Trade with Multiple Binary Options Brokers
While trading binary options, instead of a single broker, it would be better to place trades by referring to two or three brokers.
Of course, learning how to trade binary options should be a top priority. For traders who are not yet familiar with binary options trading, they can use a single broker to learn how it works. Then, after gaining trading experience, they can use multiple brokers to trade binary options, and there will be a big difference in profit ratio and winning percentage.
In some cases, it is necessary to take advanced trading strategies and tactics in order to make a profit in trading binary options. However, strategy is not the only thing that matters. As a first step towards winning trades, it is necessary to make the trading environment and trading experience the best they can be.
Benefits of Trading with Multiple Brokers
Ensuring the best trading conditions
In binary options trading, depending on the time frame and market situation, the payout rate of a currency pair can vary widely.
While some brokers provide fixed payout rates, most of the brokers do not offer a fixed payout rate. If a trader trade with multiple brokers, it is possible to deal with the situation flexibly and choose the best available payout rate.
The payout rate varies from one broker to another. For example, for the same currency pair and binary options type, broker A may offer a payout rate of 70% and broker B offers a 75% payout rate. In this case, if a trader opened accounts with both brokers, he can choose a broker that offers a higher payout rate. This ensures the best trading conditions.
Since the profit ratio has a major impact on the final return, it should not be neglected. In order to make a profit, even if it’s only a little bit, it is necessary to ensure the best trading conditions.
Unfortunately, binary options trading is not yet considered as a kind of investment by all entities and there is the concern about the safety of funds. That is to say, there is a risk that any of the binary options brokers might go bankrupt.
If a trader uses a single broker and all investment funds are deposited into one account, it is likely to lose all the funds when the broker filed for bankruptcy.
In order to avoid this problem, it would be better to open multiple accounts with several different brokers and spread funds. Even if one of the brokers filed for bankruptcy, a trader will not lose all his investment funds. By using the diversification strategy, one can minimize risks.
In recent years, some brokers have adopted Investor Compensation Fund policy. If you are worried that the broker might go bankrupt, it is recommended that you trade with brokers who have adopted the Investor Compensation Fund policy, for example, OptionBit. OptionBit is a CySEC regulated binary options broker. In case the broker went bankrupt, clients can receive a certain amount of compensation.
More assets and types of binary options are available
Even though there are a lot of binary options brokers, none of these brokers can offer all the assets and binary options types. The number of assets and binary options types vary from one broker to another. Therefore, instead of a single broker, it would be better to trade with multiple brokers since they provide more options.
A simple example will serve to illustrate the point. Almost all the binary options brokers offer High/Low and Short Term options. However, this is not the case for Range and Options Builder. These two types of binary options are offered by only a part of the brokers. For this reason, by opening multiple accounts and trading with several different brokers, a trader is able to rise to the occasion.
A trader should place trades by observing the market movements. When one expects that the price will follow the market trend, he can trade High/Low. When large movements are expected to occur after the release of economic indicators, one can trade Touch so as to make a high level of profit.
Recommended Binary Options Brokers
24Option is a binary options broker that is fully licensed and regulated by CySEC. The broker offers a variety of types of binary options, such as, High/Low, Short Term, One Touch, and Boundary. It also provides traders with a wide array of assets. Furthermore, on the 24Option platform, a trader can easily make deposits and withdraw funds.
In addition, 24Option offers a free candlestick chart named “CandleChart”, which helps traders to analyze price movements. 24Option does not require any registration fee. It is recommended to open an account with 24Option and trade binary options on the 24Option trading platform.
※Please be informed that services on the 24Option trading platform are not available to USA traders.
CherryTrade.com is a binary options broker that accepts USA traders. It provides traders with a wide variety of assets and types of binary options. In addition, CherryTrade offers a tool named “IFOLLOW”, which enables traders to follow top professional traders and copy their trades.
CherryTrade has been used by a lot of traders, including those from the USA. The broker provides mobile apps. Traders can easily access to the trading platform and place trades at anytime and from anywhere.