About Binary Options Brokers: who are they?
The broker is the one who handles the aspects of buying and selling assets. There are brokers for all types of assets, and they are there to bring buyers and sellers together. Probably all are acquainted with the real estate brokers, stock brokers, insurance brokers, binary options brokers, and many other types of brokers.
The world of binary options is not different than other financial markets, so it’s pretty easy to answer the question “what are the binary option brokers”. They specialize in buying and selling binary options, digital option, which was set up some time ago to simplify option trading for retail investors. In this case, the buyers are customers of binary option brokers, and the seller is a binary option broker himself.
The trader receives income in case he gives the correct prediction of price movement in the nearest future and purchases the necessary option. This seems to be clear. The process of obtaining the income by the broker is a little more complicated to understand. Basic classic version is similar to the principle of the currency exchanges, where of each exchange transaction or purchase the currency exchange receives the difference between the purchase and sale. If your exchange office is in a busy location, the percentage of the profit will be quite high. Brokers work on a similar scheme, and also get the profit from the spread; it usually ranges from 3 to 10 points.
You, as a trader, in order to participate in the auction will have to first buy the currency and then sell it, or vice versa, which means that the broker will receive their share of income. For the first time after the purchase of shares or currency, you can see that the potential profit is -5 points – this is the cost of the spread.
A private broker is not too interested in the clients getting income, for him the main goal is the greatest possible number of transactions and the constant updating of the team of traders. To maintain the activity of the traders, a broker can offer all kinds of training, tips, bonuses, and a host of other shares that will keep the old customers and attract the new ones, as well as stimulate the transactions.
Many binary option brokers have begun to offer demo accounts so you can test your trading software, testing it for trade, and their level of customer service. As they offer this attempt before you buy an option, taking advantage of it. You might find that the broker is perfect for you, or you may be dissatisfied with some aspects of the performance of the broker. It is better to test without risking money.
You’ll also find brokers that offer additional services, such as deposit bonuses, long-term training and education, or specialized functions of the options such as rollover and early closure of the option. Remember that each crumb can help on the financial markets, so take advantage and exploit these extras, if possible.
That’s all for now. Got any questions? Just ask the expert!