Trading conditions as the main criteria in the choice of broker
When choosing a brokerage company for operating in the options market, private traders, without a doubt, firstly pay attention to the trading conditions offered by the company. But, often, the basic parameters of trading conditions are only considered to be the initial deposit and the initial cost of trading positions. However, there are other criteria of trading conditions, which may affect the results of binary trading and the processes related to trading. Therefore, it is necessary to consider the main criteria of trading conditions and their impact on trading binary options. We will use the Binomo company as our example for analyzing the trading conditions of an options broker.
The trading conditions of a binary options broker
Before we look in detail at all the criteria, it is necessary to outline a range of these conditions. So, we will include the following as trading conditions:
⦁ The amount of initial trading capital
⦁ The cost of trading positions
⦁ Options yields
⦁ The level of risk insurance
⦁ The trading mode
⦁ Payment system support
⦁ Timeframes for financial operations
We begin our analysis with the core criteria:
⦁ The amount of initial capital and the cost of contracts with the ⦁ Binomo broker are 10 USD for the initial deposit and 1 USD for the initial cost of contracts. These conditions are considered to be the minimum in the market. They are attractive not only because of the minimal framework established, but also because they are the optimal conditions for proper money management for binary trading. In addition, the trader does not need to invest large amounts of money in the trading process. You have to agree that it’s psychologically easier to risk a small amount of funds, and obtaining a good level of financial performance with minimum investment is also nice on a psychological level. Thus, by setting these trading conditions, the Binomo company has made binary trading very accessible.
⦁ Options yields - this criterion has a direct impact on the trader’s results and the growth rate of their trading capital. When trading options with low returns, the trader earns less income and experiences slow growth of trading capital at the same level of risk, which is unacceptable for financial trading of any form. The Binomo company offers options with payouts up to 87%, which is high market liquidity for the tool.
⦁ Risk insurance is a rather rare service on the options market. Often, the companies that offer it establish risk insurance at the level of 10%. Simply put, in the event of losses, the broker will reimburse 10%. The Binomo broker stands out in this regard - the maximum level of trade position insurance is 30%. In this case, the trader is able to independently determine the level of insurance in this range.
⦁ The trading mode. The Binomo broker’s trading terminal offers its clients a non-stop trading mode. In other words, the trader does not need to wait until the end of a contract to register a new transaction. The number of trading positions is unlimited, which significantly affects the overall profitability of binary trading
⦁ Broker bonuses. Private traders are usually skeptical of this trading condition. And, actually, this is important! Bonuses can increase the volume of trading funds and, respectively, and the amount of profits. In addition, some bonus programs make it possible to trade without the need to make deposits in your account. The ⦁ Binomo broker’s bonus for making a deposit in your trading account is 75%, and, in addition, there is a no-deposit program with gift options
⦁ Payment system support - this is essential for the ease and convenience of carrying out financial transactions. After all, if the broker does not support the payment service that you use, you’ll have to spend money, time, and energy transitioning to a new payment system. Deposits and withdrawals of client funds with the Binomo broker are carried out through the following systems: QIWI, Sberbank Online, WebMoney, VISA, Neteller, Union Pay, Yandex Money, MasterCard, and Alpha-click.
⦁ The timeframe for financial operations means the time it takes to transfer and withdraw profits from your trading account, as well as additional conditions related to this process. Typically, option brokers find it very hard to part with a client’s funds, therefore delaying the withdrawal of funds, and imposing additional requirements for this operation (proof of identity, increases in trade turnover). In this regard, the Binomo company takes a client-oriented attitude. According to the broker’s conditions, withdrawals are performed within 24 hours, but in reality, it usually takes only 3-4 hours, and with no additional conditions. Thus, there is no commission, and the transfer of funds is very quick.
To make the right choice of a brokerage company, you should always take into account all the criteria of trading conditions. That way you can protect yourself against potential problems in the future, and you will be able to more effectively use binary options as a tool for profit on the financial market.