Picking the right broker to trade binary options on is a key to your success. In fact, it might even be the most important part of your success. For example, if your broker doesn’t offer assets that you can trade with a positive win rate on, you will lose money. If your broker doesn’t pay out a high return, your profit rates will be low. And if your broker doesn’t have good timeframes to trade in, you are limiting your levels of diversity. All of these things will have a negative impact upon how much money you can make and may even cause you to lose cash over the long run. This is something you need to avoid, and oftentimes it is as simple as switching to a better binary options broker.
First, look at the broker’s asset index. A lot of brokers advertise the fact that they have the biggest selection of underlying assets on the web, but this isn’t always a good thing for you. What does it matter if they have tons of assets to trade if they don’t have the assets you are best at trading? Always go with the broker that contains the assets you want to trade, and not just a big selection. For example, the majority of major brokers right now specialize in Forex currency pairs. This is great if you want to trade currencies, but it is just not as easy to trade other assets, such as stocks. If you specialize in stocks, then you might need to look a bit harder, especially if your company of choice is not a major blue chip or a popular stock with a high trading volume. You will almost always find the big ones like Microsoft, GE, Apple, and Google, but finding other companies might be a little harder in some cases.
Next, look at profit rates. The industry standard is currently around 78 percent on average per 15 minute trade, but you can find higher or lower. 60 second trades still have a much lower rate across the board, but why should you settle for a 78 percent return on your average trade when you can get 81 percent? 3 percent is not a huge number, but it adds up in a big way over the course of just a year. Let’s say you conduct 10 trades a day, 300 days per year. That’s 3,000 trades every year. At $100 per trade, 3 percent ends up being the difference of $9,000. So if you go with a good broker, and not a great one, you are actually costing yourself thousands of dollars that you could have earned just by spending a few extra minutes of research looking at the average rate of return on a few different brokerage sites.
Next, look at the little things that the broker offers. Do they have 60 second binaries available? Do they have month long options or even year long options? Do they have exotic choices, such as the one touch or the boundary trade? What about money saving insurance features, like rebates on losing trades? Not all brokers offer these things, so if they are important to you, make sure that you can get them.
Finally, realize that you don’t have to pledge allegiance to just one broker for the rest of your life. If you change your mind, you can change brokers. And if you want to use more than one broker at the same time, you can do this, too. Some brokers are great for commodities while others have better rates on Forex pairs. If you want to trade both, you might find that separate brokers will give you better rates separately, so using two brokers for your everyday trading will actually be your best choice for profit generation.