How to choose an options broker
Choosing a broker is the very first important step a trader takes on the path to his future success.
Today, the segment providing brokerage services in the field of options trading is represented by dozens of different companies, which have both their advantages and disadvantages.
Just like in any business segment, there are fraudulent companies in this market that, under the guise of providing access to the market, actually deceive traders and use all possible manipulations to achieve the loss of a deposit, or even refuse to withdraw earned funds.
That is why, in order not to fall into the clutches of scammers and also to make your trading as comfortable as possible, we suggest considering the most important criteria that you should pay attention to when choosing an options broker.
1. Company certification. Availability of certificates from the main largest regulators
When registering an account with any company, each trader signs an agreement on operating regulations.
However, if the trader’s actions are clearly regulated by a signed document and the company somehow forces him to comply with it, and in case of controversial situations can refer to its norms, then the trader cannot in any way influence the company in case of violation of its obligations.
That is why having a regulatory certificate gives you additional protection that the company will strictly comply with the signed regulations.
It is worth noting that undergoing certification and paying a contribution to the insurance fund by the broker costs him a huge sum, so failure to comply with the regulations causes him not only reputational damage, but also financial damage.
2. Company age and reputation
Among the dozens of companies that provide options trading, there are clear leaders who have a long history and a high reputation.
It is worth understanding that any large company that has been on the market for a long time will under no circumstances violate its reputation through deception.
At the same time, young fly-by-night companies can take a dark path at the slightest crisis, and you, as a result, find yourself injured.
3. Availability of 24/7 support
When trading and working with the platform, beginners may encounter various force majeure circumstances, so it is very important to have 24-hour communication with the broker’s support service.
Also, thanks to the support service, if there is no Internet, you can give orders over the phone to open and close transactions, find out the status of the account, and so on.
4. Availability of training accounts
If you are a novice trader and are encountering trading for the first time, having a training account should be your highest priority criterion.
It is this type of account that allows you to learn how to work with the platform and allows you to test your chosen strategy absolutely without any risk to your capital.
5. Speed of withdrawal of funds from the account
Before you start opening an account, it is very important to ask how long it takes for the broker to transfer funds to the bank details you need.
It is worth understanding that advertising slogans about instant withdrawal are nothing more than advertising, and the real terms can be several days, which is always clearly stated in the regulations.
If you don’t want to wait weeks for the withdrawal of your earned funds, be sure to pay attention to this point.
6. Trading conditions of the company, number of assets
Despite the fact that at first glance the trading conditions in all companies are almost identical (due to high competition), the devil, as always, can lie in the small details.
It is very important to study trading conditions in detail and not fall for additional hidden commissions for depositing and withdrawing funds, opening and fixing transactions, and so on.
Also, before opening an account, you need to pay attention to the number and specification of assets, since commissions for each of them can vary greatly.
All the criteria are quite banal, 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 is better to work with universal brokers that provide the opportunity to trade not only options. You can find a list of recommended companies here - http://time-forex.com/brokery-opcyonov