Where to Trade Binary Options?
When it comes to binary option brokers, the customer has a lot to choose from? Not only that, but every customer has different needs. With that said, it might make sense to have multiple accounts. You see, some brokers offer features that are more attractive than others. You can also check out our comprehensive 2014 binary options broker reviews for a detailed walk-through.
In other words, if you’re wondering where to trade binary options, I’d break it down to two most important features; (1) underlying assets and (2) type of binary options that can be traded. For example, if your strength is in trading stocks, I’d look at Stock Pair. Not only do they have a huge selection of stock names to choose from, they also give the trader the ability to trade stock pairs. No other broker focuses on stocks as well as they do.
Of course, if you are a US resident and want to trade binary options on commodities…you have to go with Nadex. They are regulated by the CFTC and the National Futures Association. Secondly, their binary option products resemble actual future contracts. In fact, they operate more like a traditional brokerage…They have market makers, offer clients multiple strategies… like spreads, straddles and premium collection. Like a traditional brokerage, they do charge clients a commission and offer a free demo account.
If you’re interested in less traditional binary options like boundary/range. Check out Cedar Finance, 24 Option, OptionBit or 99 Binary. This type of binary option trading allows the trader to make a bet on volatility. For example, if the trader believes the underlying will be in a narrow range they would bet that it stays in the boundary. On the flip side, if the trader, believes the underlying will be volatile they would bet that it goes out of the boundary.
Now, if you’re a VIX trader, the Chicago Board Options Exchange offers binary options on the Volatility Index. These are European Style Options, that allow the trader to buy or write premiums.
You know, the hottest and most misunderstood market out is BITCOIN. As its popularity grows more binary option brokers will offer this product. However, TRADERUSH has already made this available to its customers.
Another factor to consider is expiration cycles. Are you someone who trades better with larger time frames? For example, some brokers offer expiration periods that stretch out for months, while others focus on near term options like 60 seconds to five minutes. To be honest, short term options seem to be the easiest to manipulate and I’d stay away from brokers that only offer these expiration periods.
What about the broker, are they legitimate? Well, traditional brokerage accounts require a lot of information from customers. This is done because they don’t want customers involved with money laundering or fraudulent activities. With that said, the harder it is to open an account, the more reputable the broker is. Remember, a good broker values your business, they don’t need it. Secondly, be careful when you sign up for a free account…you might get hounded by telephone calls from a sales rep. I wouldn’t open an account with a broker that has pushy sales people. Sorry. But’s the way it is. Of course, if a firm is regulated, it should have more credibility vs. the ones that don’t.
As you can see, there are a lot of factors that you need to consider before selecting a home for your binary option trading needs.
