where to investIf you have just decided to start with trading, you will need a short guide of how to choose the right binary options company (also known as binary options broker). There are a lot of scammers online that want to get your money, there are also a lot of unreliable brokerage companies, that will not help you but will ruin your plans about financial independence. At the same time traders should be aware of how to find a legitimate and reputable broker to open account with.  There are trusted brokers who work in the binary options market for years, legally regulated and provide traders with professional services and support, that helps to earn.

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So, if you decided to take the opportunity for trading binary options, you shall first get an idea of how to differ a reliable binary options company from a scam broker.

There are several steps which traders should keep in mind, and they are rather important to follow if you do not want to lose all you funds without getting anything but desperation. Before opening an account with a broker, or moreover, before depositing money, check the following, point by point:

  • If the broker is regulated or licensed by any regulatory bodies,norms, provisions or legislation.
  • If the company has enough capitalization. Though, if it is a regulated one, most likely, it has, as to apply for being regulated, the binary options company shall have millions in its account.
  • The type of trading platform provided to the investors to place trades on.
  • How high are the payouts and how smooth are the deposit and withdrawal procedures.
  • Customer support availability and efficiency.

Now, let us clarify the points in more details.

How the Binary Options Companies Are Regulated?

First of all, you shall know that most of binary options companies are registered in Cyprus. Not because they don’t comply with the European or the USA regulations, but mostly because taxes in Cyprus are the lowest. The binary options regulating authority in Europe is MiFID, while in Cyprus it is CySEC. These two authorities are the main ones for binary options, though in each country there are regulating authorities that are responsible for finance control and licensing of organizations that provide financial services, including the binary options companies.

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Choosing a regulated broker is always a good step towards security and safety, but that does not always guarantees that the brokerage company is not a scam. Investors should be aware that trading binary options carries a level of risk and may not be suitable to all of them. Do not invest capital that you cannot afford to lose.

The second point, the company`s capitalization, is closely connected with the regulation. If the company is licensed, most likely, it has enough money in its accounts. So, if you trade with a legit company, most likely, you will not lose your funds because the company went bankrupt.

Binary Options Trading Platforms

Well, here we speak more about convenience rather than about whether the company is legitimate or not. There are plenty of trading platforms, a company may use its own platform or a platform of another one, just using its brand. But there are web-based and non-web-based platforms. And here is the difference. In the case with a web-based platform, the trader doesn’t depend on location, he/she can trade from anywhere from any device. While in the case with a non-web-based platform, the trader has to download the trading software. It means, that he/she is attached to the laptop where the software is downloaded. Rather inconvenient, though now most of the binary options companies do not work with the non-web-based platforms.

Read More About Binary Options Platforms in This Article.

Payouts And Withdrawal Process

One of the very important points to check carefully the terms and conditions section to see what are the requirements concerning the payouts, bonuses, deposits and withdrawal procedures. Payout percentage depends on a broker and may vary greatly. Some would offer more than 10%, while others will not offer anything. Here again, we are not speaking about the scam, but about whether it is worth trading with that particular broker, or it is better to look for another one. Some payouts are really high, up to 70% on PUT/CALL options, and even more than 400% in the case with One-Touch-Trading. They look good, but, probably, there will be special conditions set by broker, to make such payouts worthwhile.

Then, about the withdrawal process. The process shall be described in simple step-by-step instructions. It is better to select a broker that offers many withdrawal options, and you have to check, which of them are available for you in particular, and if there are any available. Then, do not afraid to ask, if the broker guarantees the safety of such transactions, and if he uses any encryption to provide a reliable level of safety. Note please that some brokers request additional information, of a proof of identity, before processing the withdrawal request. This is normal, and this is required in order to protect your funds from fraudsters.

Customer Support Availability

supportAnd, of course, immediate availability of support is a great advantage. When it comes to money, getting assistance in time may be crucial for your funds. Look for live chat, email, telephone, contact form and physical address. If there is a wide variety of languages supported that should be taken as a good sign.  Sometimes seconds decide whether you lose your money or not. That is why, an excellent customer service is a must when you decide what broker to choose for opening a trading account.

How to Avoid Binary Options Scams?

The market of binary option trading is very big, that is why it is very attractive for scammers. To protect your funds you shall know simple techniques how to detect a scammer. First of all, check, if the company is licensed. If not, then better to avoid such binary options company.

Then, check, how feasible are their promises regarding bonuses, and remember: nothing is given for free. A broker wants to earn money, that is why there is something behind too high bonuses that are offered almost for nothing. And, final and the most important step, check how withdrawal works. Traders` reviews and binary options brokers reviews maybe helpful, though not always. Better do not risk with big deposits to start, try with smaller sums, and if all is fine, then you can continue trading.

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Harvey Turner

Harvey Turner

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I am Harvey Turner. In my site you'll find articles about Binary Options Trading and reviews of the best binary brokers.
Harvey Turner

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