Binary options brokers comparison is recommended when a trader chooses which brokers to invest with. There is no one parameter to consider the importance of each parameter is of individual nature. We do provide you an example of a binary options brokers comparison table but there are other parameters we cover in the binary options brokers reviews articles that may be important to some traders and are not included in the example comparison.
It is important to us to emphasize that choosing the right broker for you is as important as every other financial decisions and therefore before we examine the different aspects we want to share’ with you a general statement which is of great importance, regarding binary options comparison.
Our experience in trading binary options taught us that the first and most important aspect is the quality of the broker. The quality of the binary options brokers can be evaluated from the services and education it provides, the availability of platform support and trading support, the number of tradable assets, the withdrawal process, and the compliance with regulations of binary options.
The financials aspects to compare include: deposit procedure, available deposit or payment methods, withdrawal procedure, minimum and maximum deposit, VIP client qualifications, minimum and maximum trade amount, and payout.
Deposit procedure – the deposit procedure should be easy and available through your preferred method (i.e. credit cards, wire transfer etc). There are brokers who offer immediate or quick deposit while some need a day to process the deposit.
Available deposit / payment methods – the deposit methods are the ways you can use to put funds in your binary options investment account. You should find the brokers that support your preferred method as mentioned above it can be any kind of credit card, a bank transfer, e-wallet service like PayPal etc.
Withdrawal procedure – the withdrawal procedure should be immediate for the funds you own and not to take more than a week to process until you have the withdrawal in your account. The supported withdrawal methods are also important because some deposit methods do not permit to refund or pay back to the depositor and some methods charge per every transaction.
Minimum and maximum deposit – the amounts you can fund and refund your investment account with. The minimum deposit is important to traders who decide to invest a monthly amount so therefore should choose a broker that has a minimum deposit amount which is lower than the amount the trader wants to invest every month. The maximum deposit amount relates to high calibre traders who want to deposit very big deposits of tens of thousands of dollars at once. A trader who wishes to deposit large amounts should make sure the broker supports such deposit amounts.
VIP client qualification – we recommend traders to make sure the qualify to the VIP level which offers higher support priority and better trading education materials. Usually brokers offer their VIP clients personal account managers, online trade room support, tips, alerts, signaling services, and more. The qualifications determine what is the minimum deposits in the account that grant these privileges.
Minimum and maximum trade amount – the trade amount is the amount of money you can trade on in a specific bid placement. You need to choose a broker that supports low minimum trades for beginner traders and high amounts for experienced brokers with big investment accounts. Usually brokers offer 5-20$ minimum deposit amount and between hundreds of dollars to unlimited amount as the maximum deposit amount.
Payout – the predefined amount you get (based on the trade amount) when your options ended in the money and the predefined condition when your options ended out of the money. The payout shows in a percentage value is usually determined based on the asset and the trading method. There are conditions for binary options that are easier to realize and therefore have lower payouts and vice versa.
The back office aspects to compare include: platform supported languages, technical support channels, trading support, support languages, local support toll free numbers, and “request a call” availability.
Platform supported languages – the supported languages can be critical to traders who do not master English (as most brokers offer English by default) and need the platform in their native language. Most brokers provide their platform or at least the key features in the platform in many languages. It is always better to find a broker that supports your native language.
Technical support channels – brokers and traders alike want the trading system to function well and that the traders will be able to trade and therefore brokers provide different ways to get support. Most brokers provide e-mail support and phone support or automated support for common issues. There are brokers that provide support through direct chat on the site and even through skype, everything they can do in order to solve any technical issues as fast as possible and enable the trader to place the trades. You should choose a broker that offers support in the most convenient channel to you and that offers a quick answer to any support request. Usually e-mails are answered within an hour to several in trading hours and other immediate channels like phone and online chat respond in a matter of minutes.
Trading support – this kind of support is provided by the trade room and is dedicated to trading questions regarding the market or a specific asset. The best trading support is provided to the VIP clients but it is recommended every trader attempts to get a trading support at the beginning of every trading day in order to get some directions and market perspective.
Support languages – the languages the broker’s support team can provide the support in. There are brokers who provide support in different languages using translation tools but the majority of brokers hire dedicated personnel that speak the different languages as part of its support team. Choose a broker that can provide you the support in the language you prefer.
Local support toll free numbers – we mentioned that all brokers provide support by phone but some of them have many local toll free numbers for every country they work in so traders can call and get support by phone immediately and with no extra charge by the phone provider. In some countries charges may be applied when calling from a mobile phone but that is the norm and still cheaper than international calls.
