Although most binary options brokers are not currently regulated, change seems to be in the air and more and more brokers are being regulated by some sort of advisory body. Supervision under an established regulatory authority brings a sense of trustworthiness and reliability to a company so that traders choosing to trade binary options can do so with the feeling that their money is in safe hands.
Regulated binary options brokers follow specific rules established by the investment industry in a particular country, usually in the area where their main office is located. In many instances a binary options broker will be regulated by more than one authority.
Regulated binary options brokers provide the same features as unregulated binary option brokers and it is important to compare these features before choosing a binary options broker. Daily Forex has done the work for you and has listed the top regulated binary options brokers below.
Why Trade the Binary Options?
In today’s rocky financial times, companies are laying off employees left and right. Whether you work in high tech, low tech, or almost any other industry, chances are you or someone you know has recently lost their jobs. Instead of looking for your next nine to five job, perhaps it is time to think out of the box and trade binary options. Let’s back up a little.
Most people like routine. They like to get up in the morning, put on their slacks and button down shirt, get in their car, and drive to the office. They encounter the same traffic jams and annoying drivers on the way to work daily only to be met by their obnoxious boss once they arrive. Did you ever ask yourself why you do this if you hate it so much?
The answer is routine, but it is that very routine that, while it works well for some, puts the breaks on for others and prevents them from reaching their potential. So instead of jumping back into the corporate world and getting burnt again, trading the financial markets, and specifically binary options might be an alternative.
So why trade binary options and not Forex or stocks? Good question. Well I would be the last person to tell you Forex is not a solid option, it is, but it requires a lot of preparation. If you want to trade binary options on the other hand, you can be up and running as soon as tomorrow.
So why should you trade binary options? Most binary brokers offer you a simple Web based trading platform that you can access from anywhere and make nice profits in one click. The risk is low since you cannot lose more than you decide to risk and the results are as close to immediate as anything.
To trade binary options, all you need to do is decide whether the currency of your choice will go up or down, and that is all. No, I am not simplifying it to make it sound attractive. You either hit the up arrow or the down arrow and you are have officially begun to trade binary options.
Choosing A Binary Trading Platform
With the economy back on its way up, many individuals who were burned from the global financial crisis are now looking to cover their losses. One way of doing that is by trading the markets. However, that is such a broad term. Which market to trade and how deep should one go in?
Well, of course there is no one right answer to that question, but there is one safe one. While Forex leaves much room for tremendous profits, the risk is also very large. Other markets such as the Stock Market require very large capital in order to get started.
Binary Options trading offers traders the ability to know up front just how much they could profit in the best case scenario, while being aware of the losing possibilities from the get go. With Binary Options, there are no big surprises.
Now that we have established that Binary Options are a good trading method, how does one get started? Just like all other types of trading, you will need to choose a platform that will best meet all your trading needs.
The following is a list of features/characteristics one should look out for in a Binary Options trading platform:
• Web-Based Platform: There is no denying that there are those that will debate this point, but using a platform locally on your computer might raise some problems. If your trading platform is online, it is accessible to you wherever you are. You can trade from a friend’s computer, or on the go. If your Binary Options platform requires a download, not only are you stuck trading from that specific computer, extra software on your computer is never a good thing. With industry giants like Google, Apple, and Microsoft adopting the trend of Cloud Computing, there is no reason your Binary Options Trading platform should not also make use of this new trend.
• Minimal 65% to 70% Returns: The way Binary Options work is that the trader makes a prediction about the direction of the instrument’s value at the expiry date. If the prediction is accurate, the trader can make large percentage of profits. However, the precise numbers very much depend on the broker/platform the trader uses. It is important to look out for returns of at least 65% to 70% on your investment. This means if you make a Call Option of $100, and the price indeed increases, you come away with $170 assuming the return of that Binary Option is 70%.
• Payback on Out of Money: The downside of Binary Options is of course that the smallest mistake, even that of one cent will equal a total loss of your investment. That is, unless your platform offers payback on Out of Money, in which case, you will lose most of your investment, but will remain with at least some capital, most cases up to 15%.
• Multiple Currencies: One of the many advantages of Binary Options is that you can benefit from the various markets such as Forex or commodities, while enjoying a very minimal risk. Given the flexibility of the Binary Options market, it is important to ensure that you get the maximum flexibility out of your platform as well. Take Forex for example. It is crucial that your Binary Options platform support as many Forex pairs as possible especially the majors. This is a clear indication of the seriousness of the platform, sophistication, and a global presence. A Binary platform that supports a low number of currencies is not a platform you should use for your Binary Options trading.
• Security: This is not unique to Binary, but it is important that your trading platform be secure. You can check the security level of the platform by examining its encryption. You should be looking for a platform with a 128 bit SSL encryption from a market leading security provider. Once again, besides the obvious need for security in your trading platform, this is a clear indication of what kind platform you are dealing with.
In conclusion, Binary Options platforms have a lot in common with other trading platforms including Forex, but there are also some unique traits you need to make sure exist in your Binary platform. Other characteristics that are important to seek out in your broker is great customer service and simple deposit and withdrawal processes. If a broker/platform is missing one of the above characteristics, it should raise a red flag for you and tell you to keep looking for a better platform.