The correct way to compare binary option brokers works like this. There are 4 questions every trader should ask a broker before they start trading.
Does the broker have a license?
There are over 200 binary option brokers worldwide, however only 20 brokers actually have a license. See licensed brokers here. Trading with unlicensed brokers many times leads to complaints about withdrawal problems and other unethical behavior.
If you received an email about an auto trading signal software, and they recommend an unlicensed broker, you are better off comparing two legitimate brokers like EzTrader and Red or Green who are both licensed and provide signals to traders, see here.
Traders in the United States will not be able to find a licensed broker with the exception of Nadex.
This has not stopped traders in America from trading with off shore brokers, however many of these offshore brokers are linked directly to auto trading robots which will lose your money.
Does the broker offer trading signals?
Trading signals are very hot nowadays, due to the creation of auto trading robots.
Most brokers provide their clients with trading signals. The worst trading signals are the ones that an analyst or broker tells clients over the phone.
The most successful traders create their own method for finding trade ideas, read more here.
Traders should read about the various trading signals available here.
What are the returns offered?
Brokers love to boast returns of 400%, but in reality, most traders trading binary options will trade options on a currency and the returns range from 70% – 90% depending on the broker. When comparing brokers, it is important to make an apples to apples comparison. Choose what you are going to be trading, and then choose the time frame.
How easy are withdrawals?
This issue is discussed in more detail on our complaints page. When comparing brokers, there is a simple test that a trader can do.
The trader should pick up the phone and call the broker. Many times when dealing with a scam broker, the phone number will not work! That is how you know the broker is a bad broker.
If you get through to the broker, ask them how you can make a withdrawal and see what they say.
So Which Broker Should a Trader Use?
Every trader has their own requirements for a broker, but the first place to start is with the top rated brokers, see here.