Everyone interested in trading first asks what criteria they should use to select their broker. With the abundance of providers, especially for binary options trading, it is not an easy task due to the current trend of these products.
In general, the search can be categorized according to certain criteria. In doing so, important factors such as price supply, market selection or the number of underlyings as well as the reliability and handling of the trading platform should be considered.
Of course, regulation on the part of the financial regulator is also an important criterion for the selection. In addition, the broker should be adequately protected against hacker attacks and still offer some options for depositing and withdrawing. Transparency should be the be-all and end-all in brokerage and further training opportunities should exist for customers. But first things first.
A good broker for binary options must always ensure real-time price supply. This is a non-plus-ultra for the strategies, which are predominantly based on short-term plans. The real-time price supply is therefore available at every broker for binary options. Otherwise, he could not ensure reasonable trading at all.
In most cases, this is a one-to-one replica of the stock market prices. For Xetra shares or Eurex indices, for example. For currencies, the interbank market is the reference rate. It is also known as the FX spot market.
The market selection should not be limited to one market for the underlying. What is meant is that not only options on e.g. Currencies are tradable, but at the same time for selected indices, individual stocks and maybe even commodities.
It should be noted that the selection on the markets is not necessarily the most important criterion. It is in the nature of things that, as a single trader, you cannot see the entire market anyway. Many traders therefore concentrate on a few markets. Especially in short-term trading, there are always chances for profits, even if you only observe two or three markets.
If the broker offers the usual markets, at least the most important and most liquid products should be tradable. For example, for currencies the "majors" or for indices the "Dax" and the "DowJones". In terms of raw materials, the precious metals gold and silver are particularly interesting for traders.
The broker TopOption is considered the favorite with regard to the criteria mentioned. In addition to the course supply, the broker also offers all the usual markets to choose from.
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The trading platform
The broker should make the trading platform as simple as possible and still offer all the useful functions for professional and active trading is necessary. Since you have to deal with the markets yourself, it is an additional effort if the dealer has to find his way through the platform for several days.
Therefore, a platform should clearly and clearly represent all structures. The base value (1), the spa treatment (2), the chosen term (3), the order placement (4) and the possible profit (5) relative to the stake. In selected cases, as well as with the broker TopOption, the decision is made easier by specifying the customer sentiment. The so-called "TradersChoice" (6) shows the relationship between the puts and calls that were bought by broker customers. A ratio of 50:50 indicates an inconsistent positioning. The price should then move sideways.
Of course, each broker stands out positively for a platform for technical analysis, such as the broker Stockpair, which we described in the article "80% profit in 60 seconds with binary Options ", had offered.
Since the customer takes a risk when trading binary options with his capital invested with the broker, it is of course incessant that this broker of is regulated or supervised by a financial authority. In the process, regulatory authorities based in the EU in particular have proven to be reliable. The trader should therefore pay particular attention to this.
Protection systems against hacker attacks
Every financial institution with its funds is exposed to the interests of illegal online machinations. Particularly due to the frequent transfer of capital, there is always a risk to the deposits. Some brokers have therefore taken protective measures within the framework of payment systems. Pay special attention to this.
Training and transparency
Many brokers advertise with transparency. But what exactly does transparency mean? On the one hand, this is certainly the simple handling of the instruments, which is the case with binary options, but also the cost structures. In many cases, the broker earns from commissions and the so-called spreads. These costs are completely eliminated with binary options.
But transparency can also be given if the broker tries to show the customer profitable trading opportunities. On the one hand, he can do this through certain advanced training courses or set up analysis services. In the case of TopOption, the beginner trader can use the TopOption Academy to educate himself from home using presentations and webinars and apply his analysis methods.
The broker StockPair goes even further and offers its customers additional analyzes from professionals. In this way, the trader can not only learn something about the binary options instrument, but also keep an eye on the markets and adapt their trading accordingly.
But in the end, the trader remains successful selection only the practical test. Since the deposit requirements are very low in most cases, the trader does not have to risk much by depositing several thousand euros, but can start with around € 500.