One of the key parameters for success achievement in the binary options trading is the optimum trading conditions. The main objective of binary options brokers is to create these conditions for profitable and effective trading of the clients.
Binary options trading has certain differences from classical Forex trading that is why binary options trading accounts also possess their own features. The GuruTrade team created the impartial Rating of binary options trading accounts offering to the traders the effective tool to choose the trading account which corresponds the most to their requirements and preferences.
Conditions and Parameters of Binary Options Trading Account Rating Calculation
To create the Rating GuruTrade team used the integrated approach covering the most important parameters and characteristics of binary options trading accounts on 9 key indicators. On the basis of these criteria, the reliable and objective Rating of binary options trading accounts is created.
1. Minimum account size (USD)
Binary options trading is rather a new type of earnings, therefore, many traders aren't ready to invest large amounts of money in this innovative format of trading activity. Brokers allow clients to trade in binary options when in the account is presented a certain starting amount, and sometimes without it at all:
- From 0 to 20 USD = 20 points
- From 21 to 100 USD = 15 points
- From 101 to 200 USD = 10 points
- Over 200 USD = 5 points
The small amount of the starting deposit allows to involve traders beginners who do not have large equities for trading yet and are able to afford financial investments, not really considerable in size.
2. Maximum profitability
The maximum percentage of profit represents the amount which you can receive from 1 options sell. The higher is the percent, the higher income is gained by the trader:
- From 80 to 89% = 5 points
- From 90 to 95% = 10 points
- From 96 to 100% = 15 points
- From 101% and above = 20 points
On average, in binary options trading it is possible to get a profit in the amount of 90-95% from one transaction, but some brokers provide options with the profitability reaching 300%. The fixed rate of profit allows the trader to know the exact income amount even before opening of the transaction.
3. Mobile terminal availability
Modern trading can't be imagined without smartphones and other high-technology gadgets. The mobile terminal allows to trade binary options at any time and in any place:
- Mobile terminal availability = 20 points
Now more and more traders work with binary options via mobile devices that is why access to such type of trading is an indisputable benefit of the broker.
4. Minimum investment into an option (USD)
The minimum investment into an option is the smallest rate in case of which the trader can begin trading on the chosen tool:
- From 1 to 9 USD = 20 points
- From 10 to 19 USD = 15 points
- Over 20 USD = 10 points
In the case of competent approach to the trading plan creation the amount of the minimum investment is calculated proceeding from the deposit size - after all the ratio of these sizes determines the risk level. The small initial extent of investment into an option allows beginners to start trading without serious capital investments and avoiding excessive risks.
5. Additional functions
In addition to standard options and opportunities, many binary options brokers offer to the traders additional functions which give them the possibility to adjust parameters of the current transactions:
- To close the transaction = 20 points
- To extend the transaction = 15 points
- To double a rate = 10 points
Using additional functions, it is possible to close earlier the trading order, to extend the time of its action or to double the investment amount. Their availability increases the efficiency of trading, allowing to react to the developing market situation quickly.
6. Compensation availability
Binary options often call options "All or nothing " - this type of trading allows to get a large profit in the shortest possible time, however, risks of mistakes are very high too. Compensation for unsuccessful transactions reduces the losses received by the trader:
- Compensation availability = 20 points
Compensation implies partial compensation of the purchase cost of an option in the case of the unsuccessful transaction when some part of means spent for option purchase are returned by the broker to the trading account of the trader.
7. Demo account availability
The demonstration account allows beginners to take the first steps in binary options trading, to get acquainted with a trading platform, and also to test trading strategy, without risking real money:
- Demo account availability = 20 points
Demo account availability is an obvious benefit of the broker, in particular for those who takes the first steps in trading.
8. Groups of trading instruments
In binary options trading, the main objective of the trader is to predict the further direction of the price movement. The horizon of its opportunities, in this case, is determined by those groups of tools access to which is provided by the broker:
- Currencies = 10 points
- Commodities = 10 points
- Stocks = 10 points
- Indices = 10 points
- CFD = 10 points
- Metals = 10 points
A variety of trading instruments groups allow the trader to realize the potential of the trading strategy more effectively and to receive from it the maximum return.
9. Number of available tools
The number of available tools is important for every trader because it allows to select the instruments with the highest liquidity level at the moment, that provides stability of transaction execution and increases their productivity:
- Up to 30 tools = 5 points
- From 30 to 60 tools = 10 points
- From 61 to 100 tools = 15 points
- More than 100 tools = 20 points
A wide variety of trading instruments available on the trading account increases the potential of the trader’s opportunities.