We are well known with the word ‘Broker’ but many of us do not know what is a broker? Or about the broker our knowledge is not so clear because of the lack of information. Today I am going to discuss the broker, especially about the Binary Options and Forex broker. Before proceeding to the discussion let’s know the definition of broker.
Definition of Broker
“A broker is a firm or a company or an individual person who places or executes buy and sell orders on behalf of a trader or investor for a commission or fee.”
The broker acts as an agent or a media for their customers and charges the clients a fee for their services. You will find a broker in different sectors like online trading (binary options, forex, and stock), real estate, insurance, property, joint venture, marriage, mortgage, investment, pawn, and power etc.
Let’s come to the main point.
What are Binary Options and Forex Broker?
“Binary Options and Forex broker is a firm or company which places or execute trades on behalf of an investor or trader for a charge or commission.”
Remember that, Binary Options and Forex broker can’t be an individual person. It will be always a firm or a company. Unlike the other sectors, broker Binary Options and Forex broker also acts as an agent or media for a client to place their trades.
Why You have to Trade with a Broker?
In binary options and forex, there is no option for you to trade for yourself. If you want to trade binary options and forex you have to go through a broker or an automated trading software. Automated trading software is also sunk with several brokers. So joining a broker is the only way to trade binary options and forex.
Broker platform is the place where you can invest, trade binary options and forex, and can monitor all your activities through a trading platform and a user dashboard.
Types of Binary Options and Forex Broker
Considering the legitimacy of Binary Options and Forex broker there are mainly two types of broker.
1. Licensed Broker
2. Unlicensed Broker
Let’s know a bit more about these types.
There are regulatory authorities for binary options and forex who gives the broker license and regulation to run their activity in the market. CySEC (Cyprus Securities and Exchange Commission), CONSOB (Commission Nazionale per le Societa la Borsa), BaFIN (Bundesanstalt fur Finanzdienstleistungsaufsicht or Federal Financial Supervisory Authority), AFM (Netherlands Authority for the Financial Markets), FCA (Financial Conduct Authority) etc. are the regulatory authority for binary options and forex industry.
If a broker is licensed and regulated by one or some of this regulatory authority then the broker is a licensed broker. Licensed broker maintains all the rules of regulatory authorities. Remember that to gain a license from a regulatory authority is not easy because the licensing policy is so strict and conditions are difficult.
So the broker who has a license from the regulatory authority is the Licensed Broker. This type of broker is legit, totally scam free and safe to engage.
The broker who is not licensed and regulated by the regulatory authority is Unlicensed Broker. This type of broker is risky to engage and if you want to join an unlicensed broker you have to do it at your own risk.
What You can have from a Licensed Broker?
● Trading Platform: You will have a trading platform in the licensed broker. In this platform you can invest your capital, can place trades and monitor your trades also. Different broker uses different platform according to the customers need.
● Tools: Licensed broker provides several tools for their customers to analyze the market condition which is helpful to make decisions.
● Educational Materials: Many licensed broker provides educational material for the traders like video tutorial, eBooks, PDF to learn about binary options and forex market, trading and strategies.
● Trading Strategies: Licensed broker uses effective trading strategies like Pin Bar Strategy, Three Black Crow Strategy, Rebound Line Strategy, Rainbow Strategy, Piercing Line Candlestick Patter Strategy etc. You can learn these strategies from a licensed broker and apply them for your trading to boost your profit.
● Demo Account: Most of the licensed broker provide a demo account for their customers so that they can familiar with the trading platform and can learn more about trading. They give virtual money for a demo account to trade.
● Signal Service: Most of the Binary Options and Forex licensed broker provides signal service from what trades can know the probable condition of a trading asset. You should remember that signal service varies depending on the broker.
● Automated Trading Robot: Some of the licensed brokers also provides automated trading robot though it rare to find a broker with the automated trading robot because sometimes it can be risky.
● News: You will have a news section in the licensed broker trading platform which gives the update of binary options and forex market continuously. So you don’t need to search here and there for the market news.
● Assets: Licensed broker gives the investors a wide range of assets for trading which includes Commodities like Gold and Silver, Indices like Dow Jones and Nikkei-225, Currency Pairs like GBP/USD and EUR/USD, Stocks like Apple and Google, and Bitcoins also.
● Charts: Charts like Japanese Candlestick is also provided by the licensed broker which shows the real time asset price movement and indicators for the traders choice.
● Bonuses: Some licensed broker gives away bonuses to their customers. I suggest you check the broker’s term and conditions before accepting any bonus amount.
● Trading Tournaments: Good and licensed broker arrange trading tournaments for their clients. You can participate these tournaments and by winning in the tournament you can earn a handsome amount at a time.
● Good Customer Service: For the customers licensed and good brokers have pretty good customer service. Depending on the broker you can contact with broker customer service 24/7 in various major languages. They are always ready to answer your question and to solve your query within a short time period.
● Personal Account Manager: Depending on the account types many licensed broker provides a Personal Account Manager who helps the traders to place trades, making trading strategies and maintain their accounts.
● Several Methods for Invest and Withdrawal: Good licensed broker always has several international methods for investing and withdrawal like Skrill, Neteller, Fasapay, WebMoney, World Wide Wire Transfer, Credit Cards, and Master Cards etc.
● A Variety of Expiry Time: A good variety of expiry time is also provided by the legit licensed broker.
● Applications for Smart Phones and Tabs: Licensed broker developed their trading platform application for smartphones and tabs (Android and iOS) so that traders can login in their account and can trade from anywhere anytime.
● Handsome Payout: In most of the cases the payout of the licensed broker is pretty good and consistent which is above 80%.
● Well-Developed Platform and Easy to Use: Most of the renowned and legit licensed broker has a well-developed platform which is awesome in design perspective and easy to navigate.
What should You Consider to Select a Binary Options and Forex Broker?
In my opinion, you should consider only two things to select a broker for binary options and forex trading and they are –
1. Check if the broker is licensed and regulated or not
2. Check the benefits of the brokers and compare them
Always go for the licensed and regulated broker because it’s the safest way to trade binary options and forex and after checking the benefits of the brokers select the best one for you which suits you. I think you get the point.
If you ask me my recommendation for Binary Options and Forex Broker then check out the below brokers.
My Recommended Broker
Binary Options Brokers:
● IQ Option (My All Time Favorite)
Few conclusive word for you.
Yes, binary options and forex is a great way to earn from online within a short period of time. But you have to consider the risk of losing sometimes because you can’t win all the time. No broker and auto trader software has the ability to give you 100% return. Moreover, you need to trade with a legit licensed broker like IQ Option for binary options or FXPRIMUS for forex to ensure you are not being scammed.
You can be a successful trader with the combination of your knowledge, skill and legit broker. I hope this article helped you to learn about the Binary Options and Forex broker. If you have any further query let me know in the comment section. Wish you successful trading with Legit Binary Options Review.