(Watch this video till the end for Best Brokers of 2021-2022
Capitalization is an important factor every future trader looking for a broker should take under consideration. You should make sure the broker you are going to choose is well capitalized simply because this will decrease the risk of bankruptcy. The easiest way to find out whether a company is well capitalized is to check if it is regulated. Regulated brokers cover a set of requirements that to a large extent ensure their financial stability. Also, regulated brokers are generally deemed more trustworthy and are less likely to delay payouts etc. Thus, you should consider depositing your money with a regulated broker, even though an unregulated one might be offering better trading conditions (higher payouts etc).
Payout percentages vary between brokers. Return ratios are brokers main means to compete with each other. However, that does not mean that the market leaders will always offer the highest payout percentage on a given option. Often you will see newcomers offer considerably higher percentages as part of their aggressive strategy to gain market share. However, it is exactly the market leaders who are regulated, offer the best personal data security and will not delay your money withdrawals. Speaking in numbers, we recommend payout ratios of at least 70%, whereas you can receive a return of up to 90% on some instruments.
There are also payouts offered for “out-of-the-money” situations, which means that you can be compensated, even if you lose. So, apart from looking at returns it is always a good idea to also look at the payout rate when the trades are not successful. Some brokers might give you back up to 15% of the sum originally invested.
Multiple brokers offer binary options based on varying assets such as currency pairs, commodities, stocks and indices. Each trader has unique interests and view over the markets and thus will want to trade different binary options, thus the greater the variety of instruments offered – the better.
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