Choosing Broker

How Choose Broker to trade Options.

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Many people asked me about how to choose broker for option trading and where they can trade. I decided to make a small reminder that will help traders to rate the reliability of different brokers. Of course, this memo is not a panacea. I made trades with a lot of great brokers but with time they blown away and became a real scum. This is a normal market process so you shouldn’t be afraid of it. Nothing happens after a wave of the magic wand. Dying of broker is a long-term process so you can see it in advance.

How to choose broker. A short reminder

Show me your papers! Brokers license

First of all I would recommend you to trade only in those brokers which have special license. Let’s start with the fact that obtaining such license is very expensive thing for option broker. So you can suggest that small firms, which are opened in order to “earn” money quickly and then declare bankruptcy, as a rule, do not bother with the issue of obtaining a license. There are a lot of different licenses but I would emphasize CySEC and CROFR. Probably they are the most popular. I wrote a special article about licenses so you can check it.

Start trading Options with proven brokers listed below.
Go to - Olymp Trade Go to - Finnmax Go to - Binomo Go to - Binarium Go to - IQ option
Go to - Pocket Option Go to - Binary Vacant… Go to - ExpertOption. Go to - Intrade Bar

Size matters! Some facts about “basement” brokers

Лицензии брокеровSo, how to choose digital option broker? Should it be big or small company? I have a rule – never trade at “basement” brokers! It’s a big chance that you will have problems with withdrawing your income. Also quotations will be twisted. Small brokers doesn’t have big turnovers so withdraw of 1000$ will be noticed. Moreover small brokers regularly underestimate the percentage of profitability and don’t allow to use hedging. Recently I have tested one small broker. I need only one day to understand that I made wrong choice. Imagine that after after 3-4 successful rates my percentage of profitability fell from 75 to 50. After that I had big problems with withdrawing my money. This trash broker doesn’t want to give me back my deposit but this is another story.

Trading engine is advertising

Personally I don’t have nothing against advertising. But in case of choosing broker you should remember one thing. If you see annoying ads of some option broker day by day on TV, radio, Internet –this is a bad sign. It means that such broker is working on mass character. Everyday thousands of inexperienced traders join this broker. And even every second doesn’t know meaning of digital option trading. They just tempted by interesting and bright advertisement on Internet. So as you may guess a lot of ads doesn’t mean a quality of broker. On the contrary, big number of “green” clients means that this broker has low service quality. For this most unscrupulous advertising licensed brokers receive fines. Some of them pay and return to their“favorite” business.

Lets talk about platform

Платформа бинарных опционовWhen choosing digital option broker you should always pay attention to the platform which is used by this broker. Will be great if this platform is popular, it means that you won’t have problems and service faults. There is a direct relationship between quality of platform and it’s technical reliability. There are a lot of varieties of platforms but I will choose SpotOption and TechFinancials. This is the most stable and reliable platforms I have ever worked with.

Analyst or account manager

Техподдержка в бинарных опционахAs I wrote later at the homonymous article analyst at broker surely doesn’t deal with any analytics at all. But why all of a digital option brokers prefer to call their managers analytics? They are simply account managers who can help you with some technical question or can train you a little bit. You should notice some facts about account managers which can help you to choose right broker. For example, if he starts to put pressure on you, it means that the company is pursuing such an aggressive policy. Of course you can find exceptions but probably it will be great litmus test for your broker. If you want to test your manager, ask him few questions about digital option trading. Be careful if he will recommend you Martingale, telling about super-income strategies. It will be wake up call for you if such manager will tell you about signals of digital trading or trading bulls heads. All of these strategies aimed at draining your deposit and were introduced into digital options by unscrupulous brokers.

Start trading Options with proven brokers listed below.
Go to - Olymp Trade Go to - Finnmax Go to - Binomo Go to - Binarium Go to - IQ option
Go to - Pocket Option Go to - Binary Go to - ExpertOption. Go to - Intrade Bar

Difference between TM (trust management) and OTC (over the counter)

This is probably the main thing you should be worry about when you choosing a right broker. Lets start with trust management (TM). At this way you manager will offer you an option in which the best analyst will manage your account. Already offered? Run!

First of all, as we mentioned, there are no analysts working with brokers clients. Be sure that your account will be managed by a person who has less knowledge than you. Managers drain traders thousands of dollars from the account in a few minutes;

Secondly, if broker’s policy allows you to engage in such a scam which trust management be sure that you will never see your money from this broker. I heard thousands of such stories.

What about ОТС (over the counter)? It’s second name is quotes of the weekend days. Banks are closed at the weekend, so broker comes up with their own quotes. Who will be comfortable with these quotes: trader or broker? The answer, in my opinion, is obvious. If a digital option broker is engaged in such a scum, don’t be surprised about it’s low quality.

Quotes, where are you?

Условия торговлиQuotes is the last point but not the last in importance. In this paragraph I will try to combines a lot of issues anging from delay in opening and closing orders (when opening or closing quotes are changed to profitable broker) and ending with a obvious manipulation of quotes from broker. All of this for sure prevents trading and turns trading into an ordinary roulette. For example, as I said, my trading strategies gives about 75 percent of the plus rates.

In General, I’m constantly in search of an additional broker, so I decided to try to trade at advertised company (by the way, this company launches a new robot, so I’m afraid that there will be so much advertising). The end of this story is not happy, more than 40% of plus bets closed with a minus. This happened because of drawing quotes by broker (for this, by the way, it received a fine). So how you can check it?

It’s simple, just compare quotes that your broker gives with an independent source or quotes of some well-known large broker. Of course, all brokers take quotes from different places: some of the major banks, some of the reliable financial companies, so a small difference between them is acceptable. But! This difference should be proportional. It means that if you compare your brokers quotes with quotes at live chart seeing a difference of 5 points, then this difference should always be maintained. Direct sign of a fraud of your broker will be cases where the charts go in different directions

Summary of choosing digital option broker

Let’s sum up. I have to say that if you come to digital options just to feel some new emotions such excitement, passion etc. – there is no difference between digital options broker you choose. If you came for earning money and intend to work seriously – then your choice of a digital options broker should be approached with full responsibility. Be sure to check the black list of companies before registration (it contains brokers who don’t withdraw money back). I hope my memo will help you to give the right answer to the question of which broker you should choose. From myself I can recommend those three brokers in which I trading at the moment. You can read about them in my review. I also bring to your attention to my rating of digital options brokers

Start trading Options with proven brokers listed below.
Go to - Olymp Trade Go to - Finnmax Go to - Binomo Go to - Binarium Go to - IQ option
Go to - Pocket Option Go to - Binary Go to - ExpertOption. Go to - Intrade Bar

How Choose Broker to trade Options.

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