Binary options brokers have several ways of setting up trading accounts. Some just have the most basic account available. Here, it is simply a matter of depositing money and then placing a preferred trade. There are just as many brokers, however, that provide plenty more opportunities with account types.
You will often find names such as Silver, Gold, or Platinum associated with such accounts. Therefore, you may be asking, how to choose the best trading account for you? If you are a bit confused about the selection, here is how you can make your decision:
1) Compare Different Brokers And Account Types
The first step is to compare the accounts from different brokers with one another. On the surface, all that may appear to be different is the name and how much money you have to deposit in each of them. This is why it is important to look at little deeper. Is each account actually offering you different services or advancements? If so, then it is quite possible that you may want to choose one option over the other. Remember, some services may be labelled or packaged a little differently but may ultimately prove to be the same thing.
The accounts that you should look really closely at are the standard accounts. Just how much variation is there between brokers? Some brokers may actually offer some rather significant features for standard accounts, which is definitely a bonus for new traders.
2) Consider Continuing Expenses
Speaking of money, you should look at how much each of the accounts are asking you to deposit. The basic accounts are obviously the cheapest. Nonetheless, even at a starting level, the prices may vary quite a bit from broker to broker.
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Therefore, you should not assume that standard accounts are all alike. Some brokers will ask upwards of $500 to start even the most rudimentary account. Another thing that you need to keep in mind is that the initial cost of the account is what you will need to continue to pay. This means that every time you deposit money into your account, there will be a minimum enforced. Unless you have continuing funds to do so, don’t sign up with the more expensive accounts.
3) Evaluate the Services
As mentioned, you can expect different services from each account. Typically, the more exclusive the account, the more assistance you receive. For instance, you may get trading signals, be assigned a manager, or have monthly meetings.
Then, in certain instances you may get to withdraw money without having to incur any expenses. It is all about determining the value of these services. Will they actually help with your trading or are they just there to make the list look longer?
4) Know Your Trading Frequency
The more expensive accounts can be a good deal for those who trade quite frequently. All of the services will help them to make better trades and as such, you can justify the cost. If you tend to trade quite sporadically, however, then you may find yourself at a disadvantage.
In this instance, it will better for you to stick with the most basic account. In fact, this is actually a good place to start from. If you feel like the standard account is not providing you with what you need, you can move up to something better.
5) Read Terms and Conditions
Just because you are choosing the most expensive account that boasts a lot of features, doesn’t mean that there won’t be certain restrictions. Always make a point of going through each of the points in the terms and conditions. This way, you will be able to pick out any troubling policies ahead of time.
This is how to choose the best trading account for you. Make sure to pay attention to all of the advice provided here.