Friday, June 8, 2012

How to select the best Binary Traders

Binary options trading is one of the best ways for a novice investor to make a huge profit simply by speculating on the price directions of underlying security. But this involves much more than just placing blind bets on the price of assets. There are a lot success factors that must be put into consideration when investing in these derivative contracts. The profits in binary options trading are made when an investor makes the right prediction on price movements within a specified time frame. However, the range of data that must be analyzed and the technical skills required to interpret that data and choose the winning options, means that most investors are not well equipped to make the best speculations and be in the money most of the time.

It is therefore important to choose the best binary options traders in the market to ensure that you are making profits most of the time. When choosing traders, a lot of factors must be put into consideration in order to maximize your investments in this emerging financial derivatives market. Some of the common sense factors that you will need to look at are the trading platform used by the brokers, knowledge and experience in the market, reliability, excellent customer support and willingness to volunteer help, the commission paid and even the location in which they are based. We will look at these factors in isolation in order to determine how each plays a part in ensuring your options trading is a success.

Trading Platform
The kind of binary options trading platform that a trader uses will give you an inkling of their worth. If your prospective trader is utilizing a trusted a platform with a reputation of delivering value to its clients, then they are definitely worth their salt. It is also important to work with traders on platforms that have higher payout. It is however important to evaluate what a platform offers as a whole and not just look at the higher payout in isolation. For example, some platforms might be offer very high payout when you are in the money but will offer almost nothing when you bet on the wrong pricing. On the other hand, some platforms will offer you a high payout coupled with a small payback when you are out of the money.

Knowledge of the market
The best traders have deep understanding of the dynamics of the underlying securities ad will generally deliver a good a success rate for your investments. Having a trader who is knowledgeable and experienced in binary options trading ensures you are always in the money. You can dig into the background of every trader in order to determine their worth and how long they have been in the market.

Customer Care
Online customer support is very crucial when it comes to binary options trading. If a trader does not respond to your messages or is unhelpful on the trading platform, then they are definitely not worth your time and investments. You can quickly evaluate how fast a trader responds to your messages the first time you join the platform. Good customer service will assist you in making the right judgment when you are buying binary options.

Commission paid
It is also important to evaluate the amount of commissions charged by each binary options trader. As much as you would like to be in the money most of the time, the last thing you would want is for your profits to be bled way in insane commissions.  Having great trader with a reasonable amount of commissions ensures that you are not just in the money most of the times, but you also get to keep most of your profits.

Time Zone
It is also important to consider the time zones of your binary options trader. It is important to work with a trader who works in a time zone that you are comfortable with. If you are investing in options for underlying securities traded Tokyo, London’s FTSE or Germany’s DAX, having trader who works in those time zones or across those  time zones is very important.

With a good trader by your side, binary options trading can be a breeze, helping you make lots of profits from the click of mouse. Due consideration must therefore be given to the process of choosing a trader.



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