In Binary betting the term 'brokers'
is wrong in this instance as those providing binary prices are
market makers and the relationship with their clients is very
different from those trading futures, forex and CFD's.
Ultimately if the client wins a binary bet the market maker loses
and vice versa, therefore it is similar to the relationship a
bookmaker may have with a sports betting client. Losing clients are
profitable for the market maker, winning clients are not!
There are far fewer binary market makers than there is to be found
in other areas of the financial markets. The technology required
for binary trading platforms is reasonably advanced and has proved
to be prohibitive to new entrants.
Nevertheless there is a choice of provider, whether it is a
spread betting or a traditional fixed odds company who has decided
to extend their product range to include this type of bet. Much of
the decision about who to trade with will lie with the products on
offer as well as the trading platform used. Many market makers now
offer bets on a very short term basis with traders able to take
views on how the market will move in the next 5, 20 and 60 minutes
as well as being offered daily, weekly and monthly bets.
If you have a questions about binary products or qould like us
to research a particular provider please get in touch and we will
be delighted to answer them for you.