• About
  • Mortgage Basics
  • $40K Challenge
  • Aunt Doris
  • Grandfather Says
  • Privacy
  • Archives

Len Penzo dot Com

The offbeat personal finance blog for responsible people.

4 Things You Should Look for When Selecting a Binary Options Broker

By Sabado Domingo

binary options brokerSelecting a binary options broker is one of the most important decision an individual investor will make over the course of his or her trading career. With so many providers out there, and such varying degrees in the quality of the services on offer, prospective investors need to take the time to carefully evaluate potential providers on the basis of several important attributes. In this article we investigate four of these attributes and explain why they should be central in any decision that involves the selection decision.

Range of Assets

The first thing you want to check for in a prospective service provider is the number of assets that it makes available for trading. The range varies widely across service providers — some have fewer than a hundred assets, while others have more than several hundred assets — but typically you will find that every service provider offers some combination of stocks, currencies, commodities and indices. It is worthwhile considering which specific assets that you would like to trade before choosing a service provider so that you can make sure your needs will be met.

Ease of Withdrawals

Some companies operating in the binary options industry have developed a bad reputation for the way they handle client withdrawals — reports of refusal to allow withdrawals and reports of taking an inordinate amount of time to process withdrawal requests are unfortunately all too common. For this reason it’s essential for investors to make sure that the withdrawal procedure used by their prospective service provider is transparent and effective. Before choosing a service provider, make sure you are provided with a clear, written document outlining the terms of withdrawals. Although most of the service providers in the industry conduct themselves in an ethical manner, it’s important that you screen for unethical (and damaging) practices.

Regulated Status

The regulatory status of your service provider is a key consideration when make your selection. Some of the providers in the industry choose to operate without regulatory approval. While such providers may be capable of delivering a good quality of service, there are serious downsides associated with dealing with an unregulated entity. First and foremost, the protections available to you as an investor are severely limited in the case of dealing with unregulated service providers. Regulated service providers, on the other hand, must adhere to strict accounting and compliance policies in order to retain their regulatory status. In the event of a market meltdown, or should your service provider enter insolvency, only a regulated service provider will have any measures in place to ensure that its clients deposits are safe.

Positive Reviews

It may sound obvious, but a good way to filter out weak service providers is to read some of the online reviews and discussion forums in which people outlined their experience of dealing with that service provider. Although reviews can be instructive, make sure you approach them with a somewhat skeptical eye: you need to be able to discern reviews that were written by people who were genuinely happy or unhappy with the service from those that were written by people who failed to success at trading (which may have had nothing to do with the service provider). By scanning reviews, pretty quickly you will be able to filter out service providers who behave in an unethical manner.

Concluding Remarks

As outlined above, investors should consider a variety of attributes when evaluating prospective service providers. The range of providers in the binary options industry is diverse, so make sure you find one that you are comfortable with, that provides a good range of assets, that offers fast and transparent withdrawals, that is regulated and that has generally positive reviews online.

Photo Credit: stock photo

4 Comments January 22, 2015

Comments

  1. 1

    Joe Saul-Sehy says

    My favorite line: “Selecting a binary options broker is one of the most important decision an individual investor will make over the course of his or her trading career.” Should I feel worse that I didn’t even know what a binary options broker is?

    Reply
  2. 2

    joe pfautz says

    glad I am not alone in knowing wwhat this is

    Reply
  3. 3

    garrett says

    LOL. i’m guessing this is a sponsored post. no one smart enough to be reading this blog should be “trading” anything.

    Reply
  4. 4

    Kevin says

    Regulated and licensed binary options broker is the most important to successfully trading..

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Question of the Week:

What did you do with your latest COVID stimulus check?

View Results

Loading ... Loading ...

Recent Posts

  • Black Coffee: A Land of Confusion
  • Which Sectors Got a Real Boost in 2020?
  • The Top 10 Ways to Quickly Make $500 in 2021
  • How Home Crowdfunding May Let Millennials Live the American Dream
  • 3 Important Tax Deduction Rules You Should Always Remember
  • 5 Ways You Can Save Money on Groceries This Week
  • Economic Collapse 101: How to Prepare for Water Supply Disruptions
  • Black Coffee: Painting the Town Red
  • 5 Ways the Oil Industry Affects the US Economy
  • An HVAC Professional Teaches High School Students About the Field

Disclaimer

This site is for informational and entertainment purposes only, and the content herein should not be mistaken for professional financial advice. In fact, making investment decisions based on information published here, or any other website for that matter, is more than unwise; it is folly. This website accepts advertising in the form of monetary and other compensation; as such, topics of discussion are occasionally influenced by these advertisers. Sometimes, an article may also include affiliate links, meaning, at no additional cost to you, this blog earns a commission if you click through and make a purchase (for example, as an Amazon Associate I earn from qualifying purchases). Remember, you and you alone are responsible for the decisions you make in life, so please contact an independent financial professional for advice regarding your unique personal situation.

Sign up for the weekly Len Penzo dot Com newsletter
Len Penzo dot Com Delivered Weekly
Join more than 30,000 readers and fans who enjoy personal finance and macroeconomics with an offbeat twist!
Invalid email address
Thanks for subscribing!

Popular Now:

  1. 1. A Simple Test to Know If It’s Better to Rent or Buy a Home
  2. 2. My Cola Taste Test: Is Coke Really Better Than Pepsi?
  3. 3. My 10 Commandments of Personal Finance
  4. 4. The Best Personal Finance Book I’ve Ever Read
  5. 5. Planning a Wedding? Here Are 9 Ways to Ensure You’ll Pay Too Much
  6. 6. 5 Things Nobody Tells You About Being Poor — for Good Reason
  7. 7. 4 Good Reasons Why Some Quarters Are Painted Red
  8. 8. 3 Great Hobbies That Are Investments Too
  9. 9. 10 Red Flags That May Signal You’re In Serious Financial Trouble
  10. 10. Are Gas Clothes Dryers Worth the Extra Money?

All-Time Most Popular:

  1. 1. 19 Things Your Suburban Millionaire Neighbor Won’t Tell You
  2. 2. Dear Friend: Here Are 41 Reasons Why I’m NOT Lending You the Money
  3. 3. Why Your Expensive Luxury Car Doesn’t Impress Smart People
  4. 4. If You Can’t Live on $40,000 Annually It’s Your Own Fault
  5. 5. 21 Reasons Why Corner Lots Are for Suckers
  6. 6. 4 Smart Reasons Why College Isn’t for Everyone
  7. 7. 18 Fast Facts About Social Security Numbers
  8. 8. My Ketchup Taste Test: Upset! Guess Which Brand Topped Heinz
  9. 9. Why I Prefer a Spreadsheet to Track Expenses and Manage My Finances
  10. 10. Here’s a Simple Trick for Getting Credit Card Interest Charges Waived

Copyright © 2021 Len Penzo dot Com · All Rights Reserved · Designed by Nuts and Bolts Media

Copyright © 2021 · Penzo on Genesis Framework · WordPress · Log in