Everybody wants to get into the bandwagon and try this new and exciting financial instrument called binary options trading. It is fast pace, low risk and promises as much 85% in returns. Trading binary options has certainly roused the interest of many inexperienced traders who are looking to earn more money through new channels.
Before we delve into finding a broker you can rely on, which is of course the first step, let’s briefly touch on trading binary options.
What Is Binary Options Trading?
This is a relatively new form of trading also called fixed return options. The earnings of the trade are predetermined and so are the losses making it more manageable than dabbling in the traditional stock market where traders can incur losses they’re not prepared for. Binary options are also referred to as all or none options because the trader either gains the guaranteed payout or none at all.
How Does A Novice Trader Find A Good Broker?
For a first time trader, choosing a binary options broker is a difficult task. The choices of binary options brokers are many but finding the most transparent, the most trustworthy and the most generous in terms of payouts isn’t easy.
They vary according to the in-the money payout, market diversity, and expiry dates and minimum deposit. Learn enough about the top binary options brokers accepted by US traders. Peruse through reviews. Find a broker that suits your needs and expectations. As you go along and gain more experience, you may deem it necessary to try other binary options brokers but as a novice, your main concern should be to avoid getting scammed. Go with a broker that is regulated, that is accepted by US traders and that has a stellar reputation.
If you do a thorough search online, you should be able to narrow down the long list of brokers to the more reputable ones. Here are some well-regarded names to start with: AnyOption, 24Option, TradeRush, TradeSmarter, Option Bit, Ikko Trader and Banc de Binary. You can compare these and more brokers on comparison portals such as Options Agent.
What Are The Foremost Considerations?
The most important criterion in choosing a binary options broker is the payout. Some brokers offer 90% payout while others offer 56-70% return.
Market diversity is another important criterion in choosing a binary options broker. You want your broker to have a wide variety of underlying assets, the financial assets or securities on which the binaries are based. These may be indices, currencies, stocks or commodities. Some brokers have a range of trading instruments exceeding 80 and even 90 assets. Trading in assets which are very familiar with is a good start for you as a beginner.
All binary option trades have maturity dates at which the trades expire. The timeframe for each contract ranges from minutes to months. More choices of binary options contracts mean greater flexibility in your trading binary options strategy.
The minimum deposit or your account size depends on the policies of binary options brokers. Others require a deposit of up to $500 before you can start. As a novice trader, it would be wise to start with a broker that requires a $100-minimum.
With enough diligence and cautiousness, you could be on your way to significantly improving your monthly income thanks to this new financial product, binary options trading.
Options Agent is a portal for trading binary options. Here you can find all the information you need to know how to trade binary options, forex binary options both for beginners and professional investors. We provide up to date reviews and information about the top binary options brokers like 24option, Optionbit, anyoption, traderxp, traderush including special promotions allowing you the chance to pick your broker and start making money.
Locating A Broker for A Novice Trader