Competition Among Binary Options Brokers Heats Up
Because of the large number of retail traders that are getting involved with binary options trading, there are also a large number of online binary or digital options brokers that are operating across the world. While the basic level of services offered is similar across binary options brokers, the fact is that there are some aspects on which the brokers compete. Knowing these factors allows you to negotiate well with them so that you can come up with an understanding that is in your benefit.
Make sure that you choose the best and most reliable brokers and then start to negotiate because you do not want to land up with an inefficient or unethical broker even if he promises and guarantees great profits.
Different Binary Options Broker Offer Different Levels of Features
Missing an opportunity to get the best rate or deal from a binary broker may actually result in lower bonuses, large fee structure and much worse if you do not research well and do your homework. This is why we have created a list of the main aspects that brokers compete on. Playing up and discussing each of them with the brokers that you have shortlisted is important so that you can get a good deal.
1. Trade lockout – The trade lockout time is the delta time before the expiry of the contract before which the trade is locked out. You cannot make any changes after this time. While there are some brokers that offer a trade lockout of 25 minutes, there are other competitive ones that will allow you a trade lockout of 5 minutes. It is in your interest to choose a broker that allows you the least amount of trade lockout time.
2. Bonus – The bonus is the amount that the broker puts in your trading account when you start to trade with them. The bonus is typically provided as soon as the first deposit is made. The bonus is also based on a percentage of the initial deposit that you make. A large number of people believe that the percentage bonus option is a way in which brokers ensure that your first deposit is a large one. While you do not have to get carried away with this option, you can make sure that you think through this and decide. Some companies that give large amounts of signing on bonus also make it mandatory to trade in larger lots. Do check this aspect out before committing yourself to a large bonus.
3. Specializations – Binary options trading can be done in various assets. You can trade in binary options in stocks, foreign exchange, indices and commodities too. This is why brokers offer specializations when it comes to trading binary. If you have a special interest in and understanding of a specific kind of asset, you can always choose a broker that offers better specialization.
With these specific areas of competition, you can make sure that you choose the right broker for yourself so that your trading experience is a great one.