Here is a guide that will help you find the best binary options brokers in the UK.
Deposit and Withdrawal for UK Traders
The most common payment option used by traders is a credit card. All binary options brokers support the option.
Some traders prefer alternative payment methods, such as PayPal, Skrill, NETELLER, Perfect Money, Bitcoin, or some other obscure payment system.
Brokers differ in their support for alternative payment methods. Ensure that a broker supports your payment method before taking the plunge.
Deposit and Withdrawal Limits
All brokers have deposit and sometimes withdrawal limits. You just have to ensure that you are fine with the limits. The binary option robot software usually will let you know about these amounts before making a decision.
In addition, it is now a common directive that brokers verify the identity of their clients. It is an anti-laundering directive, and while some brokers would enforce it before permitting you to trade. The vast majority would allow you to make deposits and trade without verifying your identity.
However, they would make your verification a requirement for processing your withdrawal. It is cheeky, but most other brokers who do not ask of any form of identification are likely to be sham operations.
Typically, depositing money into your broker account is near instantaneous for most payment methods. It is often a different story when it is time to withdraw your money.
Some would ask for a five-day processing time before releasing payments. Then if you choose a withdrawal method like Bank Wire Transfer, it could take another three to five days before the money reflects in your account.
On the flip side, there are brokers that do expedited same-day withdrawals for select payment options, and then the brokers that sit in the middle.
Lengthy processing time is not usually enough reason to make you look elsewhere, unless it is outrageous. What you want is a duration that you are comfortable with.
Deposits and withdrawals using virtually all payment options come with a charge at some point. That is how the payment systems make the majority of their revenue. Sometimes, the broker would foot the bill, but it is not obligatory.
Of late, many brokers dismiss the idea of charging exclusive fees that are independent of the fees charged by the payment method. It is preferable to choose a broker who does not charge you extra to either deposit or make a withdrawal, over what the payment system would take.
Payout rates are not uniform within the options industry. A broker would even offer a range of payout rates for different assets. The general rule of thumb is that the higher the payout, the better. Increased profit is only one advantage.
Another advantage is that larger payouts mean less risk. Therefore, you could lose few more trades and still remain profitable, when you receive higher payouts; compared to when you receive considerably lower payout rates.
Many brokers offer payouts as high as 91%, while others go as low as 60%. A decent average is 75+%, and you should be wary of using a broker whose payout rate is consistently below 75%.
It is inevitable for some of your trades to end out of the money. If you are successful, these trades would make up only a tiny percentage of your trades.
Regardless of your success level, getting returns when you lose helps your bottom line. Although, return rates usually max out at 15%, and it isn’t a standard offering amongst brokers, getting something is better than nothing.
This is a factor that should go in your “Why I want to use ‘X’ broker” column, when you are weighing the pros and cons of a select broker.
Features and Resources
- Additional Features: The simplicity of Binary Options trading is one of its most endearing appeal. Still, for binary options trading to one day become as mature as traditional online FX trading, it needs to check the ‘versatility’ box. Many brokers are stepping up to the plate with features, both features that are useful and features some may characterize as gimmicks. You can utilize features such as rollover, double up, and early close to improve your profitability.
- Availability of Demo Accounts: The primary importance of demo trading is to get a hang of options trading and getting used to a certain trading platform without risking real capital. There are other advantages to having demo accounts available.
Both seasoned and new option traders would find demo trading to be practical. Therefore, you should endeavor to choose a broker that makes provision for free demo accounts, preferably without any strict conditions attached, like depositing funds in your real account before giving you access to demo trading.
If you don’t want to leave claw marks on a desk, bang your head on a wall, or pull your hairs in frustration, you want a broker with a responsive and knowledgeable support. All brokers offer customer support in English.
The key words are responsive and knowledgeable. You want a UK broker that is able to respond to your enquiry at most times of the day without undue delay. To this end, there should be multiple communication channels, such as live chat, direct mail, or phones.
In addition, the responses you get should actually address the questions you have. Generic responses are annoying and you want to test the support team yourself to be sure.