Binary options brokers provide trading platforms, via which, traders can trade either over-the-counter (OTC) or exchange traded binary options. We compare binary options brokers of both types in our table.
Identifying the best regulated binary options broker will depend entirely on the needs of the specific investor. When selecting a regulated broker, an investor needs to consider a whole range of things, including the asset class they want to invest in and the size of their average investment, to name but two.
Here at binaryoptions.co.uk we have tried to list all the useful facts that will help an individual to select which trading broker they would like to open an account with. We have also analysed our most frequently asked questions, and know that the following features are important when traders are deciding on a broker;
We try and answer as many of these questions as possible in our broker summary table, but we cover them in much more depth within each review.
For example, regulation is a key issue. Our comparison table will show if a broker is regulated, and our broker reviews will be specific about which regulator is responsible. In the UK, the Financial Conduct Authority (FCA) regulate a number of brands already – not because they trade binary options – but because they also allow clients to trade Contracts for Difference. Some binary options brokers have chosen to to register with the FCA – but this is not the same as being regulated by them. It is a key point if UK traders in particular want the piece of mind that FCA regulation gives.
Two factors that are designed to entice new account holders, are sign up bonuses and demo accounts. Both are extremely effective at attracting new customers and it is easy to see why.
Bonuses are generally paid as a deposit match, or sometimes once a set number of trades have been settled, for a set amount. Either way, there are generally restrictions, or terms and conditions that need to be met before the funds are available to be withdrawn. It is worth spending some time understanding those terms before signing up. If the terms are not likely to be met (for example a volume of trades within the first few weeks) then the bonus loses any appeal and that broker may no longer be the best choice. There are also some terms which restrict even the the withdrawal of the initial deposit – not just bonus funds. These are thankfully rare – but highlight the need for checking.
Binary options demo accounts are a great way to get introduced to binary options trading without needing to risk any funds. Investors looking longer term will ensure that the broker is the right one for them once they are trading for real money. Not simply the first to offer a demo account with a huge starting balance.
For those investors looking to get involved with binary options for the first time, minimum deposit requirements may be of interest. Some looking purely to experiment, and only risk small amounts, will find a broker with a smaller minimum deposit restriction more appropriate. Likewise, all brokers will have a minimum trade requirement too. These can vary significantly. There will be some investors for whom neither of these are a consideration and if so, these factors do not need to form part of their selection criteria. Minimum trade figures range from £1 to £25 – which is a very sizeable difference if a trader plans to trade frequently. Our comparison tables highlight the trade sizes for every broker, so these can be compared easily.
One key element to finding the best binary options trading account, is the payout percentage offered. This is not always a straightforward comparison. Payouts will vary depending on the asset being traded, and the length of the option. In addition, the payouts could move. So where one broker was originally the best price, things may subsequently change and mean that that is no longer the case. The best an investor can hope for is to check the payouts for the types of trades they are most likely to make, and get a feel for which firm offers the best terms most often. Again, demo accounts can help in this regard. Also, exchange traded and over the counter brokers will have different payouts – and they will not be easy to compare. In general, exchange traded options offer superior value.
As the above demonstrates, finding the best trading account and broker is not always easy – but it is worth remembering that an investor is free to move between brokers whenever they choose, so even if an account turns out to be less useful than was first expected, it is no problem to up sticks and find a new trading firm. Likewise, a trader could have multiple accounts, and open trades at the broker with the best terms for that particular trade. A trader should not be tied down.
Within our website, we provide a wealth of information that can help in choosing the best binary options broker, here are a selection of articles that will help;