Having the wrong binary broker will cost you a lot of money. Sometimes, the right broker turns into the wrong broker without traders noticing it. This article on binary brokers will help you avoid that problem.
When to switch binary brokers
Many binary options traders stick with one binary broker for their entire trading career. All new traders hope to establish such a longs lasting relationship with their broker. When you have found a good fitting broker for your trading strategy, it is only understandable you want to remain in this ideal situation.
Still, because of their desire to stay with one broker, some traders resemble the famous frog in the slowly boiling water: Even though their broker slowly gets worse, they fail to realize the slow decline. As a result, they stay with the broker longer than they should, which can cost them a lot of money.
To save you from the same problem, here is a list of the most important signs it might be time to switch brokers:
1) Declining payouts
The easiest way for a binary broker to save money is to reduce the payout its customers receive with every winning trade. These changes are usually small, hard to notice, and can seem insignificant. Given the number of daily trades, though, they make a big difference for the binary broker, and they will make a big difference for you over the course of a year or longer.
Stay on guard when it comes to payout. If you stick to your strategy, you will always invest in roughly the same situation. Therefore, the payouts you receive can be compared. Calculate the average payout your provider gave you with every winning trade at the end of each month or at least at the end of each year. If the number is declining – switch binary brokers.
2) Different assets
For various reasons binary brokers keep updating the list of assets they provide binary options for. Since every trading strategy works best for a certain kind of asset, you need a broker that offers binary options for the kind of asset you want to invest in.
If your binary broker stops providing your type of asset, you have to change brokers immediately. Anything else will cost you a lot of money. Many traders fall victim to convenience and try their strategy with the other assets their binary broker offers first. This is a recipe for disaster. Avoid it at all costs.
3) Declining earnings in spite of high-level trading
Some binary brokers are sneaky. They know how to hide the changes in their service, so you do not realize them. The one place they cannot hide them is in your monthly result. If your earnings are on the decline, but your trading diary does not show any signs of worse trading and you are winning as many trades as always, your binary broker might be the source of your struggles.
Maybe they decreased payouts so slowly that you did not realize it. Maybe they started modifying the assets price. Check your trading history and make sure, the payouts you receive now are still as high as a year ago and as high as the offers by competitors. If not – change your binary broker.
Always have a backup plan
The key to success in general is anticipation combined with preparation. Smart traders therefore always know the second best broker for them. As soon as the best broker, the broker they are currently investing with, gets worse, they can switch brokers quickly and without any trouble. The number one reason people stay with declining brokers is laziness. They try to avoid the trouble of finding a new broker.
Ideally, you would set aside one hour per week, or at least one hour per month, to inform yourself about new developments and changes in the broker landscape. If you find a binary broker that offers you a better service than your current broker, do not be reluctant to switch brokers. Since binary options are a relatively new investment form, new developments happen often and quickly.
Avoid any false sense of attachment to a broker. Your first and only responsibility as a binary trader is to make enough money to provide for yourself and your family. If your broker gets in the way of that, get rid of it.