What to Look for Before Registering at a Binary Options Broker?
In the below paragraphs I will describe what I look at when I review a broker. In general, only 1 of every 10 broker that I review will get a positive review. From these I usually select the top 10 binary options brokers that I like and recommend them on my site. Sometimes I have to cut back to just 5.
Is the broker legit?
This is the first thing I evaluate. If it turns out that a broker is a fraud and operates illegally then I won’t even look further. It doesn’t matter if the broker has many attractive deals and high payout rates. If something seems shady then there’s no point in looking any further.
The best way to check this is to see if the broker has a license issued by a reputable government agency in a reputable country. Such agencies include the Cyprus Securities and Exchange Commission (CySEC), and the United Kingdom Financial Conduct Authority (FCA).
Brokers (or their parent companies) that have such a license are always 100% legit.
Where is it located?
It also matters where a binary options broker is located. If a company is located in a place such as the British Virgin Islands or Seychelles then most of the time it means that they have something to hide.
Most legit binary brokers are located in places such as Cyprus, the UK, Malta or the Isle of Man. All these are European Union jurisdictions and have reputable regulatory authorities.
How many assets does it offer?
Once I checked all the legal stuff and made sure the broker is not a scam, I will go on evaluating the actual broker itself. The first thing I look is the number of assets. The larger the better.
It’s common knowledge in binary options circles that some assets are much easier to predict than others. This is especially true for major currency pairs. Also, most of the signal tools developed only work with currencies, so you need to make sure they are available in abundance if you want to profit.
What are the payout rates?
Another very important thing to evaluate is that of the payout rates. Obviously, the larger the payout rates are the better it is for you. At this moment the industry standard of payout rates is around a minimum of 80%.
It’s also important to check if the respective binary options broker has very high payout rates in case of one-touch and boundary options. In most cases like these, payout rates should be around 400%.
Some brokers count on the fact that traders have no idea that payout rates in case of touch options should be very high, and as such they offer standard 80% rates in these cases. This is a very shady practice. I blacklist a broker immediately that does not offer decent payout rates.
The online trading software used
Binary options brokers function on a so-called binary options trading platform. Third party companies usually develop this platform. Traders should make sure that they register at a broker that uses a highly advanced and user-friendly platform. This way they’ll be able to enjoy trading under the best conditions.
What kind of options does it have?
As you know, there are different kinds of options such as high/low options, one-touch, boundary and ladder. A decent broker in 2017 should be offering all of these. It might have been fine for a broker to offer only high/low options in 2010, but thee days this is unacceptable.
The reason for this is that some of the best paying options are the exotic ones such as boundary and one-touch. As explained in the previous point, these can pay out up to 400% or sometimes even 600%.
Withdrawal and payment issues
At this stage I am almost finished reviewing the binary broker from an outside perspective. The next step will be to actually sign up myself and try out how things work in real trading mode.
However, before doing this I will check some of the popular binary options websites and forums to see if people have any complaints about withdrawals; after all, I don’t want my money stolen.
There are many important and independent forums that are completely user generated that allow complaints against brokers. If my broker has many justified complains about not processing payments then obviously I will not register and instead add the broker to my blacklist.
Places to look for broker reviews include ForexPeaceArmy, the BinaryOptions.net forums and FXEmpire user generated comments.
In regards to deposits, the most important issue is that of the number of depositing tools provided. The most important payment tools that should be available at every financial trading broker are credit card deposit, wire transfer deposit and PayPal as well as MoneyBookers deposit. In regards to withdrawals, the most important issue is the processing time related to payments.
Actual trading for at least 2 weeks
And now finally once the binary options brokers I review passed the previous tests I will actually sign up myself and begin trading with real money for at least 2 weeks. Usually, in these cases I will not accept a bonus because I might not intend to stick on trading and therefore wouldn’t want to lock in my deposit due to bonus clearing requirements.
When I review the broker in real trading mode I will again evaluate all the previous points but now also in practice:
– Does the broker actually have all the advertised assets?
– Does it offer the same payout rates in practice as it advertises pre-signup?
– Does it have all the advertised options and does it have the same payouts?
– After 2 weeks: can I actually withdraw my money and how much does this process take?
I will also look for anything extra, such as additional special features, like double down, sell trade, increase expiration time and more. If such features are available, then a broker will be ranked higher on my site.
And at the very end, if the brokers pass all these evaluations then I will add them to the recommended binary options brokers list. If they are “just good enough” then I will ignore them. If they are really bad or even a scam, they get blacklisted.
So this is how I review binary options brokers. You can do this yourself using the same methodology if you want.
List of the Best Binary Options Brokers
And now finally I want to talk about some brokers that I believe are top performers. I decided to specially highlight these, as these are the ones I actually use myself as well on a regular basis.
All the sites listed below passed all the above-mentioned tests and criteria. I can personally vouch for these sites having used them myself continually for a long time.
IQ Option (Recommended for Europe and international traders – no USA accepted) – IQ Option is at this moment the largest binary options broker on the market. It’s also one of the first that acquired proper regulation and licensing in multiple European Union countries. I truly believe that at this moment IQ Option is the safest and most legit broker out there. Of course, the services provided are also some of the best available right now.
If you’re interested in learning how to win at binary options then I recommend you to read my additional articles and guides. This website was created with the intention of teaching traders how to win, so they can become more than just simple recreational users. If you only trade at the best ranked binary options trading brokers and follow some common sense steps, then you may have a chance of generating revenues besides having a lot of fun as well. However, keep in mind that in binary options trading (or any kind of trading for that matter) nothing is guaranteed.
If you want to check out the list of brokers I have blacklisted you can go here.