To make a breakthrough in the trading market, it is essential to adopt appropriate trading strategies. There are many different ways of trading stocks, whether it is Binary Options, Forex/CFD, or any other. Most of these options offer a premium, a strike price and an expiration time to the traders. While other methods do not guarantee a predetermined profit, Binary Options ensures a fixed payoff to the traders at the expiration of the contract.
Regardless of which option you have chosen, your strategies will only work out if you have chosen a reliable broker. A bad broker will drain your hard-earned money no matter how effective your strategies are. As a trader, you might be aware of the fact that choosing a legitimate broker can be a backbreaking task. Your selection of broker determines your profitability. So, what exactly are the qualities of a reliable broker? Before you undertake the gruelling task of browsing through reviews, let’s first find out what you need to know while selecting a broker.
Different brokers specialise in different financial assets. From currency pairs, indices, to commodities, most reliable brokerage websites will have an “asset index” that provides investors with all the necessary information pertaining to assets. A quick glance at the “asset index” will help you find out the financial assets on offer.
In case you are opting for Binary Options, you have to find out about the expiration time. There are basically three categories of Binary Options expiries—short expiries, medium expiries and long expiries. While the contracts expire within a few minutes (1 to 5 minutes) in short expiries, the medium expiry rate is usually 5 minutes to 1 or 2 hours. Contracts with long expiries have expiration rates of 2 hours to even 24 hours. Expiration time plays an extremely significant role in trading. Explore your broker’s website to find out all the information you need to know.
The key to distinguishing a good broker from a sloppy one is the profitability they offer to the traders. Different brokers offer different types of returns. Generally, the returns offered by a standard broker on EUR/USD currency pair vacillate between 70 and 85 percent. The returns do not allow any rebate percentage but the difference between the highest and lowest returns makes a lot of difference.
Trading Tools and Features
The trading tools and indicators make a huge difference in your trading experience. So, it is essential to consider the tools and features on offer. Although often overlooked, trading tools are an essential aspect of choosing a broker. Another important thing to keep in the mind is the robots. In case you are considering automated trading solutions, make sure the broker has updated their profile and works with the latest models. Most reliable brokers offer full support to their clients, providing them with an array of efficient trading tools that improves the overall profitability.
All brokers strive to capture the attention of new customers with lucrative incentives and discounts. Many online brokers promote commission-free trades and cash bonuses on deposits. Regardless how attractive the offers are, it is naive to select a broker on the basis of promotional offers. The initial bonus or savings will be meaningless if you are left with hidden charges and commission fees.
Although it is difficult to determine about the support features, traders need to pay close attention to this. All good brokers have customer service helplines that help clients to deal with problems. These services have an enormous impact on their reputation. Brokers who do not cater to the complaints and needs of the traders receive low ranking in the reviews. A good broker is always backed by a highly efficient executive team. While going through the reviews, you can check whether the broker responds to the queries or not. Remember, a timely response can prevent you from making ill-informed decisions.
Security and License
Going forward, traders should find out about the license and security. Nothing matters more than security when it comes to making transactions. Your chosen broker should be regulated by a legitimate governing body. If you settle for an accredited source, you can safely carry out transactions. Since you are going to disclose sensitive information to your brokers, security must be your number one priority.
Selecting a broker is an enervating task, whether you are considering Binary Options, Forex, or Cryptocurrency. A number of considerations should be made before you invest money in these brokerage websites. Many scams have been reported and instances of fraud brokers’ cheating funds are not entirely uncommon. To enjoy the advantages offered by a good broker and indulge in an incredible trading experience, what really counts is a good decision. Not sure whether you have chosen the right broker? You can explore your strategies with a demo account before settling for a premium account.