Finding a good connection provider to connect your Meta Trader with your binary options account can be difficult. There are a number of hidden problems you have to watch out for. To help you find a good connection provider, here is a list with the most important things you have to check before you hit “subscribe”:
1) Supports all option types
A good connection provider allows you to trade any option type you like. Whether you want to invest in high / low options, boundary options, or touch / no touch options, a good connection provider helps you to do so. Unfortunately, most connection providers do not allow you that freedom. Instead, many connection providers limit you to high / low options. While this might not be a problem for traders planning on investing solely in high / low options, most binary options find that this restriction makes using a connection provider almost impossible for them.
To know whether a provider supports all option types, check the provider’s website. There, you will find a list with restrictions that apply to this connection provider. Sometimes, restrictions depend on the broker you are using, and your connection provider can work better with some brokers than with others.
If your connection provider does not offer a list with known restrictions, it is generally not to be trusted. As a last resort, you can contact support and ask for further information. Nonetheless, if a provider is trying to keep necessary information from its customers, you are better off staying away from this provider.
2) Supports multiple expiration times
A good connection provider allows you to choose any expiration you want. With many connection providers you will be limited to only one expiration time, usually the shortest expiration time available. In most cases, this is either 15 or 30 minutes. On such short time frames the market moves significantly more erratic than on longer time frames.
Traders usually trading binary options with expiration times of one hour or longer will have trouble adapting their strategy to these short expiration times. If you are one of these traders, you should try to find a connection provider and a broker that allow you to choose any expiration time you want.
To do that, check your connection provider’s website. You will find a list with all supported brokers and known restrictions that apply when using these brokers with your connection provider. To fix your problem, you can either switch to a different broker that works well with your current connection provider, or try to find a connection provider that works well with your current broker.
3) Supports all assets
A good connection provider works with every kind of asset you want to trade. Some connection providers, however, only support a very limited amount of assets. Most commonly, they can only pass on signals for big currency pairs. This is a significant restriction that can make applying your strategy impossible.
To avoid this problem, check your connection providers website and make sure he can work with every asset your binary broker offers and you want to trade. If it does not, you have to switch connection providers.
4) Loses few signals
Some providers fail to pass your Meta Trader’s trading signals on to your broker 50 percent of the time. While the exact percentage heavily depends on the broker and the connection provider you are using, such a high rate of lost trades is unacceptable. It could potentially ruin you.
Unfortunately, your rate of lost trades depends on too many small factors to allow for a reliable prognosis. Your only option is a trial and error approach. Luckily, most connection providers support connections to demo accounts for binary options. This way, at least you can test your connection without risking real money.
Other options to connect Meta Trader and binary options
As you have seen, choosing a good connection provider can be hard and a lot of work. If you want to avoid the risk and the effort, your only chance is to register with a broker that offers a specialized version of Meta Trader. These specialized versions of Meta Trader can connect directly to your broker, thereby eliminating the need for a connection provider.