Finding the best payouts in a binary options broker isn’t quite as easy as it seems. For one, different brokers offer different rates of return on different assets, and these can vary at different points. Your goal as a trader is to get the most out of your money, and having an idea of what you should be looking for is the best place to start.
First, realize that not all brokers will keep their rates steady throughout all different assets. They might have an 81 percent rate on stocks, and 75 percent returns for currencies. This is normal, and it’s actually helpful because it will allow you to narrow down your search. If you trade indices, and you are able to find a broker that offers great rates on these, it will likely be a better fit for you because of the higher rates. .
Next, consider any rebates that a site might offer. These are pretty straightforward: if you make a losing trade, a portion of what you risked will be returned to you. This usually maxes out at 15 percent. So if you risk $100 and you’re wrong, you will only lose $85 because $15 is deposited back into your account. You don’t want to ever be wrong, but even the best trader will be once in a while. This helps offset your losses and should be considered part of your overall profit rate since it diminishes losses.
One way to test these things out is through demo trading. If you create a demo account with a broker, and then notice that the assets you are trading have poor rates in comparison to other assets, it might be time to look at a different broker. This is the beauty of demo trading; you can get a firm handle on what you are doing and determine whether or not you will be profitable before you risk any real money. Some brokers force you to deposit a minimum balance to your account before you begin demo trading, but you don’t have to actually risk this if you do not want to.
In the end, the rate of return is not the only thing that will make you money, which makes this concept even more confusing. It doesn’t matter if you get a 90 percent return if you are never able to be correct. Likewise, a 60 percent return would be phenomenal if you were right all the time. The rate that you earn per trade is important, but it’s just one part of the binary options puzzle. For example, some traders look to bonuses to help boost their profit rate. While this should be a sound method, because 98 percent of regular traders lose money, this doesn’t work for most people. Instead, it’s used by brokers to try and boost client numbers. It’s a sound strategy, but it sometimes can seem tricky because you end up not getting your “free” cash. Make sure you know what the trade through is and ensure that it is reachable before you rely on a bonus. The bonus can be helpful, but it should always be more of an afterthought.
For example, if you can get a 100 percent matching bonus of up to $2,000, that seems like a great deal–you just made $2,000 by signing up! But once you start trading, you will see that the cash in not yours for withdrawing until you’ve traded a lot, sometimes up to 50 times the bonus amount. For $2,000, you would have to risk $100,000 to get your free cash. For most people, going broke will happen long before your $2,000 is yours, and this is counterproductive. To get a bonus, you must first be profitable over the long term. If you can achieve this, then bonuses should be taken into consideration and added to your profits. Until then, don’t bother focusing too heavily on them.
Instead, you should be looking to find a solid trading strategy, improve upon it as much as you can, and make yourself profitable without a bonus. Looking to the best strategies for your assets and focus is a good start, as is getting the most out of every trade by finding the best rates of return on your asset for the timeframes you will be trading.