Everything Looks the Same? The Differences Between Brokers
With the fast pace of new binary options brokers showing up everyday one might wonder if there really is a difference between one broker and another. Do you just pick the first broker that shows up when you Google binary options brokers or do you research first? More importantly, what do you look for when you’re about to choose a broker to trade with? This is where it’s smart to have some knowledge about the differences between brokers. After all, you want to invest money in the broker that satisfies your needs in the best possible way. In this article I’ve written what I think matters the most, but before we start, here’s a new homemade ThatSucks.com (former BinaryOptionsThatSuck.com) Parody Trailer:
Not All Brokers are the Same!
Before we get down to business, let me make the task much easier by filtering the majority of the brokers out there into two categories. How? We filter them by regulated and unregulated brokers. You don’t want to get ripped off so it is a wise decision to choose a regulated broker if you can. Making sure the broker of your choice is regulated or not should be your number one concern! Of course, some of you are not able to access CySEC brokers so you will have choose one of the many reputable, non-regulated brokers on the market. Regulation doesn’t mean a broker is great, just regulated, or safer to trade with.
After that the first thing that varies from one broker to another is platform itself. Most white label brokers will look the same. This is because they all use the same technology and simply put their name on it. Fortunately for us this helps filter out “lazy” brokers since the more serious brokers actually spend some time and money to at least customize the platform for their own brand. SpotOption and TechFinancials are two well known white label platforms. Others, like AnyOption and StockPair, use proprietary technology that can only be found in one place.
Type of Options
The type of options you can trade plays a big role too. Not all platforms have the same types of trading. The most common type of binary options trading is High/Low also called Up/Down or Call/Put. This it typically available with all brokers and platforms. One Touch, boundary, ladder and pairs are other types of binary options trading that not every broker offers so be sure to check if that is what you want to trade.
Don’t get too excited yet! Does the broker offer suitable expiries? Just because the option you want to trade is available doesn’t mean the right expiries are. Some brokers are only offering high speed trading like 60 seconds, 2 minutes and 15 minutes. Others extend this out to intra-day and end of day expiry but the best will have all that and more, ranging out to end of week, next week, end of the month and more in some cases. Expiry is a major difference between brokers and platforms, even between two brokers of the same white label platform in some instances.
The asset index is another major difference, I mean, you need to see their asset index first. Why even bother signing up with a broker that does not offer the asset you want to trade? Some brokers are good for trading commodities or stocks and don’t even have currency pairs which is odd because most binary traders come from the forex world. Multifaceted brokers have a huge asset index, perfect for people who like to trade whatever they want, commodities, indices, stocks and currency pairs. The problem arises when a broker advertises more assets than are readily available on the platform. Smaller brokers may offer a wide number on their list, but only offer a small number on the actual platform so checking this out can be crucial to making a good decision.
Brokers compete with each other in many other ways to attract new traders. They offer exciting VIP accounts and perks, bonuses, easier withdrawals or deposits along with sign on or gifts for trade volume. Unfortunately, the better the offered feature is, the higher deposit amount is required to get access to them. Some are worth it, others not. My favorite perks are higher returns, free and/or 24 hour processed withdrawals. Webinars, e-books, signals and 1-on-1 training are other types of VIP offers that I am not too fond of.
Brokers Differ – What Makes a Difference for You?
Thought brokers were all the same? I guess you’ve changed your mind by now! Yes, brokers can be very different from one another. Like regulation for example, it’s important indeed but just because a broker is regulated it doesn’t mean it’s perfect. Reputation is almost as crucial as regulation so do your homework and check out forums and read other people’s reviews or ask their opinion. Remember to patiently read the terms and conditions before registration and make sure the platform meets your requirements before making a deposit. In conclusion; this is about investing your money, so don’t be lazy. Investing your time into a good decision is as important as making a wise trade.