A lot of you asked me recently where do I trade binary options. I reckon that this is a subject worth covering, because unfortunately there has been a lot of scam in this industry. Unlike some other instruments, binary options are still new, which means a relatively unstable environment.

A lot of new binary options brokers are coming to the market every week and the majority is not even worth looking at. I personally am trading for more than a year with one broker, but I don’t want to say to anybody that they should trade with them too.

I would rather explain how – in my opinion – should you proceed when choosing a broker. This way you will not be dependent on anybody’s claims.

First of all you should choose only among regulated brokers. Why? Because regulation means supervision and security of funds. A regulated broker is under scrutiny of a state body, which is important so that they don’t mess with your money.

But even if they do, you still have this insurance that you won’t lose your money, because there are compensation funds for clients of regulated binary options brokers. So even if a broker goes bankrupt, you will get your money back (up to 25000 Euros in the EU).

The second thing you should look at when you are choosing a binary options broker, is their reputation. A broker can be regulated but sill unfair to its customers in certain details. So look for feedback from other traders. There are some web sites that do monitor brokers‘ reputation, such as Thebestbinaryoptionsbrokers.net, that can help you to select reputable and reliable brokers.

Let me close this by saying that nothing is set in the stone, so if you see your broker doing illegit or unfair things to your trading, try to resolve it quickly, and if it doesn’t work, quit and go for another binary options broker, don’t waste your time and money.

    Trading binary options is technically very easy. I am not saying that it is easy to be profitable, but it is very simple to execute a binary option trade.

As I already explained, you are alway asking you a simple question, if the price will be lower or higher. Now you should not try to guess the answer, you should study price charts and build a trading system that will give you the answers.

You will not be right one hundred percent of time, but it is perfectly normal in trading, you just need a win ratio about sixty percent. Keep that in mind.

Your trading system will then tell you when to enter a trade and in which direction. It should also tell you what type of binary option you should trade. If you are trading bigger price moves, you might want to use Touch/No Touch options, but in most cases you will be fine with High/Low options, because they offer big rewards and you don’t need important price movements.

When are entering a trade, don’t forget to select the right asset, because otherwise you would end up trading a market that you are not watching. This is a simple step that should become a routine, always select your trading asset before you start trading a particular binary option.

The last thing is to determine the amount that you will invest. A golden rule says that you should always invest/risk only a small amount from your trading account, let’s say about five percent. Because as I mentioned earlier, you will also have losing trades, so you cannot risk all, otherwise one trade could put you out of business. You have to be prepared to take some losses, both mentally and financially.

One final advice. I think that once you entered a trade, it is better to let it expire and not try to close it earlier or double your investment or anything like that. Because these are things that can be hardly tested and you cannot really know what impact it would have on your binary options trading results.

I would like to share with you a new way of trading financial markets that is much easier to understand than anything else I saw before. I am talking about binary options. Now if you have ever tried trading and options in particular, you might think that it is very complicated. But it is not. Binary options simplify trading to a level that is comparable with betting.

Let’s say you are betting on a football match. Basically you have three possibilities. One team will win, lose or it will be a tie. And with binary options it is the same, the price will be higher, lower or at the same level. The results in terms of money are always only three possible: a full profit, a full loss or a zero. You see? It is really like betting on price movements without having to worry about other aspects like when you are trading Forex for example.

Now the truth is that you still have to predict the price movement direction correctly. You will never succeed in that at 100 percent, but the good news is that you need only about 60 percent of your trades right in order to make profit.

How is that possible? It is because binary options offer a return ratio of 80 percent. Sometimes more, sometimes less, it depends on which market you choose. So by a doing a simple calculation you will find the 60 percent of winning trades that I mentioned.

You might think that 80 percent are not much, when we talk about a return ratio. But remember two things. The first is that the price does not need to make a big movement for you to make full profit, you just need to predict to correct side. And it does not matter how far the price will go in that particular direction.

The second thing is that with binary options there are no spreads, no fees whatsoever. When you are trading other markets, you have to deal with the spreads, you have to pay fees for each trade, sometimes you pay fees for the price feed and so on. Binary options are like what you see is what you get. It means that before entering a trade you see how much you can earn and how much you can lose. There are only these possibilities, the numbers will not change no matter what the price does and everything is final.

The profit is completely final and yours, you won’t pay any fees or anything similar. So from this point of view binary options are more than competitive compared with other markets and instruments.

In the meantime you car read someting about binary options in Wikipedia: https://en.wikipedia.org/wiki/Binary_options