Successful binary trading takes several large steps, and one of the first ones is finding a good and reliable binary broker. With the increasing popularity of this trading method, finding a broker is not that difficult. However, after a while things can change, and the same broker may not be suitable for you anymore, for numerous reasons.
How to know if a broker is legit
There are several signs that point to the legit broker. First, it is licensed by CySEC or other financial authority. Then, they offer realistic conditions, high payouts and many deposit and withdrawal methods through trusted sources. They have a large number of trading assets and a fast and responsive trading platform. Lastly, if the broker has the contact information on their website and good Customer Service, it is also one of the indicators that it is reliable.
What can go wrong?
Supposing you have chosen a legit broker and traded successfully for some time, there are still some changes that may affect you negatively. These changes can happen regardless of the broker’s legal status and credibility. Simply, their policy, terms and conditions change so they suit them better, but they may not be suitable for you. When you notice some changes, you may consider registering with another broker.
This is the first sign that the broker is undergoing the changes you may not find suitable. They usually know how to mask them and make them seem insignificant, and some time may pass before you even notice that the payout percentage decreased. This is why it is recommended to have a trading diary and add an entry whenever you execute a trade. Calculate the amount of money you invest and the one you earn and turn it into percents. If it does not fit the payout percentage promised by the broke, it is time to look for another one.
Decrease in earnings even with high-level trading
Trading diary can help you spot the difference in earning as well. If are a serious trader, you have a trading strategy and always execute the trades under similar conditions. Once again, you are required to calculate your earnings. You can calculate the amount of money invested and earned over a month and compare it to the trading results achieved earlier. If the differences are significant, this is a sign that you need to change binary broker, because the payouts became lower.
Changing the assets
Some binary brokers, like Banc de Binary, offer hundreds of different assets for trade, in four categories: commodities, stocks, indices and currency pairs. Most brokers keep updating their list of assets on regular basis, to provide trading opportunities for various brokers and to attract new users.
If you have a trading strategy, it can be applied to a limited number of assets, since the changes in the market are not the same for all of them. If the broker stops offering the type of asset you trade, it is time to look for another broker. Applying the strategy you used on one asset for a long time onto new assets may result in the loss of money. This is why you need to look for a broker that offers the asset you are particularly skillful in trading.