Variety is something that is frequently talked about in relation to binary options brokers. Variety can include elements such as instrument types, types of assets, expiry times, and more. Each broker is allowed to provide whatever features they wish to include in their platform. Most traders automatically assume that more is better, but that isn’t always the case. Consider the following when scoring brokers based on the features they are providing.
During the initial stages of trading too much variety can actually be a negative. When faced with too many options, novice traders can easily become confused. Poor decisions are often the direct result of confusion. This is not to say that you shouldn’t want to have access to plenty of options, but instead that focusing on just a few different elements when first starting out is likely to be the best idea. Most traders start out with the basic Put/Call trade and then branch out from there. This is a smart move.
Asset variety seems to grow consistently, as brokers regularly add new underlying assets to their index. Once again, novice traders may not fully appreciate having access to so many options. Even so, over time traders come to understand how a greater variety is actually going to work in their favor by providing lots of profit opportunities. To avoid issues, concentrate on a couple of assets at a time, becoming familiar with these before moving on. A good idea would be to select one from each class: stock, commodity, currency, and index.
Expiry times are much more important than many binary options traders realize. The good news with these is that brokers do an excellent job of offering time periods which range from mere seconds to a full month, or sometimes even a year. Expiry times most definitely play a role in the overall level of risk that each trade carries, so you’ll want to carefully pair your expiry times with current prevailing market conditions. This pairing skill is one best mastered as soon as possible, as the expiry time selection can make or break any trade.
Variety within the investment platform impacts all traders. Platforms vary from broker to broker and what one trader likes, another one may not. Demo accounts are excellent for testing out platforms prior to making a deposit. These accounts are usually offered for free, but you may have to directly request them. Even though you’re always free to change brokers, it’s wise to take the time to make sure that you’re positioned with a great broker from the start. Doing so can prevent many problems.
It’s actually quite tough to score brokers based on the variety of options they provide. This is because personal preferences are going to vary. At a base level, you’ll want to err on the side of more options being better. Too few selections can be quite limiting and could restrict your profits. Don’t concern yourself with too much, too soon. There will be plenty of time for exploring all of the available options when you trade binary options on a consistent basis.
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