As a binary
options trader the most important decision is where to trade, and everything
else comes thereafter. If you are not dealing with a trustworthy and regulated
broker, you are putting all your money and profits at risk. There are a large
number of brokers out there and it could be a big challenge to determine which
one is right for you. Payout percentage is a useful determinant in finding the best
binary options brokers. The
following guide provides you valuable insights into what payout percentages
mean.
Payout Percentages
The
interesting thing about binary options is that it is all or nothing, which
means there are only two outcomes to a trade – you will get paid or not at all.
This makes it quite simple and popular at the same time. Thus, if you know if
the basic security moves to a specific price you will be making a profit, else
not.
But many
brokers don't keep it as simple. While some may pay out a fixed amount if it
ends in the money, others pay out a certain percentage of the initial
investment. The eventual payout percentage is different for different brokers.
This means that a lot of your profit will depend on the broker you eventually
choose.
Choosing the Right Broker
This is the
reason it is important to check the payout percentage of the broker before
signing-up with them. Beware of those brokers that have lower percentage for
winning trades and also lower percentages for rebates if you lose a trade. So
you must also check the rebate percentage on the losing trade besides the
payout percentage before choosing the best binary options brokers. It is not essential that the broker offering
the highest payout may be as good when it comes to losing a trade.
Binary options reviews by traders and experts are the best source for
finding the most reliable brokers who offer better payout percentages. It will
be better to check the user feedbacks about a broker before signing-up with
anyone or making the first deposit. You could also take advantage of the free-demo
accounts that usually most services offer so that you could check their
features and bonus offers.
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