Binary option is a contract which gives the buyer a right to buy an underlying asset at a fixed amount with a specified time limit. Binary option trading has gained popularity over the past few years. The reason being, the investors can earn large profits from trading within a short span of time. But any investor willing to earn great profits through binary option trading needs to register himself with any binary option broker.
Binary option broker is one who guides the investor about binary option trading. These brokers offer a binary option trading platform with an instinctive and simple user interface which saves a lot of time of the investors. Further, they provide the traders to invest into many different assets. A good binary option broker is one who provides the maximum payout from 75% to 90% for lost or won investment. The job of binary option brokers are:
- They provide information on the market trends to the investors so as to give an idea about price movements and what’s going on in the market.
- They teach the investors how to guard their assets.
- Provide trading experience to the traders.
- They reduce the rigorous task of investors on the stocks which they are wishing to trade, thereby saving a lot of time.
- They offer several techniques and strategies for binary option trading.
Binary option trading through binary option broker requires a correct choice of the binary option broker. This is one of the most important decisions which every investor should take of their own depending on their trading needs. But the choice of the binary option broker is influenced by certain factors which are as follows:
- Trading platform: Every binary option broker uses a platform which may differ in some way or the other from other trading platform used. Some brokers may use a platform with only few assets while some may use a platform which offers a game mode. Moreover different trading platform will give different payouts to the investors. Thus, the selection of the binary option broker depends on the trading platform offered. The trader will choose the broker depending on the platform suitable to his trade.
- Customer service: Good customer support attracts the investors. Binary option brokers who do not provide best customer support are generally signed off from the market. Every trader should take the assistance of broker before depositing resources and initiating the trade. In case things go wrong brokers are always available to provide suggestions. The brokers should have professionals and experienced staff so as to get in immediate touch with their customers as and when there is a problem. They should have email, phone and instant chat options which will help to quickly solve the problems of the traders and answer their queries.
- Education: Binary option brokers should offer educational facilities to their investors. This may be in the form of extensive library containing educational materials for all class of investors, beginners, intermediates and experienced traders. Some may issue weekly or daily newsletters giving a summary on fundamental market events. They may also provide lessons to the traders through demo account trading.
- Deposits and withdrawals: Deposit and withdrawal techniques through particular brokers should be looked into before choosing a binary option broker. A best binary option broker is one who provides the fastest and a lot dependable deposit and withdrawal strategies. A trader should be able to deposit and withdraw his earnings on a regular basis and should ensure that his investments are protected.
- Security: Binary option broker should have tight security over the personal information of the investors. This is important because anybody can take undue advantage of such information.
- Trading independence: Binary option brokers provide a lot of advice to the traders so that they can perform their trade without any hindrance.
- Pay-outs: Payout means the income or gains of the traders. The broker who provides the maximum payout should be chosen. The maximum payout can range from 75% to 90%.
- Bonuses: Bonuses and other offers attract a lot of investors as it is an income over and above the payout.
Binary option broker is one who is responsible for operating the platform, managing the queries, managing the risks and generating money for the traders. Thus the choice of a broker requires a wise decision on the part of the investor.