The selection of binary trading platform matters almost as much as the selection of a trading strategy and following through with it consistently and unemotionally. Not all trading platforms are the same; they charge different fees, which can eat into your profit margin.
Some trading platforms limit the types of trades you can enter, though this also limits your risk, while others encourage you to risk going into debt on the trade with the promise of a “win”. Others don’t let you trade what you know best. Some platforms tap into the same emotional thrills as gambling and encourage you to act through constant notifications and moving graphics, regardless of the literal cost you pay for making more trades than necessary. Here are a few tips on how to choose the right binary trading platform to avoid platforms that you cannot afford to use.
Payouts differ between binary trading platforms. This is one of the most important criteria you should use in selecting a binary trading platform. A few percentage points difference in payouts can make the difference between breaking even and losing money at the end of the day. Simply by finding a platform with a higher payout, you increase your profits when you make the right trade.
Remember that the rate of return on profitable trades determines your overall odds of success. There are many platforms with 68% to 75% return rates on winning trades. The best platforms have returns of over 85%.
Fees rival payouts as the most important deciding factor as to which binary options trading platform you should choose. Fee free trading is the ideal situation. Look for platforms that offer an early closure option; this allows you to close an open position at any point in the contract, whether to secure your profits or limit your losses. You may have to pay for this privilege, but look for platforms that charge as little as possible for it. You want flexibility, such as the ability to buy binary options that expire in minutes as well as weekly options, but that is not as important as the price you pay per trade.
If you go for the platform that lets you make trades every minute, but don’t mind the fees, you’ll burn through your account in a matter of days and risk becoming overly involved trying to recover the losses. For saner, safer trades, you want the ability to set it and forget it and not work on a platform pushing you to try again and again in the hope of hitting it big and recouping your losses.
Every binary trading platform provides a list of assets that you can trade. If you want to trade in Bitcoin options instead of Bitcoins themselves, find a trading platform that facilitates this. If you want to trade in foreign currency exchange options, commodities or stock options, use a binary trading platform that offers it. Good platforms offer the option to trade in assets like stocks, commodities, currencies and major stock indices. Platforms with only a few options are likely to be catering to gamblers or even be scams, because they don’t have the time or resources to set up a full platform for trading across everything you can buy binary trading options for. Have a set strategy for the type of assets you want to trade learned from a resource like the Stern Options Blog, instead of assuming that if you can trade anything on the website that you’ll eventually find something that works.
Bonuses should not be the deciding factor as to the platform you select. Many binary trading platforms offer bonuses to lure in inexperienced traders, but their terms include rules that limit your ability to withdraw your money or seemingly make up for higher fees that eat into your profits long term. While the bonuses are presented as a way to learn with their money, not yours, binary options sites, like casinos, never offer “free” stuff unless it is ultimately going to flow back into their profits.
Research the reputation of the trading platform. Too many binary trading platforms are set up in lieu of gambling sites, tapping into the same excitement but overlaying it with a veneer of legitimacy by calling it investing. Then they market to the same people who are searching for online slots and sports betting, promising excitement with higher payouts and a more socially acceptable label; by targeting people who are gambling, they attract customers who don’t care about the high fees or limited options.
Spend time reading complaints about the platform. Do they push people to sign over control of the account to an employee of the platform on the promise of higher profits before making many trades that generate trading fees for them while cratering your account? Do they have good technical support when there are issues with a transaction? Do they change their terms and conditions periodically, such that users are surprised with hefty fees after a few weeks?
You should only use binary options trading platforms that make it clear as to their fees, restrictions, limits and rules. If the rules aren’t clear, you either need to learn more about binary options trading or seek another platform. Good customer support should be a necessity, but that doesn’t eliminate your need to know what you’re doing. Rely instead on quality expert advice.
Some binary trading platforms offer apps for letting you trade while on the go.
This should not be your deciding factor for using a trading platform. An absent minded click on a recommended trade by their adviser means you’ve agreed to risk your money for the deal they want to receive commissions on, and the sheer convenience reduces the odds you’ll do the due diligence analyzing the trade before you commit to it.
Yes, about 40% of binary options trades are done via a mobile device, but picking one based on how polished the app looks can be counterproductive. And then there’s the concern as to whether or not the app has the right level of information security to prevent someone else hacking it, and gaining access to your personal and financial information. After all, many binary trading platforms let you use multiple funding options like pulling money in from a bank account or credit card.
There are many binary trading platforms, and choosing one based on hype is the wrong decision. Choose a binary trading platform that combines high payouts with low fees; do not make a decision based on the bonuses the site offers. Research the reputation of the trading platform and don’t use any site that generates complaints about ever-changing rules, surprise costs, impossible to reach customer service or managers that keep asking to take over your account. If they treat it like legitimized gambling versus an investment, flee. The asset list should be reasonably long and include the types of things you want to invest in. Being an extensive domain, an individual might find learning and understanding the binary trading platform a little challenging. In order to avoid the difficulties, they are recommended to seek assistance from Stern Options Blog that provides valuable information on the concerned topic.