Brokers and more ..
Talking about Brokers …
Well I have to say, that Brokers fit the meaning of the quote … “Women, can’t live with them, can’t live without them”(*) … so, Brokers, can’t live with them, cant’t live without them ….
What this means, is that indeed you need brokers, but you need to realise that they need need you just the same … and they will do their thing to keep you investing …. and by investing I am referring to making deposits, making trades and not withdrawing your money.
There are several sites with reviews of all the brokers available for Binary Options Trading, and I highly recommend to make a search for these sites and do not rely in the opinion of just one or two of them. You can also check my own review here My brokers reviews.
You can initially select 2 or 3 potentially acceptable brokers, and see different reviews for those 2 or 3 …. but, obviously at the end you will have to select one. However that does not mean that would be your final selection of a broker …. but more importantly that does not mean that you would continue with Binary Option Trading at all …. What I am saying is that even if you have made an choice to try Binary Options to make some additional income … I highly recommend that your initial experience is considered on a trial basis … and I will explain more about this later in this section.
First of all, I would like to highlight the most important things to consider when selecting a Broker … and I know at the beginning you just want to trade, but this all business is about knowledge and there are brokers who profit, or intent to profit, with the lack of knowledge of the people approaching them … so, take your time to understand this important fact … and always look for professional certified brokers (see the broker’s reviews section).
These are the most important things when selecting a broker … and before making a deposit:
- Define boundaries about yourselves. Here we need to understand what is our objective …. the very first thing, and this is my advice to you. Never start with Binary Option trading because you NEED to do it …. start with Binary Options because you WANT to do it. This is exactly as it sounds, try Binary Options trading because among all those possible choices you have to make additional income with that little extra money you have (just a portion of the money that you don’t immediately need) you make a choice for Binary Options … that’s all it is. However, just to reemphasise, but the other way around, NEVER opt for Binary Options to use money you NEED because you NEED more money.
- Define your investor profile.
- What is your objective? …. Things like: to make xxxx$ per week, month, etc. There will be days you will end up in negative, so try to target a certain amount of profit after a relatively long period of time so you have time to recover yourself.
- Define a limit for your maximum position (as % of your total my recommendation is 3 – 5% for beginners)
- Define a limit for the maximum number of positions per day, if losing, before calling the day off. This is a very strict rule, because if after reaching this limit (my recommendation is 4) you have not been successful is because the conditions of the market is not suitable for making predictions or in other words there is volatility, i.e., likely to change rapidly and unpredictably. The volatility of the market can last more than a day or even longer, so before trading again do some Fundamental Analysis and try a couple of dry runs, before actually trading, to asses if conditions are suitable for you.
- Define the length of your trial period. This is the more difficult rule to follow … and I am certainly defining this rule after personally failing several times to follow it myself … But, It is a rule you MUST have ….. this rule is basically about determining if Binary Options is for you or not. Essentially, I am advising you to enter into Binary Options Trading on TRIAL basis … and to define the length of your trial period … and if after this period you end up losing a significant portion of the money you initially committed (more than 60 to 80%) you have to decide if it is worthy to continue and deposit more money, from your pocket, or it is best to quit. And quitting is not a bad thing … Binary Options is not for everybody and everybody is not successful with Binary Options….. That is the reality…. I believe Binary Options is something where the famous Walt Disney quote is not fully understood but definitely 100% applicable … “The difference in winning and losing is most often, not quitting” …. In Binary Options, “most often” implies “not always” … so, in Binary Options “Quitting” is NOT necessarily the difference between winning and losing. (protect your money)
- Limit your initial total investment. This is a very IMPORTANT consideration, and I am sure that for various reasons this is something you are already considering …. but, I am going to tell you the most important one …. and it is about BROKERS …. So, after you have seen several reviews about brokers, including my own personal review, and you have come to decide one of them … Well, my friend … That doesn’t mean it is the best one for you. Basically, as part of your trial period, the broker plays a very important role in what your overall experience with Binary Options is going to be. My advise here is to TEST the broker’s offering (give them the opportunity to meet your expectations) and to do that safely for you, it is best to LIMIT your initial deposit to the minimum allowed by the Broker. … By doing that you would be able to function test all the broker services. These are the things your should test:
- Broker’s support: how the broker’s platform is able to timely respond to your requests of support.
- Available on-line training and information about Binary Options Trading: I already mentioned that successful trading in Binary Options requires knowledge, and knowledge is only achievable with training.
- Variety of trading alternatives
- Withdrawal: It is VERY important to ACTUALLY test that you are able to withdraw your money at will. In general, Professional certified and regulated brokers, would pose no problem in this area, but it is always better for you to test this service personally.
- Read and understand the terms and conditions, not only the general terms and conditions, but also and more importantly the terms and conditions for the following:
- Withdrawals and closing your account
- Trading itself, and the different trading alternatives
- Bonuses. These are incentives for you to keep trading and to keep your money in. They would come in a variety of ways, like, bonus for deposits or bonuses associated with trading, e.g., risk-free trades, increased profits, etc. Most of these bonuses would come with a restriction to withdraw your money. Sometimes the restriction to withdrawal could be unachievable for the average person.
(*) Desiderius Erasmus. (n.d.). BrainyQuote.com. Retrieved April 20, 2016, from BrainyQuote.com Web site: http://www.brainyquote.com/quotes/quotes/d/desiderius110331.html