Meta Trader does not offer build-in support for binary options. To use the world’s best trading software with binary options anyway, you need a connection provider.
Those providers take the signals created by your Meta Trader, translate them into orders your binary broker can understand, and execute these orders immediately. Unfortunately, what sound like a perfect deal on first sight has a few problems when you look closer. Here are those problems and what you can do to solve them:
1) Limited option types
Most significantly, many connections providers only support high / low options. Touch / no touch options and boundary options, on the other hand, are only supported by a few selected connection providers. To find out which option types your connection provider supports, log on to their website. Most providers publish a list of known restrictions with every broker they have dealt with in the past. If your broker is not on the list, call / email the connection provider’s support, and ask them for more information.
If their current connection provider does not work with all option types, traders of touch / no touch options and boundary options are therefore faced with the difficult decision: They can either abandon their current strategy and start trading high / low options instead, or keep trading boundary options and touch / no touch options without Meta Trader.
Since both solutions are unacceptable, these traders need an alternative. Here again, they have two options: They can either search for a different connection provider that allows them to choose their option type (those might be hard to find) or switch to a broker that offers a specialized version of Meta Trader that can connect to this broker’s binary options section directly and without a connection provider.
There are only a few of these brokers yet, but their solutions can eliminate most of the limitations on this list.
2) Limited assets
Some connection providers only support a number of assets. Most commonly, they can only pass on signals for big currency pairs. For many traders, this is a huge limitation. If your strategy requires you to trade a certain asset type your connection provider does not support, you either have to switch providers or strategies.
Again, to avoid such problems from the start check a provider’s list of known limitations before you register. If the provider is not right for you, do not sign up for its service. If you cannot find a connection provider that works well with your broker, consider switching to a broker that works better with connection providers, or a broker that offers its own, binary option ready version of Meta Trader.
3) Limited expiration times
Much like the restriction to only a few assets and one option type, many connection providers only allow you to trade one expiration time with many brokers. Usually, this is the shortest expiration time available. This, again, is a significant limitation that can force your strategy to operate in a short-paced, erratic market environment it might not be suited for.
To avoid losing money by being forced into such a situation, check your connection provider’s website. Most providers offer more time frames for at least one broker. You can either switch to that broker, or try to find a connection provider that works well with your current broker. Unfortunately, this might not be possible.
Switching to a broker that offers a Meta Trader that can connect directly to your binary broker, on the other hand, almost always solves this problem completely.
4) Lost trades
Depending on which broker you combine with which connection provider, and which type of asset you are trading, your connection provider will lose a certain percentage of the trades your Meta Trader creates. These trades will not be executed, and you will not receive any form of compensation for them.
Sometimes, these lost trades can cost you a lot of money. Unfortunately, there is no easy way to tell which connection provider guarantees the most stable connection. To find out, you have to register with the connection provider and try it out, maybe with a demo binary options account.
Again, using a specialized Meta Trader that can connect directly to your binary broker can eliminate this problem completely.
5) No expert advisors for binary options
When starting to trade binary options, most traders find that they cannot use their old expert advisors anymore, since they were written for conventional assets. Also, most other available expert advisors on the internet are written for conventional assets, too. That makes finding an expert advisor for binary options hard.
To solve this problem, you can either browse the endless web platforms for a trustworthy expert advisor for binary options, or you can simply choose a paid solution. While offers such as Binaryoptions-mt4.com cost you a one-time or a monthly fee, having a trustworthy expert advisor is well worth the money and can make you many times what you paid for the expert advisor in additional returns.