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    Choosing A Binary Trading Platform

    • 1 Comment

    Choosing A Binary Trading Platform. While Forex leaves much room for tremendous profits, the risk is also very large. Other markets such as the Stock Market require very large capital in order to get started.

    Binary Options trading offers traders the ability to know up front just how much they could profit in the best case scenario, while being aware of the losing possibilities from the get go. With Binary Options, there are no big surprises.

    Now that we have established that Binary Options are a good trading method, how does one get started? Just like all other types of trading, you will need to choose a platform that will best meet all your trading needs.

    The following is a list of features/characteristics one should look out for in a Binary Options trading platform:

    • Web-Based Platform: There is no denying that there are those that will debate this point, but using a platform locally on your computer might raise some problems. If your trading platform is online, it is accessible to you wherever you are. You can trade from a friend’s computer, or on the go. If your Binary Options platform requires a download, not only are you stuck trading from that specific computer, extra software on your computer is never a good thing. With industry giants like Google, Apple, and Microsoft adopting the trend of Cloud Computing, there is no reason your Binary Options Trading platform should not also make use of this new trend.

    Choosing A Binary Trading Platform

    Choosing A Binary Trading Platform

    • Minimal 65% to 95% Returns: The way Binary Options work is that the trader makes a prediction about the direction of the instrument’s value at the expiry date. If the prediction is accurate, the trader can make large percentage of profits. However, the precise numbers very much depend on the broker/platform the trader uses. It is important to look out for returns of at least 65% to 95% on your investment. This means if you make a Call Option of $100, and the price indeed increases, you come away with $170 assuming the return of that Binary Option is 70%.

    • Payback on Out of Money: The downside of Binary Options is of course that the smallest mistake, even that of one cent will equal a total loss of your investment. That is, unless your platform offers payback on Out of Money, in which case, you will lose most of your investment, but will remain with at least some capital, most cases up to 15%.

    • Multiple Currencies: One of the many advantages of Binary Options is that you can benefit from the various markets such as Forex or commodities, while enjoying a very minimal risk. Given the flexibility of the Binary Options market, it is important to ensure that you get the maximum flexibility out of your platform as well. Take Forex for example. It is crucial that your Binary Options platform support as many Forex pairs as possible especially the majors. This is a clear indication of the seriousness of the platform, sophistication, and a global presence. A Binary platform that supports a low number of currencies is not a platform you should use for your Binary Options trading.

    • Security: This is not unique to Binary, but it is important that your trading platform be secure. You can check the security level of the platform by examining its encryption. You should be looking for a platform with a 128 bit SSL encryption from a market leading security provider. Once again, besides the obvious need for security in your trading platform, this is a clear indication of what kind platform you are dealing with.

    Choosing A Binary Trading Platform

    In conclusion, Binary Options platforms have a lot in common with other trading platforms including Forex, but there are also some unique traits you need to make sure exist in your Binary platform. Other characteristics that are important to seek out in your broker is great customer service and simple deposit and withdrawal processes. If a broker/platform is missing one of the above characteristics, it should raise a red flag for you and tell you to keep looking for a better platform.

    Choosing A Binary Trading Platform

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    DISCLAIMER

    • Deriv offers complex derivatives, such as options and contracts for difference (“CFDs”). These products may not be suitable for all clients, and trading them puts you at risk. Please make sure that you understand the following risks before trading Deriv products: a) you may lose some or all of the money you invest in the trade, and b) if your trade involves currency conversion, exchange rates will affect your profit and loss. You should never trade with borrowed money or with money that you cannot afford to lose.
    • Binary options are prohibited in EEA
    • Please be advised that certain products and/or multiplier levels may not be available for traders from EEA countries due to legal restrictions
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