Binary options have taking the financial world into a new era, offering traders 24/7 accessible trading platform and a wide range of possibilities. These and the fact that European countries have legalized them have made binary options a distinguished player investors should consider as part of their investment portfolio.
A small introduction – while most of us have heard the phrase binary options not all of us really know what is a binary option and how do binaries work. In simple words binaries are virtual financial options which are purchased on really time financial data, they offer almost any worldwide traded assets. Binaries risk profit ration and expiry time are all predefined and they offer no surprises; they are all written in advance. Although binaries offer extremely high pay-outs of as high as 95% in just 5 minutes they can also cause high losses of an entire investment.
Before opening an account investors should pay attention to the 5 following tips
1. Risk Vs Profit – binary options are one of the most rewarding financial tools, offering an average profit of 81% and high yield profit of up to 600%. Remember, high profits come at a price of a high risk which in general is losing an entire investment or as low as 85% of an investment. Set your money management strategy prior to opening an account and allow yourself to redeem any lost trade.
2. Regulated or not – there are hundreds of brokers out there, all offer more or less the same service on 3-5 major software’s, however there is a significant difference between trading with a regulated broker and an unregulated broker. While regulated binary options brokers are obligated to strict laws and international ruling and are exposed to high fines if found breaking these rules, unregulated brokers are working in a free market under the umbrella of offering an online game rather than a pure financial investment. We recommend trading with a regulated broker – is just safer.
3. Tradable assets – although most brokers look alike, one of the main differences seen is the variety of tradable assets. Before opening an account one should look for his desired traded asset is offered and his hosen platform. Don’t waste your time on unfamiliar assets.
4. Bonus; Yes or No – Bonuses are an easy attractive way to seduce investors into opening an account, remember bonuses are not given out for free and demand a minimum amount of transactions before you can withdraw any profit. Use your bonus supplier with extreme care, read the small letters.
5. Educate yourself – learn your binary trading by using a broker’s education centre. Look for brokers who offer online assistance including online webinars, e-books and more. One of the most important tools which could influence your success is the use of a demo account. Most brokers who offer a demo account demand you should deposit some money prior to allowing the use of such account, however this doesn’t mean you’ll have to use this money. Train yourself into success and risk your own money once you’ve mastered the world of binary options.