How to choose an options broker
Choosing a broker is the very first important step a trader takes on the path to future success.
Today, the options trading brokerage services sector is represented by dozens of different companies, each with its own advantages and disadvantages.
As in any business segment, this market is also plagued by fraudulent companies that, under the guise of offering market access, deceive traders and, through every possible manipulation, cause them to lose their deposits or even deny withdrawals of earned funds.
That's why, to avoid falling into the clutches of scammers and to make your trading as comfortable as possible, we suggest reviewing the most important criteria to consider when choosing an options broker.
1. Company certification. Availability of certificates from major regulatory authorities
When registering an account with any company, each trader signs an agreement on the operating rules.
However, if a trader's actions are clearly regulated by a signed document and the company enforces compliance in one way or another, and can refer to its provisions in the event of a dispute, then the trader has no influence over the company in the event of a breach of its obligations.
That's why having a regulator's certificate gives you additional security that your company will strictly comply with the signed regulations.
It's worth noting that certification and insurance fund contributions are costly for brokers, so failure to comply with regulations can cause not only reputational damage but also financial losses.
2. Company age and reputation
Among the dozens of companies that offer options trading, there are clear leaders with long histories and high reputations.
It's important to understand that any large company that has been on the market for a long time will under no circumstances damage its reputation through deception.
At the same time, young, fly-by-night companies can take a dark path at the slightest crisis, and you will end up suffering as a result.
3. Availability of 24/7 support
Beginners may encounter various force majeure circumstances while trading and working with the platform, so it's crucial to have 24/7 contact with the broker's support team.
Thanks to our support service, even if you don't have internet access, you can call to open and close trades, check your account status, and more.
4. Availability of training accounts
If you're a beginner trader and are new to trading, having a demo account should be your top priority.
This account type allows you to learn how to use the platform and test your chosen strategy without any risk to your capital.
5. Speed of withdrawal of funds from the account
Before you open an account, it's important to inquire about how long it takes for the broker to transfer funds to your bank account.
It's important to understand that advertising slogans about instant withdrawals are nothing more than advertising, and actual processing times can be several days, which is always clearly stated in the regulations.
If you don't want to wait weeks to withdraw your earnings, be sure to pay attention to this point.
6. Trading conditions of the company, number of assets
Although at first glance the trading conditions in all companies are practically identical (due to high competition), the devil, as always, may be in the small details.
It's crucial to thoroughly review the trading conditions and avoid being scammed by hidden fees for deposits and withdrawals, opening and closing trades, and so on.
Also, before opening an account, it is necessary to pay attention to the number and specification of assets, since the fees for each of them can vary greatly.
All the criteria are quite trivial, but taking them into account when choosing a broker for options trading will protect you from many troubles.
From my own experience, I can say that it's better to work with universal brokers that offer the ability to trade more than just options. You can find a list of recommended companies here - http://time-forex.com/brokery-opcyonov
