We will be discussing the key features that a binary options trader needs to analyze when they compare binary options brokers.
Items to Compare are:
- Licensed or Unlicensed
- Trading Platform
- Minimum Deposit
- Bonus Offers & Special Offers
- Special Features
Licensed vs. Unlicensed
Brokers are either licensed or not. Most licensed brokers have received a license from CySEC and have registered with various EU financial regulators. Some CySEC licensed brokers will also have a license from ASIC (Australia) or FSBR (New Zealand) or South Africa. All licensed binary option brokers do not accept traders from the United States. In the USA, the SEC regulated brokers are CantorExchange and Nadex.
For traders outside of the United States, there is really no good reason to trade with an unlicensed broker. See Regulated Brokers Here.
If you ever noticed that many binary option brokers look like the same company, that is because they are using one of four trading platforms. Have a look at 24Option & Boss Capital. Both are using the TechFinancials platform, but they are owned by different companies. One is a licensed broker, the other is not.
The difference between brokers using the same platform, is the returns they offer. With some brokers the return on EUR/USD binary options is 70%, with other brokers the returns are 85%.
The typical binary options broker requires an initial deposit of $250 to open an account. Some brokers have different account types for beginner, intermediate or advanced traders. Compare what the broker offers a beginner trader. Traders should also compare which platform they like better. Traders usually seek out a broker with a low minimum so they can play around with the platform and compare it to the other platforms and brokers out there.
Some brokers will try to get new traders to make a larger deposit but saying they can only give signals with a $1,000 deposit. That is usually a red flag.
Bonus Offers & Special Offers
Most brokers offer traders either a 100% sign up bonus or a risk free trades bonus.
We have an extensive article here about the pitfalls and problems with binary option broker bonuses. Occasionally a trader will find a broker offering real prizes and unique bonuses.
Now that we see how hard it is to compare two brokers who are using the same trading platform, how can we compare brokers. There are a few brokers who actually offer something unique to their traders.
For the latest signal software read this article.
Which Broker Should a Trader Choose?
That is a tough decision!
See an updated list of the popular brokers here.