When you decide to trade binary options, it is above all important to choose a regulated, reliable and legitimate binary broker. It should provide many features which will suit your trading needs and allow you a wide choice of assets and options. Since there are many binary brokers online, it may be difficult to choose the right one. They are the same in some things and different in others. There are many reviews and user comments on the brokers, so you can relatively easily discover which ones a reliable and which ones are not. However, finding the broker that offers exactly what you want requires some additional research.
Most binary brokers offer mainly binary trading, and they usually have several types of binary options available. Some brokers dealing with mainly with Forex trading offer binary trading as one of their additional features, so it is possible to trade binary options through these brokers as well. There are two main differences between the brokers that you should pay attention to – their trading platform and their license.
As far as the trading platform is concerned, most of the brokers use the same software providers. This is why you will notice several brokers with exactly the same platform layout. On the other hand, there are some binary brokers that offer a platform created particularly for them, although there are not so many such brokers at the moment.
When it comes to license, it is clear what to look at – there are brokers that have the official license and those that are not licensed or whose license expired. Naturally, it is always safer to choose the brokers with the license issued by official authorities. CySEC is a regulatory body for the brokers in EU and most online brokers have their license, which is what you should look for. However, it is not always unreliability which makes the broker unlicensed. Some brokers are new on the market and they may still be waiting to be issued the license.
There are many other features too look for when searching for a broker, and the brokers are more or less similar to each other in them. Most of the brokers offer four groups of assets to trade – stocks, commodities, indices, and pairs. The difference is that they do not all offer the same number of tradable assets. Call/Put or High/Low options are the most common, known by all binary brokers and also offered on every binary trading platform. But there are some other types of options as well, such as Tunnel Options, Pair Options or 60 Second Options, and some brokers provide these additional types of options as well. You can find out more about it at https://en.wikipedia.org/wiki/Binary_option and get to know with binary options at first.
Most of the brokers offer welcome bonuses, but they are different in the amount and the conditions of use. You are usually required to reach a certain level of trading before you are allowed to withdraw the earnings you made after accepting the bonus. There is also a demo account available with many brokers, but again there are different terms and conditions of creating and using one. Very few brokers provide it without creating an account, while there are also some brokers that do not offer a demo account at all.
Becoming successful in binary trading does not only involve avoiding all of the binary scams and investing money based on a lucky guess. Before and after you find a reliable broker, there is a lot to work on. You need to keep investing in yourself, improve your skills and strategies and stay informed and educated. This is why in this article we bring you some tips for becoming and staying successful in binary trading:
1. Keep learning – when you decide that you want to trade binary options, you need to start learning. This is especially important if you do not have any previous experience in trading. You should learn the basics of trading, how to read charts, develop and apply strategies, choose the assets to trade and so on. There is a lot to learn, and you will not only do it before you begin trading but also all the time from that moment on.
2. Choose a reliable broker – one of the crucial steps to successful trading is avoiding scams and choosing a legit binary broker. There are plenty of online reviews to help you find licensed and reliable brokers, so make sure to read them carefully and make a decision.
3. Develop your own trading strategy – this provides continuity in trading and helps you monitor your success, which is very important in binary trading. This way the reasons behind your trading decisions will always be the same. If you are a beginner, you can choose some of the trading strategies developed by others and available online. As your experience grows, you will adapt the strategy, change it to suit you better and maybe even develop your own.
4. Test your strategy on a demo account – after you choose a strategy and learn about it, you can test in on a demo account. Most brokers offer this option, where you are allowed to perform mock trades with virtual money, but with real market conditions. This way you will not lose any real money even if your strategy turns to be wrong, so you will have the opportunity to change it or choose another one.
5. Have a plan and trading goals – before you start trading, you should set clear goals and a detailed trading plan. If you do so, you will know at any given moment what you want to achieve with your binary trading, and you will move towards the clear goals you have set. This will help you keep a clear head and keep the spending and the appetite for earning under control.
6. Control your emotions – decisions based on emotions and emotional reactions are one of the most dangerous things in all kinds of trading. Control yourself and do not let emotions and intuition make the decisions over reasoning. Focus on the facts, reason and the results of analysis. This way you can stay objective, calm and avoid huge risks and losses.
7. Stay healthy -in addition to knowledge, caution, and emotional control, it is important to keep your physical health. Sleep well, relax, workout and eat healthy food. Naturally, this is all good for your general physical and mental state, but it is also useful if you want to stay focused while trading.