With the potential of earning big money, trading binary options has taken off in a large way across the globe. From just a handful of binary option brokers in 2008, we now have hundreds of them available. You will be entrusting your money to a broker to carry on the trade. Hence, it is extremely important that you identify the best 101 guide on binary options brokers from the small and unreliable ones.
The trading of Binary options first commenced in 2008, at the Chicago Board of Exchange. As the name would suggest, Binary 101 Options are derivative contracts, with only two possible outcomes at contract expiration time; i.e. you receive cash/asset if the contract is ‘in the money’ and nothing if it isn’t. For example, suppose you buy a call option of ABC Ltd.’s share at a strike price of $30 and a binary payoff of $300. If the stock price is above $30, your contract is ‘in the money’. This means that you are in a profit situation as you can buy the stock for the strike price of $30 and sell it at a higher price (the current price) and make a profit. In such a scenario, in a binary option contract, you receive a fixed binary option payoff of $300. In every other scenario, you receive nothing and lose the price of the contract. The underlying asset can be stocks, indices, commodities and currencies. Making consistent profits out of trading in binary options depends on the accuracy with which you can predict asset movements over the term of the contract.
The following details some important tips for narrowing down your search to the best binary options brokers:
• Choose a regulated broker: This is a company who has obtained a licensed and who is governed by the concerned regulatory authority. Choosing a regulated 101 help on binary option brokers will benefit you in many ways; such as, payment protection in the event of the broker’s insolvency, proper usage of funds and authenticity of the contracts.
• Access: There are some brokers who prohibit US investors from trading binary options. If you are a US investor, you will need to check this first before proceeding to evaluate the broker on other parameters.
• Track Record: Choose a broker with at least one year of reputable dealings. Avoid opting for new brokers. The more experienced the broker is, the higher the credibility will be as it has been able to survive in this industry. Try visiting http://101options.com.
• Reputation: Before selecting any broker, make sure to check the user reviews and complaints which will give you a fair idea of the reputation of the broker. Pick the broker with the most positive reviews and fewest complaints.
• User Interface: since all of your transactions will be made online, become familiar with the interface of the broker’s website. Easy to use and navigate interface will help to simplify things and help you make investment decisions easily.
• Number of Options: There are many option variants, including 60 second options in which the option expires are one minute or One Touch options where you predict whether the asset price will cross a pre-determined price during the life of the option. Brokers offer a high number of option variants are more beneficial, as it opens up more earning opportunities.
• High payouts: Higher payouts mean lower commission to the brokers, and a higher share of profits to you. Most brokers will generally offer around 80—85% payout if the option is ‘in the money’. Some brokers will even offer a 10-15% payout if the option is ‘out of the money’. Chose a broker with the most favourable payouts.
• Banking options: Since derivative contracts are all about ‘timing’, it is essential that the broker offers you a range of deposit and withdrawal options.
• Customer Service: Fast and prompt customer service is a big advantage for a newbie trader. Test the broker’s customer support with certain pre-account opening queries. Also, demo accounts offered by brokers reflects its emphasis on superior customer experience.
• Terms and Conditions: More often than not, unfavourable terms such as higher withdrawal limits are hidden in the fine print of the terms and conditions. Ensure that you read these in detail before commencing trade with that broker.
It is so important that you spend time choosing your broker. The above checklist will help you to choose among the best binary option brokers that are currently in the industry.
Finding the right broker is the first step in trading with Binary Options. Here is a guide on how you can find the right broker for you.
Company Name: 101 Options
Contact Person: James
Phone: +44 (0)161 – 75 68
Address:Unit 2 Prince Mead Place
Country: United Kingdom