Thousands of traders around the world make their choice in favour of binary options trading because they feel like it is way too much for them to deal with Forex platforms and the stock market which require more knowledge and in-depth understanding of economic processes. Binary options is the easiest form of trading today, offering novice and experience traders a chance to make profit on 100% online based platforms. Being a relatively new and vastly developing market, binary options industry creates a significant demand and as a result new players are emerging on a regular basis. And let’s be honest, not all of them are legitimate and transparent businesses, capable of creating a fair trading environment. For a new trader certain things might look confusing, especially when it comes to the generous offers and bonus plans promoted by brokers. How not to run into a scam broker? How to determine that a broker is worth dealing with? How to understand that a platform has all trading features that can meet your trading objectives? There is only one answer – do your investigation and make sure to take it seriously. Let’s have a look at the few factors to be considered prior to investing money with a broker. Authorization granted by regulatory authorities. Safety of your funds should be of the utmost importance for you and treated as such by the broker. The only way to implement practices of strict adherence to the law and the industry standards is to have a supervising vehicle in place. You should always ask the broker under consideration about their regulation status and jurisdiction of incorporation. Please note that most of the regulated brokers are registered in Cyprus and are supervised by the Cyprus Securities and Exchange Commissions (CySEC). Regulation status can be easily verified by visiting CySEC site. Licence number should be visibly displayed on the broker’s web-site. If you choose to trade with a non-regulated broker you will be doing it at your own risk with no guarantee to have your profit paid. Investor compensation fund membership. Another important factor to consider when choosing a broker is its participation in an authorised investor compensation scheme. Such membership is mandatory for all regulated brokers. In the unlikely event a broker goes bankrupt or liquidates the company, clients’ funds will be compensated by the Investor compensation fund. Funding and withdrawal methods and prompt execution of withdrawals. Most brokers offer a variety of funding methods such as debit or credit cards, bank wire transfers and different electronic wallets. Do not be surprised if your broker requests to provide identification documents for verification of your account. Nowadays such requirement is a widely practiced and is compulsory for all regulated brokers. Withdrawal of profits should not take more than 3 business days to process and any delays should raise a concern. Bonus plan. Most binary options brokers offer welcome bonuses and run promotional campaigns to attract new clients. Be sure to ask your account manager about the nature of the bonus and what trading conditions are applicable. Usually bonuses are offered under condition of reaching a certain trading volume before you can withdraw it. Make sure that such conditions are reasonable or get along with your trading plans. Customer support. If you are a novice trader it is difficult to overestimate importance of the good support offered by the broker. The way your account manager interacts with you, how you can reach the support representatives, whether they speak your language, response time, etc. should be consider when selecting a broker. Platform features. Prior to opening a trading account with the broker you need to check if they have the assets you prefer to trade, trading tools you use and payouts you are looking for. Make sure that assets are available to trade in your time zone, make sure that expiry times you use are offered during your preferred trading hours, etc. In order to succeed you need to have proper tools so make sure to talk to the broker’s customer service representative about it before opening a trading account.!
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