The proper way to compare brokers takes more than 3 minutes!
Most binary option traders do not compare their broker with other brokers because a slick salesman promised them $2,000 in 2 weeks!
Since you are a smart trader, and you are interested in comparing one broker against the other one, we will give you a few items to look into.
Compare Licensed Brokers
Believe it or not, most binary option brokers do not have a license! Some brokers have a license from CySEC, which is the Cyprus Securities and Exchange Commission, a member of the European Union. A couple of brokers have a license from the New Zealand FSPR. As of February 2015, There are no binary options brokers licensed in the United States or Canada.
If the broker you are considering does not prominently display their licensed number on their website, then they are not licensed.
Compare Brokers Software
As you can see here, there are more than 7 companies that provide trading platform software to binary option brokers. They are called the platform providers. Additionally, there are a few brokers that have created their own in house trading software.
The difference between trading platform software includes, the returns offers, the types of binary options, time frames, and more.
As you compare various different brokers, you will for sure encounter two brokers using the same software. Although the brokers use the same software, this does not mean the brokers are equal.
For example; Finpari & Banc De Binary both use the SpotOption software. Finpari accepts traders from America as they are unlicensed, and Banc De Binary is licensed by CySEC so they do not accept American traders.
See more trading platforms here
Compare the Brokers Withdrawal Policy
The biggest complaint about brokers has to do with the withdrawal policy.
The first thing to review on the brokers website is their bonus policy. When a trader receives a bonus from a broker, their money is locked! The trader must meet trading requirements before they can withdraw their money. The trading requirements range from 20 – 50 times the size of the bonus.
This means that if you open up an account with $300, and the broker gives you a $300 bonus, you cannot withdraw your original $300 until you have reached a trading volume of $6,000.
Many brokers automatically place a bonus into your trading account, thereby locking in your cash.