Binary options is a hugely popular and lucrative form of trading among businessmen today.
This is mainly because it is hugely encouraging to both veteran and first time investors as it involves a globalized market, simply defined conditions and no astronomical requirements regarding a capital. One of the primary activities investors look to do get them in the game is open an account with a binary options broker. Here are some key subjects on which you as an investor would find crucial to ask about from your broker.
Not until recently, binary options was viewed as less of a financial tool and more of a fancy method of gambling. Technically, it’s true. However, since regulation has been involved, it has gradually come to being recognized as a financial instrument. Regulation by a third party offers much needed protection against serious financial crimes. So it is very important to verify that your broker is indeed regulated.
For instance, the most reputed brokers in the United States are regulated by offices like the Commodity Futures Trading Commission (CFTC) to prevent and handle schemes such as refusal of credit to customer accounts, identity theft, manipulation of software to generate bad trades etc.
Trading platform is the term used to describe the software you will be utilizing as a trader to access a particular market. In some cases the broker and the software are identical so not much asking to do there.
But otherwise, you will find it useful to be well informed about what markets you can be involved in and any unique benefits of the trading platform you are on. So make sure your broker offers you the most straightforward platform with maximum amount of tools.
Deposits and Withdrawals
It is important to know how many different markets into which you can invest in. The more places you have your money pooled in, the more conveniently you can trade. Obviously, you would want your broker to be completely frank with you over how your money is being distributed and handled.
When it comes to withdrawals however, the process is not so clear cut since government agencies have implemented new rules. The fact is that before your withdrawal can be processed, your identity needs to be verified and new regulations from the government have made that into a lengthy period.
In these cases, a third opinion might be useful such as reviews on brokers which may indicate how fast they can retrieve money that belongs to their clients.
Execution on Demand
A binary option comes into demand as soon as a call option is placed on it. So it is a high priority for you that your broker is able execute the call for you in no time. The quicker your broker takes an option on the trade, the lesser the chance of you having to wait for another investor’s timer on the market to expire before you purchase the option. Some brokers are notorious for their delayed executions on investing ton securing a market for their clients so it is important for you to know that your broker will deliver in next to no time making your call or put option on a stock.
These are perhaps the most important topics to discuss with your binary options broker as they are a great way of deciding if they have what it takes to give you every possible chance at making a decent profit. Be sure to identify the nasty ones from the helpful ones, so that your trades in binary options run as smoothly as possible.