Brokers

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.