Binary Options Brokers.
Trading binary options has been popular in the US ever since 2008 when the SEC approved the trading of such options in the United States. Since then, many brokers have claimed to be the best. Before you hire just any broker, I will teach you what to look for before you do so. There are so many elements to being a good broker, so study carefully what I have to say.
Broker Comparison Criteria. How Do Brokers Make Money? Should You Use Multiple Brokers? Exchange vs. Over-the-Counter Brokers How to Choose the Correct Trading Platform The Financial Market Regulatory Bodies How to Identify the Most Reliable Broker Binary Options Brokers Compared Conclusion.
Broker Comparison Criteria.
A broker lets you use a trading platform that belongs to him. This platform is “the middleman” between you and the exchange. Knowing this, you should always compare brokers based only on the services they offer you. Nothing more. Nothing less. Along with that, there are other criteria you must check in order to make an informed decision.
The best scenario is this – you get a secure trading platform, numerous bonuses, and a 90% payout rate. You also want to be sure your broker has good flexibility for trade expirations.
How Do Brokers Make Money?
As I said, the broker and his trading platform represent the middleman. So, how do brokers make money? Firstly, they get a margin of an OTC (over-the-counter) trade by simply being a counterparty. That margin is significant mainly because both sides are hedged. The broker does have protection in case he doesn’t get enough margin. Secondly, they make money from being the middleman. They charge a commission for matching buyers and sellers. The commission is an amount inside the transaction. The tighter spread in buy and sell prices makes your trading cheaper.
Should You Use Multiple Brokers?
There are so many brokers in the market, and they all have different features.