A Best in Class Broker to Trade Binary Options
If you feel that you have the necessary trading skills to be able to predict where a share or currency is heading in the very short term, binary options offer profitable opportunities. Binaries are derivatives. Rather than purchasing the underlying security or asset you buy the right to profit from price movements if you are correct in forecasting its price direction. In contrast to leveraged products such as Contracts for Difference (CFDs), your downside risk is limited. You can only lose the sum of your stake. Typically, if you are successful in predicting the price movement you’ll earn a profit amounting to about 85 per cent of your stake. Unlike other online brokerage products, these instruments are highly accessible – it is possible to make a trade with some brokers for as little as £1. Being able to predict where a security or asset is heading in the very short term is very difficult. However, the growing numbers of day traders using binary options shows that this type of speculation has a strong appeal.
Binaries Let You Bet on Prices Going Up or Down
Binary options offer investors a two-way bet. If you take out a binary call option you are trading a product that enables you to profit from a prediction that the underlying asset will exceed the option’s strike price at expiration. If for example you make a forex pairs trade with a forex broker you can bet on the value of a currency going up or down. On the other hand, if you take out a put option you’re predicting that the underlying asset will fall below the option’s strike price at expiration. In financial markets that have layers upon layers of complexity – seemingly unintelligible to the ordinary retail investor – the transparency of these products clearly has an appeal. The capacity of binary options to exploit short-term price movements is most apparent with turbo options. These super-charged products expire between 15 seconds and five minutes. Still, binary options can be set to expire at the end of a day week or even a month into the future. A wide variety of different binary options trading strategies can be deployed.
Take Your Trading Bonus
Competition in the binary options market is fierce. The sector has witnessed mushrooming growth in recent years. The simplicity and accessibility of the products clearly has an appeal among day traders and investors. In an effort to attract new customers, many brokers are offering bonuses. If you are interested in just experimenting with binary options at first with modest sums, it could be worth signing up with a broker that offers an attractive introductory bonus. You can find real money binary option brokers like 24option who is offering a £24 app bonus to new customers. Alternatively, a broker may offer bonus points that can be exchanged for cash or a desirable consumer items such as an iPad after a certain amount of trading volume activity has been reached.
Boost Performance with Your Binary Options App
Being able to trade on a handheld device has now become indispensable. As binary options enable you to quickly exploit rapid price fluctuations in moving markets the capacity to trade from your mobile device when an opportunity arises is of critical importance. This makes choosing a broker that offers an intuitive and comprehensive mobile trading app essential. Check if the app has a demo account and enables you to deposit funds into the device. It is also vital that the app offers the same trading tools and resources that are available on your desktop. If you can download a trading app on to your handheld device and practice with a demo account without putting any real money at risk it makes good sense to do so. A good mobile trading app should be easy to use and devoid of clutter. The app should display the key essentials needed to execute a trade and keep a user informed of key market events. Check that an app is available for Google Play’s Android and the iPhone’s iOS operating system. Trading on a mobile device will inevitably become increasingly prevalent in financial markets driven by the flow of information and data. Using a handheld device to execute a winning trade — whether you be at your favourite restaurant or on the beach — can be a valuable tool in your trading arsenal kit.
Trade Binaries in Demo Mode
Trading binary options is a transparent and simple form of online broker trading. You have a two-way choice on whether the value of a security or asset will rise or fall. Still, if you’re new to trading it could certainly be worth practicing trading with a demo account first. Many brokers like IQ Option offer new clients a free demo account to practice with virtual cash. This can be an invaluable way of getting your head around a trading platform before risking real money. The market data on a trading platform – together with the ebb and flow of prices – can be monitored in demo account mode first. Some demo accounts also provide clients with trading tools and analytical resources enabling traders to enhance their judgement in their decision making process before making a trade. Becoming a successful trader requires a high level of skill. This makes it of vital importance to feel comfortable with the trading platform that you choose to trade on. A demo account also lets you test out trading strategies and ideas.
Binary Options Trading Tools and Resources
Amateur investors may deceive themselves into thinking that a gut-feel intuition gives some insight into where a security or asset is heading but the reality is that this is in all probability just gambling. If you are to be successful as a trader it is of paramount importance that you implement a professional trading strategy and overcome any temptation to gamble using these products. It is extremely difficult to predict short-term fluctuations of shares or currencies. To do so with any confidence requires a professional trading strategy. Look for a broker that provides video tutorials and webinars that explain the fundamentals of trading and how to identify charting patterns that indicate when to buy or sell. If the provider offers charting tools on its platform these can provide valuable insight to help inform your trading decisions. Some of the best real money brokers also filter trading signals from specialist providers to help inform the decision making process of traders using the portal.
- Charting and Analytical Tools
- Webinars and Educational Resources
- Video Tutorials and eBooks
- Trading Signals and Traders Trends
- Economic Calender and Market News
Beware the Rogue Brokers
The rapid growth in the popularity of binary options has given rise to rogue operators entering the market and using bogus claims to defraud unwitting investors of their cash. To ensure that the money you deposit into an account is safe, check that the broker is fully regulated and authorised, falling under the remit of the UK’s Financial Conduct Authority (FCA). You should also check on the customer service options and the availability during the week. A live customer support chat function is becoming increasingly common among brokers and you should also check if there is telephone support and an address to send correspondence to, should you wish to make a customer inquiry in writing. While not a sign of whether a broker is a scam or not, the content and design of a binary options broker website could signify whether this is a reputable platform that you should trade on or not. If the website appears more like an online casino that a financial brokerage portal – dazzling visitors with images of sports cars or scantily clad women – it may not be a platform on which to risk your investment capital.