How To Scrutinize The Binary Broker Before Investing

How To Scrutinize The Binary Broker Before Investing

Submitted by adil on Thu, 02/14/2013 - 07:02

Binary option trading is a good investment opportunity that can get you reasonable amount of money in a short time. The binary option investment opportunity dictates that you should get around 70% of the money that you have invested. It also states that you will lose 85% or even all of your investment if you are out of the money. Bearing this in mind, you will have to think things through before even registering as an investor with any broker. Here are some of the things that you will have to scrutinize in order to know if the broker is really out to fleece you or is there for business:

1. Registration Process

The registration process should be clear and non-ambiguous. Well, while the phone numbers indicate that the firm is in UK, France or even Canada, it should never be a mystery to know here the firm is licensed and registered.

2. The Money Factors

Check out the money factors. In most cases the deposit process is the easiest since after all, the broker is receiving your money but always check the withdrawal options. Some brokers will have tens of depositing methods while the withdrawal method is only restricted to only one method which could even not be available in your country of residence.

3. Bonuses

If there are bonuses to be awarded at the point of registering or depositing your cash, check to verify that you fully understand the bonus requirements. Some brokers can say that you have to trade for 30 times before you can make a withdrawal if you get a bonus.

4. Reviews

The other thing to verify is the process through which the broker conducts their business. This is best achieved by reading some of the customer reviews online. While a binary option is not meant for everyone because of the risks involved, it honestly does not mean that no one should be winning. Some unscrupulous brokers don’t value the business environment and the best way to fish them out is by reading the customer reviews.

Check out the sources of information that the broker is using against what is universally acceptable. In most cases, Reuters and other established publishers are a major source of information for both the traders and the brokers. Check the expiry levels of a broker’s asset against that of Reuters and other authoritative sources to see if they rhyme. A small difference is not a big issue but you can always tell if something fishy is cooking. Above all, much as the binary option is one of the best investment options for you, you should never invest money that you cannot afford to lose.