Trading Binary options is a legitimate business, and you absolutely can make money trading from it. For obvious reasons, it is one of the financial tools that boasts some of the highest returns in the financial markets, and it’s very accessible as anyone can get started with a small investment of just $250. This is also one of the reasons why it became so popular in the last few years. Nowadays, there are almost 300 binary options brokers.
However, with the growing popularity of binary options and the avalanche of new binary options brands, there are also many dishonest brokers out there too who practice questionable tactics such as price manipulation and difficulties withdrawing your winnings.
We at scam-rank.com have done an extensive research of almost every binary options broker out there, and we are continuing to research new brokers every single day. Out of all of the brokers screened, we have put together a list of the most trustworthy binary options brokers.
So, how can you check for yourself if a brand is trustworthy? Here are a few pointers on things you must check:
- Check if the broker is Regulated.
- Check if the broker has Capitalization and segregated client accounts.
- Check the quality of the Customer service.
- Check if the Trading Platform is a reputable one.
- Check the broker’s Withdrawal Policy.
You can read below how to check all of the above for yourself, or if you lack the time, you can select a broker from our list of trustworthy binary options brokers below. These are brokers which we have personally checked and screened using the above list, as well as many other parameters. We have also personally visited their physical offices, as well as met the owners of each and every broker and interviewed them about the services which they offer:
1. How to Check if the Website Is Legit?
A big tell-tale sign that exposes disreputable brokers is their website. This might sound naïve, but it is an effective indicator of who the broker is. You are looking for websites that are professionally designed and attractive to the eye. A thoughtful and easy to navigate site bursting with detailed content is a good sign that the broker is reputable. The availability of webinars and other educational materials shows that the broker is planning a long term relationship and care about their client’s performance. A very easy to check positive sign.
2. How To Know If A Broker Is Regulated?
A good thing to check is if the broker itself is a regulated one. Regulated brokers must abide by very strict rules, and they are also monitored closely by the regulators who make sure the broker is financially stable and that no fraudulent activities exist past or present. So how can you verify if the broker is regulated? Simple. Does the broker advertise it on their website? All regulated brokers must include, and also proudly show a link to their license on their website including their unique identifying number. If you don’t see any mention of a license to operate, it is not a good sign. Perhaps the most respectable regulator for trading is CySec (Cyprus Securities and Exchange Commission), but there are others.
3. How to Check the Broker’s Capitalization?
When a broker is regulated, you can relax knowing they are well capitalized. Regulated brokers must deposit very large funds with the regulator which are kept in reserve in case the broker cannot pay its clients for any reason. If a broker is regulated by CySec you can be sure they have capital in excess of €1 million. You’re looking for a segregated account. A bank or securities account in which the customer’s funds are held separate from the funds of the brokerage firm. This is done to create a distinct separation so client funds cannot be accessed for company costs. This basically means if some tragedy shifts the markets and the broker suffers, your funds will not be at risk in any way. If your broker is regulated, you can sleep well at night knowing your funds cannot disappear overnight.
4. How to Check the Broker’s Customer Service?
Customer service can be tricky to contact until you are a registered client. 24/7/365 support is rare and even suspicious, so don’t let that be your benchmark. Most reputable brokers give around 14 hours per day, Monday to Friday. The best way to evaluate customer service standards (other than trading with them for several months) is to simply call them. If they pick up the first time you call it’s a good sign. Have at least three questions prepared and see how knowledgeable they are. If they start putting you on hold or transferring you with delays, then in all likelihood they are disorganized and don’t deserve your business. Another fast indicator is the response time of an account manager when you open an account. If they don’t call you on the first day or within the first 24 hours, they are not on the ball. Great brokers will make contact as soon as possible to make sure new clients don’t make rookie mistakes or get overwhelmed by the learning process.
5. Is Your Broker Using A Reputable Binary Options Platform?
Every broker offers trading binary options through a “platform”. There are only a number of reputable platforms which exist on the market of binary options: Spotoption, Techfinancials, Stockpair, Opteck, Panda, Tradologic, Marketpulse. If your broker is not using any of the above trading platforms, we do not recommend trading binary options with them.
6. How to Check the Broker’s Withdrawal Policy?
For this you should go to the broker’s Terms and Conditions first, but this is only half the story. Read through every line of the T+C looking for withdrawal restrictions, hidden costs, or latent fees that are activated when a combination of circumstances occur. Take your time and contact customer service about anything unclear. You will have a few questions!
Still Not Sure Which Broker?
You’ve probably just spent several hours clicking dozens of brokers and still don’t feel the wiser. Don’t feel bad. We at Scam-Rank have been doing it for a long time, which makes it much easier for us to recognize those brokers that should be given a wide birth. If you’re still undecided but would like to get started making money through online trading, try one of our approved brokers. Many brokers we review scored well, but our top picks passed with flying colors.