This guest article was written by Rosemary Barnes who is an accomplished business copywriter. Rosemary has written hundreds of articles and blogs for clients and specialises in the binary options industry.
Binary options have gained a substantial following in recent years and many binary options brokers have consequently emerged to claim their share of the market in this highly lucrative market.
There’s no doubt that binary options trading is an inviting way of generating attractive profits on your investment. They offer a simplified version of trading which is ideal for beginners and it is perhaps this simplicity that has made them so appealing to new traders and caused a spike in their popularity. There are now well over a hundred binary options brokers in existence…and counting!
Whether or not you’ve traded binary options, like most financial institutions, they have become the subject of much scrutiny, not least because they have received their fair share of negative press, most notably for certain aspects of malpractice such as withdrawal issues. But are all binary option brokers the big scam that some traders claim and who have gone on to post their dissatisfaction on the various industry forums?
I have reviewed binary options brokers for some time now and since I have been involved in researching them, I have formed my own opinions of whom are the best in the business. I believe it’s not really fair that all binary options brokers should be tarnished with the same brush as those who have acquired themselves bad press. Binary options is much like any industry in the sense that there is the good and the bad. Take computer software, for example. There is great software and there is bad software. The same goes for the car and banking industries, in fact, pretty much any industry you care to look at. So, in this respect, why should the binary options industry be any different?
Do Your Research
It is of course important to sift out the most reputable brokers and that means doing your research. When I review a broker, I don’t just research their website, I also look at other independent reviews and seek out any online customer feedback I can find. It’s not always easy for a would-be trader, however, since many supposedly independent reviews are written by affiliates and may be biased towards one or more binary options brokers.
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Often I find these to be poorly written so I tend to leave the site as quickly as I arrived. There are, however, a few reputable review sites that produce fair and honest reviews and these can be very valuable in providing an overview of the services offered by a broker, as well as highlighting the pros and cons.
More importantly, it is best to start with the broker’s website itself. While it can be difficult to track the reliability of a broker directly from the site, there are things you can look out for. First of all, and most importantly, is to check whether the broker is regulated. Since binary options are relatively new to the market, having only been around since 2008, they have quite rightly become subject to strict regulations in a similar way to banks.
The importance of regulation cannot be stressed enough and it is the best tool a trader can be armed with. A reputable binary options broker should have an industry-recognised trading licence comprising a list of rules and regulations which brokers have to adhere to in order that traders may reliably and confidently employ their services, such as CySEC and FCA. If a broker is regulated, you won’t have to spend long looking around their website for proof of certification. It will be prominently displayed on the homepage.
This leads me to another important aspect that a prospective trader should look out for – transparency. This is not just in terms of revealing the exact potential payout percentages on their platform, but complete transparency in every aspect. Full account transparency, for example, is very important and being able to review all your transactions, including deposits, withdrawals as well as winning and losing investments can provide useful assistance in your own individual risk and money management strategies.
Traders should also look to tick other boxes. Remember, it’s not just about choosing a broker who offers the highest payouts. Other things that I look out for when reviewing a broker is how professional a website looks, whether the trading platform is easy to use, whether the broker provides a top-of-the range educational centre, an in-depth FAQ library, clear points of contact for customer service, secure payment methods, track record/history and clear access to a free demo account.
Above all, it is vital that traders read the broker’s terms and conditions. Failure to comply with the terms and conditions is one of the main reasons behind most complaints so it is important to fully understand them before entering into any trades. This also applies to bonuses and incentives which always have terms and conditions tied to them.
One final tip and one which I always make use of is a broker’s chat line. Whether I’m looking to see if they offer a demo account or check on their minimum deposit amount, whatever it is I’m not sure about, I always contact them in this way, and you should too. The speed and manner in which they respond is a good indicator on the expertise and professionalism of the broker in question.
Overall, I have reviewed many binary options brokers and these are the steps I usually undertake to prepare a fair and honest assessment of them. There are many brokers who tick most or all of these boxes and I believe that if you know exactly what to look for, you can easily weed out the so called ‘scammers’ and find a completely legitimate and professional broker. In doing so, you will ensure that you’re in the best hands possible and can go on to trade with confidence.