“Request a call” option – some brokers offer a special service to request a call. The request a call button is located in all pages of the platform and once logged in you can press the button and get a support representative get back to you by phone. This option is ideal for traders who are located in countries with no support toll free number. To use the service you have to register your phone number with the broker.
The education aspects to compare include: e-books availability, courses availability, personal training sessions, binary options alerts, binary options signaling, and traders’ insight availability.
E-books availability – usually the advanced e-books with real value to the traders are given to the VIP clients. E-books can provide instructions of how to use the broker’s platform, teach traders different techniques and strategies, and provide a reference for terminologies. Choosing a broker that offers good education materials through e-books can assist in improving the trading skills of the trader.
Courses availability – binary options courses are a great tool to learn more about trading with a specific broker and trading binary options in general. There are different levels of courses on a variety of topics. It is better to find a broker that offers courses in your native language on a variety of topics from beginner level to advanced level.
Personal training sessions – the training sessions are one on one sessions by phone / skype with an experienced trader from the broker’s trade room that includes the introduction of tools and strategies with personal tips tailor made for the trader. These sessions usually benefit to the knowledge and confidence of the trader. Usually these sessions are given to VIP level traders and are very beneficial to the traders.
Binary options alerts – alerts are the market or asset news sent to traders by the broker using e-mail or even by notifications in the trading pages and to traders’ mobile phones (through the application or by SMS). The alerts can notify traders about current trends and important news that have the potential to impact a specific market or a specific asset.
Binary options signalling – signalling services are provided by some brokers and indicate expected rates of specific assets. A signal can notify a trader of an expected price rate of an asset based on the analysis of market experts and is usually sent before the asset rate starts the move towards the expected rate. Good signaling service can improve the performance of a portfolio dramatically.
Traders’ insight – the traders’ insight is when a broker shares with the traders all open positions for a specific option. A trader can learn what the expectations of other traders are. For example you can see if the majority of traders placing bids on a specific asset predict the asset is moving downwards or upwards.
The options availability aspects to compare include: binary options assets availability, trading hours, binary options trading methods, and binary options mobile applications.
Binary options assets availability – every broker publishes an asset list which means what are the assets that are offered in the options in its portfolio. A broker can offer options that are based on forex, stocks, commodities, indexes, and bonds. You should choose a broker that offers assets you know and feel comfortable with and that are traded in the hours you plan to trade in.
Trading hours – the trading hours are usually a direct result of the tradable assets. Most brokers make sure they offer a variety of options based on assets from the countries they operate in which means whenever a market they operate in is active, they have available binary options. You need to find brokers that offer options that correspond with your planned trading hours.
Trading methods – the trading methods are the condition types of the option. Not all brokers provide the same types of options. The most common option is the call / put option (up or down) and there are also the one touch and the range options. You should choose brokers that offer the trading methods of your choice.
Mobile applications availability – the mobile applications are aimed to provide market news and alerts available to the traders wherever they are and the ability to place bids easily so traders do not miss the development of trends when they are not in front of a computer. The mobile application is a valuable feature for traders that cannot dedicate the necessary time in front of a computer.
The promotions aspects to compare include: deposit bonus, free demo account, and trade insurance.
Deposit bonus – the deposit bonus is a promotion brokers give to traders in order to attract them to open an account and deposit with them. There are several kinds of bonuses and it is important to read the terms and conditions of the deposit bonus when you get it. Some bonuses give you money to trade with to get practice and that you cannot withdraw while others give traders bonuses that they can withdraw under certain conditions. We recommend new traders to take bonuses that enable them to trade more and gain more practice no matter what the conditions are. We know that some of the initial deposits will be used for educational purposes and for practice and therefore the bonuses give the traders the ability to get more exercise for every dollar they spend.
Demo account – the demo account is not a real money account but uses “fake money” to simulate trading. There are new traders who prefer to get demo accounts but it is important to understand that demo accounts do not act like real money accounts. The functionality is the same as regular trading but the psychology of trading fake money is different than real money and therefore the whole trading decision making is influenced. Free demo accounts are usually good for youth that wants to get familiar with the trading world but is legally prohibited from trading with real money.
Trade insurance – the trade insurance is a type of a bonus based protection for beginner traders. Under certain conditions traders get back a portion of the money traded in a losing trade as a bonus. Every trader knows that you do not always succeed in every trade especially when you only start trading and learn the trading world. The insurance will assist new traders to get more trades for the money they invested and gain more practice.
These are the aspects we chose to cover in our binary options brokers comparison. You can choose to take into consideration only some of the mentioned factors and you can also use other factors we did not cover that are mentioned in the binary options brokers review.