Withdrawals
The available payment options often dictate how fast the money will be deposited or withdrawn. A good service has a wide variety of different partners, like e-wallets for cryptocurrencies, payment services like PayPal or regular credit cards. With many options, you can choose the one you consider safest and most practical.
- Trading App Specifics
Online brokers typically offer a browser version and accompanying apps. If you want to check on your trades on the move, make sure the available platforms suit your needs and work with your devices. Also, the technical quality of the apps can differ. Some have a higher performance and faster refreshment rates than others, allowing lightning-fast real-time actions.
Conclusion
A binary trading broker is a trading service that is specialized in handling binary options as an asset type. These platforms give you specific tools and access to the relevant markets and stocks for binary options trading. When you are looking for the best binary options brokers, use review sites and their information. This way, you can figure out if the service in question has the mentioned criteria for a good trading app. Fees, the selection of assets, and transaction details are important factors to keep in mind.
