Selecting binary option brokers is crucial before going to trade binary options. It is recommended to research some of the more well known binary option brokers by searching online. The type of thing to look out for are negative messages posted in forums about:
1. The amount of time it takes for binary option brokers to pay for winning trades.
2. Which binary option brokers are regulated.
3. The amount of return promised by the binary option brokers for selecting positive binary option trades.
There are a number of sites who operate independent forums specifically tailored to the needs of new online binary traders. On these sites it is easy to find reviews about a number of binary option brokers. Usually, traders only tend to complain when they do not receive payment. Therefore if there are no negative comments about specific binary option brokers, it is pretty safe to assume that payouts are met in a timely manner.
In the summer of 2012, the Cyprus government began to regulate binary option brokers. This is under the watchful eye of the Cyprus Securities Commission (CySec). Binary option brokers who are regulated will display their relevant credentials clearly on their website. It is rare for binary option brokers to display credentials if they are not regulated, but verification can be made with the Cyprus Securities Commission.
Most binary option brokers give a return for winning binary option trades between 71% and 89%. The industry average found across a number of binary option brokers is around 81%.
It is also important to bear in mind that most, if not all, binary option brokers also act as the market maker for binary option trades. This means that there is no third party on the other side of a specific trade and that the binary options broker is acting as ‘the house’ when executing binary option trades.
Most binary option brokers also offer what is referred to as a ‘sign up’ bonus. This is an additional incentive to entice traders to choose their binary option trading platform. The sign up bonus should not be the only thing to attract new binary option traders. New traders are encouraged to research and check to see which binary option brokers have a good reputation based on all of the above criteria.
New traders should also look out for information published by binary option brokers. Daily reviews, market performance and outlook should be a free service provided to binary option traders by all binary option brokers. NEVER pay for this information. It is a FREE service.