Over the last five years, numerous binary options brokers have sprung up as this new financial instrument has gained popularity among online trader enthusiasts around the world.
Unlike Forex and trading with CFDs (contracts for difference), with binary options, no profits are made by trading shares or cross currencies; with this tool, it is, in fact, possible to obtain a profit by predicting the trend of the prices of an asset, and if the forecast turns out to be correct, it is possible to collect a profit equal to a percentage of the invested amount.
Those who equate binary options with gambling are wrong: setting an order does not mean betting on red or black as in roulette, as financial events are not dictated by pure chance but by precise market laws that are not impossible to predict. And here comes the question of broker quality: the better the broker’s services, the higher the trading opportunity. However, how can you determine the best binary options brokers based on their performance?
Criteria for choosing the best brokers
When choosing an online trading platform, you usually find out about the broker’s profit opportunities, and this is an even more pronounced trend in binary options.
However, it would be a mistake to base the decision solely on this factor, as there are others that are much more decisive for any future yield.
Let’s see in detail how you can choose the best one from an MT4 binary options brokers list:
1. Reliability and safety
Relying on a broker who promises high-sounding earnings will be risky if this does not offer traders adequate security guarantees. It will, in fact, be advisable to inquire about the authorizations held by the trading company.
These are specific licenses issued by online financial transaction monitoring bodies, which ensure the broker’s honesty and transparency. The most widespread are those of CySEC and Consob. There is also a community directive, the MiFID, to which trading agencies are required to comply.
It is good to know that brokers are not obliged to possess these authorizations, so it will be possible to come across companies without licenses, which, however, are not able to offer guarantees to customers. Entrusting our money to non-certified brokers means running the risk of losing them or suffering fraud.
2. Assistance and training material
Another factor that determines the quality of the broker is its customer service level. Also, in this case, preferring a platform that offers amazing profits can be penalized if the company is not able to guarantee any support to users, abandoning them when they require assistance.
The best brokers can even provide personalized accompaniment through an account manager, always present to follow the customer in his path of familiarization with the interface. The variety of channels available to contact customer support is also important: not only by phone (possibly with a toll-free number) but also via an online chat, skype, assistance ticket, available 24/7.
The broker should offer customers support, as well as reliable information that is exclusively provided to readers who register with them or that they can download for free from their site. With the best brokers, it is possible to acquire new skills through webinars, videos, ebooks, and, last but not least, through a free and unlimited demo account, real training with which to practice using virtual amounts.
3. Simplicity of the interface
It is not always said that interfaces with “special effects” are always to be preferred. Especially in the binary options sector, an instrument with extreme immediacy, it is advisable to choose the most streamlined, clear, and intuitive platforms, able to guarantee a pleasant and smooth trading experience.
Brokers who are able to integrate interfaces with useful technical analysis tools and trading signals are also preferred, with added values that can increase earning opportunities.
The latter consist of automatically collected suggestions that direct the trader towards potentially more profitable orders, facilitating the combination of the type of option (high/low, range, touch/do not touch) with the expiration (short, medium, long term) and with the asset in the various equity markets.
4. Returns and bonuses
Here we finally come to the criterion that many believe should be positioned at the top of the list.
Finding it at the bottom does not mean that it is worthless; on the contrary: you just want to give more prominence to the conditions mentioned above, as a dishonest broker, who does not support the customer and who offers poor interfaces will not be able to be endured for long even by users.
Consequently, it is advisable to honing your critical skills and finding out which broker is the most reliable, punctual and clear based on the needs of the trader. So let’s see in detail the criterion of convenience and profits.
Most brokers achieve a return of 80% on investments of basic binary options, although it is not unheard of for them to surpass 90%.
On the other hand, platforms that drop below 80% should be able to attract users with high-quality additional services. In any case, it is advisable not to choose the broker only on the basis of the ubiquitous welcome bonuses, which could cloud the view when making the final choice.
You may be surprised, but the best brokers are not those who offer their customers apparently advantageous rewards, but those who manage to offer them quality services in the long term, even by giving up high-sounding promotions.
The brokers for binary options in circulation are constantly growing, so it is difficult to monitor them all and draw up a quality ranking.
When choosing, it is advisable not to make hasty decisions, based only on the potential returns and bonuses offered: what has greater specific weight in the quality of the platform is first of all the security offered by the broker, the level of customer support, and the clarity of the interface.