Binary options brokers should be designed so that they are on the same side as their traders. This isn’t possible to do on a comprehensive level because of the fact that each person has individual needs, but it is quite possible to find a broker that will match your unique talents, skills, knowledge sets, and needs. When selecting the right broker for yourself, there are dozens of things to consider, but ultimately, the big question that you need to ask yourself is: “will this broker help me to make money?”
Remember, you shouldn’t have to change your overall strategy much to meet a broker. Yes,being aware of little quirks of the broker will help you to take advantage of them, but if you have a successful strategy already in place, you should be aiming for a broker that will match that strategy.
Some of the “little quirks” mentioned above might be tough to find for beginners. These include using rebates and trade insurance properly, detecting the nuances of rate changes on differences in expiration times, and differences in trading the same asset at different points in the day and week, to name a few. These all need to be looked at with a mathematical eye because the numbers need to be run to find out exactly how profitable each is for you. For example, with the rebates, you will find that some brokers allow you to tweak the amount they return to you on incorrect trades. Some brokers offer a flat 15 percent, others offer nothing, and others let you customize this. If you can find a number that works for you, great, but it’s not something that you should be looking for primarily. In order to do this specific activity accurately, you need to have experience and know what your correct trade rate is with a degree of certainty. The only way to determine this is through experience over time. Finding the right rebate rate in relation to the profit rate on your correct trades will assist you as you go by slightly increasing your profit rate.
With that said, experience will also help you to find the best broker. You might be new to trading, and that’s fine, but as you go, you will find that certain things work for you and others do not. Pay attention to these, write them down in a trading journal, and then eventually, find a broker that will help you to capitalize on these things. Rates are the primary concern, but you will find other helpful things, too.
In the end, you might find out you need to have more than one brokerage account. This happens from time to time, but usually only among advanced traders. Here’s an example. Let’s say you are trading the EUR/USD pair and you have found the perfect broker for your needs. You like shorter expiries, but not too short. You focus mainly on the 15 to 30 minute range, and you’ve searched everywhere and found the best rates of any site there is. Congratulations! This is perfect–but only for this particular asset. What if you also like to trade the S&P 500, and your site of choice has awful rates of return for 15 minute call/put options on this index? If there’s another site out there, with a great reputation, excellent customer service, and the occasional bonus to add to your account–all with higher return rates on the S&P–you will find that it will be more profitable to trade on this second site for that asset.
As you can see, there are cases where something like this might happen. Just be aware of them, and as you progress as a trader, be able to recognize when a strategy like this will help you to gain higher profits at the end of the year.