Tips to Find a Reputable Binary Options Trading Broker
Tuesday, June 13, 2017, 12:00 PM | Leave Comment
“The underlying principles of sound investment should not alter from decade to decade, but the application of these principles must be adapted to significant changes in the financial mechanisms and climate.” – Benjamin Graham
Binary options, or digital options trading is growing exponentially. This is mainly due to the fact that access to the Internet is increasing on a daily basis. 2014 statistics show that there are over three billion Internet users.
Unfortunately, not all online trading brokers are above-board and legitimate. There are a number of scams, fraudulent brokers, as well as hackers whose only goal is to take your investments and run.
Thus, the question that begs is how do you find a reputable binary options trading broker? There is a fairly straightforward answer to this question: you conduct an exhaustive investigation into the online trading brokers (like Lionexo) that you are interested in.
What are binary options?
In short, a binary option is also known as an asset-or-nothing option, and it is a type of option “in which the payoff is structured to be either a fixed amount of compensation if the option expires in the money, or nothing at all if the option expires out of the money.”
Therefore, when trading in digital options, all you need to do is to decide whether the price of an underlying asset will increase or decrease within a stated timeframe.
Alas, it is not as easy as it sounds. Before you decide whether the price will move up or down, you need to do a substantial amount of research into the price movement of the individual asset, all of the assets in the same category, as well as the overall market conditions at the time of the trade.
The good news is that a broker who is serious about helping you invest successfully will help with some of this research by providing technical indicators, charts, and graphs that show the data you need.
Finding a trustworthy options trading partner
Thus, the seriousness with which you need to research each underlying asset before you trade on its price movements, as well as the type of research materials that you need, emphasises the need to find a reputable binary options trading broker.
Here are several tips to help you find what you are looking for to make your decision.
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Website
An online trading broker whose mission statement, motto, and primary goal is to help you invest successfully and grow your wealthy will have a website which instils a sense of quiet confidence in the company.
Furthermore, the broker will not make outrageous statements about how much money you can earn in a single trade. The content tone will also not be arrogant and overbearing.
Additionally, you need to pay close attention to the actual content on the website. Does it make sense? Are there spelling and syntax mistakes? The answers to these questions might seem insignificant (it is tough to write web copy that is 100% correct).
However, content that is not carefully written to ensure that it makes sense. It oversells the brand instead of being relevant and factual. And it contains many mistakes, should start flashing warning lights at you.
A bona vide brokerage will do their best to inspire trust in their clients; ergo, their website will contain hard facts, and it will contain as few mistakes as possible.
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Online trading platform
The broker’s online trading platform should be intuitive, easy to navigate around, as well as contain lots of little hints and tips to ensure that traders can place trades quickly and easily.
If the online trading platform is cumbersome and challenging to understand, it is better to find a broker who understands the need to provide a simple, user-friendly interface.
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KYC procedures
Legitimate and bona vide financial institutions make it part of their business process to ensure that their clients are not laundering money that has been generated by nefarious means, or it is on its way to fund one of more of the global terrorist organisations that are currently active.
Therefore, before you can withdraw your investments, you need to supply your broker with a copy of your identity document, proof of residence, as well as a copy of your bank statement.
Ergo, it is advisable to avoid an online trading company who does not notify you of the KYC requirements when you open an account with them.
