So you’re interested in binary options. That’s exciting, but before you get too involved, you need to know that choosing the right binary broker can mean the difference between losing money and being wildly profitable. Why? Because each broker is a little bit different, and depending upon what you are trading and how you are trading it, not every broker will be helpful for you when it comes to making money. There are dozens of brokers out there right now, and picking the right one should be a high priority.
Rates of Return
There are a lot of sites out there that will give you the nuts and bolts breakdowns of different brokers, but what it comes down to is whether or not you can make money over the long term. The most reliable and sustainable way to do this is by having the best profit rate possible for the type of trades that you will be making. So, if you are trading the EUR/USD pair in sets of 5 to 15 minute expiry options, and you are looking at two different brokers, one of which has a return rate of 78 percent and one has an 81 percent return, the higher rate is almost always better. A correct trade will return $3 more for every $100 risked. When you trade $10,000, that’s the difference in $300. And the more you trade, the bigger that number gets. If you trade often, you could easily get up over $10,000 in extra profits over the course of a year. It makes a big difference, as you can see.
Improving Your Correct Trade Rate
If the rate of return is the most important, thing to look for, then having the resources to improve your correct trade rate is probably the second best thing that you can do. A correct trade rate of 60 percent with an 80 percent rate of return will give you a profit number of $800 if you are risking $100 per trade for 100 trades. When that rate jumps up to 75 percent, though, if everything else remains the same, your profit number goes from $800 to $3,500. That’s a huge number by any measure, and it is possible to achieve by going from a decent trader to a great one.
Don’t Get Fooled by the Scams and Gimmicks
How do you make this leap, though? By learning the market and specializing your skills. If you find an asset or small group of assets that you are most interested in and learn as much about them as possible, then you can pick up on small nuances that you may have never noticed before. Practice through demo trading and real trading, educational videos at places like fxcm educational courses and courses, and timely market news sources will help you to get to this level. You will also want to track your trades so that you can learn from the past. Many brokers will allow you to do this as a built in feature on their trade history page.
The above things are key to success, but other features that seem attractive are sometimes distractions. The welcome bonus falls into this category. Some are great, and you should try to maximize them if you can, while others are unattainable and designed just to get you to lose money. For example, you know that bonuses need to be unlocked before you can keep the money. That’s normal. But the industry standard is a trade through of 30 times. If you are trying to get a bonus that has a higher number, there’s a lesser chance of getting it, which is unfortunate. Think about it: would you rather have a $500 bonus that you are likely to keep, or a $5,000 bonus that you will never actually see? The answer’s an easy one, but many people miss it because $5,000 is such a big number. It’s just one of the tricks that inferior brokers use to try and attract more clients to their sites.
The Best Binary Options Broker
There is no best broker for everyone. If there was, this would be an easy business, but that’s not how the real world works. The best site for you might not be a good site for someone else. Informed decisions could also be read at binaryoptionsu.com, a place that offers education and reviews. Know what your strengths are, know what you are interested in, and know what needs to be done to make sure that you are successful. It’s our hope that this site can get you to that point. Information is your friend in this regard, and the more you have, the closer you will be to finding the right binary options broker.